HR’s Guide to Global M&As: How an EOR Supports Workforce Transitions

During mergers and acquisitions (M&As), Chief Human Resources Officers (CHRO) are tasked with steering teams through the delicate and complex process of talent integration. M&As often involve significant workforce changes, and the wrong approach can derail a deal.

CHROs have to strike a balance between retaining top talent and creating a unified company culture. An Employer of Record (EOR) can be a great partner to ensure a smooth M&A experience.

By partnering with an EOR, HR leaders can handle global employment challenges with ease and achieve successful transitions.

Let’s dive deeper into how an EOR can support and guide CHROs throughout the global M&A process.

Top 3 global M&A challenges for CHROs

HR executives encounter unique challenges that can cause disruptions if not handled strategically. From HR due diligence to ensuring a positive employee onboarding experience, the CHRO’s responsibilities during an M&A are diverse:

• HR due diligence: Conducting due diligence on HR practices, benefits, and local employment regulations is challenging in cross-border mergers. Missing key details can lead to unexpected risks and potential legal disputes.
• Employee onboarding: Integrating employees with differing employment expectations can be complex. A seamless onboarding process is critical to ensure a positive transition and minimize disruption.
• Retention and workforce stability: Retaining talent is essential to maintaining productivity and preventing employee disengagement. For CHROs, reassuring employees during the transition is foundational for retention.

How an EOR simplifies global M&As for HR teams

An Employer of Record (EOR) provides support for executive HR leaders managing global M&As. EORs reduce the stress of cross-border workforce transitions by:

• Centralizing compliance management: EORs have expertise in managing compliance across different regions, reducing the risk of violations and fines.
• Streamlining onboarding: EORs facilitate quick and efficient onboarding, ensuring that all employees, regardless of location, receive a uniform onboarding experience.
• Enhancing strategic alignment: Partnering with an EOR frees CHROs to focus on important initiatives and strategic alignment with the organization’s broader financial, operational, and legal objectives.
• Protecting IP: EORs ensure that employee contracts in every region include essential clauses to protect intellectual property (IP). This safeguards company innovations and proprietary information, reducing the risk of IP disputes post-merger.

Retaining talent and maintaining workforce stability post-M&A

Workforce stability is a top priority for CHROs. Losing key talent can undermine the M&A’s value, and cause instability that impacts morale and productivity.

An EOR can help by providing:

• Consistent benefits and compensation: EORs manage compensation and benefits across different markets. Employees have the assurance that their needs will be met during and after the transition.
• Cultural integration support: An EOR partner with experience in diverse regions can advise on culturally appropriate customizations in onboarding and employee experience, which can help unite employees from different backgrounds and regions.

EOR solutions for global HR compliance in M&As

Global compliance is a critical concern in cross-border M&As, as each country has its own complex employment laws. EORs play a vital role in ensuring compliance by:

1. Staying up to date on local regulations: EORs stay current with local employment laws, reducing the risk of compliance errors in areas like labor laws, tax, payroll, and benefits.
2. Facilitating efficient documentation and reporting management: Handling employee records, contracts, and benefits in multiple regions is simplified with an EOR, which helps CHROs keep accurate and compliant records.
3. Mitigating legal risks: With an EOR managing compliance, HR executives can focus on strategic and visionary leadership while having confidence and trust that regulatory risks are minimized.

Partner with G-P for global M&A success.

EORs streamline workforce transitions and mitigate the HR risks in global M&As. As the recognized leader in global employment, we deliver industry-leading global employment products and EOR solutions backed by the largest team of HR, legal, and compliance experts, so you can hire, onboard, and manage global teams in 180+ countries – regardless of entity status.

For executive insights on how to navigate workforce integration during M&As, download our M&A Playbook. If you’re a CHRO and would like to hire globally or increase time to value during cross-border deals, contact us or book a demo.