Communicating with Gen Z and Millennials during M&A
Mergers and acquisitions aren’t just about financials and strategies—they’re about people.
And when it comes to younger generations like Gen Z and Millennials, effective communication is the key to retaining top talent and ensuring smooth integration. In this interview, Shannon Gerber, M&A professional at a global Big Four professional services firm, shares her top insights on how leaders can engage, motivate and support their younger workforce during times of significant change.
SHANNON’S KEY INSIGHTS
Be transparent early on in M&A deals: Communicate openly from the start of the M&A process. Gen Z and Millennials want to feel included in major changes. If they learn about the deal through external sources, it creates mistrust and disengagement, making it harder to achieve a smooth integration.
Highlight purpose and impact of the M&A: Younger employees value purpose over profit. During an M&A, show how the merger or acquisition will contribute to greater environmental or societal goals to keep them engaged and motivated.
Personalise M&A communication: Avoid corporate jargon and generic “Dear All” messaging throughout the M&A. Use face-to-face or engaging digital interactions, and make the communication authentic and empathetic to foster trust and buy-in from younger employees.
Claire: What drew you towards the world of M&A?
Shannon: It’s an interesting story. I started my career in audit, as you must complete three years of audit articles to become a Chartered Accountant (CA). I knew very early on that I didn’t want to stay in audit, but it was a necessary stepping stone. During my articles, we had to complete research assignments, and I was allocated a due diligence (DD) question as part of an M&A deal. It wasn’t something I expected to enjoy, but I found it incredibly engaging and exciting. That experience made me realise that M&A was a space where I could leverage my skills while enjoying the work. So, after finishing my audit articles, I made the move to Deloitte’s M&A function.
Claire: What are your observations of the Human Side of M&A in terms of how people are (or aren’t) prioritised across the deal lifespan? We know that typically priority is given to the legal, commercial and strategic aspects of the the deal.
Shannon: That’s true. The financial and strategic aspects of M&A tend to take precedence because they drive the deal. But I’ve always been interested in how these transactions affect the people involved. When a deal happens, it’s not just a change in ownership; it’s a massive cultural and operational shift for everyone in the company. If not managed properly, this can lead to talent attrition and morale issues, which can ultimately undermine the success of the deal. My own experience working in various team environments and going through change during the COVID-19 pandemic made me appreciate the impact of change on people’s productivity and mental health.
Claire: COVID-19 has definitely accelerated the “Future of Work” in so many ways. In spite of this, why do you think the human component isn’t given as much weight during the M&A due diligence phase?
Shannon: The focus is usually on financial, legal, and strategic due diligence because these are the aspects that influence the deal price and overall strategy. The human component, like culture due diligence or HR due diligence, often takes a back seat until later in the process. This is unfortunate because any misalignment in culture or leadership styles can be a significant risk to the success of the deal. It’s often only when issues start surfacing post-deal that the human side gets the attention it deserves.
Claire: Your work is deeply numbers oriented obviously. Can you quantify the impact of overlooking human factors in M&A?
Shannon: Quantifying the impact is challenging, but we often see the costs associated with retention bonuses or leave policies. For example, if you’re not aware of how a company manages leave or bonuses, it can become a hidden cost in the integration phase. While my role is more focused on identifying these issues rather than quantifying them, we always flag them to the client so they can consider them during integration planning.
Claire: What role do you think communication plays in the success of a merger or acquisition?
Shannon: Transparency in M&A transactions is absolutely crucial. Keeping employees in the dark creates uncertainty and anxiety, which can lead to attrition and disengagement. The leadership team might be well-informed, but if employees don’t have the same information, it can create a lot of mistrust and resentment. Having transparent communication from the start, sharing as much as you can with employees, and making them feel included in the process can significantly improve morale and productivity during the transition.
Claire: Keeping Gen Z talent is becoming increasingly important in M&A. What specific attributes do you think attract and retain Gen Z and Millennials during big changes at the workplace?
Shannon: Great question! For Gen Z, purpose and impact are extremely big motivators. They want to work for companies that have a positive environmental or societal impact. It’s not enough for the company to just be profitable—they need to be making a difference in the world. That’s what gets them excited and keeps them engaged. Career development is another big factor. Gen Z and Millennials want to know there’s a clear growth path and that the company is investing in their skills. So, having structured career development plans, mentorship programs, and continuous learning opportunities is key. It’s also important to remember that we value efficiency—we want to improve processes and get things done quickly, which can sometimes be misinterpreted as impatience or lack of attention. But it’s really just a desire to work smarter.
Claire: So how do companies communicate optimally with Gen Z and Millennial employees during the significant workplace change?
Shannon: Communication needs to be authentic and transparent from the very beginning. We don’t respond well to top-down communication or generic corporate speak. Companies should have face-to-face discussions whenever possible or use digital meetings where leaders can speak directly to employees. This helps build trust and a sense of inclusion. If it’s not feasible to have in-person meetings, then regular updates via email or internal platforms are fine, but the tone needs to feel personal and empathetic. We want to feel like we’re part of the journey, not just being told what’s happening. If you get the communication wrong, it can really hurt engagement and morale.
Claire: Do you think there are any misconceptions about what Gen Z and Millennials want in the workplace, particularly during times of change?
Shannon Gerber: Absolutely. I think a lot of people still view Gen Z and Millennials as job-hoppers or think we lack loyalty. But that’s not necessarily true—we just want to feel like we’re contributing to something meaningful and have a voice in the company. If those needs are met, we’re just as loyal and committed as any other generation. Another misconception is that we’re only interested in flexibility or work-life balance. While that’s important, it’s not the only thing we care about. We want to work for companies that align with our values and provide us opportunities to grow, even in the midst of major changes like M&A. So, it’s not just about offering hybrid work—it’s about offering hybrid work and a clear sense of purpose.
Claire: What are some pitfalls companies should avoid when communicating with Gen Z and Millennials during an M&A?
Shannon: The biggest mistake is not communicating early enough or being vague. If employees find out about a merger or acquisition through external sources—like the news or social media—before it’s announced internally, it creates mistrust and disengagement. Another pitfall is not being honest about what’s coming. If the company is facing restructuring or layoffs, it’s better to be upfront about it rather than sugar-coating the situation. People appreciate honesty and transparency. Also, avoid using jargon or “corporate-speak.” Speak plainly, and share the “why” behind decisions. Gen Z and Millennials want to understand the reasoning and have a sense of ownership in the outcome.
Claire: How do you think the hybrid work model plays into talent retention during M&A for younger generations?
Shannon: Hybrid work is very important, but it’s about more than just where we work. It’s about trust and autonomy. Offering a flexible model shows that the company trusts employees to get their work done regardless of location. It also allows us to balance our personal and professional lives, which is crucial for maintaining mental health and productivity. Companies that can offer this flexibility and support during an M&A process will likely have an easier time retaining their younger talent.
Cliare: Given that Gen Z and Millennials place such a high value on purpose and impact, how can companies use this to their advantage during a merger or acquisition?
Shannon: Very interesting question! I think that companies can really leverage their commitment to purpose and impact by communicating how the merger or acquisition will contribute to a bigger picture. For example, if the new company will have a stronger environmental focus or be able to make a greater positive societal impact, make that known! Highlight the opportunities for employees to get involved in meaningful projects and initiatives that resonate with their values. This not only helps with retaining talent but can also increase overall engagement and productivity.
Claire: What advice would you give older leaders about integrating younger generations into a new corporate culture during M&A?
Shannon: Simple - make them feel part of the process. Involve them in decision-making where possible and solicit their input on how the new company should operate. Younger employees bring new perspectives and ideas, which can be valuable in building a fresh culture post-merger. Leaders should also communicate openly about changes and make sure there are platforms—like workshops or town halls—where these employees can voice concerns and get real-time feedback.
Claire: What’s a common misconception senior leaders have about the human impact of M&A?
Shannon: I think a big misconception is underestimating the impact of big change on employees and their productivity. Leaders tend to focus on financial synergies and strategic outcomes, but if you lose key talent or morale plummets, those financial gains can quickly evaporate. Employee uncertainty and leadership clashes are real risks that need to be addressed early and openly.
Claire: Is there anything else you’d like to add or highlight about the human side of M&A?
Shannon: Yes, I think it’s important to consider stakeholder management in M&A deals. It’s not just about the employees—you have to think about shareholders, customers, suppliers, and regulators as well. Each group has different expectations and needs that must be managed effectively. If these stakeholders are not engaged and communicated with properly, it can create friction and impact the overall success of the merger or acquisition. Another thing to keep in mind is the technological integration side of M&A. Merging two companies often means integrating different IT systems, software platforms, and data management processes. This can be incredibly complex and costly. If disruptions happen, it can negatively affect productivity, service delivery, and even profitability. It’s something that needs just as much attention as the financial and operational components of the deal.
WRITTEN BY CLAIRE KEET