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As an employer, you want your best employee to take the wheel when you are stuck in a storm. Sometimes you want to move an employee from manning the sails to cleaning the decks because you think this is a more apt use of their time. An employee transfer can positively or negatively impact your business, so care must be taken before you jump the
Moving an employee from one city to another or from one department to another need not be an act of lack of belief on the part of the employer. Such a transfer could be initiated by the employee itself. Let us now define what we mean by an employee transfer.
Companies worldwide are now realizing the merits of employee transfer and avoiding layoffs as much as possible except when constrained by business goals. In this article, we will look at how we define employee transfer, how important it can be to the organization and how it is almost always better than a layoff, and why you need an employee transfer policy.
What Is an Employee Transfer?
Employee transfer is the process of transferring an employee from one department to another in a company either in the same location or in a different location. An alternative term for employee transfer is internal mobility. These transfers can be temporary or permanent and are generally initiated by the employer.
How Do Companies Benefit from Transferring Employees?
That brings us to the next question, as to how an employee transfer policy benefits employers? It benefits employers because they can plan things better and meet immediate targets. Let us look at the benefits of transferring employees.
1. Meets business needs
Transfers can help the business not only fill the roles with the right people and skills but also ensure that they meet their targets, thanks to that.
2. Provides growth opportunities
When a transfer is an alternative to a layoff, it means that the company can retain the individual and give them growth opportunities. This also improves employee engagement.
3. Improves team dynamics
Transfers can bring fresh perspectives in a team that has been having the same people for a very long time. This could lead to innovation and increased productivity.
4. Promotes diversity and inclusion
Transfers also help promote diversity and inclusion within the company and a healthy work culture everyone can relate to.
5. Resolves workplace conflicts
Transfers can give employees who have faced conflicts or workplace stress a fresh start, and this could help the company not lose precious talent.
6. Prepares employees for leadership
Employee transfers could promote leadership ideas too, ensuring that the employee gets educated about inclusion, respecting others’ ideas and strategizing with new people.
What Are the Types of Employee Transfer?
The employee transfer can be classified into different types, to serve different needs, beginning with replacement, moving to versatility and shift transfer, and ending with production transfer. The way the transfer happens will be determined by the employee transfer policy.
1. Replacement transfer
An employee moves into a new role filling a vacancy or assists another employee and reduces their work.
2. Versatility transfer
A temporary or possibly even permanent transfer in which an employee moves into a new role to pick up desirable skills.
3. Remedial transfer
An employee is transferred to fill a role either helping or replacing a poor hire or someone with difficulty.
4. Shift transfer
An employee gets transferred to a new shift, either temporarily or permanently, generally with the same work responsibilities
5. Production transfer
An employee gets transferred to a different branch or department, usually with the same responsibilities. This is done to prevent layoffs.
You Need a Workforce Management Partner
Employee transfer is just one aspect of workforce management. There are so many other things that make workforce management a necessary part of your business planning as an enterprise. Alp Consulting, with over 25 years of experience in recruitment and staffing, should be your workforce management partner of choice. Let us help you navigate workforce management in a way that makes your HR’s job easier. Talk to us today.
Frequently Asked Questions
What is the difference between a transfer and a layoff?
An employee transfer is one where the employee is moved to another location or department within the organization whereas in layoff, the employee is terminated either temporarily or permanently.
Who drafts the employee transfer policy?
The employee transfer policy is drafted by the HR in consultation with the senior management and includes the duration of transfer and the date it is effective from, details like where the transfer is being made to and what the new role and remuneration would be.
Why do you need an employee transfer policy?
An employee transfer policy helps prevent any ambiguities in the employee transfer process. The transferred employee and the employer have clarity on what to include in the transfer documentation and how exactly to affect the change.
