[et_pb_section fb_built=”1″ _builder_version=”3.22″ global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row column_structure=”3_4,1_4″ _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”3_4″ _builder_version=”3.25″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text admin_label=”Article” _builder_version=”4.10.8″ global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
Acquisitions and mergers challenge HR, Payroll, and IT leadership work together to create a plan to integrate two businesses successfully.
These challenges often have major impacts to Merger & Acquisition success rates.\u00a0 Adding to the challenge, most M&A\u00a0deals land on HR and Payroll (and HRIT) without much warning and often without additional help in that effort.<\/p>\n
This often results in a failure to realize ROI on expected administrative cost savings of IT and HR overhead specifically.\u00a0 It also can mean a bumpy and disengaged transition for the incoming or outgoing workforce. HR & Payroll are often tasked with figuring out the roadmap, project plan and deliverables required for operations to be integrated quickly. \u00a0A major component of these efforts normally\u00a0includes but is not limited to:<\/p>\n
Some\u00a0of these efforts may change slightly depending on whether your transaction is a stock swap or purchase and whether the\u00a0Federal Employer Identification Number(s), FEINs, will be retained as-is or if employees need to be completely assimilated into existing company structures. \u00a0However, the scope of the steps required is often very similar and the roadmap almost always looks the same at a high level.<\/p>\n
Through requirements gathering questionnaires and a workshop format, the acquiring company should review HR and Payroll process and service requirements, landscape overview and services transition topics. \u00a0If the acquisition is a very large one relative to existing population or the transaction is a merger rather than an acquisition (see merger versus acquisition<\/a>) then it also often makes sense to perform the same due diligence on the current population to do a more complete fit-gap to ensure optimization of both workforces under the new structures.<\/p>\n This process covers questions about current operations and goes into details about HR, Payroll, Time and Benefits:<\/p>\n “How is your organizational structure set up?\u00a0 Please explain how you represent administrative functions and functions that cover multiple business lines (such as Finance or IT). “<\/span><\/p>\n “What methods do you use for time data entry?”<\/span><\/p>\n “How many bank accounts can employee have (or other forms of external transfers)?”<\/span><\/p>\n<\/blockquote>\n The outputs of these workshops and questionnaires are critical to:<\/p>\n We cover detailed “hot topics” in further detail below which are often points of discussion for HR and Payroll leadership.<\/p>\n Decide what systems to keep and what to terminate contracts for.<\/p>\n When will each system be decommissioned?<\/p>\n Where will historical data reside?<\/p>\n What are the costs required and expenses saved as a result?<\/p>\n The scope of data conversion is often a difficult conversation to navigate with HR and Payroll departments being acquired due to complexities of retention legislation in the U.S. and globally. \u00a0See the blog post \u00a0HR & Payroll Data Retention and Archiving Compliance<\/strong><\/a> for detailed information on what categories of information are typically required for various legislation specific to U.S. based employees.<\/p>\n Often an acquiring company also inherits the historical data and document responsibility to better serve employee inquiries although this is also open for discussion in a Service Level Agreement \u00a0(SLA), \u00a0or Transition Services Agreement”. \u00a0This includes but is not limited to the data in the Compliance matrix linked above plus some or all of the following document types:<\/p>\n Acquiring forms are likely to need corporate level reports & documents such as:<\/p>\n For some industries there are specific areas of focus warranted:<\/p>\n The above requirements pose a threat to cost savings in that companies often do not sunset inherited infrastructures and operations which require ongoing IT and HR operational support even though they only hold historical lookup information. \u00a0However they don,’t have to be a risk or a long term cost.<\/p>\n What are our old and new workforce demographics? \u00a0Monitor key performance indicators (KPIs) pre and post deal:<\/p>\n How do we optimize the workforces across both old and new structure?<\/strong><\/p>\n Quantify and ensure\u00a0risks are minimized, costs are minimized and quality maintained as much as possible during the end-to-end transition.<\/p>\n Quality<\/strong><\/p>\n Risks<\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”M&A Form” module_id=”form” _builder_version=”3.27.4″ global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n\n
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Manage integration of HR & IT Operations<\/h2>\n
Historical Data retention<\/h2>\n
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The People Analytics role in effective integrations<\/h3>\n
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Download our M&A Checklist by submitting the following information:<\/h3>\n