October 2012 Domenico Famà – HR Business Partner 1

Job Rotation – A suggested permanent discipline

Many considerations suggest that a well defined Job Rotation Policy is defined and systematically implemented:- Flexibility gain;- Labor cost control;- Employees’ professional development;- Internal engagement level maintenance;- Positive influence on Employer Branding effectiveness- etc.

A simple resource-flow model is presented as a base:- to suggest how to integrate many of these considerations;- to stimulate further thoughts on the same subject.

October 2012 Domenico Famà – HR Business Partner 2

Fa

Fb

In Out

JRa in

ΔLTAa

ΔLTAb

Model: In / Out – People flow from (In) and to (Out) the market Fi - Function “i” ΔLTAi - Temporary fluctuation of function-Fi ‘s FTE, due to long term leaves Op FTE – Operational FTE HC - Headcount JR - People flow due to Job Rotation between functions Fa and Fb

Resource- Flow Model

JRa out

In - Out + Σa (JRa in - JRa out) + Σa ΔLTAa = In - Out + ΔLTATot = Δ OpFTE In - Out = Δ HC

October 2012 Domenico Famà – HR Business Partner 3

Case Driver Impact Mitigation

Stability

(ΔOpFTE = 0)

Output Flow

(External labor market PULL)

Input Flow has to equalize the driver in quantity and nature (role, seniority, etc.): entry and exit labor market are strongly “coupled”.

Potential strong competition on labor market on some professional area/ role

JR can help the company to decouple the entry/ exit approach to the labor market .

Two benefits arouse:• lower competition on labor market (hiring of profiles different/ junior from the gaps due to attrition and covered by internal job rotation);• lower hiring/ labor costs (hiring focused on lower seniority)

Restructuring

(ΔOpFTE< 0)HC/ Op FTE target

(PUSH on exit labor market)

In case of labor law incentives for consensual agreements, voluntary exits are preferred: this generate possible internal capability imbalances

In case of neutral labor laws there is only possible internal climate/ engagement impact (see Growth case’s Impact)

Review/ re engineering at various levels: strategy, process, organization structure.

JR is a reactive mitigation, in case of restructuring (Input flow could be inhibited by law, in some country, for a certain period).

It could proactively contribute if systematically planned/ used, to the purpose to obtain a workforce with a higher attitude to role change and with a wider professional differentiation

Growth

(ΔOpFTE > 0)

Input Flow

(PULL on entry labor market)

Internal engagement in case of lack to manage internal carrier paths

A precise JR discipline has to be maintained, to the purpose to assure continuity for the workforce quality (role flexibility and professional differentiation).

JR is one of the key instrument to assure professional and carrier development, with benefit for the employer branding (PULL on entry labor market) and the workforce engagement level

Basic Flow Equation

For the overall organization: (In-Out) + Σa ΔLTAa = In-Out + ΔLTATot = OpFTE

The equation says that two are the events influencing the overall quantitative work force level: - the difference between In and Out flows (In.Out); - the fluctuation due to the long term leaves (ΔLTATot)

We can basically say that three conditions can characterize our organizational system:

October 2012 Domenico Famà – HR Business Partner 4

Fa

FbIn OutJRa in

ΔLTAa

ΔLTAb

JRa out

A) Stability = Market PULL

Output Market PULL = Hiring competition on the same market segments

Decoupling Input from Output market using JR as internalSeniority and Profession engine

Fa

FbIn

Out

JRa in

ΔLTAa

ΔLTAb

JRa out

B) Restructuring = PUSH on Market

PUSH on Ouput Market = Possible internal unbalances (not neutral labor laws)

Use JR as reactive stop gap.The effectiveness is increased if workforce is flexible and professionally differentiated (as result of proactive past JRs)

Fa

Fb

In

Out

JRa in

ΔLTAa

ΔLTAb

JRa out

C) Growth = PULL on Market

PULL on Entry Market = Risk to don’t manage internal Careers

Use JR discipline to maintain workforce flexibility (always will return A and Bscenarios) and to assure internal career development, to the benefit of people’sMotivation, engagement and contribution to employer branding effectiveness.

Hiring Freeze

Engagement

Employer Branding

Internal Engine