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Posted 6th December 2021

Overlooked Employee Issues When Acquiring a New Company

Overlooked Employee Issues When Acquiring a New Company Following the acquisition of a new company, there are tons of things that managers and human resources need to think about and do. In turn, that can mean many employee issues become overlooked. Don’t forget that employees are the backbone of your company. You need to ensure […]

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Overlooked Employee Issues When Acquiring a New Company

Overlooked Employee Issues When Acquiring a New Company

Following the acquisition of a new company, there are tons of things that managers and human resources need to think about and do. In turn, that can mean many employee issues become overlooked.

Don’t forget that employees are the backbone of your company. You need to ensure they have all of their questions answered and that they receive the help they need during an acquisition.

A Lack of Communication and Systematic Planning

Existing employees from both companies need to be kept in the loop during the entire changeover period.

They are sure to have lots of questions, so ensure answers are provided. Your employees need to be supported at every step of the way.

By putting a system in place, from the top down, you ensure all members of staff know precisely what is happening and when, and what actions they need to take.

If you fail to put a structure in place, your business is sure to experience problems in the initial days of the acquisition, such as a drop in employee efficiency and productivity.

One of the best ways of ensuring everything runs smoothly is to work with a professional employer organisation that can handle important HR tasks, communicate with employees, and make sure regulation compliance is happening. Employee issues won’t be overlooked with the help of a PEO provider.

Employees Who Don’t Like Change

When your business acquires a new company, some ways of doing things are sure to change. Employees need to be updated about any changes that directly or indirectly affect them.

Furthermore, a common issue that could be overlooked is the fact that some employees are sure to kick back against your new protocols.

Whether it’s something simple like how timesheets are submitted or something more important like having to learn how new technologies work, if employees are disgruntled during the time of change, it’s sure to affect morale and productivity.

To nip such problems in the bud, ensure you are open and communicative with all employees and you provide training sessions for new operations and equipment.

A Change in Employee Pay and Benefits

It depends on the type of employee contracts you use and what your new direction is after acquiring a new company, but in some circumstances, employees could be given a reduction in pay and benefits.

Workers could get a new time-off policy, receive adjusted pay, or be expected to work different schedules after an acquisition.

Such things can dramatically affect employees’ lives, so you need to carefully consider any changes to employee pay, benefits, and things like retirement plans.

A Change in Stock Options

If employees hold stock options with your company, things can get complicated during and after the new company acquisition period.

For example, if an existing employee holds stocks with a vesting schedule, it means the employee needs to stay with the company for a set amount of time in order to earn the right to purchase shares. But if those shares are not yet vested, the options could potentially be cancelled.

Employees with stock options will want to know where they stand, so make decisions about stocks early on and ensure you communicate well with the employees about any changes that are occurring.

Losing Long-term Employees

If you have long-term employees who are eligible for retirement, it’s likely you’ll see many of them go when an acquisition happens.

It’s often easier for those employees to retire early on in the changeover rather than having to put a lot of effort into learning new processes and technologies only to retire soon after.

So, be ready for long-term workers to leave when you acquire a new company and make sure you have candidates lined up to take their places and ensure operations and productivity continue to run efficiently and smoothly.

Dragging Out Layoffs

An acquisition can often mean employees need to be laid off. If you need to let some employees go, make sure you do it as early on as possible.

Workers who are waiting to find out if their jobs are in danger will be tense, stressed, and less productive, and it will have a knock-on effect on the morale of the whole workforce.

So, don’t drag out laying off employees if you need to do that.

Categories: News


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