HR Best Practices: How to Manage Staff Reductions and Separations in Mergers

In a merger, acquisition, or takeover, reductions may be required immediately after the announcement of the transaction, or they may be required after work is transitioned from a department. In either case, you should prepare for the following necessary actions:

  1. Review Department Functions and Determine Staffing Requirements

    This requires an evaluation of major tasks performed within a department and the labor hours required to accomplish those tasks. The due diligence review of all departments should have provided historical data from the sending organization to facilitate the staffing decisions, whether those are based on transaction numbers, dollar volumes, number of accounts, number of employees, or other quantitative factors. In this process, it is important to consider the tasks, not the individuals assigned to the tasks. The end result should produce the staffing projections for the combined organization.

    When calculating staffing projections, it may be helpful to use required work standards and management ratios.

  2. Identify Individuals Who Will Be Reduced . . .

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