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HR Professionals: Managing Whilst Going Through A Merger/Acquisition?

In the era of globalization, the business world is increasing in size. The rules of trade and commerce are changing. The competition is getting tougher. Big corporations are approaching and taking over smaller organizations. Some organizations are merging, and others are being acquired. In both cases, one thing that remains common is the fear arising in the employees. During these difficult times, the employees often look up to the HR professionals for answers. How should one try to calm the anxious employees? We might have some answers to these questions. Here are some tips for HR professionals to follow in chaotic times.

Change Management

Communication is the key if the organization is going through some major changes. There can be rumors or false information circulating in the organization. As an HR professional, your main task should be to put these rumors to rest by communicating with the employees. Answering questions privately can help put the mind of employees at ease.

Individuals will always be wondering and questioning if there shall be any changes in their job or will there be any modifications on the organization structure? One reason that companies fail in M&A is during the change management process and I believe no company would want to be in such a state. As a matter of fact, it is vital how the information is conveyed to employees and what changes will take place during the process, as this will emphasize the difference between success and failure of the organization going forward.

Retaining Key Employees And Downsizing

During a merger & acquisition, employees can try to jump ship or can be approached by rival organizations. Retaining key employees that are important to the organization will prove beneficial in the future. Downsizing on the employees who do not play a key role in the organization also needs to be determined. Downsizing should be done by keeping in mind the legal aspects.

Analyzing Organizational Cultures

Determining how the employees of two different organizations would fit culturally is essential. Mergers & Acquisitions often bring out cultural differences in organizations. Analyzing the cultural differences beforehand is important so that a cultural fit can be constructed. Cultural differences can cause friction in the organization. Many M&A fail due to overlooking the cultural differences of different organizations.

Compensating And Creating New Employee Benefit Programs

Due to an M&A, the state of the organization can change drastically. Employees become agitated thinking about their employee benefits that they were provided with before. As new employees join the organization, compensation for earlier benefits and programs needs to be strategized again. As an effect of downsizing assigning achievable targets to employees can prove helpful.

Creating New Policies

Creating new policies that suit the organization better is advantageous. Examining character reports and complaints against new employees should be considered while making new policies for the organization. As an HR professional, you should also keep the legal aspects in mind while making new policies.

Communicate With New Employees In Advance

Try to maintain relations with new employees in advance. Get to know them and share the vision of the company, so that they can understand the organization better. Answer their questions and clear their doubts so that they join the organization with a more open mind.

These were some of the tips that you should keep in mind when managing an organization merging or being acquired. Personally, I believe it is exceptionally important for HR professionals to work closely with the board and managers from the start of the transition to ensure that everything is running smoothly for everyone in the organization. M&A if done correctly, can have huge impacts and boost the business even further and not harm it. HR professionals can play a crucial role for contributing to this success.

Do you agree with us? Did we miss something? Let us know your comments on this subject.


Written by: Girish Rohra Chawla

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