Preparing for a merger or acquisition requires HR teams to assist with extensive due diligence and risk assessments. However, once the transaction has entered the deal execution phase, HR’s role shifts. As the transaction progresses, HR teams are tasked with developing an HR integration strategy, creating an employee communications plan
Developing an HR Integration Strategy
Once the M&A deal is in motion, HR teams should develop a clear integration plan that includes key action items, timelines and responsible parties for merging workforces, aligning benefits, insurance and compensation and integrating human capital management systems post-close.
The integration may involve:
- Addressing workforce redundancies
- Filling key talent gaps
- Moving employees onto new benefits plans
- Combining insurance policies
- Adjusting compensation structures
- Making other significant shifts that will impact your workforce
All of these changes have the potential to positively or negatively impact employee productivity, retention and morale, exemplifying the importance of taking a strategic, well-planned approach to HR integration.
Creating an Employee Communication Plan
Employee communication and engagement play a crucial role in the success of an M&A transition. Creating a transparent communication plan can help address employee concerns and clearly outline changes in benefits, payroll and workplace policies, fostering greater trust and understanding between employees and employers.
An effective employee communication plan will include proactive announcements and regular updates regarding key decisions and changes, such as those affecting benefits or compensation. It will also allow for two-way communication, creating opportunities for employees to ask questions and receive answers. Employers should leverage a variety of channels, such as town halls, emails, internal platforms and a dedicated webpage or website to reach as many employees as possible.
Creating a thorough communication plan can help employers minimize disruption during a merger or acquisition and support employees throughout the transition.
Implementing New Benefits & HR Policies
Once the merger or acquisition is finalized, HR’s focus again shifts to implementing changes effectively. Now, it’s time to roll out new benefits and HR policies.
This process will involve aligning benefits and compensation structures across the merged entities, consolidating human capital management systems and optimizing talent, which may include addressing workforce redundancies or filling key talent gaps. Throughout the integration, compliance must remain top of mind to ensure adherence to relevant regulations.
To ensure a smooth implementation process, it’s essential to effectively lay the groundwork during the deal execution phase by developing a thorough integration plan that addresses key benefits and HR elements.
Facilitate a Smooth Merger or Acquisition with CBIZ
Successfully navigating HR and benefits considerations during M&A requires strategic planning and expert guidance. CBIZ specializes in helping organizations navigate the M&A process from start to finish, from conducting thorough due diligence to aligning people, processes and platforms and developing a long-term strategy post-close that enables sustained success.
Contact us here to learn more about how we can help you facilitate a smooth merger or acquisition with end-to-end guidance.
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