Guest Contributor Ed Parris is president of Phillips Staffing. Founded in 1968, Phillips Staffing provides staffing and productivity solutions, professional placement, payroll management and HR consulting solutions and services to organizations across the Southeast from 10 offices in South Carolina and Georgia. For information, visit Ed Parris is president of Phillips Staffing. Founded in 1968, Phillips Staffing provides staffing and productivity solutions, professional placement, payroll management and HR consulting solutions and services to organizations across the Southeast from 10 offices in South Carolina and Georgia.
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Frequently, a merger or acquisition is undertaken to deepen talent pools, grow market share, acquire intellectual property, or gain efficiencies. Whatever the reason, one certainty you can bank on is change. And as the process unfolds, addressing human resource issues is essential in realizing the intended benefits of coming together.
To create a better experience for all involved, early involvement by human resources leadership on both sides of the transaction can address challenges that arise as the process unfolds. Whether addressing culture changes, employee concerns, new roles, or integrating incompatible benefits plans, proactive planning helps your organization obtain the full benefits of joining forces.
Start With a Plan
By creating an integration plan, management can better evaluate and understand the incoming employee population and how all players fit together in the combined organization.
For example, certain key employees may warrant special retention efforts, while understanding the talents, roles and compensation packages of new employees is critical to keeping associates engaged and committed to the new organization.
A well-planned process can have enormous influence on employee motivation, morale and respect for both employer and colleagues.
Address Employee Concerns
The fear of the unfamiliar inherent in a merger causes uncertainty for employees (and their families). And sharing information can be a challenge: Certain elements must be kept under wraps, but openness is essential to creating transparency and trust, notes Doug Newton, senior vice president of human resources with Techtronic Industries North America and a veteran of at least five corporate acquisitions.
“The earlier you can communicate your intentions to employees and the faster you can expedite a well-thought-out process, the quicker you can put anxiety to rest,” says Newton. “It’s far better to allay employee fears through frequent, respectful, open communications and by directly addressing questions on how the initiative will impact each of them individually. Addressing rumors about layoffs, lines of reporting or benefit plan changes quickly helps to ensure that productivity and morale remain high.”
Bridge the Two Cultures
When two companies become one, merging cultures is often challenging. An extensively reported example was how Daimler’s formal culture never was able to effectively mesh with Chrysler’s free-flowing style – crippling their merger.
Don’t underestimate the importance of understanding the differences in management styles of how two organizations handle problems. Handling of benefits like personal time can vary widely, as might how the organizations reward initiative.
To keep employees excited, involve associates from both organizations in your integration process. By embracing their input, you gain enhanced engagement and trust.
Roles and Structure Often Change
When one company merges with another, change to both organizations usually results. Whether you are combining departments or eliminating redundant positions, altering job descriptions or adjusting lines of reporting, skilled HR professionals make sure that everyone understands his or her role in the newly altered organization.
HR can also work to ensure that there is a connection between the leadership teams of both organizations, and that there are no internal “turf” issues being created that will cause the business to suffer later.
Dealing With Downsizing – or Upsizing
Most mergers offer opportunity to trim duplicated functions in staff to realize cost savings from combined organizations. Such downsizing activity should be done fairly and with sensitivity, notes Ron Grant, president of Greenville, S.C.-based Meridian Resources Inc., a national career counseling and outplacement firm. “To avoid drops in productivity or morale and to keep workflow and customer service at high levels, we advocate that clients pay particular attention to internal and external communications, to treating every associate with respect, and to being candid about what changes associates can expect,” Grant notes.
When team reductions are necessary, remaining employees often struggle when asked to assume new responsibilities as operations are reconfigured. Yet combining companies can also lead to rapid expansion of workforce. In such a case, the growth brings the challenges of not only integrating merger partners but adding the need to onboard new associates unfamiliar with either organization’s ways or culture. In both instances, HR professionals can play a vital role in building and sustaining morale and productivity.
Dedicate Sufficient Time and Resources
Understanding how much time and resources are required to complete a successful integration of companies is almost always underestimated. To be successful in your merger or acquisition, dedicate time and talent to the process who understand the complexities and dynamics of merging organizations, who can execute in tight timeframes, are experienced dealing with sudden change and unexpected challenges, and who have a knack for solving problems effectively and quickly.
Whatever your reason for merging, acquiring or being acquired, the surest way to a successful combination is by conducting thorough due diligence. And while financial and operational issues tend to rise to the top in such explorations, addressing “people issues” is paramount to realizing the full benefits of joining forces.
