FinTech Mergers And Acquisitions: How To Hire Strategically During Significant Change

What is the best recruitment strategy to use during a FinTech acquisition or merger? In this post, our team provides you with some expert advice and insight to help you recruit during uncertain times.

Mar 8, 2021 | Uncategorized

Although the Covid-19 pandemic has had a significant impact on every industry, and therefore halted or hindered many mergers and acquisitions in the present and near future, this isn’t to say that it’s not something you will have to deal with soon. During M&As, there is a great deal of uncertainty over jobs, company structure, new hires and much more. Recruitment is a vital part of mergers and acquisitions, but it can often prove to be challenging unless you approach it with the right preparation and strategy.

Below, you will find all the information and guidance you need about bringing in new talent during significant change to your company, and tips to ensure that you come out of a merger or acquisition stronger than ever before.

 

FinTech Mergers and Acquisitions

Many industries experience mergers and acquisitions from time-to-time, and two of the most common are financial services and technology. Therefore, in FinTech — an industry that consists of tech-based financial services — mergers and acquisitions are very common. In fact, over the last couple of years, FinTech acquisition news stories have been jam-packed with several multibillion FinTech mergers and acquisitions.

While FinTech is in its infancy compared to other industries, it still faces the same obstacles and challenges when it comes to mergers and acquisitions — one of the most crucial being decisions over how to handle current employees and recruiting new talent.

 

Hiring Strategically When Acquiring Another Company

There is an abundance of complexities when two companies come together, with one of the most notable being the people involved in each business. In fact, acquiring a company’s talent is often a key motivation for mergers and acquisitions. It’s critical that HR actively manages relationships with acquired talent and ensures that there are recruiting strategies in place for new headcount needs.

When it comes to FinTech mergers and acquisitions, you may face the following challenges:

 

Workforce Organisation and Structure

FinTech mergers and acquisitions, and M&As in general, are a very powerful way to accelerate the growth of a company. In the wake of M&As, companies often enjoy a boost in revenue, and they almost certainly will increase their employee base. For HR, this means they face the challenging task of establishing who stays and who goes. On average, as much as 30% of employees may be deemed redundant following a merger. Although this may seem threatening at first, it can also provide personnel with individuals with avenues for growth and moving up the ladder. Efficient transition management, as well as employee engagement, are essential during these types of changes.

 

Your Recruitment Approach

During a merger, recruitment efforts involve many different areas of the business and require a multifaceted approach. HR must focus on effective change management while also adapting hiring processes to suit varying needs and concerns. For example, following a FinTech acquisition or merger, there are many different roles to recruit for across a multitude of disciplines, and you may be required to scale recruitment to support the expansion while attempting to unify recruitment efforts across a new, more extensive network of resources.

The complexity of talent acquisition that comes with this type of transition can be immense. Streamlining recruitment and effective integration can significantly improve your chances of success and ensure that post-merger life is a smoother and more productive process.

HR and talent acquisition must examine your company’s recruitment resources and processes and review your strengths and weaknesses. Following analysis, opportunities can be explored to increase efficiency – whether that means adopting a new approach to your recruitment process to suit your new needs, or seeking third-party assistance from a third party recruitment specialist. The latter is often preferable as it takes one crucial task off your hands and affords you the time needed to focus on other vital aspects of the merger or acquisition.

 

Employees & Candidates

You have a change of business needs on the horizon, which means that hiring during a merger or acquisition is inevitable and unlikely to be a simple task. The experience of current employees and potential candidates will have an impact on both your brand and the results of the business.

The way a potential employer treats you as a candidate is generally a reasonably accurate reflection of how you are treated as an employee. Therefore, you must always handle the recruitment process during such a pivotal period in the right way. The FinTech industry is growing bigger every day, which means that more and more talented professionals are looking for their big break. Attracting the best talent during such a crucial time will require excellent hiring experience and strategic recruiting efforts, it’s never something that should be overlooked or not given the respect it demands.

Consider the following:

 

Communication: Adopting a transparent approach to both internal and external communications will ensure that current employees and candidates experience complete consistency. Employees should always be aware of what’s happening with the business so that you share identical, accurate information with potential new talent. With so many moving parts during FinTech mergers and acquisitions, it is also essential that you regularly communicate with candidates throughout the hiring process. Not only to demonstrate your efficiency with communication and having your finger on the pulse but also to ensure no top talent slips between your fingers due to a lack of effort.

Your Brand: Recruiting is an extension of your identity as a brand. After M&As, the quality of the talent you bring in — and those who remain onboard — will speak volumes about your brand. Companies need to showcase how the business is changing and offer candidates an exciting preview of what their future could hold. This not only gives candidates a clearer understanding of the company, but a brand with strong, like-minded talent will contribute to reducing turnover and also your cost-per-hire — which at this stage, can prove to be game-changers.

FinTech mergers and acquisitions bring forth many changes to both an organisation and the landscape of the industry. Navigating HR and recruitment during such crucial and uncertain times can be an incredibly complex but exciting opportunity. To be successful, you must ensure that solid employee engagement and efficient recruiting plans are in place.

 

Why Not Seek the Help of a Recruitment Specialist?

At iopa Solutions, we provide a vast range of specialist recruitment services and strategies for the FinTech industry, many of which happen to have been for FinTech mergers and acquisitions. The FinTech industry is much newer than most and continues to grow at an almost alarming rate, which means FinTech acquisitions and mergers are commonplace in the digital age.

Mergers and acquisitions are not a simple case of signing on the dotted line and starting work the next day under a new banner — they require time, effort and strategy. Unfortunately, it can be extremely difficult to juggle the multitude of tasks while searching high and low for the best established and up-and-coming minds in FinTech. This is where our team comes in.

We have over fifteen years of experience in the recruitment sector and have worked with over 500 companies. Our highly-screened network provides the tools and resources you need to transition with the most suitable candidates who can accelerate your company’s growth. With our team of specialists on the case, you have the opportunity to focus on the many other aspects of a successful merger or acquisition, so why not let us help you lighten the load?

Are you about to embark on or in the midst of a FinTech merger or acquisition? Get in touch today to find out more about our services and how we can help your brand grow.