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Jordan Goodman is the author of Everyone's Money Book, available at 888-201-6300. This is the third edition of the book. You can also visit his Web site at www.moneyanswers.com. He talks with us on Thursday mornings.
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November 20, 2003
"Surviving a Merger as an Employee"
With the return of a huge number of mergers and takeovers announced in
recent weeks —- Bank of America—FleetBoston in banking, Bertelsman-Sony in
music and RR Donnelly—Moore Wallace in printing -- employees are more worried than ever about how a merger might affect their jobs.
If you are working at a company being merged or taken over, you have a
right to worry. Many times, these mergers are consummated to lower
costs and reduce payroll dramatically. When Hewlett-Packard took over
Compaq, for example, over 15,000 employees were laid off. And, it’s not just
big companies that lay people off in a merger, but medium and smaller ones,
too, looking to cut costs and increase productivity.
So, what are you supposed to do if you wake up one day to find that your
company is being sold or merged with your competitor? Here are a few tips:
- Find out about your merger partner. First of all, are you the devourer or
the devouree? Just because your company is taking over another does not mean
you have any extra job security, but it might help some. Find out quickly if
your merger partner has overlapping lines of business to the department you
work in, which might mean you are more vulnerable to layoffs.
- Don’t assume your boss can protect you. During a merger, it’s everyone for
themselves, and you shouldn’t expect your supervisor to protect you from
layoff because the boss might get the ax, too. You have to marshall your
arguments with whomever is going to be in power about why you are worth
keeping. Perhaps, you have a special relationship with clients who bring in the big bucks. Or, you are the only one who knows how the computer system works. Or, your creative genius is what
makes your ad agency special. Whatever it is, don’t be afraid to strut your
stuff to hold onto your position in front of people who don’t know what you
can do.
- Be a team player on the new team. If your new boss wants to pursue a
strategy you think doesn’t make any sense, go along for the ride and do the
best you can so you look like a player on the new team. Suggest ways to make
it work to bring in more revenue and cut costs, and you will look like a
hero.
- Look for a new job while you still have your old one. You may do the best
you can to hang on but still get cut through no fault of your own. Think of
yourself as working in an industry, and not just for that employer. You can
also think of the kinds of skills that you have developed that might apply
to other industries, so you are not tied to just one industry.
- If you get the ax, negotiate for the best severance package you can get.
This might include extending your health insurance, giving you phones and
office space to look for another job, or taking you on as a consultant.
With another round of mergers clearly on the way, you can never be too
prepared for a merger-takeover shakeup of your career.
For More Financial Tips From Jordan Goodman
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