Project Case Study
Corporate Carve Out Human Resources Transition
Challenge
Following a private equity–led carve-out from a larger parent company, an industrial business faced the urgent need to establish fully independent HR operations. The newly formed company (NewCo) needed to rapidly implement standalone payroll, HRIS, employee benefits, workforce development programs, and comprehensive human resources policies and procedures, before the end of a fixed-term Transaction Services Agreement (TSA) from the selling entity.
Solution
To ensure a smooth and synchronized transition, an HRIS and payroll system was selected based on its proven integration compatibility with the chosen Finance & Accounting platform. Payroll coding requirements spanning over 50 locations were meticulously defined, tested, and configured.
A competitive review of multiple benefits brokers led to the design of a cost-effective, market-aligned benefits package. Concurrently, a workforce development strategy was established, incorporating targeted partnerships with educational institutions for talent acquisition, internal skills development programs, leadership training initiatives, and a robust talent management framework. This framework included structured performance evaluations, identification of high-potential employees, and succession planning.
Impact
The company successfully exited the TSA two months ahead of schedule, avoiding additional transitional costs and reducing operational complexity. The implementation of an independent HRIS and payroll system provided enhanced visibility into employee data and enabled more effective analytics. A newly launched benefits program delivered equal or improved value to employees while reducing costs by 16%.
The workforce development strategy laid the foundation for long-term talent growth, featuring targeted school partnerships, standardized training and certification processes, a leadership development track, and a comprehensive talent management lifecycle.
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