The transition from the small data storage company of only 120 employees in three states into a much larger company was actually pretty smooth. The larger data center company is an innovative, rapidly growing provider of cloud, managed services, and disaster recovery. As part of the three states that the acquired company serviced, the new larger company serves more than 5,300 customers in 19 different markets. In fact, all told the company has nearly 500,000 square feet of data center space.
In the first meeting, the new company’s explained that both the small company and the new bigger company shared the same high strategy goals. They both focus on a culture that puts the client first by providing local support and access to enterprise class informational technology (IT) solutions. The combination of the new companies will serve 24 different markets and include 38 data centers, serving more than 6,000 coast-to-coast customers.
The CEO went on to explain that the data storage customers would benefit from an expanded data center and network footprint, as well as having access to an even more aggressive and pervasive cloud and managed services. Following the latest trends in the data storage and recovery industry, the ultimate goal of the larger company continues to be making major investments in new IT solutions.
Although not announced until November, the transaction was expected to be completed by March. By that time, the smaller company would be rebranded and no longer function as its own entity. In conjunction with this acquisition, the former smaller data storage company expected to see increased financial strength, stability, and size over the long term. These changes were expected to ultimately benefit both employees and customers.
It was a lot to digest, but essentially this meant that many hours had been invested in the acquisition and the melding of two different IT companies staff and services. And while many people would see little change in their job descriptions, others would be looking for new jobs, ready to move on to other opportunities.
Acquisitions Often Require the Assistance of an Executive Placement Agency
While an executive placement agency does not specifically make hiring decisions, its services are essential to any acquisition process, as well as the anticipated replacement of retiring company leaders. These human resources consulting firms help their clients formulate interview questions, job descriptions, and recruiting opportunities that are beneficial in a variety of staffing situations.
An outplacement service company can assist many types of companies meet a variety of hiring challenges, including:
- chief executive officers
- chief financial officers
- board members
- private equity firms
- human relations executives
- venture capitol firms
- gender diversification goals
An executive placement agency can help companies of all sizes follow the latest trends in hiring and productivity. For example, 86% of companies with some kind of employee recognition programs cite an increase in worker happiness and retention. And since nearly 57% of companies indicate that employee retention is a problem, keeping employees satisfied is a priority.
Without the assistance of an executive placement agency to assist in the best hiring practices, employee satisfaction, and retention, too many companies are burdened with the expensive costs of rehiring. In fact, The U.S. Department of Labor has studies that indicate that the average cost of a poor hiring decision can cost as much as 30% of the first year employee?s potential earnings. Instead, companies need to concentrate their efforts on hiring the best people the first time.
Additionally, more than one in every three small and midsize business CEOs indicate staffing is the most significant current business issue they face. In fact, in this survey staffing is mentioned twice as frequently as any other issue.
New Hires Are an Expensive Process
Considering how expensive it is is to hire employees, the smartest companies invest considerable time and talent in the process. When 22% of new hires leave their jobs within the first 45 days, replacing those individuals is a costly venture. In fact, 2.7 million workers voluntarily left jobs in the first half of June 2015. This number represented a 25% increase compared to 2013. Replacing every one of these employees is a process costing both time and money. Talent acquisition management services can help companies find the best HR personnel to make sure the new hires stay and succeed.