The purpose of an internal and transfer policy is to create new opportunities for promotions and transfers within a certain department or an organization in general. The policy is to improve mobility, which is upward for potential employees. The other purpose is to provide employment opportunities that are equal to all employees in a company. Promotions and internal policies are necessary to match the skills of employee and the job requirements. The main purposes of internal transfers within a company are to maximize efficiency among employees, to ensure that discipline exists among employees, and to maximize organizational effectiveness. Promotions are also essential in an organization since they top the responsibilities of an employee within the organization by means of promotion. Promotion aids in cutting down the costs that would be used in recruitment and selection. Therefore, it is necessary for an organization to establish and adopt a policy that sees into transfers and promotions within the organization (Ariga, 2006).
The policy shall give each employee equal opportunities in terms of transfers and promotions; the policy is to consider employees who have been in the organization for some time. An employee should complete a formal evaluation of his or her work after a period of six months for considerations for promotions and transfer within the organization. The application is not mandatory and it should be optional. The evaluation form is to consider many factors among them is the ability of the employee to perform the job duties and the desire to achieve the company’s goals and objectives. The supervisor or the manager has the power to extend the period of six months to any other duration if the employee in question needs more training or mentoring. The internal transfer and promotion policy require that employees have no disciplinary actions during that period. The policy also states that internal employees shall be given priority when it comes to new job positions and that promotions and transfers shall be equal and should not favor a single person (Cavusgil & Yeoh, 1994).
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The internal transfers and promotion policy should be effective in order to avoid and thwart conflicts and high turnover rates among employees of the organization. The effectiveness of the policy will create an understanding to other employees who have not been promoted or transferred according to their wishes. The policy in the description is effective because for one the policy functions and has been implemented. The policy focuses on establishing and advancing the careers of employees in the organization. Employees do not feel stagnant in their career since the policy focuses on advancing employees. The policy advances employees based on their level of expertise and according to their performance and skills, this way other employees will not feel left out and favoritism is put aside. If the organization would not base promotions on skills and performances, it would face multiple lawsuits and create unnecessary conflicts within the organization (Mossberger & Wolman, 2003).
The policy described in the second paragraph is effective since it has set up criteria. Setting up criteria is crucial for any organization in an internal transfer and promotion policy. It is crucial for employees to understand the minimum criteria for advancement in transfers and promotions. In the policy above, the minimum period for employees to qualify for either promotion or internal transfer is at six months. The policy is also effective because it does job postings though internal memos. This makes the process transparent and open to every employee who qualifies for transfers and promotions within the organization. The policy also assesses candidates, in the same manner, to make the process transparent and avoids favoritism or any form of discrimination (Mone & London, 2018).
The internal transfer and promotion policy have an impact on employee engagement and retention. Engaged employees are likely to leave their job places. The policy is meant to bring an emotional commitment to what he or she does. The emotional commitment will thereby provide employee engagement, which then means employee retention. The turnover rates are reduced by having an effective policy that focuses on employee promotions and advancing their careers. These way employees would be engaged, attached, and committed to their jobs. Frequent promotions will aid the employee to develop a sense of belonging and will certainly give hope to junior employees and hence engagement and retention of employees. Retention has a significant impact on the employee since it retains skilled and talented and employees. This also cuts the cost of replacing, selection and recruitment of new employees. Internal transfer and promotion policy within the organization will improve the working morale of employees and ensure maximum productivity (Mone & London, 2018).
Skilled and talented employees are retained and thereby the efficiency and profitability can be retained. Increased performances are recorded once employees realize that transfer and promotion policies are effective and are working efficiently. In order to justify their new roles, employees who are promoted are motivated and work extra hard to ensure that production efficiency and profitability are attained. Junior employees are also motivated once they realize that in a certain period to come they will qualify for promotions and transfers. This has a positive impact on productivity and profitability in any organization. The turnover rates are decreased and therefore the organization is able to reduce expenditure that would have been incurred in the recruitment and selection of new employees (Raj & Zaid, 2014).
References
Ariga, K. (2006). Horizontal transfer, vertical promotion, and evolution of firm organization. Journal of the Japanese and International Economies , 20 (1), 20-49. doi:10.1016/j.jjie.2004.07.001
Cavusgil, S. T., & Yeoh, P. (1994). Public Sector Promotion of U.S. Export Activity: A Review and Directions for the Future. Journal of Public Policy & Marketing , 13 (1), 76-84. Doi: 10.1177/074391569401300106
Mone, E. M., & London, M. (2018). The Performance Management Process and Employee Engagement. Employee Engagement through Effective Performance Management , 1-12. Doi: 10.4324/9781315626529-1
Mossberger, K., & Wolman, H. (2003). Policy Transfer as a Form of Prospective Policy Evaluation: Challenges and Recommendations. Public Administration Review , 63 (4), 428-440. doi:10.1111/1540-6210.00306
Raj, R. D., & Zaid, E. (2014). Improved Employee Retention Through Active Engagement and Focused Action. International Petroleum Technology Conference . Doi: 10.2523/iptc-18195-ms
