Multilingual Employees: Bridging the Gap in International Mergers and Acquisitions

With the world becoming smaller through globalization, new business opportunities have started to present themselves for companies.

Organizations have always tried to reach as many people as possible to generate as much revenue as possible. Many have considered going outside of their domestic market, but it’s not always generating results. It can sometimes be difficult to accomplish due to slight nuances within culture or traditions, let alone the obvious language difficulties that may be presented.

As the world has shrunk regarding its barriers, companies’ ability to grow has increased. They can use mergers and acquisitions to help them enter new markets with the infrastructure already in place, allowing them to have the platform to potentially achieve success in a market that might be foreign to them from a language or cultural standpoint. Some have even gone on to become known as ‘serial acquirers’ because of how often they follow this process.

However, multilingual employees are a huge benefit to the right type of success. It’s even possible to suggest that these individuals are crucial to the successful running of an operation. Without them, problems will undoubtedly be encountered, and they may not always be easy to solve without someone who doesn’t speak the native dialect of where the merger or acquisition is taking place.

What Problems Can A Language Issue Create In Mergers & Acquisitions?

The decision to merge or acquire another business has been part of many company strategies over the years. As highlighted, there are several benefits that can be obtained that can provide a positive impact in various areas. Nonetheless, while these are excellent advantages, they can be difficult to maximize without the right people in place, especially when they involve an international aspect.

Companies that are involved in cross-border deals are likely to speak different languages. Although English is considered the official global business language, not every country can speak or be fluent in it. At the same time, not every business is going to be able to speak the native tongue of the market that they want to enter if they see an opportunity. For instance, a Spanish-speaking market might offer the right conditions for a takeover. Still, if the buying organization doesn’t have the language skills to communicate, the entire process can be even more challenging than it already is.

Several issues can arise from language barriers that may be experienced. These can include misunderstandings or misinterpretations of critical business information, reduced employee morale due to a perceived lack of clarity or inclusiveness, or even delays in decision-making, as translation and interpretation can add complexity.

Each of these will impact the effectiveness and efficiency of a merger and acquisition. That’s without taking into account company and local cultures and traditions. Culture plays a hugely important role within an organization; if it isn’t right, a business can fail.

Culture influences the way certain processes are communicated and carried out. If this is lost through a merger or acquisition, the business can lose its identity and effectively become a startup once again. Confusion can arise as the business model changes. Multilingual employees can prevent this.

The Importance of Multilingual Employees

To avoid any potential further challenges that can be needless and unnecessary, having multilingual employees can be extremely beneficial to the entire process. If they understand the language and culture of its speakers, they can help streamline and facilitate the processes undertaken throughout a merger and acquisition.

They can help with things like translation and interpretation. As they can speak the language, they can ensure that there aren’t any miscommunications between the two companies involved in the deal. They can also read important documents, send messages, and relay information between the two parties effectively. As there can be a lot of legal and financial documentation shared during a takeover process, it’s incredibly useful to have multilingual employees for this part of the procedure.

As speakers, they can also take the lead in meetings, as they have the verbal skills to interact and communicate. Big processes like a merger can often be better handled in person, and with individuals able to do it in real-time, it can bridge any existing gap.

Those who speak multiple languages can also achieve and foster cultural understanding. They will have a greater knowledge of the social norms and traditions of the foreign market, allowing the company completing the takeover to fully understand what is working and how regarding the existing processes. This can help to keep the existing workforce on side if they want to keep them on, while it can allow them to successfully market themselves in the region that they have entered without making any potentially costly mistakes.

As a result, a level of trust can be built. A takeover like a merger and acquisition can be an unnerving time for employees of the business being taken over. It brings about a period of uncertainty, as changes could impact individuals in various ways. They could lose their jobs or see their existing roles be changed. With multilingual employees onboard, they can help the buying business to create and build trust by sending out clear messages in their native language. This can increase productivity if done correctly, while those who feel informed can ensure they continue to work with an understanding of the business’ aims and objectives.

Costs of Having Multilingual Employees

It should go without saying that firms without multilingual employees will incur additional costs. In today’s world, it has become almost normal for an individual to be able to speak more than one language fluently. Most have ancestry or heritage from a different country than where they were born or currently live, meaning they’ve had to learn.

However, it is still possible that language demands are needed. For instance, you may find that the current workforce doesn’t necessarily have the skills or level needed to engage with the company that has become the subject of a takeover. For example, they may not have the required level of Spanish if an American firm on the East Coast is looking to move into the Mexican, Latin American, or South American markets.

Firms may consider enrolling employees on an online Spanish courses platform so they can learn a new dialect and improve their communication skills. This option is affordable and provides convenience and accessibility, but it still requires an additional expense. It can also be timely, especially for a novice who is looking to learn specific business jargon related to mergers and acquisitions. Besides, according to Preply, an online Spanish classes and courses platform, online learning appeals to most employees’ learning styles, given that 58% prefer to learn at their own pace.

Conversely, a company could look to hire someone who can speak the language. Again, this will become an additional expense. However, it would have to be considered worth doing if they want a takeover to go through successfully and be in a position to thrive.

Spanish is a highly desired language, as 86% of job postings require the language. However, as it is a language widely spoken by vast portions of the population, a lower rate can be commanded. Research shows that $25 was enough for an hourly wage for someone who could speak the language. When you compare that to the job listings for Portuguese (1%) and the hourly rate of $32, it’s a big difference.

Nonetheless, multilingual employees are compensated well on both coasts of the US, with California and New Jersey paying the most on average for full-time work. Fremont ($67,804) and San Francisco ($66,468) are both the leaders, while New Jersey’s Jersey City ($66,338) and Newark ($66,292) top the list. Interestingly, those who speak multiple languages and work part-time can earn up to $47 in places like Philadelphia, Pennsylvania, and Greensboro, North Carolina.

How Can Businesses Leverage Multilingual Employees in Mergers & Acquisitions?

While it’s a good idea to have multilingual employees throughout a takeover, they need to be used correctly to maximize efficiency and achieve the right results.

A strategy needs to be devised that allows effective and fluent communication between everyone involved. If this isn’t achieved, confusion can occur, which can further set the completion timeline. In addition, a clear strategy—as highlighted before—can foster trust between the two organizations, as a key point of contact that both share can be used. It keeps communication clear, and there is less room for messages to go unreceived or be altered because they’ve been sent through multiple people.

At the same time, these individuals should be involved in the process from the earliest point. They should know as much about the takeover as possible, including the sensitive details. If they have a greater idea of what is trying to be achieved, they can communicate the right messages from the start, which can streamline the entire process. If they know everything, they can also make suggestions or offer advice about cultural aspects that a non-speaker may not have considered. As we’ve seen, these can have a huge impact on the effectiveness of a merger.

Are There Any Challenges That Could Be Faced?

As with everything, there can always be obstacles to navigate. Mergers and acquisitions are difficult to complete when there aren’t any potential language barriers. The addition of another dialect can only intensify the process and make it further challenging.

Employees may feel that they have started to take on too much responsibility or feel pressured by the importance of the task if it’s not within their usual job remit. They may struggle to handle everything, which can impact the timeline of a takeover. At the same time, an employee could decide to leave the process at any point, which could cause disruption.

A person who can speak the language of the chosen market may not necessarily have a great understanding of the culture or social traditions. They may have a grasp of the dialect, but they may not recognize everything else that goes with it like a native does. Most countries have regions within them that use their mother tongue in different ways. A non-native speaker may not realize this, potentially creating a problem.

Final Thoughts

The importance of multilingual employees cannot be understated. They are an integral part of any operation, especially for a company seeking to complete an international merger or acquisition.

These individuals will have the skills required to streamline the processes involved in a takeover. They will be able to communicate effectively, which can help facilitate smooth transitions and create strategies designed to maximize efficiency.

Of course, problems and obstacles can be encountered. However, an employee who can speak the language of a potential new market for a business can significantly improve their chances of success when making the takeover.