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 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 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 Acquirer’s 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 this year
  • 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

  • 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 efforts to backfill areas and allow time to bring new team members up to speed
  • Risk: Potential that Non-US benefits are below market offering
    Mitigation: Conduct market study to assess gaps and determine go-forward plan outside the US
  • Risk: Acquired Co. PEO management of 401(k) plan termination communications
    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, reporting relationships, retention, etc.
  • Plan compliance – amend Acquirer benefit plans, if necessary, to exclude Acquired Co. employees for the time between closing and conversion; amend Acquired Co. contracts, if necessary, to ensure they continue to be in effect post-close
  • 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.

Key Focus Areas

The HR integration charter emphasizes the importance of employee retention, seamless benefits transition, and effective change management to ensure a successful merger

3rd Human Resources Integration Charter

Seamless Payroll Transition

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

Communication

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

Employment & Org. Structure

  • Current: Understand current state and any initial change considerations
  • Future: Define future operating model, location, strategy, capability, and capacity

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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