They can provide valuable information about the company’s talent and culture—along with typical assessments of employee benefits plans & compensation programs, employment contracts, policies and procedures, and more. They can also give great insight into the value of your workforce and can decrease the possibility of unhappy surprises once the deal is done.
But more often than not, post-merger integration (PMI) is misperceived as a simple task that can be achieved during day-to-day operations, and the importance of involving HR from the start is neglected. This is a common misconception and a recipe for failure. PMI is a process that requires rigorous planning from the beginning of an M&A process. And since every situation is unique, the integration plan must be tailored according to the company’s needs.
The rate of M&A failures is high and is often caused by different HR-related factors such as incompatible cultures and management styles, loss of key employees, lack of communication & motivation, and confusion regarding the company’s future goals.