Staff rotation – is it an efficiency or necessity

Modern companies need to adapt to the changing conditions of the local market, build relevant development strategies and take care of the professional growth of their employees. In this case, staff rotation closes several main requests: exchange of experience, training new practical and theoretical knowledge, as well as increasing competence in their position.

What is staff rotation

The concept of staff rotation gained popularity in the 1960s. Managers used moving personnel to similar positions to improve labor efficiency and prevent professional burnout. Staff rotation is the transfer of employees to other departments of the company with the preservation or increase in salary. In this case, the scope of duties may change, depending on the characteristics of the position.

If an employee is transferred to another department while retaining his or her place in the hierarchy, this type of rotation is called horizontal. This practice exists in many Eastern countries, including Singapore, Japan, and India. In a new position, an employee gains new experience and expands the range of professional knowledge.

Vertical rotation is the promotion of personnel to a managerial position. In fact, it is a career advancement for those employees who have leadership potential and will be able to share their knowledge with subordinates. Vertical rotation is most often used in European and North American countries.

Main types of staff rotation

To better understand the principles of rotation, it is important to familiarize yourself with its main types.

By time

• Indefinite rotation is the transfer of an employee to a new department on a permanent basis. It is applied in case the employee has grown to a promotion or there are signs of professional burnout at the current position. Indefinite rotation can be horizontal or vertical.
• Temporary rotation is the transfer of personnel to another department of the company for a limited period of time. For example, in connection with the opening of a project or exchange of experience with employees of a new branch. Temporary transfer has a positive effect on education and competence in the chosen field of activity.

By trajectory of movement  

• Circular – the employee goes through a full cycle of transfer to other positions and, as a result, returns to the previous position.
• Irrevocable – an employee is moved unilaterally without the possibility of returning to the previous position.
• Rotation – mutual exchange of positions between two employees for mutual training and improvement of professional competence.

Reasons for employee rotation

The initiative to transfer to another position may come from the employee himself and/or his immediate supervisor. In each case, the party must have a valid justification for such personnel decisions.

An employee may request a rotation if:

• he/she feels that his/her tasks have become uninteresting or there is professional burnout;
• the work being done is not productive, but the working conditions in the company are satisfactory.

A company may initiate a rotation if it is necessary to retain a promising and ambitious employee who is ready to change jobs on the way to career growth. By offering him a change of position, it is possible to provide the required conditions for retaining valuable personnel in the team

Rotation takes place on the company’s initiative if an employee does not cope well with the current duties, but may prove himself in another position or in another department of the company.

The company also rotates if a new department or line of business is opened that needs to be filled with qualified employees. By offering positions to current employees, it is possible to recruit a team of experienced professionals in the chosen field.

When a company plans to build a talent pool by offering openings and training to employees in other departments, rotation allows employees to gain valuable skills from other teams in the firm and become interchangeable. In this way, it can be ensured that professional personnel are always available to complete new teams.

Taking into account the above-mentioned reasons for rotation, we can distinguish two main purposes of employee transfer – motivational and organizational. In the first case, the problem of professional burnout, career development and change of working environment is solved for those who need to expand the scope of their competence.

Staff rotation with an organizational purpose is designed to increase the efficiency of employees, form a professional team of specialists, and prepare a pool of candidates for managerial positions. Transfer to another department increases an employee’s ability to adapt and allows him/her to learn all components of the process of creation and realization of the company’s product/service. In addition, rotation reduces the level of corruption.

Advantages and disadvantages of staff rotation

Rotation is one of the most effective tools in company management, but personnel transfers can have negative consequences that are important to consider in advance. For example, when transferring one of the employees to a new position, you may not spend time on training the main rules of the company, but the employee may not be competent enough for the open position.

Temporary rotation helps to build the capacity of teams, share fresh ideas and experience, and improve communication between departments. It is important to supervise the employee’s routine duties while he or she is interning with another team and find a temporary replacement. It is important to ensure that such internships are prioritized so that the company’s efficiency does not suffer from staff turnover.

There is always a risk that in search of a better position, employees will move from one department to another without focusing on their duties. In this way, the established work of the company may be disrupted and labor efficiency indicators may decrease.

It is also important to consider the additional responsibilities of management staff in onboarding employees on rotation. Time should be allocated to train the new employee in professional skills. Usually, this responsibility falls on the department manager, who has other work in addition to this task. To effectively use rotation as a tool in business, it is important to envisage additional workload at the planning stage and competently organize the transfer process without compromising current functional responsibilities.