Case Study 04

Consulting for HR Systems Case 2

Facilitating HR system integration involved in M&A from an objective and professional point of view.

Company D: financial services company

with approximately 500 employees

Company D was also a new client who was going through a merger and wanted to formulate a new HR system for the new company. They contacted Human Link because of the past successes we've had in supporting M&A. Human Link conducted interviews to hear about the details of the differences in HR systems and work environments of the two companies to be merged. As HR professionals, Human Link did not merely compromise differences between the two systems, but rather, it facilitated the formulation of a new HR system that clearly reflected the new company's vision.

Challenges

Formulation of an HR system for a new company in which finance subsidiaries of two major corporations in different industries merged.
There was a large gap in customs and cultures of HR systems and operations that were passed down from each respective parent company.
Company D requested that Human Link does not lean too far to one side or another, and formulate an HR system and set compensation levels that would be satisfactory for employees of both companies.

Solutions

An HR system for the post-merger company was formulated with a brand new approach, and this increased cohesion in the company.
Taking social trends and the needs of the new company into account, Human Link introduced a system with new merits and a new objective, without merely finding a compromise between the existing systems of the two companies.
Regarding portions of each company's tradition and philosophy that differed, Human Link objectively deliberated the ideal future for the new company while taking time to consider each side's views.
Human Link also participated in explanatory meetings to employees together with Company D's HR department. This gave employees the impression that this HR system was one with which the new company could realize its future vision.

Effects

The direction of management and what kind of personnel would be an ideal fit were made clear through introduction of a new HR system.
The relationship between job ranks and compensation were organized, leading to employees feeling a sense of satisfaction.
Company D was able to move forward with merger of both companies and respective personnel.

After the merger, another merger was to take place, and Human Link once again was entrusted with that project. Company D also introduced Human Link to companies in the same industry, and Human Link was entrusted by these companies in projects to reform their HR systems as well.