Merger Integration I

1. Merger Integration I Human Resources

2. Post-merger integration • Project plan • Evolving document • Updated over time • Manage resources • Time usually most valuable resource in integration • HR Plan Excel worksheet

3. Post-merger integration • HR due diligence • Benefits, compensation, employment regs/3rd party claims, labor relations, policies/procedures, safey • Understand the seller • Easier to compare benefits • Legal review: IRS, top heavy tests

4. Post-merger integration • Step 1: Compare benefits • Side-by-side comparison • If seller gets better benefit package, emphasize this in the communications

5. Post-merger integration • Step 2: After comparison, then establish strategies for integration of compensation and benefits • Tough decisions • Easier to do after the data collection/comparisons

6. Post-merger integration • Plan • Balance strategy and good employee relations/morale • Beware of inequities in pay scales • Employee letters • Setting forth expectations • Opportunity for one-to-one meetings

7. Post-merger integration • Medical coverage • Concerns: • Will I have coverage with new employer? • Will it be uninterrupted? • Cost difference? • Similar/better/worse?

8. Post-merger integration • Coverage? • If it is eliminated, expect huge problems • Possibility of turnover • Hot button issue

9. Post-merger integration • Difference in amount? • Employees will notice difference in paycheck • Coverage • Deductibles, plan types, co-pays, domestic partners

10. Post-merger integration • Age of employee population • If older, could have higher medical liabilities • Difficult to cut existing medical obligations, but has been done • Will likely require litigation and bad PR

11. Post-merger integration • Dental coverage • Not a huge issue • Interruption not a big issue • Same goes for life insurance • As well as disability insurance PARTIAL DOCUMENT – THE REMAINDER IS VIEWABLE BY THE MEMBERS ONLY