As corporate merger and acquisition activity continues to increase, companies need to adjust how they leverage their compensation and benefits programs.
The restructuring of these programs plays a critical role in retaining key talent during the transactions, according to a new survey by Hewitt Associates.
Furthermore, findings from Hewitt’s M&A survey of 103 companies revealed that just 44% of organizations involved in the transactions net or exceeded their goals.
Compensation and benefits is one of the key components that companies can manage to drive up the probability of success.
Of the companies that exceeded their transaction goals, almost all paid careful attention to four main areas.
1) They took a proactive approach to liabilities such as employment contracts, severance agreements, executive compensation and defined benefits plans.
2) They examined the big picture of compensation and benefits programs mimicking of linking with the structure of the acquired company.
3) They were deliberate about talent retention, offering more than just pay incentives.
4) They planned ahead and addressed challenges directly, especially around key issues of money and liability management.