Navigating Benefits Changes During a Merger or Acquisition

Merging with or acquiring a new business can be a lucrative and exciting chapter in a business’ story; however, it can also be a stressful experience, especially for employees of both companies. A critical aspect of this process is navigating employee benefits and how the two companies will come together under one HR umbrella.

Tips for Managing Employee Benefits During a Merger or Acquisition

The following tips can be used for managing employee benefits during a merger or acquisition:

• Compare existing plans. Take a look at the benefits offered by both companies and identify the similarities and differences. Develop a strategy that effectively combines the two plans by deciding which benefits to keep, change or discontinue.
• Develop a timeline. Benefit changes typically don’t happen overnight, and employees should be careful about making quick, in-year changes. Make a timeline that concludes with the new benefits plans at the beginning of the plan year.
• Communicate with employees. Clearly and concisely communicate changes to all employees. Prepare for questions and concerns.
• Review requirements. The business you have merged with or acquired may have different insurance requirements. It’s essential to understand these new requirements and comply with them.
• Manage employee feedback. Provide employees with resources they can review to understand their new benefits plans. Make sure they know who to contact for questions and the appropriate way to do so.
• Consult with a trusted advisor. Managing employee benefits can be complex, but a benefits broker can help guide you in the right direction.

Learn More

Working with an insurance broker can help alleviate some of the stress associated with benefits changes. For assistance with employee benefits near you, contact Bovard Insurance Group.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.