Acqui Hiring

Definition and Meaning

Acqui-Hiring refers to acquiring talent within an acquisition or Merger and Acquisition (M&A) context, where one organisation acquires another to hire its more experienced and skilled workforce instead of purchasing existing customer relationships, products, or services. In Human Resources (HR) terminology, it allows organisations to add niche talent, highly skilled personnel, or specialised teams onto their payroll quickly via mergers and acquisitions.

HR Key Takeaways

• Faster onboarding to attract talent for high-demand skill sets
• Lower recruitment timeframe and expense as compared to the conventional recruiting approach
• Structured integration of human resource functions that enables retention of valued staff members 
• It affects payroll, benefits plans, ESOPs, and employee agreements. 
• There is a definite need for solid change management and organisational culture alignment.

Planning for Legal Compliance in Acqui-Hires

In India, Acqui-Hires must comply with Labour and Employment laws. This includes:

• Compliance with Employment Contracts and Notice Period Requirements
• Payment of Statutory Benefits, including PF, ESI, Gratuity, and Taxes
• Industrial Disputes Act, 1947 (if Large-Scale Employee Transfers or Terminations Occur)

Careful legal due diligence, including the issue of new offer letters, is necessary for a successful acqui-hire.