Retention, culture critical to M&As: Surveys

Financial incentives used to entice executives to stick around
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 03/11/2013

Back in 1990, HBC acquired about 50 Towers department stores in Canada, including 3,000 employees, with plans to convert them to Zellers outlets. While the merger made business sense, it had its downsides — such as the departure of nearly every single Towers store manager.

“Towers had a culture in which they believed, right or wrong, that management treated employees very, very positively and carefully. And they believed that Zellers treated their employees very br3utally,” said Dave Crisp, a speaker and writer on leadership effectiveness who headed HBC’s HR department for 14 years.

“Of their 50 store managers, 47 quit for that reason, because they believed that Zellers was going to force the store managers to treat employees badly, and they just didn’t want to do that.”