Because of the low unemployment rate, with companies struggling to find new people, some firms are emphasizing a strategy known as redeployment. This is where a business moves people from one role or area to another within the organization.
This practice is gaining momentum as companies look for ways to retain their best people, maintain continuity and knowledge of the business, and lower turnover. Companies are also using redeployment with independent contractors, moving them to another role within the firm after they finish their first assignment.
How it Helps
Often, redeployment makes sense when one department may be experiencing layoffs while another is looking for people. Workers who are being laid off can be redeployed in another area where the company is hiring. Some may believe that redeployment takes too long, but it actually takes longer to hire a new person and train him or her.
Redeployment helps the company in several ways – it prevents the person from going to a competitor, and it saves the company the time, money and effort of finding and hiring new people.
Redeployment is important in keeping a company’s best people, especially when the firm is laying people off in one division and hiring in others. Redeployment saves money, maintains employee morale, and allows the business to keep knowledgeable, experienced people.
Moreover, studies have shown that those who have been redeployed learn their new jobs almost twice as fast as a new hire. And the employee who has been moved becomes more productive more quickly than a new person.
Preparation for Redeployment
However, for redeployment to work most effectively, the company needs to have arrangements set up in advance that enable making such movements. Businesses need to set up databases with employee profiles that contain descriptions of their skills, background, experience, and abilities. Such skill inventory databases will enable firms to allocate people where they have the best fit. Web-based platforms enable workers to create and update their profiles and put in applications for opportunities elsewhere in the company.
In this period of labor shortage, when companies are laying off people and looking for new talent at the same time, all options should be on the table – contingent labor, external hires, and redeployment.