Kinds of Employee Transfers

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Organizational restructuring or career changes give rise to employee transfers.
Organizational restructuring or career changes give rise to employee transfers. (Image: Patrick Ryan/Lifesize/Getty Images)

Each company has its own set of rules and guidelines for transfers. Generally, an employee transfer happens when an employee changes job position to work in a post that is similar in level and description but is situated within a different group of the organization in order to satisfy the company's needs. Types of employee transfers vary from one company to another depending on the company's size and organizational structure.

Lateral Transfer

A lateral transfer happens when an employee is moved to a new group or department but keeps the same job title and same salary. In this type of transfer, because the employee's responsibilities remain the same, the salary is not reviewed or increased. After a performance evaluation of the new position as part of the normal process, the salary may be reviewed if the tasks and duties have become more demanding and require a higher level of expertise.

Versatility or Remedial Transfer

The versatility, or remedial, transfer allows an employee to work in a different kind of job with new responsibilities. In this case, the employee may remain in the same group, or she may be transferred to a new department. The goal is to allow employees to expand their skills, increase their responsibilities and have new challenges while allowing the company to keep its best workers. At times, a company uses a versatility transfer to rectify a less than ideal hire, such as if it hired an employee whose skills do not suit her current position but do match another available job in the company.

Voluntary Transfer

When an employee applies for an internal position at a lower salary than his current position, he seeks a voluntary transfer. An employee may choose a voluntary transfer because he wants to join the new position's department; because he wants to reduce his work load and take on a less challenging job; or because his original position is being eliminated.

Involuntary or Production Transfer

An involuntary transfer, also known as production transfer, occurs when a company eliminates an employee's job position, but creates a replacement position at the same or a lower level. This kind of transfer generally occurs as part of an organizational restructuring and a reclassification of job positions. Generally, in an involuntary transfer, the employee keeps the same salary, even if the new position doesn't require the same level of expertise.

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