7 Critical HCM Components of a Corporate Merger or Acquisition

Merging one company into another isn’t easy. From products to marketing approaches to sales processes, executives must look at each aspect of business operations. After that analysis, they can decide the best way to make one business from two.

For Human Capital Management (HCM), there are critical components to a successful merger or acquisition:

1. Process

Usually, the acquiring company will require the new organizations to use existing HR processes. However, the new company may present a fresh challenge that causes a refinement to those standard processes.

For example – a manufacturing organization buys another company and starts planning the rollout of its standard HRIS offerings to employees in the new location. However, the planners learn the new site doesn’t have (and can’t easily get) the required internet access.

The result? A deviation from the standard HR and talent process.

2. Data

Leadership will want to merge the new company data into its existing technology platforms to ensure they have a global view of the combined companies. While possible, that process comes with the challenge of merging data from different systems with different data models.

For example, job profiles and pay grade structures often differ between the acquirer and acquired companies.

3. Skilled Staff Availability

A corporate acquisition is a substantial project. Appointing a project leader able to get buy-in from both source and target companies is essential.

In addition, experienced solution architects, technical architects, and dedicated data analysts will help facilitate a smooth, successful transition.

4. Cost Considerations

Many organizations undergoing mergers or acquisitions rely on an external vendor or partner for solution design, data migration, change management, and integration.

Companies must fully understand the project’s total cost – including external and internal expenses.

5. Solution Design

A skilled solution architect will identify critical decision points in the HCM solution.

For example, how to configure the HRIS with new localization options or languages to accommodate any new countries in the acquired company.

6. Technical Audit

A technical audit of the HRIS landscape at the acquired company will help planners fully understand the scale and complexity of the migration project they are tackling.

7. Timeline

Depending on the technical audit results, the HRIS migration may need to be completed in phases to accommodate extensive HCM, payroll, and time and benefits systems.

Need Help?

Contact us if your company needs help with data aggregation, technology audits, or change management due to a merger or acquisition. We can create a project roadmap to help you succeed!