Exploring HR Challenges in Mergers and Acquisitions: What Topics Should I Study?

Ajmal Mirza
Hi all,

I am trying to conduct a study on HR issues in a Merger and Acquisition scenario. Please help me out with topics and suggest some books and articles.

Some of the issues I am aware of are:
1. Compensation differences
2. Seniority and promotions

Please add any other relevant issues you think should be included. Thank you.
Rajat Joshi
Hi Ajmal,

Welcome back. It's been quite some time; you were busy!

The HR issues in M&A are:

- Besides seniority and compensation, the insecurity of employees
- Availability and selecting or retaining, identifying the existing talent
- Retrenchment
- Merging the cultural issues
- Dealing with union of workers
- Dealing with political issues
- Building a team of both entities
- Creating synergy
- Corporate structures
- Understanding the technology
- Legal issues involved in contracts or employment
- Financial implications
- Linking the changes to desired goals

A lot of answers will emerge if HR is involved in top management discussions, aware of market dynamics.

Cheerio,
Rajat
Ajmal Mirza
Hi Rajat Joshi,

Thank you for the information. I am trying to gather some case studies and also looking into companies that may have encountered similar problems and how they resolved them.
newlearner
Hi,

I am also studying Merger and Acquisition. Some issues that generally arise from an HR perspective include changes in compensation management, performance management, culture clashes, retention of key employees, intervention strategies, relocation of employees, trust factors, and the effects on performance, etc.

Can you please forward me some case studies regarding Mergers and Acquisitions? It'll be a great help.

Thanks,
New learner
Nikita Gandhi
Hi Ajmal,

Interestingly, I am currently in the phase where my company is acquiring some companies and also at the same time merging with some bigger giants. All the points brought up by Rajat are relevant and being experienced by almost all of them. Most obviously, there is no proper planning before acquiring some companies as we ourselves are a small company and a year old. Unfortunately, we currently do not have anybody at the Strategic HR level where one can take necessary steps to ensure the same treatment across all the companies. We see some top managers favoring the employees of the "prime company," which is not a good method because eventually, they would be a part of your company. Generally, the environment and morale are quite disturbed, and then there are obvious financial constraints that you are struck with.

Nikita

newlearner
Hi Nikita,

I am also studying in this field. Could you please tell me something about your company? Additionally, I would like to know if I can send you a questionnaire to be filled out by your employees regarding how they feel about the merger and acquisition that is taking place.

Regards,
New Learner
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