Integrating Human Resources Programs When Acquiring a Company

Steven Cesare, Ph.D.

The other day, a business owner from Texas called me to discuss multiple, diverse issues related to buying another company. The owner was in the early phases of the process which allowed us a suitable time to consider multiples aspects of the desired acquisition. We conferred about discussing the legal implications with his lawyer, the financial issues with his accountant, and the acquisition process with his broker. With that context in mind, we then talked about the myriad complexities related to integrating the human resources components of the seller’s programs, practices, and personnel into his own company’s culture.

At a very high level, I suggested that the human resources integration phase of the potential acquisition focus specific attention onto the following areas:

Legal Compliance
I-9 Forms, OSHA recordkeeping, FMLA requirements, past and open litigation, pay equity, audits
Organizational Culture
Each company’s core values, communication networks, leadership trust, goals & metrics, surveys
Human Resources Administration
Policies and procedures, employee handbooks, employee files, corporate calendar, EPLI
Organizational Charts
From each company as well as proposed consolidation, redundancies, value-added functions
Employee Entry
Hiring procedures, New Employee Orientation, Onboarding Programs, follow-up, retention rates
Training and Development
Each company’s programs, action plans vs. development plans, performance validation
Performance Management System
Job descriptions, performance reviews, High Potentials/Performers, accountability mechanisms
Compensation and Benefits
Salary scales, benefits plans, severance packages, perks, PTO, bonuses and commissions, 401(k)
Staff Transition Packages
Retention package for keepers; transition package for trainers; severance package for dismissals
Integration Team
Responsible for developing recommendations, fact-finding, implementation process, contingencies