Whether we call it movement, transfer, promotion, enrichment etc. the bottom-line is, that just as new employees move into a business, so do present employees move within a business. In many cases, we find employee turnover still being a predominate challenge with staff that are moved into new areas of the business and are unsuccessful and eventually under-perform or leave the company due to being disengaged.
Change in the business is a never-ending story these days. As business continues to grow, so will its need to adapt to changing situations and being able to survive through these changes, become that much more critical for ongoing business success.
Whether an employee is moving within the business or out of the business, change is an inevitability which will impact not only the employee/s that are moving, but will impact the business and its other employees when this movement takes place.
Three core risks are associated with employee movement, which cost companies significant amount of unnecessary cash expenditure.
- When an employee is transferred or promoted within the company, what level of risk is present due to this change e.g. the employee being able to be integrated successfully within his/her new role; effects on other employees etc.
- When an employee leaves the company – voluntarily or involuntarily. What risk are associated with the employee leaving with the business’s “good name”? How much will the company’s value proposition and brand be affected by this employee’s departure? This in itself, will undoubtedly affect the company’s ability to attract new talent and/ or attract other employees from moving within the company.
- Finally, after an employee leaves the business – voluntarily or involuntarily, what legal risks are associated with the departure? Significant and unnecessary cash expenditure is wasted in many company’s due to a lack of realizing these extreme risks and being able to build controls to reduce these risks.