Most Workers Not Upset About M&A Job Effects

June 5, 2007 (PLANSPONSOR.com) - Most (89%) American workers are not concerned about their companies being merged with or acquired by another in the next 12 months, according to a new survey by Ernst & Young LLP's Transaction Advisory Services practice.

An Ernst & Young news release said the majority of respondents also said that they would not relocate if their companies were to change hands.

“Today’s deal economy is unlike anything we have seen in the past,” said Jeffery Perry, Transaction Integration Practice Leader at Ernst & Young, in the news release. “Though it may defy conventional wisdom, it’s not surprising that employees are not concerned about job security. When employees hear about a deal today they’re usually told about the deal’s potential for growth and rarely about cost-cutting – even if management is actually planning on headcount reduction.”

The survey found 90% of the younger workforce (ages 18-24) said their jobs would be very or somewhat secure if their company was taken over, compared to only 72% of employees over the age of 64. More than four-fifths (84%) of overall respondents were confident they would be treated fairly by new management if their company were purchased, sold, or merged. Younger workers held the most positive outlook, as 95% of employees ages 18-24 were very or somewhat confident, as compared to only 79% of workers age 45-54.

If their company was acquired, 46% of males, compared to only 37% of females were willing to relocate. Respondents who earned a yearly salary of under $25,000 (48%) were more willing to relocate than those who earned between $50,000 and $75,000 (39%).

The survey results are based on telephone interviews conducted among a national probability sample of 855 adults, comprised of 495 men and 360 women, 18 years of age and older, and employed full-time in a company with more than 100 employees. Interviews were conducted by Opinion Research Corporation.

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