Why HR Due Diligence is Necessary?

Why HR Due Diligence is Necessary?

HR due diligence is a detailed review of a
target company’s human resources
processes and employees by an acquiring
company. It typically involves investigating
the target company’s human resources
department, in addition to its policies and
processes in an effort to better maximize
employee potential. It may also examine the
target company’s workplace culture and
leadership structure.

Legal & Compliance Due Diligence

Legal & Compliance Due Diligence

Copy of the company’s compliance policy
and written standards of conduct
• Copies of any governmental licenses,
permits or consents
• Any correspondence, citation, notice.
• Any pending or threatened litigation
against or initiated by the company
• Any settled or concluded litigation against
or initiated by the company
• All active litigation files
• Copies of all contracts
• Any loan agreements, and lines of credit
to which company is a part.

HR Due Diligence

HR Due Diligence

Employee demographic information (age,
l o c a t i o n , t i t l e , t e n u r e , s k i l l s e t ,
compensation etc.
• Employee handbook (should cover
policies, benefits, procedures etc.)
• Files containing all employee relations
matters – including any past/current
disputes
• All employee, non-disclosure, nonsolicitation and agreements
• Resumes of key employees
• Performance review schedules
• Recruiting and onboarding process
• Copies of payroll documents / labor /
employments contracts