on HRgyan I posted the following for HR due diligence :

my first reaction was ...

Can someone do a cutural compatibility audit?
What about compensation and levels and performance management
systems? How compatible are they?

On doing a search on the internet I came across the following
definition of HR due diligence:

The gathering, analysis, and reporting of the affect of human
resources strategies, financials, practices, policies, and procedures
on the corporate business decision to merge or acquire another
organization.

WHY?

Compare the hr practices of the organizations involved

Determine the cost of amalgamating the hr practices

Determine the complexity of amalgamating the hr practices

Identify issues/opportunities

Set the stage for implementation
Areas to be compared and analysed :
Human Resources Strategy
Human Resources Polices & Practices
Topic/Practice Areas

Human Resources Strategy

Policies & Practices

Group Benefits

Perks/Incentives: Employees

Additional Perks/Incentives:
– Executives; Sr. Management

Performance Management

Salary Administration

Organizational Structure

Employee Development

Culture
Human Resources Strategy
What do they believe in?
What principles do they follow?
What are their values in treating employees?
HR Policies & Practices

Examples
– Business Hours
– Work Week
– Definition of Status
– Breaks
– Vacation Allowance
– Car Allowance
– Allowable time off
– Corporate Attire
– Severance Packages
– Employee Surveys
– HRIS System

Beware of special "deals"
Group Benefits

Benefits Offered
– Include details

Eligibility

Administrator/Carrier

Cost of opting out

Cost: Employee/benefit

Claims experience
– STD, LTD, absenteeism

"Special benefits"

Consider different groups
Perks/incentives:
Employees

Group/Annual Incentive Plan

EFAP

Recognition Program

Christmas Party/Bonus
Perks/Incentives:
Executives/Sr. Mngt.

Incentive Plans
– Group, LTI

Vehicles

LTI

Allowances

Enhanced Benefits
Performance Management

Performance levels

% staff in each level

Turnover ratios

# terminations & reasons

Existing HR legal liabilities

Role definitions

Competencies, performance measurements

Format & process
Salary Administration

Consider total compensation
– Base, incentives, group

Salary structure
– Job bands/grades/job rate
– Market determination

Calculation of merit/other increases

Reasons for increases Salary Administration cont.

Pay timing
– Payroll & adjustments

Salary as a % of assets

Payroll system

"Special" comp. arrangements
Organizational Structure

Obtain structures

Compare to market

Budget/s
Employee Development

Strategy

Budget
– per group or topic

Educational Policies
– Loans & Assistance

Type of training provided
– Statistics
Employee

Training Methods
– Classroom, on-job, E-learning,
Self study

Contractual arrangements

Use of external resources

Link to incentives/recognition