The surge of mergers and acquisitions in India has helped propel organisations to achieve significant competitive advantage in the industry, whether it is across IT, telecom, BFSI or healthcare. Organisations world over concur that M&A is the fastest tactical preference for global players as well as for start-ups to rapidly scale up. A recent report by Thomson Reuters states that Indian M&A’s peaked at an all-time high in 2018 with deals worth $125 billion, which presents a positive narrative. However, it’s believed that nearly 75-80% of these mergers are unsuccessful, and one of the major reasons for it is the lacuna in the area of human resource management.
HR integration forms the greatest challenge in any M&A transaction. At the core of any merger and acquisition, a major contributor to its long-term success is the ‘People dynamics’. It’s important for organisations to take cognizance of the fact that not all employees would be open and favourable to the transition initially. This is where the human resources department can play a pivotal role, by ensuring seamless integration of employees of the merging organisations.
Some of the key areas where HR can play an important role during a merger and acquisition (M&A) include:
In summary, while M&A deals are integral to the long-term growth of an organisation, failure to involve the HR early on could be detrimental. Hence, early involvement would enable the HR team to strategize better and plan out specific objectives and decisions regarding merging companies.
Corporate Comm India (CCI Newswire)
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