Changes in Personnel Status

Changes in Personnel Status

• Employment status changes are common throughout employment. These changes include promotion, transfer, demotion, or separation.
• Placement is the objective of finding the right person for the right job.
• Personnel actions are taken by the HR department following a written request from a department that expresses the desired employment change.

Promotion

• Promotion involves reassigning an employee to a higher-level job position.
• Employees move up the organizational hierarchy, often with increases in duties, responsibilities and pay.
• Promotions encourage high performance and increase loyalty to the firm.

Demotion

• Demotion is the reassignment to a lower-level job with less responsibility.
• This typically involves a reduction in status or privileges but not necessarily in pay.
• Employers should avoid demotion unless necessary, due to potential negative impacts on morale and productivity. Alternative solutions like retraining or reorientation are preferred.

Employee Separation (Termination):

• Separation can occur when either the employer or employee decides to end the relationship.
• Terminations require a complex legal process, particularly when involving regular employees.
• Laws, such as Article 279 of the Philippine laws, protect employees from unjust dismissal and require specific procedures to be followed.

Transfer

• Transfer involves moving an employee to a different job within the same company.
• Transfers can be due to job dissatisfaction, conflicts with coworkers, organizational needs, or employee convenience.

Recruitment for Promotion

• Closed Promotion System: Supervisor identifies promotable employees.
• Open Promotion System: Job posting promotes wider participation and equal opportunity.

Criteria Used in Promotions

• Seniority: Length of service is the sole determining factor. Qualified seniority favours employees with higher skills or competence.
• Performance: Previous job performance and evaluations are a primary criteria.
• Other (Unofficial) Criteria: Personal characteristics, nepotism, and social factors also play a part.

Layoffs/Closure of Establishment

• Layoffs are used as a temporary measure during business downturns or economic fluctuations.
• Reasons for layoff can include declines in business, technological advancements or organizational restructuring.
• Employers might offer support services like outplacement assistance to laid-off employees.

Employee Separation Pay

• Separation pay is paid to terminated employees.
• The amount depends on the reason for termination (just cause vs. unauthorized), length of service, and other employment terms.
• Termination pay is calculated based on the latest salary unless this rate was diminished to bypass the intent of the law.

Retirement

• Employees can retire under specific circumstances, often outlined in employment contracts or collective bargaining agreements.
• The retirement payout calculation varies depending on the specific laws, agreements, and any employee policies.

This quiz covers various aspects of personnel status changes in employment, including promotions, demotions, and transfers. Understanding these concepts is essential for HR professionals to effectively manage employee relationships and organizational dynamics.