Mergers and acquisitions are challenging for Human Resources professionals. Nearly every significant activity involves HR in some way, from consolidating workplaces and managing relocations to integrating company cultures.
The most vexing post-merger issues, however, typically fall into one of two main categories: processes, that must be changed to accommodate the new reality; and people, because each employee is affected by the merger to some degree.
- Simplify and streamline. Look to reduce the number of pay grades and occupational classifications.
- Be nimble and flexible. The simpler your HR system, the easier it is to adapt to structural changes.
- One of the most difficult issues facing HR post-merger is the prospect of employee layoffs. To handle this unenviable task:
A merger agreement is the legal contract drawn up and signed by both parties when two companies merge. Among its detailed terms and conditions are parameters regarding staffing actions. The merger agreement provides HR with important considerations that may guide how staffing decisions are to be made.