Dec 18, 2021 - Economy

Buying talent

An illustration of hands shaking.

Illustration: Brendan Lynch/Axios

CEOs are weighing buying other companies to solve their hiring woes.

Driving the news: A third of executives surveyed in a new KPMG report say they want to use mergers and acquisitions to acquire talent in 2022.

The big picture: As we've reported, 2021 was a record-breaking year for M&A — and 2022 could top even that. And M&A can be a quick way to bring in new talent as companies navigate the Great Resignation.

What they're saying: "We’re all experiencing this shortage of job seekers," Philip J. Isom, global head of M&A at KPMG, tells Axios. Companies that might have tried to grow organically in different times are instead looking into acquiring other firms as a quicker solution to their recruitment problems, he says.

  • KPMG added the question about using M&A to obtain talent to its annual survey just this year — as recruiting is a particularly salient problem.

But, but, but: It's not always easy to retain employees after a merger or acquisition.

  • Firms may have to offer incentive packages to hang onto top talent post-M&A, per McKinsey.
  • And it's not just about higher pay. Employees are focused on health care, flexibility in our new age of hybrid work, and benefits. "Child care especially has become a sticking point for working parents," Isom says.
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