Companies’ HR plays a significant role in Mergers and Acquisitions. Their effort is directed towards the long term benefits of the organisation.
Following is a list of issues that need to be looked at and taken care of at the time of the merger or acquisition.
- Financial implications of things such as employee contract, severance package, liabilities etc that have to be coalesced at the time of the m & a.
- Mergers and acquisitions happen across borders as well. The HR has to look into what changes or accommodations have to be done to make a common ground for the future like the orientation of CSR activities, list of off-days etc.
- Choosing the right cultural match is very important- what the employees do to the best of their ability should be that which the company wants from them – their work will become a pleasure. This thing can be accomplished right at the onset of the merger or acquisition.
- Everything has to be clearly communicated by the HR so that no qualm over any common and relevant issues exist.
- Every existing difficulty and potential conflicts have to be resolved otherwise it may lead to people walking out or disagreements later on.
This way HR role is indispensable for M & A.