Mergers and acquisitions are high-impact events that can create anxiety and uncertainty for employees, especially those joining a new organization. HR teams are responsible not just for navigating the logistics, but also for maintaining employee trust, engagement, and retention throughout the transition. One of the most powerful tools to support this goal is effective Total Rewards Communication.
When companies clearly explain compensation and benefits during an acquisition, it reduces confusion, demonstrates empathy, and builds confidence in the new organizational structure. Below are best practices for using Total Rewards Communication to guide employees through the M&A process.
Transparency is critical from the beginning. As soon as it's appropriate to share details, inform employees about the acquisition timeline, what to expect, and how their compensation or benefits may be impacted. Don’t wait until all details are finalized; communicating what is known (and what is still in progress) helps ease tension.
Ambiguity creates anxiety, especially during periods of change. A clear and realistic timeline helps reduce uncertainty and builds trust, even if all details aren’t yet finalized. Coordinate between both HR teams to develop a Total Rewards transition strategy that outlines what benefits and perks will stay the same, which will change (and when), and whether any gaps in coverage are expected. Include specific timing for key milestones, such as pay or benefits evaluations, enrollment deadlines, and the distribution of updated Total Rewards Statements or compensation summaries.
Make sure employees know who to contact at each stage. Supporting resources, like an internal FAQ, a side-by-side comparison of old and new benefits, or a downloadable HR transition calendar, can further clarify the process and ensure employees feel informed every step of the way.
During an acquisition, employees are already facing an influx of new information. Keep communication clear, structured, and easy to follow.
Before diving into what’s changing, start with what isn’t. Employees need to know where there is continuity. Reinforce that their contributions are valued, their questions are welcome, and that you are committed to transparency throughout the transition.
Early reassurance could include:
● Stating which benefits or pay structures will remain in place temporarily or permanently.
● Clarifying that current compensation will not be reduced during the transition.
● Outlining a high-level roadmap of communication and support.
This helps employees feel grounded and gives them a clearer framework for absorbing future updates.
During a merger or acquisition, employees are often inundated with information that can feel overwhelming. Rather than delivering all updates at once, breaking information into smaller, digestible pieces helps reduce confusion and builds trust in the process.
Use a variety of formats and communication channels to make the content more accessible. This gives employees the opportunity to absorb changes at their own pace and revisit information as needed.
Here are a few effective ways to present compensation and benefits updates in manageable formats:
● A dedicated FAQ or internal microsite focused on compensation and benefits transition questions
● Personalized Total Rewards Statements comparing previous and updated packages
● Weekly update emails that focus on a single topic (such as retirement plans, PTO policy, or health benefits)
● Interactive webinars or virtual office hours where employees can ask questions
● Downloadable one-pagers or quick reference guides for policy highlights
This approach ensures that critical information is not overlooked while also supporting different learning styles and preferences. Employees are more likely to stay informed, feel supported, and trust in the transition process when communication is clear, structured, and thoughtfully paced.
Customized Total Rewards Statements can be a powerful way to communicate how an individual’s compensation, benefits, and perks will be affected post-acquisition. These statements can highlight:
● Current compensation
● Retained or new benefits
● Employer contributions to health insurance, retirement, etc.
● Additional offerings like wellness programs or professional development
By laying this out in a clear, personalized format, employees are more likely to understand and trust the value of the new employment package.
Mergers and acquisitions often bring together organizations with distinct workplace cultures and benefit philosophies. As benefits are realigned, it is important to clearly explain the reasoning behind any updates, whether it is a shift from unlimited paid time off to an accrual-based system or changes to retirement contribution structures. Framing these decisions within the broader vision or strategy of the new organization can help employees understand and accept the direction moving forward.
At the same time, it is essential to recognize that changes to compensation and benefits can have an emotional impact. These updates are not simply administrative; they may trigger concern, disappointment, or even a sense of loss. HR teams should lead with empathy, validating employee reactions while reinforcing the long-term goals. Where appropriate, remind employees how new offerings may better support their needs, create greater equity, or streamline consistency across the organization.
To help employees navigate the transition, provide opportunities for dialogue. Host open Q&As, schedule office hours, and equip managers to lead one-on-one conversations. Creating space for employees to ask questions, express concerns, and feel heard will build trust and improve engagement throughout the process.
Mergers and acquisitions do not end on Day One or even after the first 90 days. Employees need continuous support to understand evolving systems, benefits, and organizational culture. Clear, consistent communication throughout the transition period is essential for maintaining trust and ensuring alignment.
Plan for ongoing touchpoints to keep employees informed and supported, including:
● Updates on benefit enrollment windows and deadlines
● Notices about system migrations such as payroll, HRIS, or benefits platforms
● Announcements about new or changing policies and programs
● Information about long-term career growth and development opportunities
● Recurring Total Rewards Statements or summaries to reinforce value
● Regular updates to HR portals and downloadable materials
● Scheduled Q&A sessions or HR office hours for live support
● Manager training to ensure they can answer employee questions with accuracy and empathy
Consistency builds stability. Keeping the lines of communication open shows employees they are not just being managed through a transition, they are being guided toward long-term success.
Changes to compensation and benefits during a merger or acquisition are more than just operational, they reflect your organization’s values and priorities. A thoughtful, well-structured Total Rewards Communication strategy helps ensure that employees are not left feeling uncertain or undervalued during a time of transition.
By clearly outlining what is changing, what will stay the same, and how employees are supported, HR teams can ease anxiety, foster trust, and reinforce a sense of belonging. Transparency, empathy, and consistency are key. When Total Rewards Communication is prioritized, organizations can turn disruption into an opportunity to build long-term engagement and retention.
Explore how backstitch can help enhance your Total Rewards Communication Strategy.