Transfer | Meaning | Types | Elements of Sound Transfer Policy

Meaning of Transfer

The term transfer means shifting of an employee from one job to another without special reference to change in responsibilities or remuneration. It involves shifting of an employee from one job to another through promotion, demotion or with same responsibility and status. Sometimes, transfers are used as a tool to motivate employees by placing them in a position where they perform in a better way to the concern. It may also be used to correct wrong selection and placement.

Transfer of Employees
Image: Transfer of Employees

Types of Transfers

Transfers are made for variety of reasons. So there are different types of transfers as discussed below:

1. Productive Transfer: If workers are transferred from a department in which requirements for labour are declining, to a department where more workers are required, such transfers are called productive transfers. If such transfers are made, lay-off in the former department where there are excess workers as well as new recruitment in the latter department which is in need of workers can be avoided.

2. Replacement Transfer: The idea behind replacement transfer is similar to that of productive transfer i.e., avoiding lay-offs. However, in this type of transfer, a senior employee is transferred for replacing a junior employee at the time of his lay-off. This type of transfer is made with an intention of retaining the senior employees in various departments when operations in all the departments are declining.

3. Versatility Transfer: Versatility transfer aims at having a more versatile group of employees. In this type of transfer, employees are shifted from job to job to keep them busy for the whole day. So, it gives them varied experience in all departments.

4. Remedial Transfer: The intention behind remedial transfer is rectifying the wrong placement of an employee. Wrong placement may be due to

  • faulty initial placement,
  • advancement in age to continue in the existing job,
  • present health conditions or accident records of any worker, etc.

Elements of sound transfer policy

A sound transfer policy should include the following elements.

1. Proper basis for transfers should be adopted. It should be based on the judicial balance of the criteria of both seniority and merit.

2. In case of certain transfers like productive transfers, replacement transfers, activities in various sections should be adequately similar in nature.

3. Sometimes, workers may be transferred to the new job, If such work required some re-training on the part of workers, transfer policy should be sound enough to provide for such re-training.

4. Transfer should not affect the seniority of any employee. It should ensure that the seniority to the credit of the employee before his transfer will remain to his credit even after transfer.

5. The scales of pay of the employee on the new post should be reasonably determined.

6. Transfer policy should treat all the employees throughout the organization alike.

7. Responsibility in taking transfer decisions must be clearly defined.

8. Decision as to area within which transfers be made should be clearly made. This will help the organization to restrict its transfer activities within the well defined limit.