vuluntito: Human Resources During Mergers and Acquisition Processes

মঙ্গলবার, ৬ সেপ্টেম্বর, ২০১১

Human Resources During Mergers and Acquisition Processes

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There are a number of reasons that companies would attempt mergers and acquisition proceedings, whether in a friendly fashion or by takeover. These reasons are always meant for the better of the company and sometimes are the only course for survival. Some companies may pursue mergers and acquisition processes to become more powerful in a particular market or just to make their presence known. Still others see benefits from teaming with a similar company that may have better technology, staff, talent, or products. Whatever the reason may be, mergers and acquisition activities are never easy. Some may move along more smoothly than others, but there is always one department that will intimately be involved with the integration process.

The Human Resources department is undoubtedly one of the most important departments in any company, though it is often the unsung hero. Of course, without sales and marketing, a company could never bring in the necessary revenue to survive. The Human Resources department, however, brings in the talent that makes the sales and completes the marketing tasks. HR also handles legal issues regarding the rights of the employees, and that keeps everyone happy and productive.

When faced with mergers and acquisition integration possibilities, the Human Resources department will have an uphill battle throughout. To begin with, each entity has HR departments that will have to be merged at some early point to avoid redundancy, or there will not be a unified company HR department. During the pre and post mergers and acquisition planning, the HR department is often responsible for determining the importance of every other job in the company. The HR department will also be responsible for the hiring and firing of employees throughout the mergers and acquisition processes.

In addition to the retention and release of employees from both companies in the union, the HR department will also work hard to streamline the Human Resources processes. After all, it is not likely that two separate companies will have identical policies and procedures. These procedures will need to be combined and solidified before being introduced to the employees of the newly formed company. This also includes the training necessary for any new software for attendance, payroll, and reporting. Insurance information for unemployment, workers' compensation, and disability will all be changed. This is only the very tip of the job that the Human Resources employees will face when beginning any mergers and acquisition processes for any size company or business.

Melissa Nathans works in consultation with Jack Lyons of Lyons Solutions, a nationally recognized business broker. Lyons Solutions is a business broker and mergers and acquisitions expert. For more information about national buiness brokers, check out lyonssolutions.com where you can learn more about mergers and acquisitions.