Understanding the Role of HR in Mergers and Acquisitions

Human Resources can get a bad reputation. Corporate managers and regular employees typically see the negative side of the HR process and employee data management tasks. They never get to see all the good that these hardworking men and women contribute to their companies. Human Resources can be a thankless career, but the benefits that HR professionals bring to the company are endless – and with the help of HRIS systems, payroll, profits, and vendor vetting can all be brought under the quasi-automated umbrella of a strong and agile HR department.

A Human Resource Information System is an automated component of the HR professionals’ tool belt. With an HRIS, your HR department can streamline processes that are typically labor-intensive and create a slowdown that can affect the morale of the entire company from top to bottom.

While representing a core functionality of a successful business, HR professionals and the HRIS tool that helps them conduct their daily tasks are still largely misunderstood when it comes to mergers, buyouts, and acquisitions.

HRIS and the Value of a Strong HR Department

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Small business owners have been asking “What is the value of my business?” for many years. It’s the question that drives the merger industry and floats ownership teams through the hard times. Building a business of substantial value is always the goal. Some operators seek to create a singular product and corner the market on the intellectual property required to trade in the space. These business leaders hope to create a flash in the pan and sell their assets quickly and at a high value. While others hope to strengthen business ties in their community in order to form a long-standing entity that will continue to pay dividends over the years to come. Whatever type of small business you operate, creating profits and building income are core features of success. Becoming a trusted vendor in your space will boost the value of a business faster than any hype.

Small business managers often find that the value of a business and its ability to draw a profit hinge on the Human Resources elements of the core business functionality. This is because HR departments and their HRIS assistance tools are the first line of defense against employee issues that eat away at profit and efficiency. If an employee is having difficulty in their workspace or needs help in learning a key system of your business model, the HR Department is typically the first stop before an issue is escalated to business owners or managers, serving both the employee and company’s needs.

Adding in an HRIS system is a fantastic way to give your HR professionals the tools they need to quickly and efficiently deal with any problems that may arise in the course of regular business (read this guide for a more comprehensive view of HRIS systems: “HRIS Guide: Choosing The Perfect HR Software”).

HRIS provides structure for inter-company bargaining.

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When approaching a sell-off or a merger with another business entity, a Human Resources Information System represents a key feature in the success of the joint endeavor. With the help of an HRIS, you can quickly comb through employee records in order to identify key operators that must be kept on and value the overall production figures of your business based on a variety of profitability and personnel records. The HRIS terminal is a crucial feature for a small business looking to run with the larger entities in their space because these systems free up “processing” power for the human managers of an HR department. Without the need to constantly double-check payroll or attendance records, your HR professionals can focus more intensely on the needs of the employees themselves.

This all gives your business a more efficient and lean management style and can promote a faster integration with partner organizations during a merger event.