What HR Needs to Think About During a Merger?

What HR Needs to Think About During a Merger?

A merger or acquisition can be an exciting stage for any business, but it can also be stressful for the employees.  Even though the business is moving forward onto bigger and better things, there are a lot of factors to consider.  So, what does the Human Resources department need to think about during such a time?

First of all, at the time of the merger, senior leadership changes will be announced.  Some positions might remain the same while others change.  Some positions will be filled immediately and others will need to be filled.  During this period, very little will usually be done as far as progressing internally.  The HR department must be ready to answer employee questions such as:

  • Will there be new employment contracts?
  • Is the company moving to a new office?
  • If the business is moving, will relocation be covered if I am asked to move?
  • What are the options for displaced individuals?
  • How will confidentiality be preserved?

During a merger, it is very possible that these questions are unknown at the early stage.  However, it is up to the HR personnel to make sure they get the answers as quickly as possible and keep all employees and staff informed.

As the new structure of the company is determined, the pressure for also determining new policy and procedural issues is definitely on.  Some of the important areas for the HR department to work out will include salary administration, relocation benefits, promotion titles, and other internal administrative factors.

Jon Huser