Best approach on intra-department worker transfer

Our management team is planning to conduct a corporate-wide rightsizing program to help improve labor productivity. Our chief executive officer (CEO) told us not to terminate anyone, authorizing us only to transfer workers to where they are most needed. What would you advise in this situation? — Cutting Corners.

Even a young human resource manager would tell you that transferring people is a legal prerogative given to employers and their management representatives. It’s the inherent right of management to undertake lateral, intra-department or inter-department transfers or reassign workers to where they can contribute more.

However, that legal right is not absolute. Such prerogative must be exercised with caution. Transfers must be done with no demotion in rank, no reduction in salary, no diminution of contractual benefits, and without disruption to seniority or other employment arrangements.

Also, the key to transferring people to another department or location must not be done in bad faith, with discriminatory intent, or constitute an indirect form of punishment. For instance, an employee may be an active union member or is perceived to be a union organizer. Even if you believe that you’re moving people to new jobs or locations where they’re best needed, you must do it without antagonizing them.

WIN-WIN SOLUTIONTo avoid any issues when transferring employees, extra caution must be exercised by management. This will require you to discover a win-win approach that a transferee would welcome as an opportunity for a change of scene. Here’s my top-of-the-mind advice:

One, issue a clear-cut transfer policy. The human resource (HR) department must draft a policy for approval by all department heads and the chief executive officer. This policy must include the objectives (labor productivity, multi-skilling, preparation for promotion, etc.), qualifications of employees to be transferred to other departments or locations, the procedure to be followed, the length of assignment, and other requirements listed below.

Two, define eligibility requirements. Those who will be transferred must have at least an average work performance over the past three years, no record of any disciplinary action, and express a willingness to learn other tasks, even if outside of their educational attainment.

New employees may be eligible for intra-department transfers provided they have at least one year of service and have logged in an above average work performance.

Three, promote transfers as a routine. Make the policy applicable for all to ensure equal opportunity to learn new aspects of the business operation. One thing to watch out for is department heads blocking the transfer applications of their favorite, hard-working employees. The only approval needed should be from the receiving department head, who is responsible for vetting the qualifications of transferees.

Four, offer a little cash incentive. This could take the form of a nontaxable, modest monthly cash allowance to help cover transportation costs and related expenses. The other option is for the organization to advance a down payment to buy a motorcycle other such expenses, like the acquisition of a crash helmet.

This must be an interest-free loan to be given only to employees being transferred to a new location, especially in areas where there are no suitable or adequate means of public transportation.

Five, make the transfer temporary. The maximum term is two years with a non-extendible period of one year, not to exceed three years in total. This is to give other qualified employees the chance to experience working in other areas and learn new skills.

The exception is when an employee is transferred to a location that is nearer their residence, or if such transfer is more advantageous for the organization.

Last, link it to the performance appraisal system. All intra-department transfers must be a part of the company’s management development program, succession plan, and the employee’s career development plan. This system ensures that everyone is assisted in achieving their desired promotions.

NOT A PUNISHMENTI know some dictatorial managers who would object to this advice. If you’re that kind of manager, then this  advice is not for you. It’s not unheard of for intra-department transfers to be intended as a penalty for poor performance. This is not exactly the right approach.

If you want to improve the performance of underperforming workers or those with attitude problems, the correct approach is a performance improvement plan; transferring them to other departments may cause these departments’ heads to say no. After all, why should any other department welcome your problem employees?

Remember that an intra-department transfer should help workers achieve their career goals and at the same time equip the organization with a deep bench of agile, flexible, and highly-qualified people with varying skills.

In conclusion, exercising management prerogative in employee transfers could give dictatorial managers the impression that they can do anything. Don’t make this mistake. Instead, muster the positive energy to think of win-win solutions.

Join Rey Elbo’s July 23-29, 2023 “Kaizen Study Mission” to Toyota City, Japan. Chat with him on Facebook, LinkedIn, Twitter or e-mail elbonomics@gmail.com or via https://reyelbo.com