Our key takeaways from this insightful discussion included:
- First things first: Key actions to take swiftly post-completion will include payment and reporting obligations and any remedial action identified as necessary during the due diligence process as needing immediate attention. The integration and harmonisation will then be a journey often managed in phases.
- Talent and Headcount Management, Attraction and Retention: Developing a clearly communicated, engaging, reward proposition to retain key talent is crucial. This includes implementing short and long-term incentive plans, often with revised performance metrics. If staff will be working cross-border to aid the pan-organisation integration, then tax matters will be more complex.
- Cultural Considerations: Addressing cultural alignment, both operationally in terms of employee experience and from a pay and benefits perspective is essential for successful integration and harmonisation, ensuring that behaviour is collaborative and not divisive.
- Equity and Reward Systems: Evaluating and potentially revamping equity and reward systems is usually necessary. This includes considering the impact of structural changes on KPIs and eligibility for tax-advantaged plans. Optimise in countries where there are VIPs or critical mass, where it is cost-beneficial to do so.
- Be Proactive: A proactive approach involves aligning with the existing workforce and updating handbooks and policies as necessary and considering restructuring and RIFs with legal restrictions in mind. Don’t seek to impose a one size fits all approach in the name of harmonisation but seek instead, where feasible, to build a market leading best of breed experience and employee value proposition. Some headcount reduction might be planned but complacency can come at a cost, in the form of unplanned attrition by business-critical resource who don’t feel bought-in to the post-deal environment.
- Handle RIFs with care: Headcount reduction needs careful communication and there will often be statutory processes to follow, and a consultation period may need to be factored into the timeline. To find out more about managing a RIF, our RIF Roadmap for GC’s and HR can help, find out more here.
Key speakers
- Dominic Wrench, Managing Associate, MDR ONE
- Liz Hunter, Partner, Remuneration and Incentives, Mishcon de Reya LLP
- Christian Antkowiak, Shareholder, Labour, Employment, Benefits & Immigration Section Co-Chair, Buchanan
- Candace Quinn, Shareholder, Labour and Employment, Buchanan
