Displacement of employees

From CEOpedia | Management online

Displacement of employees are related to the promotion, internal transfers or degradation. They consist of planned changes in worker position. Are the result of individual development of the employee, or the next step on a career path. Purpose of position changes can be: the acquisition of new competencies, skills, increasing the level of motivation to work. Displacements are also the result of filling vacancies.

It may be:

  • vertical - promotion, degradation,
  • horizontal - between units of the same level, promotion on the same organizational level,
  • external - release, resignation, transfer to a separate organization (outsourcing)

Vertical displacements may be related to promotion from the ordinary position to a management, from middle management to senior management or to the advisory position. While degradation is the change in conditions of employment on less favorable due to the employee's fault (incorrect posture) or organization change (restructuring).

Horizontal displacements may be difficult to implement, due to the possible impact on motivation. After position change the employee must be provided with a similar or higher level of difficulty of the work, the level of responsibility and the level of importance within the organization. Displacements are also often connected with the necessity of retraining employees that may not match their professional interests. Therefore, vertical promotion should be associated with an increase in salary. Horizontal displacements are also called: employee transfers. They can serve as a:

  • training - transfer could be used to training employee by periodic change of positions, jobs
  • motivational tool - change of position has to unleash a new enthusiasm for work,
  • social tool - the elimination of conflict in the organizational units,
  • matching tool - transfer to positions corresponding to their qualifications,
  • preventing redundancy - for example in the case of the seasonality of work in some units.

Examples of Displacement of employees

  • Promotion: A promotion is when an employee is moved to a higher position, usually with a higher salary and greater responsibilities. For example, a customer service representative may be promoted to a customer service manager.
  • Internal Transfers: Internal transfers involve moving an employee from one job to another within the same company. This could include moving from one department to another, or from one location to another. For example, a receptionist may be transferred to a sales position.
  • Degradation: Degradation is when an employee is moved from a higher position to a lower one. This can be due to a lack of performance or disciplinary issues. For example, a manager may be demoted to an entry-level position.

Advantages of Displacement of employees

Displacement of employees has a number of advantages. These include:

  • Increased employee motivation - The change of position can bring new motivation to employees, making them feel more valued and engaged in their work, as they have a chance to change the environment and learn new skills.
  • Improved employee development - By changing their position, employees can acquire new competencies, skills and gain valuable experience.
  • Increased efficiency - The changes can help to fill the gaps in the company, improve the workflow and create a more efficient system.
  • Improved job satisfaction - People tend to be happier when they have a chance to develop and progress in their career, which can be achieved through displacement.

Limitations of Displacement of employees

Displacement of employees can have several limitations. These include:

  • Cost: The cost of moving an employee to a new position can be high, as it requires providing new equipment, training, and relocation costs.
  • Stress: Moving an employee to a new position can be stressful, as the employee may be asked to take on new responsibilities and work with unfamiliar colleagues.
  • Productivity: Displacements can sometimes lead to a decrease in productivity, as the employee may require time to adjust to the new position.
  • Frustration: Displacements can be frustrating for employees, as they may feel that their skills and abilities are not being fully utilized in their new position.
  • Loyalty: Displacements can lead to a decrease in employee loyalty, as the employee may feel that their loyalty is not appreciated by the organization.

Other approaches related to Displacement of employees

Displacement of employees can be achieved through other approaches, such as:

  • Job rotation: a strategy that allows employees to gain experience in different roles and departments. It encourages employee development and increases motivation.
  • Cross-training: a process in which existing employees are trained to perform a variety of tasks and roles. This helps increase the flexibility of the workforce and reduce the need for additional employees.
  • Job-sharing: a system where two or more employees split the work of a single role. This helps reduce the number of employees needed and ensures that the job is adequately covered.
  • Succession planning: a strategy for preparing for the future by identifying potential employees to fill key roles when vacancies arise.

In summary, displacement of employees can be achieved through a variety of approaches, such as job rotation, cross-training, job-sharing and succession planning, all of which help to increase flexibility, reduce costs and ensure that the job is adequately covered.

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