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Merger Integration I

Human Resources

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Post-merger integration

Project plan Evolving document Updated over time Manage resources

– Time usually most valuable resource in integration

HR Plan Excel worksheet

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Post-merger integration

HR due diligence– Benefits, compensation, employment

regs/3rd party claims, labor relations, policies/procedures, safey

Understand the seller Easier to compare benefits Legal review: IRS, top heavy tests

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Post-merger integration

Step 1: Compare benefits Side-by-side comparison If seller gets better benefit package,

emphasize this in the communications

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Post-merger integration

Step 2: After comparison, then establish strategies for integration of compensation and benefits

Tough decisions Easier to do after the data

collection/comparisons

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Post-merger integration

Plan – Balance strategy and good employee

relations/morale– Beware of inequities in pay scales– Employee letters

Setting forth expectations Opportunity for one-to-one meetings

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Post-merger integration

Medical coverage– Concerns:– Will I have coverage with new

employer?– Will it be uninterrupted?– Cost difference?– Similar/better/worse?

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Post-merger integration

Coverage? If it is eliminated, expect huge

problems Possibility of turnover Hot button issue

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Post-merger integration

Difference in amount? Employees will notice difference in

paycheck Coverage

– Deductibles, plan types, co-pays, domestic partners

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Post-merger integration

Age of employee population If older, could have higher medical

liabilities Difficult to cut existing medical

obligations, but has been done– Will likely require litigation and bad PR

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Post-merger integration

Dental coverage– Not a huge issue– Interruption not a big issue

Same goes for life insurance As well as disability insurance

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