Is employee trust the key to a successful company merger? This research explores the variables that impact managerial trustworthiness during and after a company acquisition, a time when employee behavior often suffers. The study identifies frequent communication and the pre-existing quality of employee relations as crucial factors in fostering trust. Acquisitions often have a negative impact on employee behavior, leading to counterproductive practices, absenteeism, low morale, and job dissatisfaction. The research suggests that a carefully planned, employee-centered communication program, coupled with good employee relations, forms the foundation for a successful outcome in terms of employee relations. Effective communication can be used as a tool to increase employee trust. The paper has significant implications for managers seeking to maintain a positive work environment. This study offers practical recommendations for managers navigating the challenges of company acquisitions. By emphasizing the importance of communication and employee relations, the research provides a roadmap for building and maintaining trust during times of organizational change.
Published in Employee Relations, this research aligns with the journal's focus on the dynamics of employee relationships and organizational behavior. By exploring the factors that influence employee trust during acquisitions, the study directly addresses a key concern for HR professionals and managers.