Every business faces unique challenges as it grows and changes, and few changes are greater than a merger or acquisition.  Whether your company is the purchaser or the target company, as an owner or manager, this transition focuses your attention on evolving the business.  Who has time to eat lunch, never mind to think about Human Resources?

While you’re focused on the big picture, a skilled HR consultant should be involved at every stage of the merger or acquisition.  When two companies suddenly become one, HR will play a critical role in managing the challenges that come with blending two sets of employees who are used to their own rules.  A professional eye trained on employees can spot potential problems that owners and managers might not notice.

For starters, Human Resources can help determine whether two company cultures are compatible.  If Company A offers flexible hours and telecommuting, but Company B is a strict 9–5 operation, there might be some culture shock coming.  Other areas of cultural differences can include employee benefits and time off, management styles, and definitions and measurements of success.  Even the overall feel of the business environment can be different.  An experienced HR professional can assess this cultural divide and recommend solutions to get everyone on the same page, while keeping employee retention in mind.

Human Resources can also help assess company structure to ensure the new entity is properly sized and staffed.  This highly detailed process requires thoughtful answers to the right questions.  Has the transition changed the company’s goals or strategies in a way that requires a larger marketing department or customer service team?  Under the new arrangement, which positions and departments are key, which are redundant, and which can be consolidated?  What job descriptions need to be rewritten?  Once a new organizational chart is drawn up, HR can communicate the changes in a clear and mindful way.

Handling employee communications is another essential role HR plays during the merger or acquisition process.  Employees often get fearful when unspecified change is in the air.  The rumor mill starts churning and suddenly there is talk of mass layoffs, moving the office to Canada, and replacing the coffee with warm lemon water.  Human Resources can chime in to defuse the rumors, calm fears, and answer questions about how the merger or acquisition will affect the company and its employees.  Calm and informed employees are more likely to stay productive and positive throughout the process, rather than spend time wondering about an uncertain future.

When your focus is elsewhere during a transition, let YES! Your Human Resources Solution guide your HR strategy.  As Orange County’s premier HR consulting firm, we can not only assist with these key points during a merger or acquisition, we can also help your new entity build a solid Human Resources foundation to grow with you and adapt to your changing business needs.  The sturdiest HR foundation is based on best practices, fits your business’ size and culture, and is flexible enough to grow with you.  It is also built by the collaboration of your business’ existing HR resources and a knowledgeable Go-To HR resource, such as YES! Your Human Resources Solution.  Let YES! steer your HR strategy so you can focus on driving business results!  To find out how to get started, visit our website or contact us for a free consultation.