FEATURE/Record year for mergers means record job movement in '96; unemployment should stay low, however.

--(BUSINESS WIRE FEATURES)--Nov. 15, 1995--

Record mergers and acquisitions this year mean job movement in 1996, but not an increase in unemployment, according to findings by Right Associates, one of the nation's leading human resource consulting firms.

After analyzing Department of Labor data and published company reports, Right Associates found that following 1995's record pace of corporate mergers and acquisitions, next year should be one of the most fluid for the job market since the late '80s. Statistics from the previous record year of 1988 and 1989 bear an uncanny similarity to current statistics.

"Until this year, 1988 was the biggest year for mergers and acquisitions," said Richard J. Pinola, chairman of Right Associates. "In 1989, the year following that record activity, the overall unemployment rate actually dropped from 5.5 percent to 5.3 percent. Interestingly, 1995 is now the biggest year for M&A activity ever and the unemployment rate is also at 5.5 percent, down from 6.1 percent in 1994. If history is any indicator of the future, 1996 should be a year in which unemployment remains in the range of 5.3 to 5.5 percent.

"This does not, however, mean that people will not be changing jobs at a near record pace," Pinola said. "In 1988 and 1989 we saw tens of thousands of individuals changing jobs, many as a result of mergers and acquisitions, many others as a result of other factors.

"A great deal of job churn and change is no doubt attributable to restructuring and redesigning work processes," Pinola said. "Employees generally react in one of two ways to a changing workplace. Those who understand the change adapt to the new responsibilities and make new and valuable contributions. Others may feel threatened or uncertain whether they have a place in the new business model. Many of them become unproductive, or in some cases, look to move elsewhere."

While corporations are making 1996 plans in the fourth quarter, many of their best employees may also be making plans to be somewhere else following the payment of year-end bonuses, said Pinola. "Year-end is the time of greatest change in corporations, particularly at the executive level. And this is the crux of a well-known dilemma for corporations seeking to retain the most valuable employees following a restructuring. Progressive companies are including in their restructuring plans a variety of initiatives to communicate and manage change effectively and to provide these employees with the necessary tools and coaching to move ahead within the new organization."

Right Associates develops, markets and delivers career management and human resource consulting services to clients worldwide. Career management consulting assists employers with restructuring issues and helps separated employees to develop strategies to achieve their career objectives, including re-employment, self-employment or retirement. The company also helps clients and their workforces become more productive and efficient in an increasingly competitive, global economy. Right Associates was recently named as one of Forbes magazine's "200 Best Small Companies in America" for the third consecutive year. The firm is known for its research in human resource areas and is currently conducting studies of severance practices in a number of industries with publication to take place throughout 1996. For more information about Right Associates, contact Tom Nicholson at Marcy Monyek and Associates, 55 W. Wacker Drive, Chicago, IL 60601 - 312/263-2135.

CONTACT: Marcy Monyek and Associates

Tom Nicholson, 312/263-2135 or 708/358-0085