Human resources (HR) can play a major role in the success of mergers and acquisitions through the integration and transfer of practices and knowledge, it has been suggested.
According to the Chartered Institute of Personnel and Development (CIPD), HR’s contribution can be particularly beneficial in terms of employee integration.
In its report, which is entitled International Mergers and Acquisitions: How Can HR Play a Strategic Role?, the institute suggests that if time is taken to engage with and understand an acquired firm’s employee practices, companies will be able to effectively share ideas and gain the cooperation of their new members of staff.
"Mergers and acquisitions transcend national cultures, often making the integration process challenging and problematic. HR can play a key role in making this integration a success for employees at all levels," stated Francis Wilson, the CIPD’s international manager.
In related news, a study recently conducted by EquaTerra and Human Resource Executive magazine found that majority of HR leaders surveyed (58 per cent) viewed HR as a strategic asset.