When companies change hands, the common assumption has been that employee nostalgia is a hindrance to progress. Conventional wisdom suggests that workers who long for their pre-acquisition days are resistant to change, and that such feelings must be suppressed if employees are to adapt quickly to the practices of their new employer. Yet new research challenges this narrative, arguing instead that nostalgia can be an asset rather than an obstacle during corporate transitions.
A study published in Strategic Organization by UC Riverside School of Business professors Boris Maciejovsky and Jerayr Haleblian demonstrates that nostalgia plays a vital stabilising role in periods of uncertainty. Takeovers are often accompanied by fear—fear of job loss, diminished status, or curtailed advancement opportunities—which can push employees to search for work elsewhere. Nostalgia, the researchers found, offers employees a source of comfort that anchors them amidst disruption, reducing the risk of premature departures. As Haleblian noted, nostalgia serves as a “temporal bridge,” linking employees’ past identity with their post-acquisition reality, thereby maintaining their sense of belonging.
Drawing on insights from psychology—particularly emotion regulation, social and narrative identity, and attachment theory—the researchers argue that nostalgia is far more than sentimental yearning. It functions as a powerful mechanism that helps employees preserve meaning and continuity. Maciejovsky emphasised that nostalgia should not be dismissed as maladaptive: “Our findings reveal that nostalgia can transform negative reactions into constructive outcomes, thereby reducing the talent loss that so often undermines acquisition success.” In short, nostalgia reframes change in ways that promote resilience.
The study highlights the crucial role nostalgia plays when new figures and long-standing cultural markers replace familiar leadership, which is disrupted. Managers who understand this dynamic can reframe nostalgia not as resistance but as a meaningful expression of employees’ desire to protect identity and values. This perspective is particularly urgent in today’s business climate, where acquisitions—especially in the technology sector—are routinely pursued as a way to capture talent and innovation. The practice, often called “acqui-hiring,” has notoriously poor retention rates: in the U.S., nearly half of key employees leave within a year of acquisition, and three-quarters within three years, resulting in talent gaps that diminish company value by as much as 15%.
To counter this, the study outlines two strategies for managing nostalgia constructively. The first is an identity-preserving intervention, which involves retaining familiar company symbols, workspaces, and narratives that validate the legacy of the acquired organisation. By maintaining elements of continuity, employees are reassured that their history is not being erased. The second strategy centres on relationships. Team-building activities, heritage celebrations, and shared rituals can foster a sense of connection that bridges both cultures, helping employees form bonds that ease the transition.
Examples of these strategies are already visible in practice. American Airlines, for instance, has honoured its predecessor companies by restoring historic liveries, such as TWA paint schemes, on its aircraft. Far from being superficial gestures, such actions function as powerful tools to integrate employees while respecting the legacies of acquired firms. The researchers also note that strategies should be tailored: workers with critical expertise respond most strongly to identity-based interventions, while so-called “cultural carriers” can serve as conduits, blending traditions from both organisations through relationship-driven practices.
The study, co-authored with Tim Wildschut and Constantine Sedikides of the University of Southampton, is entitled How Nostalgia Facilitates Post-Acquisition Target Employee Retention: An Agenda for Future Research. The authors call for further exploration of how nostalgia operates across different types of organisational change, how it affects acquirer and target employees differently, and where its limits lie. As Maciejovsky observed, “Transparency about change is essential, but so is recognising how emotions like nostalgia can be managed strategically. When harnessed thoughtfully, nostalgia does not hold companies back—it becomes a powerful force for retention and long-term success.”
More information: Boris Maciejovsky et al, How Nostalgia Facilitates Post-Acquisition Target Employee Retention: An Agenda for Future Research, Strategic Organization. DOI: 10.1177/14761270251372754
Journal information: Strategic Organization Provided by University of California – Riverside