How to Handle Department Transfers Without Layoffs or Demotions? Seeking Your Advice

Dear Colleagues, In my company, one department is going to be dissolved, and we are against layoffs. We have decided that if employees are suitable for any other department, we will transfer them. However, the current issue is that we do not want the staff to experience decreased salary or a demotion in title grade if they are not a good fit for the same position and salary in another department.

I am in a dilemma about what to do in such cases. We are considering providing training for a certain period until the employee is suitable. However, if they prove themselves fit for another department, there may be concerns about fairness regarding title/grade compared to existing staff in that department.

If you have faced similar situations in your company, how did you handle them? I would appreciate your guidance on this matter.

Thank you.

Dear Sale Shrestha, you would like to transfer employees from one department to another as this department has become redundant. Nevertheless, your company does not wish to terminate their services. Kudos to the generosity shown towards them!

The transferred employees may not be skilled enough to work in another department. For this, your company is generous again to train them. After giving these many opportunities, if some employees fail to meet the desired level of performance, then obviously he/she deserves to be terminated. There is no need to feel guilty about it.

Your next concern is about possible disputes that could arise because of salary differences or parties with outsiders. However, the employees working in the original department need to be convinced that those who joined them later, or "outsiders," their previous services cannot be ignored.

Thanks,
Dinesh Divekar

If a department dissolves and staff have to move to other departments, the company should try to protect their pay and allowances. Give them special training and help to fit in the new department. Staff will have to adjust to changing business dynamics and changed situations. Those who voluntarily wish to leave can be permitted to exit. Finally, the business has to run as a going concern profitably for people to get their pay. Be fair and transparent in tackling the issue.