Why employers must reassess employee benefits

Managing employee benefits is often overlooked during a merger and acquisitions process despite it being crucial in boosting employee confidence and maintaining employee morale and productivity. In a new blog, Arthur J. Gallagher & Co shares the main aspects to building a good strategy towards providing employee benefits:

• Communication. Being able to communicate is important during a change management activity. This includes keeping employees informed and more connected to the M&A process. Create a channel where employees can ask questions and express their concerns about their benefits.
   
• Legal and compliance. Examining employee contracts and agreements would help ensure compliance with the laws and regulations and develop a clear plan for employee benefits that align with the business needs.
   
• Due diligence. Understand the acquired company’s existing plans, costs, and liabilities. Identify key talent and consider retaining some incentives or benefits.
   
• Culture and morale. Aim to create a unified and positive work environment. Consider how the changes to employee benefits could impact the culture and morale of both companies.
   
• Harmonisation. Assess the existing benefits of your company and the acquired company, including superannuation plans, group insurance arrangements, leave entitlements, stock options, and longevity of service, among others.
   
• Employee education. Host workshops and information sessions to educate employees on their current benefits and new plans or enhancements to their current benefits.

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