Human Resources Challenge in Merger and Acquisition: A Mixed Methods Study of Nepal’s Financial Institutions

Abstract

Mergers and acquisitions (M&As) have intensified in Nepal’s financial sector due to regulatory initiatives aimed at consolidating banks and financial institutions for greater stability and efficiency. However, while financial and operational outcomes are often emphasized, the human resource (HR) dimension remains underexplored, particularly concerning employee integration, cultural alignment, and post-merger morale. Existing studies mostly address surface-level satisfaction metrics and lack contextual depth or methodological triangulation. This study introduces a mixed-methods approach to bridge that gap, combining semi-structured interviews, institutional document analysis, and structured questionnaires to uncover critical HR challenges during post-merger integration. Using an exploratory sequential design, the research captures both qualitative insights and quantitative validations from five merged banks in Nepal, involving 18 interviewees and 40 survey participants. Thematic analysis using NVivo identified four major HR challenges: job insecurity, communication breakdown, cultural misalignment, and leadership ambiguity. These were quantitatively supported through descriptive survey analysis. Data visualization and analysis were conducted using NVivo and Excel. Findings emphasize the importance of strategic HR communication, cultural onboarding, and leadership clarity in mitigating workforce disruption during M&As. The study offers evidence-based guidance for HR policymakers in emerging economies to ensure smoother post-merger transitions and institutional sustainability