Company mergers – creating one big, happy family?

 

mergeIn my HR “life” back in the UK, I often found myself providing advice on managing change, whether it be restructuring, TUPE transfers or subtler cultural change.  I now find myself on the other side of things, as Happy Holidays and one of their former competitors, Smiley Holidays, have both been acquired by a large French company.  While these purchases took place a while ago now, it is interesting to see how the changes have now started to trickle down to the staff (me!).

So, can these changes create one new, contented holiday company / family?  At the moment, the views of myself and colleagues are mixed – we’re not entirely convinced that things will be better, or even as good.  What could be done to change our minds and to keep us engaged and motivated?  Here are some suggestions:

  • Communicate, communicate, communicate

With any changes or takeovers there are always rumours about what will and won’t happen.  Clear, regular communication is key if you are to stop the rumour mill and keep staff feeling engaged, rather than worried for their jobs.  A monthly newsletter is better than nothing but it doesn’t really do all it needs to.  How about using social media and other forms of communication too?  – Especially if staff are based in multiple locations or work different shift patterns.  Certainly face-to-face updates and briefings tend to be the most popular method with staff themselves, so can this be done in any shape or form? (Skype, Facetime, podcasts etc)

  • It’s not all about structures…..

Most people tend to think of “change” as being about restructuring, but that isn’t always the case.  Yes, it can make sense to join up some teams and to make some efficiencies and savings while doing so, however, this shouldn’t be the knee jerk reaction.  If you are keen to keep current brand identities then you need to keep some differences in place, which means not merging and restructuring everything.  Be clear on what structures will change, why and when, so allowing other, not directly affected teams / departments to stop worrying about what might happen to them. (at least for now)  At least they can focus on their roles properly again and not be distracted or worried about what may lie ahead.

  • Timing is everything

Make sure you understand what the businesses do when and why.  Are there any critical or very busy times when it would be unwise to change things?  For example for Happy Holidays, changing all of the company mobile phones over to a new network provider with new phone numbers perhaps should have been done outside of the holiday season!  There would have been no customers in resort trying to call old numbers or not knowing about new numbers, and would have avoided a number of problems, upsets and complaints.

  • Who are we again?  What do we do?

Staff do identify with the organisation they work for and can often be surprisingly loyal to it.  Staff will feel that they have their “psychological contract” in place with their employer, as well as their actual employment contract.  Any change can potentially challenge the trust between employer and employee, and potentially sever the “psychological contract”.

It’s really important that staff can see and understand what the future holds and what will be changing. They can then choose whether they want to be part of this or not, and act accordingly.  This can include seemingly obvious things such as – are we still planning to deliver the same product(s) or service(s) to the same customer(s)?  Will we keep the same company values (eg. “green” or “ethical” commitments)?  Will I still wear the same uniform?  Will I still work in the same place?  Will I be working the same hours?  Things like this can really make a difference to someone deciding whether they will stay and go through the changes, or leave now to avoid them.

Even though this is about the two holiday companies I hope that the suggestions will be helpful for your business too.  If anyone from Happy Holidays is reading this, you know where I am and I’m more than willing to make this change a positive one!

www.amelore.com

It’s holiday time – So, how does your holiday policy shape up?

Whilst most employers run the usual January to December holiday year, some companies operate a holiday year which mirrors their financial year. Those very brave employers have a holiday year which follows each employee’s employment start date (administratively this must be a nightmare!)

Employers with an April to March holiday year will find themselves in a peculiar situation for 2016 through to 2018. Remember that all workers are entitled to a minimum of 5.6 weeks’ paid holiday, which means 28 days for a full-timer. Bank holidays count towards this entitlement.

Due to the moving Easter holidays, rather than the typical eight bank holidays in a year, April 2016 – March 2017 will have only six bank holidays, while April 2017 – March 2018 will have ten.

So what can you do about this?

Your first port of call is to check your contractual wording around holiday entitlement. This could throw up a number of different scenarios.

Here are a few (using full-time workers as an example):

  1. When the contract states: “you are entitled to 20 days holiday plus all bank holidays”. For April 2016 – March 2017 this would mean that your employees would only receive 26 days holiday, which is obviously below the statutory minimum entitlement. You would therefore need to give them an additional two days paid holiday. For April 2017 – March 2018 they would receive 30 days holiday, but without specific wording which has anticipated this exact scenario it is unlikely you will be able to deduct the extra two days, as the entitlement is to “all” bank holidays.
  1. When the contract states: “you are entitled to 20 days holiday plus 8 bank holidays”. Again your employees would only receive 26 days holiday for April 2016-March 2017 as there are only six bank holidays. You would therefore need to give your employees an additional two days paid holiday to ensure they receive their statutory minimum entitlement.

However, for April 2017 – March 2018 you could choose not to give employees two of the ten bank holidays (there is no automatic right to time off on a bank holiday). However, unless they agree otherwise, you would not be able to deduct these from the 20 day holiday entitlement as the contract says that they are entitled to 20 days holiday. You would instead have to get them to work two bank holidays, which may not be practical if the office is closed and certainly will not be popular.

  1. When the contract states: “you are entitled to 28 days holiday inclusive of bank holidays”. The result of this is the same as point 2 above. You will have to give two extra days for 2016-2017 and you could choose to require employees to work two bank holidays for 2017-2018.

This situation is bound to arise again in the future so the next time you undertake a review of your employment contracts it would be worth considering whether you want to include wording in the holiday clause so that holiday entitlement can be adjusted each year if necessary to allow for this scenario.

This may be even more desirable where you already offer holiday in excess of the minimum statutory entitlement and don’t want to be in a position of having to afford additional days to employees in a particular year.

www.amelore.com