Merging HR Policies

Essay by ataf78University, Bachelor'sA, May 2008

download word file, 18 pages 5.0


Many organizations still do not view human resources as critical to their merger strategy, particularly in the early stages of the process. This is especially ironic since more often than not, there is cultural incompatibility, poor communication, and loss of key employees is cited as the biggest obstacles to a successful merger transition. These are the very activities that Human Resource departments can influence the most. A successful merger strategy needs to take account of certain factors.

Key Points

Human Resource specialists are left with the difficult role of:

• Developing communication strategies.

• Aligning payroll, benefits, and compensation systems.

• Combining different and possibly incompatible processes and cultures.

Merging HR Policies

The new company must emerge with a unified approach to human resource issues. Policies should be reviewed, created, implemented and communicated companywide to ensure understanding. Compensation and benefits packages must be reviewed, merged, shopped, and communicated. Staffing and work force planning must be completed for current and future openings; training and development programs must be merged and communicated; and employee-relations programs must be communicated and implemented.

In spite of assurances that nothing will change, they will. The new company will evolve into something else. There should be a clear strategy for communicating change along every step of the way and managing through it in order to recruit and retain the workforce. A Human Resource team comprised of members from all companies involved is the key to administering human elements of the integration. HR team members become strategic advisors who, through side-by-side analysis of the companies' organization structures, job functions and compensation and reward polices will seek to maintain desirable synergies such as high levels of productivity. The retention of key talent and the integration of strong management styles in an attempt to move away from the old...