1st Human Resources Integration Charter

Pre-Close / Planning

  • Identify individuals for retention; support creation of offer letters
  • Develop plans to ensure readiness for Close / Day 1
  • International employee contracts are managed/ready for NewCo
  • Retention plan for all Acquired Co. employees not staying long-term
  • Recruiting plan to address new roles and backfills
  • Work with Communications team to ensure readiness
  • Employee data obtained and ready to be loaded into Workday
  • Employees mapped and leveled into Acquirer’s job structures
  • Define training plan for Day 1 and beyond
  • Ready to enroll US employees onto Acquirer's health plans with no gaps
  • Readiness for Acquirer 401(k) enrollment/rollover

Day One

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

Key Dependencies

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

Out of Scope / Deferred Past 180+ Days

  • Organizational re-design; will review
  • Payroll (included in Finance)
  • Communications and Employee Experience (separate cross-functional team)
  • New performance management process/system (will roll out Q1)

Risks / Mitigation Plan

  • Risk: Retention of Acquired Co. GM
    Mitigation: Determine long term operational plan
  • Risk: Only short-term retention of critical staff
    Mitigation: Develop knowledge transfer program and accelerate recruiting
  • Risk: Potential that Non-US benefits are below market offering
    Mitigation: Conduct market study to assess gaps
  • Risk: Acquired Co. PEO management of 401(k) plan termination
    Mitigation: TBD

2nd Human Resources Integration Charter

Objectives

(Primary integration objectives to be achieved post-close)
  • Optimal HR, people, and cost structure determined with plan and timeline
  • Optimal support for new business structure
  • Day 1 deliverables and execution plan determined
  • Seamless Day 1
  • Plan for payroll, benefits, and data conversion developed

Day 1 Mandatories

  • Pay and Benefits: mechanisms in place to ensure no disruption
  • Merger Agreement: Execution of items triggered by close date
  • Welcome Plan/Day 1 Orientation: SMT Roadshow, onboarding, etc.
  • Change management plan developed and executed

Day 1 Prep

(Critical pre-close activities)
  • Develop welcome plan
  • Partner with businesses on organizational design, retention, etc.
  • Amend Acquirer benefit plans, if necessary, to exclude Acquired Co. employees
  • Identify plan compliance and contract issues and amend as necessary
  • Plan for execution of merger agreement items and timeline

Issues/Risks

  • Retention of key employees
  • Employee engagement
  • Unionization

Team Members & Deliverables

Role/DeliverablePerson Responsible% Time Commitment
Strategy & business support – Western OperationsTBD10%
Strategy & business support – Eastern OperationsTBD10%
Strategy & business support – Real EstateTBD10%
Tactical support – compensation, benefits, payroll, etc.TBD25%

Cross-Team Dependencies

PeopleSoft set-up and HR integration is contingent upon the following being finalized: company structure, business reporting structure, financial structure and IT connectivity.

3rd Human Resources Integration Charter

Seamless Payroll Transition

  • Establish short-term plan for payroll schedule/cash
  • Long-term payroll strategy

Communication

  • Employee FAQ
  • Who We Are - Deliver Benefit, Purpose, Values, and Vision
  • Employee Communication Portal

Employment & Org. Structure

  • Current: Understand current state
  • Future: Define future operating model

Total Rewards & HR Ops

  • Detailed job assessment and leveling
  • Total Rewards - Medical, retirement, etc.
  • Policies and Procedures
  • Integration into HR Operating Model

Employee Experience

  • Site Visit, Survey
  • HR Program Implementation
  • Talent Review, Performance, etc.

Systems & Programs

  • HR System Integration
  • HR Program Implementation (Planning Y1, Implementation Y2)

Best Practices

Successful M&A integrations require clear organizational structures, well-defined responsibilities, and comprehensive planning across all HR functions to ensure smooth transitions for employees from both organizations.

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