The movement of an employee to a lower level of position

Small business that have a lot of employees require effective human resources management to keep track of and manage the work force. Headcount management is a task performed by human resources that aims to quantify what employees do and track the movement or transfer of employees between departments or outside the company. This type of analysis helps an organization determine the best way to use workers within the organization and where to allocate those employees.

Headcount Management

A primary goal of headcount management is to optimize the work force of an organization based on responsibility, workload, business strategy and budgetary constraints, explains the talent journey platform People Fluent. An effective headcount management system works within an established budget and creates a database with statistics about the personnel and payroll. Additionally, many headcount management systems assign codes to employees and create detailed and up-to-date charts about the use of the work force within the company. Two things that headcount managers pay close attention to is movements and transfers.

Movements of Personnel Definition

Movement happens when someone moves around the organization instead of being static in one place. For instance, if an employee is learning several aspects of working for a company, they might spend six months in the sales team before moving to the finance team. Movements can be for short periods of long periods but they are not meant to be permanent. Another word for them is rotation.

Movement within an organization results from several factors. Movement can result from training programs, expansion, upskilling, termination and the voluntary departure of other employees. The human resources demands of the organization and the availability of employees also drive movement within an organization.

Permanent Lateral Transfers

Transfers are often used within a business when the worker is needed elsewhere on a permanent basis, or when the worker can no longer coexist with the other workers or supervisors in his current department due to employee relations issues. As the website whatishumanresource.com explains, a transfer is generally considered a permanent lateral move within a company and is designed to retain an employee who might otherwise be unsatisfied with his current location or job within the company.

Similar to movements, transfers within an organization also occur for a variety of reasons. In many cases, a transfer results from a labor shortage in one department of an organization. An organization can have temporary or permanent transfers. For example, a company might choose to temporarily transfer a specialized employee that has skills required in a different department or geographical location. On the other hand, a permanent transfer might result from the closure of a department and the reassignment of employees from the closed department to new areas within the company.

Forecasting Employee Movement

Headcount management should also forecast the supply of labor by analyzing the internal and external factors that affect the organization. These external factors include unemployment, the economy, compensation offered by the competition and growth or contraction. The internal factors, on the other hand, include the capabilities of the organization and the organization’s human resources needs.

The headcount management system should also record the current status of all employees and include information such as age, service, skills, department and grades. Maintaining an accurate headcount database of the labor force can help to eliminate redundancy and identify problems resulting from movement and transfers within the organization.

Employee MovementsPromotions, Demotions, Transfer

PromotionPromotion refers to upward movement of anemployee from current job to another that ishigher in pay, responsibility and organizationlevel.Promotion usually brings enhanced status,better pay, increased responsibility and betterworking condition to promotee.

Basis of PromotionPromotion based on seniorityPromotion based on merit.Merit cum seniority.Promotion by selection.

Promotion based on senioritySeniority based promotion is based on the length ofthe service of an employee in an organization.Seniority system puts a premium on length ofservice and job experience.The logic behind considering the seniority as abasis of promotion is that there is a positivecorrelation between the length of service in thesame job and the amount of knowledge and level ofskill acquired by an employee in the organization.

Advantages and Disadvantages of Promotionbased on seniority•Advantages:1.It is relatively easy to measure the length of service and judge the seniority.2.Generally trade unions support this system.3.Every party would trust management’s action as there is no scope forfavourtism, discrimination and judgment.4.It gives a sense of certainty of getting promotion to every employee and oftheir turn of promotion.5.Senior employees will have a sense of satisfaction as the older employeesare respected and their inefficiency cannot be pointed out.6.It minimizes the scope for grievances and conflicts regarding promotions.

•Disadvantages:1.If seniority principle is adopted, young men are likelyto becomeimpatient and look for better opportunity else where.2.The internal source may be inadequate to meet the growing need ofthe organization.3.The worth of an employee is not appreciated and recognized. It resultsin frustration and low morale of employees.

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