When two organizations merge, this often affects compensation and benefits. Employees doing the same work may find they are rewarded differently. Or a job’s size may increase because its span of control has grown because of the merger or acquisition. Such inequality must be remedied.
Put simply, there are then the following options: One: the organization continues the current compensation and benefits package of either of its two predecessors. Two: a completely new remuneration policy is introduced. The first option mostly requires a lot of calculation work. The second involves a new compensation and benefits design, and so is a completely different matter. Many organizations choose the last option: a new design, entirely or in parts. This may concern compensation or benefits or both. And it may involve fixed as well as variable pay, and pensions, worktime and mobility too.
Where necessary we take into account the ramifications of total integration for the organization. What will the new organization’s framework look like? Which departments will result? How does the merger affect the job framework? How does the new comp & ben policy compare with that of competitors? All these aspects are included in the new remuneration package’s design.
Our consultants have the expertise and they do it regularly. We determine the qualitative and quantitative impact of the merger or acquisition on the reward framework as a whole. We analyse and calculate, to identify the concrete results for the compensation and benefits of individual employees. Which advantages and disadvantages cancel each other out? Is a compensation scheme needed? We design, discuss and calculate, and we stand by your side up to and including your (communication) process involving works councils and trade unions, as well as the legal implementation of the new remuneration policy.