A Research On Key Employee Turnover In Acquired Enterprise

Retention of key talent is a challenge in an M&A deal and is increasingly being recognized as an essential component of a merger's ultimate success. Under the circumstance of vigorous economy development in China, managers and experts with plenty of experience and talent will gain more career opportunities, so retention of key talent here becomes more difficult. This study focus on the fact that turnover rate of key employees is much higher than the average.According to the research and study on the selected deal, once as a sub-corporation of Philips, after Philips Consumer Electronics of Suzhou Ltd. was acquired by Taiwan TPV Technology Group, a much higher turnover rate has rose. And much different from general conditions, most of the turnovers happen to those who are between 35 and 45 years old and whose tenure range is of 5~10 years or even longer. Focus on this fact, the reasons why the turnover rate of key employees is much higher than the average are tried to explain in many aspects such as the overall economy context, market requirements and enterprise management.Conclusions are as the following: besides impact from overall economy context and market requirements, the company's future and image influence employees'expectation to a deeply extent. And the perception of fairness ultimately induces the intent and behavior of key employees'turnover.