If you are considering a merger then it is crucial you keep your employees (and that of the other company) at the forefront of your mind. The people who work for a company play a large role in its success, after all.
Both sets of employees will find out about it eventually, and there is little more damaging to a business than incorrect information spreading like wildfire across the workforce. If people believe they are likely to lose their jobs, it is going to have a massive negative impact on their motivation and likely their performance, too.
Some staff cuts are likely
Be realistic. Don’t tell people they are all going to keep their jobs, or that nothing is really going to change if this is not true. Mergers bring change and they usually bring job cuts.
You should plan who you intend to keep from each company early to do your best to retain those people. This might involve advising them of the upcoming merger and your intention to keep them before they have the time to worry whether their job is secure and start looking for other offers.
Equally, you should look for ways to dismiss those you must let go fairly and nicely. If people feel you have discriminated against them, by say, suddenly making the workforce vastly more white than it was before (even if unintentionally), they may look to take legal action against you. Equally, someone who leaves feeling you have treated them poorly is more likely to cause you legal problems than someone who feels you treated them well.
Consider compatibility
Two companies may have very different cultures. You need to be clear on the culture the new company will have and work to bring people from both sides on board with it. You also need to think about whether two people from the former companies will work well together. Each company might have a fantastic worker in the same area, but if they are unable to work as a team then that won’t serve you. You might need to let one go, or relocate one to a different department.
Seeking legal guidance with the employee side of a merger is just as advisable as getting it for the financial side.