Hr Library

The Important Role of HR in Mergers & Acquisitions in 2021

The Important Role of HR in Mergers & Acquisitions in 2021

Source | | Kersten Oertel

After a slowdown in 2020 due to the Covid-19 crisis and its impact on global economy most experts expect a strong increase of mergers & acquisitions in 2021 in many industries on national and international level.

For this reason, it is appropriate to remember how important it is to strongly involve HR in the preparation for this highly strategic topic.

Usually those “deals” are primarily driven by Top management of the concerned companies and consultants who concentrate on main merger reasons like revenues, synergies, competition, and capital. On the people side, they often limit their efforts and concentrate mainly on key people retention.

HR is often not involved enough or at least not early and deeply enough what is surprising as a huge part of M&As fail or do not achieve their objectives due to HR-related reasons such as cultural incompatibility, organizational mismatch, destructive synergy implementation, misleading integration policies, and processes or other issues causing fears, demotivation and disengagement of the most important resource of most companies: their employees (including key people despite attractive incentives which may have been offered to them).

Click here to read the full article

Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button