What is your top tip for managing payroll during a merger or acquisition? Share an example of a successful integration strategy.

M&A's can get messy, and we often think it has to do with the policies. While the mergers and transition to new company's policies is a hurdle, it is what is on the backend of those policies which can cause choas- the earnings codes! Payroll & finance systems use software to help process payroll and post general ledgers, which rely on earnings codes. These codes hold information like how the rate is calculated, if the earning is taxable, can contribute to 401k, and accrues time off. I consulted for a manufacturing company that was undergoing a new system implementation while doing continuous acquisitions. We learned the hard way, we could not have an acquired company have payroll processed immediately in the parent company's system with the same earnings codes. When we did, it resulting in some employees getting double time instead of time and a half, and retirements being underfunded. A few years later, the VP of the Manufacturing company asked me consult for his new company undergoing the same type of M&A. This time we were strategic. Every time a new company was acquired, we weighed the pros/cons of creating new earnings codes specific to the acquisition or to change the policies to fit the parent company's pay structure. This time, it was much smoother. Pay attention to earnings codes!

One thing I've learned from being in the trenches during M&A deals is that payroll can't be an afterthought—it's personal, immediate, and if it goes wrong, trust erodes fast. My top tip? Start early and centralize communication. Even before the ink dries, have a joint task force in place with clear roles from both sides. I remember working with a growth-stage fintech where we integrated their payroll with a larger acquiring company's system—seamlessly, but only because we insisted on a full audit of both payroll structures, tax obligations, and benefits up front. What made it work was aligning pay dates, normalizing salary structures where feasible, and clearly communicating changes to employees with concrete timelines. One of our team members even ran weekly office hours during the transition to address concerns, which, frankly, saved us from unnecessary churn. It wasn't glamorous, but it built trust. At spectup, we always push for simplicity in execution and overcommunication in change—because when people get paid on time and correctly, everything else gets a bit easier.

I had to manage payroll across two driver fleets—each with its own contracts, currencies, and expectations—48 hours after merging with a smaller operator in the outskirts of Mexico City. What saved us was radical transparency. When I acquired a boutique private driver service focused on airport transfers in Santa Fe, I didn't just inherit cars—I inherited people with deep local knowledge, legacy pay structures, and a totally different rhythm of work. We were still operating under my brand, Mexico-City-Private-Driver.com, but I made it clear from day one: "We'll honor what's fair, adapt what's outdated, and align fast." My top tip? Run dual payroll systems for the first 30 days while aligning expectations weekly. This gave both old and new teams psychological safety while we transitioned to unified pay schedules, bonuses for on-time arrivals, and tip pooling policies. I personally reviewed 37 individual pay records to make sure no one felt shortchanged. The result? Zero attrition. In fact, we grew bookings 18% within the first month post-integration—because the drivers talked to each other, respected the new process, and kept showing up sharp. That only happens when payroll is handled with empathy, speed, and surgical clarity.

During a recent merger, my top tip for managing payroll was to start compliance audits early and involve both companies' payroll teams from day one. We discovered that differences in tax jurisdictions and employee classifications were the biggest hidden risks. To address this, we set up a joint task force that mapped out all payroll policies side-by-side and created a unified compliance checklist before integration. This allowed us to identify gaps—like differing overtime rules—and proactively align processes. For example, we adjusted some employee contracts ahead of the official merger to avoid legal pitfalls. The key was transparency and early collaboration, which prevented costly back-payments and ensured employees were paid correctly on day one. Payroll compliance isn't just about numbers; it's about respecting people's livelihoods during change.