Sunday, September 20

Plan for Manpower Transition while merger of companies

I have some experience in integrating the merged organization. Hands on working during the transition process have given me very good insight and great experience. Moreover, I am learning from other’s mistakes.

To tell you about one incident, Once at 9.30 pm on Sunday evening I got the communication, that next morning we would be completing the transition of one division of the new company which has more than 100 employees. I was asked to finish with the new appointment letters along with the new salary structure for all these employees by next day morning.

Now I know how to work on stretched goals, but unfortunately I did not even have the existing data for all 100 + employees. Without the existing data, it was not possible to formulate new salary structures for the employees. It was a challenge but I was supposed to complete the task by next morning. So in the morning, I called up the HR person and the accounts person of the acquired company to get complete data of the employees. I called up the person in the payroll outsourcing team, who created the new salary structures for me in an hour’s time. And we were ready with all that was required by 12 o clock in the morning.

I am sure, that this transition would have been planned atleast two days in advance, but the lack of communication from top put undue challenges in front of me. It was not only at the backend, where we faced challenge in communication but even the employees were not aware about this transition process uptill morning.

I believe that transition is an important exercise which should be planned properly. We can not take the employees of merged company for granted. This really reflects poor on the image of the company.

Learning from this whole episode, following are tips to be organized in a better manner when such transition is planned.

  1. Get the correct point of contact in the merged company who can provide you complete data.
  2. Get the headcount data well in advance and get it verified from the finance department as finally finance department is releasing the salary of the employees.
  3. Try getting the appointment letter and the employment files of all the exisiting employees of the merged company.
  4. Get the salary restructuring exercise done in advance. Get professional help if required as salary restructuring is an important exercise. We need to maintain the balance between maximizing the benefits to employees and reducing the cash outflow from the company.
  5. Once the salary figures are in place, take prior approval from the authorized personnel. Do not wait uptill last minute.
  6. Prepare the letters well in advance.
  7. The most important of all is communication with the employees. Please inform them in advance so that they are mentally prepared for the transition.Last minute communication does not portray professional image of the company.
  8. Prepare a presentation to be given to all employees addressing various issues which may be there in the employee’s mind. Also give time to the employees where they can ask their queries.

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"JEEV" - Jeev in hindi means a living being, and jeevs write his blog under this name, because he writes it as a living being, for other living beings, specifically for people in corporate world. Through this blog he wants to provide resources for everyone to make their work life easier.

Jeevs feels as living in a cocoon and looking forward to fly high as a butterfly, in the sky of knowledge.