Designing Pay and Rewards to Make M&As Work

Abstract

Too many companies are missing the opportunity to create a strong bond between their business and workforce during mergers and acquisitions. Although companies spend much effort on executive pay and rewards at this time, often the general workforce, where the skills and competencies for which the merger or acquisition was undertaken reside, is ignored. Providing a strong and positive deal for the people the company needs to retain makes sound business sense. This process must start during due diligence and initial planning and involve reward designs that make the new organization attractive. People work for more than pay, and we are entering the age of total rewards that include the components of providing a compelling future, the opportunity for individual growth, a positive workplace that excites, and, of course, total pay. This article provides suggestions about why and how to make rewards a powerful positive when companies are joining forces.