In HRM, "bumping" typically refers to a workforce reduction or layoff strategy that involves moving employees from one position to another to retain their employment when their current positions are being eliminated. Bumping is often used when organizations are undergoing restructuring, downsizing, or other significant changes that result in the reduction of staff.
The first step is for the company to identify which positions are going to be eliminated due to restructuring, downsizing, or other reasons. This is usually part of the workforce planning process.
Once the positions to be eliminated are identified, HR will determine which employees are eligible for bumping. Eligibility criteria may include factors like seniority, skills, qualifications, and performance. Generally, more senior employees have a better chance of being eligible for bumping.
HR will establish a priority list of eligible employees based on predetermined criteria. Seniority is often a key factor, meaning that the most senior employees who meet the eligibility criteria will have the highest priority for bumping.
The company will then identify vacant or newly created positions within the organization for which eligible employees can be bumped. These positions must be at a similar or lower level than the employees' current roles, and the employees should have the skills and qualifications necessary to perform the job.
HR will match eligible employees with available positions based on their priority and qualifications. The goal is to place as many eligible employees as possible in new roles to avoid layoffs.
HR will inform the affected employees of their new placements. It's essential to communicate clearly with employees about the changes, their new roles, and any adjustments in terms of compensation or benefits.
Employees who are bumped into new roles may require training or support to adapt to their new responsibilities. The organization should provide the necessary resources to facilitate a smooth transition.
In cases where not all employees can be accommodated through bumping, the remaining employees may be subject to layoffs as a last resort. Layoff procedures in India are typically governed by labor laws and regulations, and organizations must follow legal requirements when implementing layoffs.
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