Do Pre‐merger Loyalties Help or Hinder Post‐merger Retention? A Longitudinal Study

Abstract

AbstractMergers potentially threaten employees’ organizational identities. For some, a merger could be a trigger to seek employment elsewhere, but the factors associated with increased withdrawal cognitions post‐merger necessitate further research. Using a longitudinal, pre‐ and post‐merger design, we investigated two competing predictions drawing on social identity theory: a vulnerability hypothesis (high identification with the pre‐merger organization will be associated with increased withdrawal cognitions over time) versus a buffer hypothesis (high pre‐merger identification will be associated with decreased withdrawal cognitions over time). Employees from two public sector organizations were surveyed two months before and 22 months after a merger (N = 869). Consistent with the buffer hypothesis, higher pre‐merger identification was associated with lower pre‐to‐post‐merger withdrawal cognitions. We found that this relationship was moderated by both pre‐merger professional and workgroup identification, highlighting the importance of considering multifoci identification patterns in a merger context. Findings indicate that work‐related identification plays a key buffering role through organizational‐level change, with pre‐merger identification potentially helping retain staff through the merger storm. Thus, our study contributes to social identity theory by showing that an abundance of pre‐merger identification forms should help employees navigate the challenges faced during the change experienced with an organizational merger.