In this series, manpower correspondent Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to
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A: Not all acquisitions lead to retrenchments, says Ms Linda Teo, country manager of recruitment firm ManpowerGroup Singapore.
Retrenchment is just one possible outcome, the likelihood of which depends on your job function and the overlaps resulting from the merger, she notes.
“Some acquisitions may lead to business expansion, new roles or internal mobility opportunities. It depends on the strategic intent of the acquisition and how the integration is managed,” Ms Teo says.
On this, Ms Cindy Lee, Singapore country manager of recruitment firm Adecco, says: “In many cases, what happens is that there are shifts in business strategy or priorities, such as downsizing teams, discontinuing products or exiting certain markets.
“Reducing headcount or merging roles could be seen as a cost-cutting strategy to streamline operations.”
While retrenchment is not a guaranteed outcome of an acquisition, employees can look out for a few risk indicators, Ms Teo says.
“These include the duplication of roles or departments and restructuring announcements that signal operational consolidation,” she says.
“If an employee’s role exists in both organisations and duties significantly overlap, there may be a risk of redundancy.”
Employees should also pay attention to changes in strategic direction, reduced visibility or involvement in decision-making and a lack of clarity around future responsibilities, she says.
“If their team is no longer aligned with the acquiring company’s core priorities, or if leadership is slow to communicate plans, it may signal potential restructuring.”
Your tenure, compensation level and job function can play a role too.
“For example, those in high-cost roles may be more vulnerable during post-merger integration,” Ms Teo says.
Other tell-tale signs Ms Lee highlights include hiring freezes, as well as newly appointed leaders who may reorganise teams as they see fit.
“During an acquisition, it is crucial to stay ahead of any news circulating within the company and be attuned to information travelling through formal channels,” Ms Lee says.
These include internal briefings and official memos.
It can also be helpful to seek out the views of your direct managers, human resources team and other colleagues whose work spans different departments to get a wider view of the transition.
“After the news, it is important to keep spirits high and take the initiative in networking to proactively manage potential transitions,” Ms Lee says.
“It is also important to know your rights and educate yourself on retrenchment benefits available to you.”
But Ms Teo notes that during an acquisition, traditional sources of guidance for employees such as line managers or HR teams may also be navigating uncertainty themselves.
“While these individuals can still be valuable points of contact, employees should be mindful that they may not have all the answers immediately.”
An acquisition can also affect how employees work in various other ways beyond any retrenchment risk.
Not all acquisitions lead to retrenchments, says Ms Linda Teo, country manager of recruitment firm ManpowerGroup Singapore.
ST ILLUSTRATION: LEE YU HUI
For example, employees may find themselves reporting to new managers or being reassigned to different teams, which Ms Teo says can alter decision-making dynamics and day-to-day responsibilities.
“Other common changes include technology platforms, HR policies and procedures, company culture and strategic priorities,” she says.
“Systems used for payroll, performance reviews or internal communications may be replaced or integrated, requiring employees to adapt quickly.”
HR policies such as leave entitlements, appraisal frameworks and benefits are often reviewed and standardised too.
To gain an informed opinion on next steps, Ms Lee encourages employees to approach their direct managers for role-specific questions, or questions regarding career development.
“As for questions that pertain to strategic direction or broader organisational changes, it would be best to set up a one-to-one meeting with a manager one or more levels above your direct supervisor.”
She suggests that employees find out how their role will be impacted, if there are any plans for redeployment or reskilling, and the support available to them if the role is redundant or requires change.
It is also a good idea to ask about changes to reporting lines or systems used on the job, which criteria are used to determine retaining or retrenching workers, and if there exist opportunities for internal career pivots.
Only consider resignation as an option if you have clear reasons to believe your role is at risk of being eliminated or marginalised, if there is no other option to pivot internally, or there are compelling opportunities better suited to your aspirations elsewhere, both recruitment veterans say.
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