Retaining Talent During a Merger
By Janet Koechel, Director of Business Development, Paradox Compensation Advisors
Hire smartly, retain wisely. It all comes down to managing compensation decisions and then efficiently implementing changes. This is especially important during a merger of two companies.
Often companies involved in mergers overlook integrating human resources programs until it’s too late. Doing it on a timely basis can certainly make a difference in achieving a successful transition. One way to ensure that you retain talent during the merger is to conduct a thorough review of all compensation plans to determine if they are externally competitive and internally equitable.
In some cases, it may be necessary to provide salary increase adjustments to top performers to level the playing field and avoid morale problems after the merger. Employees should be told what their career path is and what opportunities for advancement will be in the new homogenized company. This will ensure that you keep the best and brightest employees and maintain a high level of productivity.
Aligning business strategies with your compensation strategy should also be a top priority. Once formulated, the new company should explain this strategy and all elements of their total rewards programs to all employees to ensure that the new company is successful.
In summary, put emphasis on the needs of all employee groups (not just executives) to help make the transition to a new company successful. It would be wise to hire an independent compensation consulting firm with a good track record to assist in the design and implementation of the new compensation plan so that there is no perceived bias. Utilize best practices of “change management” to ensure a smooth and easy transition.
Need help in assessing your compensation programs — contact Paradox Compensation Advisors for expert assistance: Call 214.353.9519.
Paradox Compensation Advisors is a leading compensation consulting company located in Dallas, TX.