Due diligence is a must, but does it include a Human Resources Assessment of your risks??
It may be just the thing to do, merge or acquire a new business. Every company does due diligence, but how many incorporate a Human Resources Assessment?
Not doing so may be a costly mistake! You may be acquiring an existing Human resource related lawsuit along with the company's other assets; possibly triggering an audit by the federal government. Is the company you are either merging with or acquiring up-to-date with their compliance policies and trainings? For example:
- Are their I-9s in order and do they have a system for giving any employee with certain visas 120 days notice to renew?
- Are the postings up-to-date and presented in the correct venue?
- Are the employees satisfied with the company?
- Are HR "Best Practices " in use, which enhance the bottom line of any company?
- Is a succession plan in place to help alliviate losing talented employees?
- Is a no or low cost rewards and recognition program used to boost employee morale?
- Do you use assessment tools that measure the right "fit" to assemble the new company would aid in melding employees, managers and teams into their most effective configuratons?
These are just a sample of the questions that should be answered before the champagne corks are popped!
A good practice is to apply assessment tests to better understand the potential “fit” of the old management into the new organization.