When a business merger or acquisition takes place, a critical part of the success of the deal is the integration of the people into the organisation, and this includes engagement of the existing employees.
Where the business transaction involves people transferring under TUPE (Transfer of Undertakings Protection of Employment), due diligence is carried out to provide the business with the key employment information relating to the people transferring. Due diligence also ensures that any outstanding claims or new claims are identified as potential risks.
The Post Completion programme, is concerned with a structured approach to integrate the new people into the business and engage with existing employees.
Communication is vital in keeping employees engaged, motivated and productive, and will be a major factor in whether people stay following the business transaction.
Engaging with the people transferring is critical. Introducing the senior management team pre-transfer is the first step for openness and transparency, and gives the first impression of the people / culture within the business.
Then, immediately following the transfer:
- Communicate the company strategy, including the mission / vision / values
- Provide orientation sessions / onboarding to support integration
- Engage with line managers to communicate:
- The department
- The team / colleagues
- The work programme
- And, arrange frequent 1-2-1s to provide regular check ins
- Arrange social events to bring the people together
With any process, further review stages are vital. The business should be continually reflecting on the pre and post transfer initiatives, measuring how successful these were. An Employee Survey can help to gage responses from employees, and provide further insight for the business to address.
Normally carried out by the HR department or outsourced to HR Consultants this is a complex programme. The HR Strategy should be aligned to the business transaction, as people are a critical part of a merger or acquisition. Successful retention of people following a transfer is a major consideration for the business.
To understand how our Employment Team can provide support to your business during a merger or acquisition, reach out to the team on 0345 646 0406 or email enquiries@nockoldshr.co.uk.
Our team of lawyers within our Commercial Teams can provide legal advice on the business transaction: Service Agreement, and Purchase.