Companies often merge or acquire other enterprises in the interest to gain a foothold in new market segments, thin out competition, and enter upon new technology. Merger and acquisitions is a comprehensive term and a strict attention should be paid in the nitty-gritty of this whole process.
Speaking of difference between merger and acquisition, merger is when two organisations decide to form a new single company out of their existing ones. On the other hand, acquisition is when a company buys majority of ownership stakes of an other company. For example, the acquisition of Jet.com by the retail behemoth, Walmart Stores, is overwhelming. A deal of whopping 3.3 Billion dollars is simply mind-bending.
But in an unfortunate way, employees are ignored every so often in the whole procedure of financial and legal work. As the result, it would channelize in creating a bad impact on the productivity of the workforce. Thus, it becomes really important to follow the best HR practices when your company is in the phase of merger or acquisition.
Get across the clear message to the employees regarding need of acquisition
It is quite possible that employees see the acquisition process as displeasing and disruption in their productivity. Hence, HR manager must ensure to communicate in an open way about the necessity for acquisition or change. It would be best if the manager could dictate the perks and benefits that would come after the desired change.
Take necessary steps to build in two cultures
No two companies could have the same culture. One company could be more flexible in completing required number of office hours while other could be more interested in following the strict pattern. Or hierarchy in one company could be more prominent while the other believes in the concept of participate in decision making. HR manager should take the lead and take the best steps to gather in two different work cultures.
Pick out the best candidates for new positions
Restaffing could be the pain point for the HR manager, as it involves lots of attentive considerations. Make sure to evaluate skills and potential of the candidates before assigning them the preferred role. The prime reason to perform this activity is because it is not necessary that the employees from acquiring firm would turn out to be the best bet for a particular post. Take your time to find out the best fit for the new company with certainty. It is an important decision and should be made with utmost attention.
Recognize the best practices for each organization
Every organization has its pros and cons in terms of operations and work culture. Identifying what all practices should go along the new company should be the topmost task in the to-dos list of an HR manager. Evaluate and study the practices of the acquiring company and make your decision solely on your research. If the acquiring company is larger or even the most profitable one, then it doesn't necessarily mean that you should blindly adopt the practices of the company.