Mergers and acquisitions are exciting avenues for growth, but integrating two companies presents complex challenges, especially when it comes to cultural differences. HR leaders know that a successful integration is not just about aligning processes or hitting financial targets. It is about retaining top talent, preserving institutional knowledge, and ensuring that employees from both organizations feel included, valued, and motivated. Company culture plays a pivotal role in these outcomes. Without careful attention, misaligned values, inconsistent leadership, and poor communication can quickly erode trust and engagement, leading to significant talent losses and operational disruptions.
To discuss this complex topic, Margaret Jaouadi spoke with Michelle DeLucia, a seasoned HR professional with broad experience in M&A, currently serving as Global Human Resources Business Partner at Workwave. In this article, Michelle shares her insights on navigating the human side of mergers and acquisitions (M&A). Drawing on her experience working with both small and large organizations, she offers practical strategies for managing cultural integration, assessing and retaining talent, empowering employees, and measuring success following an acquisition.
HR professionals will find actionable guidance in Michelle’s examples from onboarding new teams and deploying culture ambassadors to designing change management plans and fostering collaboration across previously siloed groups. Her candid reflections highlight both the obstacles and opportunities in M&A, offering a valuable roadmap for anyone responsible for guiding people through these complex transitions.
Margaret Jaouadi
Where does your interest in Mergers and Acquisitions (M&A) stem from?
Michelle DeLucia
My interest in M&A comes from two key factors. First, I love the pace; it’s so dynamic and fast-moving. But what truly fascinates me are the strategic conversations that happen when a company is trying to grow. These often involve expanding into new markets, services, or verticals, and discussions about how to reach the next level have always captured my attention.
Once a deal is in motion, that’s where I come in. I’m essentially taking everything I do in HR and fast-tracking it to get all new people onboarded and integrated into our company, but doing it in a compassionate and empathetic way. I always go on-site when feasible because I believe in meeting new colleagues and earning their trust face-to-face.
I’m also realistic enough to know that not every acquisition is perfect. Sometimes there are redundancies, and I dislike that aspect. However, the part where we can absorb everyone and help them thrive is what I truly strive for. It’s the challenge and the goal all at once.
Margaret Jaouadi
What common cultural challenges arise during mergers, and how do you navigate them?
Michelle DeLucia
The most common cultural hurdle in mergers and acquisitions is absolutely the “us versus them” mentality. I’ve found it surfaces in a few key areas, and dealing with it effectively is all about proactive communication and change management.
In my experience, this mindset often starts with the previous company owners. They initially want to sell, but once we complete the deal, their perspective can shift to, “This is not the way I would have done it.” We learned early on that it’s vital to have a clear transition plan for them and to focus on change management. I recall one deal where we retained the owner in a new sales role. Even though he was no longer in charge, he continued to try to run things the old way, which created a challenging atmosphere for everyone. The key lesson we learned here is that you must clearly define their new purpose and demonstrate the value of being part of the larger team.
We have also faced challenges that range from seemingly minor issues, such as wearing uniforms, to more serious problems, including employees experiencing anxiety about their job security. One company’s employees resisted wearing uniforms, as they were upset about feeling “too corporate.” However, through conversations, we learned that the resistance wasn’t about the uniform itself, but about a lack of involvement in choosing the colors or fabric. This instance taught me a crucial lesson: it’s not just about implementing a change, but about involving employees in the process to build buy-in.
Additionally, employees have concerns about the changes to their roles. We might be trying to remove back-office tasks from their plate or ask them to enter data into a CRM system instead of writing notes on paper, allowing them to focus on value-added work, such as interacting with customers. This change feels like a loss of their old job, and they fear what comes next.
We also encountered companies where employees were so accustomed to their manager or the owner making every decision that when we attempted to empower them, nothing got done. The owner’s mindset was often “don’t do anything unless you run it by me first.” This change requires a shift in perspective to help people feel comfortable taking ownership of their work. We also saw different communication styles. I once walked into an office where employees were all on a Zoom call from their desks, even though they were sitting next to each other. I just said, “Time out, let’s all go to the conference room,” where I could set clear communication expectations.
I have also encountered unexpected cultural challenges. The most unique experience was walking into a newly acquired location and seeing what looked like a refrigerator, which turned out to be a massive gun safe filled with hunting rifles. An employee casually mentioned they’d hunt turkeys from the window. It highlighted how cultural integration isn’t just about business processes and communication styles; it’s about deeply ingrained behaviors and values that may be a mismatch with the acquiring company’s culture. You can’t just manage this type of situation; you have to recognize it for the significant risk it is.
Ultimately, navigating all these challenges is really about one thing: people. It’s easy to get caught up in the spreadsheets and legal paperwork of a merger, but you’re actually bringing individuals together, not just companies. The real work is about transforming that “us versus them” mindset into a shared identity. You achieve this by being proactive, present, and completely transparent from the very beginning. You need to share a clear vision and demonstrate how everyone’s role fits into it. When you do that, you build a foundation of trust and respect, which is the most valuable asset you can have in any successful integration.
Margaret Jaouadi
How do you ensure employees from both companies feel included and valued during an M&A process?
Michelle DeLucia
It all begins with clear and consistent communication, utilizing multiple channels to keep everyone informed and engaged, including in-person meetings, company-wide announcements, emails, and internal platforms. I’ve found that using tools that allow for public recognition or creating spaces for employees to connect over shared interests, like affinity groups, are especially effective. These small things build rapport across teams and locations.
A key part of this is being transparent about the company’s goals and the plan for the first 90 days. Earning trust is crucial, and once it’s lost, it’s tough to get back. That’s why every communication needs to be consistent, clear, and genuine.
To gauge how people are feeling, I use a combination of surveys, one-on-ones, group discussions, and feedback from managers. Social events can also be invaluable. Whether it’s a simple ice cream social or a visit from a food truck, these gatherings offer a relaxed setting for people to connect.
When dealing with smaller companies, it’s vital to respect their history. I’ve worked with companies where many employees had been there for 20 years or more. They saw the company as a family, and an acquisition can feel like a loss. If you dismiss their past contributions, you’ll lose them. Instead, we highlight their achievements and ask about their processes. Even if we ultimately standardize on our way of working, these conversations show respect. Sometimes, we even end up adopting their ideas.
Ultimately, investing in employee development yields significant returns. Many smaller companies lack a substantial budget for training, so providing access to certifications or an online university can be a considerable advantage. Even small gestures, like company swag, make them feel excited and included.
Margaret Jaouadi
How can you measure the success of cultural integration after an acquisition?
Michelle DeLucia
For me, there are a few key ways to approach it. On the one hand, you have tangible metrics, such as productivity and retention. We examine whether teams perform better after the acquisition, and we closely monitor employee turnover. If people are leaving, we want to know why through exit interviews and conversations with their managers.
But you also have to listen to the “employee voice.” Surveys, town halls, focus groups, or just informal chats work well. At smaller companies, I find that walking around and having those quick, unplanned conversations can reveal a lot. In a larger company, surveys are more practical. I have been at a company where the participation rate was 88%, which provided us with an excellent indication of sentiment. At other companies, the rate was sometimes as low as 18%, because employees didn’t trust that their feedback was anonymous. When people don’t believe their input is confidential, they won’t be honest, and that creates huge blind spots.
Collecting data is just one part of it, though. The most critical measure of success is whether you take visible action on what employees share with you. If you ask for feedback and then nothing changes, you lose credibility, and it’s challenging to regain it. I’ve seen it happen. In one case, the acquiring company never informed its employees that they were being acquired. That lack of transparency created so much resentment that, despite all our efforts, it took nearly two years to rebuild trust.
Ultimately, success isn’t just about the data; it’s about whether employees feel heard, see you following through, and believe the culture is moving in a positive direction.
Margaret Jaouadi
What role do change management and communication play in ensuring a smooth transition, and how do you approach this?
Michelle DeLucia
Change management and communication are absolutely critical; they’re the foundation of a smooth transition. I see them as inseparable. When approaching a transition, start with strategic planning that clearly defines the what, why, who, when, and how. Without that transparency and upfront communication, you lose trust before you even begin, which leads to resistance. You can’t get buy-in if people don’t trust the process, and it only takes one negative influencer to rally others against the change.
That’s why I encourage leaders and owners to communicate directly with their teams. I often join them to explain the rationale behind the acquisition, highlighting the new opportunities it creates, such as career paths or improved benefits. We always prepare for tough questions and are upfront about how jobs will be impacted.
When positions are redundant, we create fair transition plans and severance packages. At other times, roles change, which can also lead to resistance. Managing that head-on is essential. It’s crucial to identify influencers early on, as they can either fuel negativity or become ambassadors for the new company.
Retaining key talent is also crucial. I once worked on an acquisition where the general manager had been with the company for years. His decision to stay made all the difference because employees trusted him, and he helped everyone embrace the change.
Not every acquisition is complex, though. In one instance, we were able to retain nearly all the employees by offering better policies and benefits than their previous employer, which had made them feel undervalued. We even paid out their unused PTO, which built tremendous goodwill.
Ultimately, successful change management is about honesty and empathy. When you ensure people understand the impact of the change on them and back that up with real improvements and fair treatment, you gain trust, and that makes the entire transition much smoother.
Margaret Jaouadi
In a past M&A experience, how did you navigate a situation where key information was withheld, and what was the ultimate effect?
Michelle DeLucia
At one company I worked for, we acquired to expand our portfolio. I was thrilled about the expertise we would gain. What I wasn’t told was that the plan was to shut down their facility and retain only their customers and a few key personnel to bring over to our headquarters. On day one, I walked in, genuinely enthusiastic that the future together was going to be great. After a few months, I found myself in a position where I had to face employees who felt misled when an announcement was made that the site would be closing. My lack of prior knowledge about the full scope of the acquisition created a challenging dynamic, as people assumed I was aware of the impending changes and had been dishonest.
Beyond the internal damage, the impact on our company’s reputation was lasting. Word of the lack of transparency quickly spread, not just among the people who lost their jobs, but throughout the company and the industry. It became significantly harder to attract new talent because potential candidates were hesitant to join, knowing what had happened. It also did not bode well with existing employees. That kind of damage doesn’t go away.
Margaret Jaouadi
What are the three most important issues to consider when preparing for a merger or an acquisition?
Michelle DeLucia
I believe the three most crucial factors to consider in a merger or acquisition are talent assessment and retention, leadership alignment, and cultural fit. Get these right, and the deal can be an incredible success. Get even one wrong, and the road ahead will be rough.
First is talent. You need to know who you’re bringing in, including their skills, roles, and the key players involved. The real challenge is that during due diligence, you can’t always speak directly with employees. You often rely on what the owners tell you, and honestly, you don’t truly know what you’ve bought until the day you take possession. When I walk in, I’m immediately focused on assessing talent, evaluating performance, and determining our retention strategies. My goal is to quickly identify the people we absolutely need to keep and find ways to support everyone else so they can succeed in the new environment.
Next, leadership alignment is just as critical. Do their leaders share our values and vision? Sometimes, the lure of entering a new business area is so strong that leadership alignment gets overlooked. I’ve seen what happens when that misalignment surfaces later—it’s pure chaos. When leadership is all rowing in the same direction, the momentum is powerful. However, when they’re not, it can be so damaging, and the entire leadership team is trying to think back on why we thought it was a good idea to do the deal.
Finally, verifying cultural fit. When cultures align, it feels seamless and energizing. But when what you were told doesn’t match the reality on the ground, it creates a massive amount of extra work. You spend months trying to rebuild trust and get people on board. From my side in HR, I often get these deals after the numbers look great to the finance team, but no one has fully considered the human and cultural risks.
I think no matter how perfect the deal seems, you can’t afford to overlook the people. If any of these three elements — talent, leadership, or culture — is off, it creates chaos that ultimately costs far more. I’ve been in that position where a deal lands on my desk, and I have to wonder, “What did we just buy?” That’s why I’ll always advocate for HR to be included from day one. We’re not just there to handle the paperwork; we’re there to help you understand the people you’re acquiring and to ensure the human side of the deal sets you up for success.
Margaret Jaouadi
Navigating the human side of mergers and acquisitions is never straightforward, but your insights show that it can be managed with intention, transparency, and empathy. Thank you, Michelle, for sharing your tested practical strategies that many HR leaders navigating M&A challenges will find very helpful.
For a confidential chat about how Pacific International can assist you with your Talent Acquisitions and Diversity challenges, please contact David Howells or one of our Heads of sector.