Merged companies must not offer different benefits

Companies which are acquiring other firms must make sure benefits packages for each of the parts are equalised, an expert claims.

Senior partner at Foster Denovo Graham Tinney warns employers not to offer different benefit packages to those in positions such as sales jobs working for different arms of a recently merged company.

"You might have one company where everyone gets a company Jaguar and another where everyone gets a Mini," he says.

Recognising the importance of harmonising benefits across both sections of a recently merged business, he suggests this will help unify the two parts.

He claims the financial situation means mergers and acquisitions are more likely and says this presents problems in which company cultures clash and prevent successful integration.

Mr Tinney suggests employees such as those in sales jobs from one company will not feel engaged with their organisation if people in the same position in the other arm are treated differently.

"It's no good two people looking out of the window and seeing two different cars," he warns.

According to a survey by Hymans Robertson, a third of employers expected a cut in their benefits package this year.

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Filed: 14-10-2008