Merger and Acquisition Employee Offer Letters | Deloitte US has been saved
Limited functionality available
When the Human Capital (HC) DealMakers community recently came together, we had an informative discussion about developing and delivering offer letters during a merger or acquisition. Developing and delivering offer letters during a deal is a detailed and time-consuming process for HR teams, but there are things teams can do before a deal to prepare, for the offer letter process.
Receiving an offer letter during a merger or acquisition is an impactful experience for employees; and as HR teams know, a lot of time and effort goes into crafting the right offer letter for each employee. HR and M&A teams can better prepare for that process by considering the key questions that must be answered prior to developing and delivering an offer letter.
Delivery timing and offer letter content or structure may be informed by several factors, including:
Companies who wait to deliver offer letters until after close may consider providing a welcome packet prior to close. The welcome packet could include:
Sometimes welcome packets will also include an employee agreement or handbook for employees to sign. This allows them to move onto the acquirer’s code of conduct, without delivering a formal offer letter. Delivering this key information early, but waiting to deliver an offer letter, gives acquiring companies time to thoughtfully harmonize compensation, benefits, and employment terms.
Offer letters and welcome packets can be key components of employee retention and engagement strategies. During transactions, employees are looking for assurance and clarity, especially regarding their role, compensation, and benefits. Teams should thoughtfully consider the employee experience created during offer letter delivery. Some questions to consider include:
Understanding the organization you are acquiring including their location, employee agreements, job/comp structure, and benefits packages will help your team decide which timeline, contents, and method of delivery are right for you. Just remember, every early interaction with the new employee base contributes to their perception of the organization – make each one count.
Monthly our Human Capital Mergers, Acquisitions, and Restructuring (M&A/R) team connects with HR professionals focused on M&A/R work (aka Human Capital “DealMakers”) across every industry. During these sessions we discuss topics that are top of mind for them as they support their companies. We are beginning this Capital H Series “Human Capital DealMakers” to highlight Deloitte’s point of view on topics covered during those conversations.
If you, or someone on your team, is focused on HR M&A/R work and are interested in joining our monthly calls, please reach out to the Human Capital DealMakers Mailbox.