Human Resources Integration

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Aligning HR operations with integration strategy to deliver people value

People are at the forefront of deal success or failure, and the Human Resources (HR) function plays a central role in driving the people agenda throughout the integration process. Changes in work practices, decision making styles, reporting relationships, organization structure, and operating models all impact how employees will perform in the combined company.

If HR’s integration roles are not well coordinated, risks mount and there is a greater likelihood of business interruption, talent defection, declining sales, and market confusion over the direction of the organization.

Managing the myriad of HR roles and requirements during integration demands an effective HR integration plan that aligns to the overall integration strategy. With a dedicated HR leader and integration team executing the plan, the newly combined company should obtain the flexibility they need to engage talent and drive growth.

The heart of the deal

Setting the course for HR requires immediate attention to address critical matters important in the early stages of a merger or acquisition. Setting the course typically addresses the following areas.

  1. Manage people and rewards – People follow leaders. Early selection of future company leadership will help accelerate the integration process.
  2. Drive HR operational efficiency – Integration is an opportunity to evaluate how best to deliver HR services to the combined organization.
  3. Address regulatory bodies and compliance matters – Cross-border deals inherently bring complexity through legal entity and regulatory matters.

Contact us

Gregg Nahass

US and Global M&A Integration Leader, PwC US

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