Relocation Policy: Group Moves as a Result of a Merger or Acquisition
The success of a merger or acquisition is greatly influenced by how well an organization addresses challenges and human resources issues related to its employee base. Statistics demonstrate the majority of all mergers or acquisitions result in financial disappointment and most failures are directly linked to people issues and not business challenges. Human resource issues are often not fully considered until serious problems arise, at which time handling them effectively is difficult.
Considering the employee impact while formulating overall corporate strategies is a critical factor in driving a successful merger or acquisition. A key strategic partner in this initiative is human resources department, which is integral in assessing what kind of people and what the key individual capabilities are that the company will need once the merger or acquisition is complete. This is especially critical if a group move is a component or result of the merger or acquisition.
When coordinating a group move as part of a merger or acquisition, we recommend the following:
1. Create a group move team and leverage the expertise of a relocation partner (either existing or a specialist). An effective plan and the right team to execute the plan will increase the odds of facilitating a successful group move. The team will be able to identify all of the resources required to manage the needs of the employees and also provide valuable direction and insight. This approach also helps to ensure consistent communication and reinforce the overall business goals in terms of human capital.
2. Determine who will be asked to move. Even while rising unemployment rates are announced in daily news reports, corporations continue to want to reduce employee turnover and retain their existing employees, thus minimizing the costs associated with recruiting and re-training. Communication and relocation strategies must be pre-determined and specific to the individuals that the company desires to relocate.
3. Formulate a formal communication plan announcing the move. Many companies embark on studies, based on what part of the workforce is to be retained. Effective employee communication is critical as is the timing. An announcement of a merger or acquisition is a very sensitive topic for employees as it leaves them feeling unsettled and unsure about both their role and their future. It is critical to monitor all of the questions raised from the employees and specifically about a potential relocation. The communication should inform the employees of the company plans and express the corporate desire and commitment to retain current employees.
4. Planning the group move through relocation surveys. Employee opinion surveys can be a useful part of a group move relocation planning. They should provide an opportunity for employees to express their perspective, to create participation and engagement from the beginning and allow the relocation team to base initiatives and benefits on the specific needs identified by the employees.
Remember, each group move requires careful planning to ensure a balance between the needs of the employer and the employee. Utilizing the relocation policy to fit in the overall strategic vision of the organization can be an effective tool, but there are also specific requirements to facilitate a successful group move that are not typical in everyday corporate relocation, so, be sure to develop a succinct strategy, comprehensive communications plan, and leverage the expertise of a relocation management company partner.
Posted on 01/26/2010 in Relocation Policy | Comments (0)
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