Human Resources: 4 M&A Integrations Charters from Different Acquisitions

Excerpt from First of Four Human Resources Charters:

PreClose/Planning Objectives

• Ensure individuals identified for Retention; support creation of  Offer Letters; and readiness for Onboarding employees
• Ensure plans developed to ensure readiness for Close / Day 1
• International employee contracts are managed/ready for NewCo
• Retention plan in place for all Acquired Co. employees who will not be long term employees of Acquirer
• Recruiting plan to address new roles needed and backfills for Acquired Co. business
• Work with Communications/Experience team to ensure that communications are ready for pre-close/Day 1/etc.
• Employee data obtained from Acquired Co. and ready to be loaded into Workday
• Employees are mapped and leveled into Acquirers job and compensation structures
• Define training plan (including requirements from other functions) for Day 1 and beyond
• Ready to enroll US Acquired Co. employees onto Acquirer’s health and welfare benefit plans with no gaps, grandfathered OOP/deductibles/copays for 2018, plan for international
• Readiness for Acquirer 401(k) enrollment/rollover following shut down of Acquired Co. plan
• Pre-close communication to US HR re: payroll schedule changes, impact of FICA reset
• Plan to digitize Acquired Co. employee files

Day One Objectives

Employee Onboarding/New Hire Orientation Day

• Data loaded into HRIS system
• Employees badged
• HRIS data feed to Paylocity and ready for first pay cycle
• Mandatory trainings (Day 1/Week 1)
• Benefits enrollment
• 401(k) enrollment

Key Dependencies (Identify functional team)

• Employee Onboarding (IT, Finance, Legal, HR)
• Employee Communications (Marketing)
• Badging 
• Applications / Systems Access (HRIS, Corporate IT)
• Employment matters: US/non-US (Legal)

Out of Scope / Deferred Past 180+ Days

• Organizational re-design; will review Acquirer 2025
• Payroll (included in Finance)
• Communications and Employee Experience (separate cross-functional team)
• New performance management process/system (in flight as a corporate project, will roll out Q1)

Risks / Mitigation Plan

• Retention of Acquired Co. GM. / Mitigation: Determine long term operational plan
• Potential for only short term retention of critical staff / Mitigation: Come up with knowledge transfer program and accelerate recruiting efforts to backfill areas and allow time to bring new team members up to speed
• Potential that Non-US benefits are below market offering  / Mitigation: Conduct market study to assess gaps and determine go forward plan outside the US
• Acquired Co PEO management of 401(k) plan termination communications / Mitigation: TBD ...

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