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Post-Merger Activities of Human Resources Teams

QUICK SUMMARY

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 to be changed to accommodate the new reality; and people, because each employee is affected by the merger to some degree.

HR Post-Merger Activities

  • 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.
  • Expand best practices outward. You can play an important role in extending proven systems, processes and procedures to areas outside your HR department.
  • Pay close attention to your software. Software system integration is likely to be among the more complex issues you will deal with post-merger.
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People Post-Merger

One of the most difficult issues facing HR post-merger is the prospect of employee layoffs. To handle this unenviable task:

  1. Assess the newly merged company’s workforce requirements for jobs and talent.
  2. Draw up a termination agreement for each affected employee, explaining the reasons for the layoff, severance terms and final paycheck amount.
  3. Implement the transition plan by informing employees who will be losing their jobs, facilitating outplacement and counseling services for those employees, and bringing retained employees together for a meeting to communicate the reasons for staffing changes and what to expect going forward.
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A Guiding Document: The Merger Agreement

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. Because of this, the merger agreement provides HR with important considerations that may guide how staffing decisions are to be made.

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