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Merging of two or more companies means that employees from all parties involved will have to work together in a way that increases the value of the consolidation. These are some of the effects that these mergers have on employees. First of all, it causes stress and anxiety among the employees, whereby they work with feelings of threat to their job security. The low-level workers are most affected as they are also left confused, wondering if they still have to answer to the same employer as before or not. It also becomes excessively stressful to adapt to new philosophies and policies introduced during the merger. Workers will also take time to adjust to unfamiliar faces at the workplace or having to deal with working from other premises.
Conflicts also occur due to disruption of the work culture of both parties. Since the companies have different cultures, it takes time and conflict before a common culture is established. The managers also find themselves conflicting for strategic positions in the new merger (Gould, 2010 p.9; Brown, 2012 p.115). This event brings out anger in the employees who feel that their positions are threatened in the management of the merger. This makes them feel betrayed by their employer especially if the merger had not been announced before. Workers in a company under acquisition may tend to feel worthless after their company is sold to another and this makes them feel inferior due to the loss of status (