After a merger or acquisition, employment terms often need to be harmonized. Highberg can manage this entire process, from selecting the right compensation policy to its communication and implementation. We take into account the organization’s strategy and compensation philosophy.
When two organizations merge, this often affects employment terms. For instance, employees who are now direct colleagues might be compensated differently for the same work. It may also occur that a position has become more demanding, for example because the ‘span of control’ has increased after the merger or acquisition. Such inequalities need to be eliminated.
In short, the following options are available: either the new organization adopts the employment terms package of one of the merged organizations, or an entirely new compensation policy is developed. The first option mainly requires calculations. A new compensation policy requires a completely new design of the employment terms package; this is therefore a different matter entirely. Organizations often choose the latter option: a completely new design or new design of specific components. This can involve both primary and secondary employment terms, or both. It can cover fixed and variable income, as well as aspects like pension, time, and mobility.
Highberg considers the impact that the complete integration has on the organization. How will the new organization be structured? Which departments will be created? How does the merger affect the job classification system? How does the new compensation policy compare to that of market competitors? We take this entire playing field into account when designing the new employment terms package.
Our consultants can and do handle this. We determine the quantitative and qualitative impact of the merger or acquisition on the entire compensation structure. We then analyze specifically what this means for individual employees’ employment terms. Which pros and cons can we balance against each other? And is a compensation arrangement needed? We design, discuss, debate and calculate, and stay involved through the entire process with works councils and unions, legal implementation, and communication about the new employment terms.
