April Edition: Managing talent during M&A, adopting technology to streamline benefits management and the shift to private markets.

Mercer News & Notes returns to bring you more insights, research and bold ideas for April.

Talent retention in mergers and acquisitions

In today's fast-paced business environment, retaining top talent during mergers and acquisitions (M&A) is essential for organizational success. Research shows that a significant portion of critical talent—up to 40%—is likely to leave within the first 18 to 24 months after a deal is completed. This high turnover risk underscores the need for companies to implement effective retention strategies to protect the value of the deal.

By adopting strategic retention measures, companies can turn potential disruptions into opportunities for growth and stability. Proactively engaging and securing key personnel not only increases the chances of a successful transition but also positions organizations to thrive amid change. Ultimately, focusing on talent retention during M&A activities is not just necessary; it is a strategic advantage that can significantly influence the long-term success of the organization.

To explore more insights and strategies for retaining talent during M&A, read the full report.

Transforming colleague benefits: Key trends in AI and centralization from the perspective of HR professionals

A recent survey of over 400 HR professionals revealed key trends in colleague benefits and technology. The results show a strong shift toward centralization and consistency among regional and global HR teams. Notably, 85% of respondents plan to integrate AI technology for rewards and benefits within the next year, reflecting a growing recognition of AI's potential to enhance analytics and reporting in HR.

Organizations are increasingly using AI to gain insights into colleague demographics, enabling personalized benefit schemes and improved communication strategies. Many employers are adopting technology to streamline benefits management, as manual processes can lead to inefficiencies. As a result, two-thirds of employers are considering centralizing their HR operations to boost efficiency and promote a more equitable global approach to colleague benefits. These trends underscore a significant shift in how HR departments leverage technology and AI to optimize benefits management.

Download the full report to explore additional insights and trends in colleague benefits and technology.

Large asset owners shift focus to private markets

Large asset owners are increasingly turning to private markets amid rising economic and geopolitical uncertainties, according to our recent survey of 74 asset owners. While they remain confident in the resilience of their portfolios, making strategic adjustments to navigate current volatility in equity, fixed income, and currency markets, concerns about geopolitical risks, inflation, and regulatory changes are growing.

The survey also found that European asset owners have a more optimistic view of their domestic investments than their US and UK counterparts, with many intending to boost allocations to European equities, as US and UK investors expect to decrease allocations in their respective markets. There is also notable interest in private markets among European large asset owners, who may have been historically under-allocated in this area, relative to investors in the US. 

Read more about these trends and how they may impact your investment strategy.

Aaron Chaum is a Partner on the M&A Advisory Services team, bringing over ten years of experience in the global technology and mergers & acquisitions (M&A) space. His expertise lies in navigating leadership dynamics during M&A transactions, alongside crafting talent strategies that enhance retention and organizational effectiveness. Aaron's insights are invaluable in helping clients navigate the complexities of M&A, ensuring they can maximize value creation.

Aaron studied Mathematical Economics at Pomona College and earned an MBA from the University of Southern California's Marshall School of Business, providing a solid foundation for his strategic approach to M&A. Prior to joining Mercer, he served as the Director of M&A, Payroll and Analytics at Keysight Technologies for over four years, leading global teams through large scale enterprise-wide transformation.

Outside of work, Aaron grew up in the Bay Area and has a deep passion for the culinary arts, which led him to a successful career managing restaurants across the US. As a sommelier, he enjoys sharing his expertise in wine and spending quality time with his wife and two daughters. In addition to his professional pursuits, Aaron is a triathlete who values the importance of staying active and maintaining a balanced lifestyle.

Are you already connected with Aaron? If not, check out his profile, follow, and connect with him to stay updated on the latest insights and thought leadership in the M&A space.

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The information contained in this document is provided for informational and educational purposes only. It should not be relied upon as investment advice or an offer or solicitation. The information represents the views and opinions of the author(s) regarding the economic conditions or financial instruments referenced herein. The opinions expressed are subject to change without notice. 

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