A merger and acquisition (M&A) is an exciting time for an organization. It’s a period of growth and change as the organization envisions the future. But M&A are also challenging.
Employees aren’t prepared for how the M&A will change the way they work. Almost half (47%) of them will leave within a year after a M&A takes place. 75% quit within three years. Most of the burden of dealing with these challenges falls on the already overtaxed HR staff.
Here are three aspects of an M&A that a HR department needs to be aware of:
1) Maintaining a positive employee experience
No matter if the organization is expanding or scaling down, it’s essential for HR to focus on employees and their perception of the changes. Significant changes are unsettling for employees. HR must publish a roadmap of how the company will implement the expected changes. This removes uncertainty and helps employees visualize where their role will fit within the merged organization. Maintaining a positive and hopeful work environment during an M&A will help maximize productivity and minimize attrition.
2) Bringing disparate tools and systems together
Merging different IT systems and technologies can be chaotic. HR departments need to plan and prepare for this stage of an M&A. According to The HR Daily Advisor, 28% of CFOs say merging IT systems and technology is the biggest challenge during a business transformation. Planners need to avoid rushing through an integration and keep the bigger picture and the long-term viability of the solutions in mind.
3) Enabling data-fueled decision-making
Mergers and acquisitions increase the need for data. Staff needs to collect that data and analyze it in a way that helps decision-making. During an M&A, HR teams communicate workforce planning, attrition rates, compensation levels, and retention targets to equity firms and boards. Working with a qualified partner using a flexible, powerful, and integrated analytics and reporting solution will help HR with those communication requirements.
Becoming better, together
Challenges are opportunities - to learn, grow, and leverage technology into sustainable solutions. During an ongoing merger and acquisition, HR departments can benefit from a strategic partner to guide them with efficient and far-sighted decisions. Rizing has the experience and expertise to provide the insight and foresight that mergers and acquisitions require.
From implementation services to training and digital adoption, Rizing has experts who’ve been there before.
Learn more about Rizing’s expertise in mergers and acquisitions by downloading our eBook: Why a people-centric strategy is key to a successful Merger or Acquisition.
Looks at the HR challenges associated with mergers and acquisitions
Explains how to address these challenges
Outlines how Rizing’s solutions can help