Evaluating and executing employee transfers is an essential function of human resources management. Transfers can be horizontal, between departments within an organization, or vertical, from one level in the organization to another, either up or down. It is useful to view promotions and demotions as vertical and transfers as horizontal (though they can be vertical as well, to a certain extent). Transfers can occur for many different reasons; they can be driven by employees or managers. Types of employee transfers include: strategic transfers, necessity transfers, and talent/management transfers.
Strategic Transfers
A strategic transfer may take place when an organization is trying to grow a specific segment of its business. For example, if a car maker wants to strategically grow its quality department to meet the goal of building safer cars, it may want to train additional staff for a transfer to the quality department. It is also highly useful to have a few experienced employees who understand the company better than new employees guide the trajectory of the new project.
Necessity Transfers
A necessity transfer may take place when there is a demand for employees in a department of the organization where a specific skill set is scarce. This may happen because of layoffs, a change in company strategy, or a scarcity of a certain type of employee. A necessity transfer usually includes an incentive, like a raise, to give employees an incentive to put in the training the transfer will require.
A manager rating an employee.
Rating an Employee
Talent Transfers
A talent transfer usually moves employees from their original department after it becomes clear that their skill set is more suited to another department. It is predicated on the original department's ability to absorb the loss of that employee as well as the level of need in the new department. Talent transfers are more likely to be initiated by employees who perceive that they can contribute more to a new department.
Finally, employees may also request transfers in an organization for a number of different reasons (i.e., family or personal requirement, location requirements, change in interest, and working with different people). The important component from a human resources perspective is making sure that the employee's concerns are legitimate and insuring that the transfer will be beneficial for the organization by assessing the employee's fit in the proposed transfer location. Making sure that employees are working where they have the best fit promotes higher efficiency and synergy.