A merger and acquisition can be one of the best ways of bolstering the financial portfolios of a growing company. However, it is one of the most perilous moments, as the actual merging process can be labor-intensive and confusing for those who aren’t prepared. Human resources will typically work over time as it will be acquiring and absorbing new employees who may or may not be related to the new business objectives or bottom lines. If your business is part of the 60 percent increase in merger and acquisition activity over the past couple of years, then here’s how to bolster the abilities of your human resources department and ensure that the merger isn’t a failure.
Tip: The focus understandably tends to be the financial potential of your merger. However, the risks of workers and new employees are typically not given the same aggressive analysis. This can only lead to frustration, confusion, and employees feeling uncomfortable and unappreciated in their new working environment. Focus on the real human element of the merger for a smooth transition.
HR needs to include the cost of integration. Human resources tend to neglect the potential costs of integrating current and onboarding employees. There needs to be an online hub, the proper allocation of budget, to successfully blend new organizations and systems. Human resources will be able to quantify human capital involved in the merger.
Appropriate cost allocation. Many merging and acquisition activities tend to overlook the importance placing appropriate resources to manage the process. This means in-house experts who are cognizant of the vision of the deal. A lack of accountability tends to be the first damning evidence of a merger that will most likely fail. There must be accountability during the integration process, with all involved employees knowing who has the authority when making major decisions.
The importance of an online interface for onboarding. Regardless if your business is the one doing the merging or being merged with another company, an online hub is easy to use for all involved parties. All current employees will be able to access all of the important employee information on an online center. This is especially true for acquisitions since many employees will be particularly confused when it comes to new compensation models that they may not be familiar with.