Unit 5:

Separation and maintaining: communication and counselling- safety and health-

internal mobility- retirement and retirement benefits

Employee Separation is the discontinuation of his employment contract with the

company. The termination of employees services can be either Voluntary or Involuntary.
This can take the form of Retirement, Resignation, Discharge, Layoff, etc.
The companies and employees must specify valid reasons behind their separation. The
process may be upsetting for both, company and its employees.
Hence, the employee separations should be well planned and reasonable. One must have a
good experience post separation. As employees feedback builds the company’s image among
prospecting candidates.
The employer should provide the required guidance to employees. The firms may conduct
discussions and counselling sessions during separation.
Exit Interviews of the separated employees are conducted. It helps to gather in-depth
information about companies strengths and weaknesses.
Types of Employee Separation
Either employer or employee may propose separation due to several reasons. The employee
separation can be classified into:
Voluntary Separations
Involuntary Separations
Here, the employee discontinues his services on his own consent in the organization. The
most common forms of voluntary separation are:
Resign or Quit
Retirement
Resign or Quit
The employee may quit his job due to personal or professional reasons. It may affect
the goodwill of the company when it occurs often. The employee may leave because of
reasons like:
Better Career Opportunities
Company Policy
Health
Relocation
Job Dissatisfaction, etc.
Retirements
Retirement is the completion of employees occupational tenure. This involves
discontinuation of service as the employee reaches the age of retirement.
However, the employees themselves take retirement from the organization through Voluntary
Retirement. Generally, the age of retirement is 60 years. Unlike resignation in retirement,
employees gain certain benefits like:-
Lump-Sum Payment
Pension
Leave Encashment
Gratuity, etc
Retirement can be of two types:
Compulsory Retirement
When employees reach the age of superannuation, they have to retire compulsorily. The
retirement age varies in different sectors.
In the government sector, the retirement age is 58 or 60 years. Whereas there is no
fixed age of retirement in the private sector. It depends on the person capabilities of
working.
Voluntary Retirement Scheme(VRS)
The employees can opt for retirement before reaching retirement age. It is also known as
the Golden Handshake Scheme. The organization offers VRS to its employees.
Through VRS, companies can cut costs, get a manageable workforce and handle business
losses.
Here, the employer terminates the services of their employees due to organizational reasons.
The organizations may opt for employee separation because:
They may face ups and downs in the business cycle
Difficulty in handling the workforce
Unprofessional behaviour of the employees
The different types of involuntary separation are:
Discharges and Dismiss
Layoffs
Retrenchment
Downsizing and Rightsizing
Compulsory Resignation
Discharges and Dismiss
Discharge is an involuntary separation in which the organization ceases employee
services. The discharge of the employee might be due to his non-productivity. While
discharging, an employee may get offended. Thus, it must be a thoughtful decision and
adopted in only extreme cases.
It may be a product of:
Job Misfit
Bad Organizational Behaviour
Absenteeism
Dismissal is the termination of the employee resulting from his non-performance or
misconduct. It is the last step the management take as a punishment to the employee. It may
impose adverse effects on employees career opportunities in future.
Layoffs
A Layoff is when an organization separates their employees for a short stretch of time. The
organization recalls the employees after the layoff period is over. The objective of laying off
the workforce is to make the firm lean in shape and remain competitive.
The organization carry out layoff of employees based on their excellence or seniority. The
reasons behind layoffs can be:
Merger
Acquisition
Competitive Environment
Changes in Technology
Downsizing, etc
The management must specify and communicate the reasons and basis of layoff. It has
a negative impact on the victims, survivors and managers involved in the layoff process.
Points to Remember
The employee must receive compensation during the tenure of layoff. It can be half the
remuneration paid to the employee.
Organizations might follow the Last-In-First-Out approach.
The employer should convey the period of layoff if possible.
Management should recall productive employees first.
Retrenchment
In this, organizations need to separate employees permanently due to economic reasons. The
organizations may not recall employees. But they can prefer retrenched workers at the time of
vacancies.
The following can be the economic reasons behind retrenchment:-
Surplus Staff
Machinery Installation
Rationalization
Department Closure
Decreasing Demand for Products
Economic Slowdown
The firm has to seek approval from the government. Along with that, it provides a notice to
the employees beforehand.
Like layoff, the organization must pay compensation to its workforce. An average of 15 days
for a year of regular employment will be paid as compensation.
Downsizing and Rightsizing
The organizations restructure themselves by downsizing and rightsizing their workforce.
Rightsizing includes cost-saving and adjusting the crew to exact fit. The organization may cut
costs by part-time work, reduced wages, reduced workweeks, etc.
Downsizing refers to making the organization lean by reducing the force. Layoffs are
mandatory in Downsizing, whereas Rightsizing may adjust the existing workforce.
Compulsory Resignation
The employer may ask its employee to leave the organization or resign. The organizations opt
for obligatory resignation in critical situations and avoid dismissal.
Compulsory Resignation is a better option than Dismissal or Discharge. The
organization’s goodwill remains unaffected. Moreover it does not affect the employee’s
career too.

Benefits of Employee Separation

Separation is not necessarily a negative process. Besides it may benefit organization and
employees in following ways:
To Organizations
It enables a reduction in labour costs
Replacement of the poor performers
It increases opportunities for diversification and enhancement
New recruits bring synergy within the organization
Results in a disciplined work environment
Reshape organization into the right size
To Employees
Better career opportunities
Get away from a troublesome workplace
Enjoy benefits associated with retirement schemes

Employee Separation Process

Notification: Both the company and the employee may send a notification to the HR
department. The notification addresses the request or decisions about separation.
It specifies the following details:
Identity of the employee
A valid reason for separation
The final day of work
Termination Checklist: The manager must collect data, documents, and properties from the
employee. He must complete and submit the termination checklist.
The manager handovers the collected stuff to the respective departments. This process takes
place on the employee’s final working day.
Final Payment: Employee submits no dues to the finance department, after completing the
necessary documentation.
Thereafter, the finance department will disburse the final payment to the employee.
Cost and Separation
There are certain costs associated with employee separation. The separation involves the
elimination or replacement of the employee. It includes both ‘cost-cutting’ as well as ‘cost-
addition’, depending on the two factors:-
Elimination of employee position
Replacement of employee
Eliminating the employee’s position reduces cost in the long run. The firms can save the
cost involved in paying compensation and add-on benefits.
Replacement of employees results in the cost addition. The replacement involves
employee separation and recruitment. It involves the appointment of another employee for
the same position. The recruitment process involves several costs like:
Recruitment Cost
Selection Cost
Training and Development Cost
Com
pensation Pay and Benefits
Managing Separation
Separation takes place in every organization, either voluntary or involuntary. It possesses
certain benefits and carries some costs. The organizations must aim to reduce costs and
amplify the associated benefits.
Any separation relies upon employees performance and replaceability. The preparation of
the Performance-Replaceability Strategy Matrix depends on the above elements.

This model places employees in six cells depending on their performance and replaceability.
These cells show problematic or fruitful turnover. Also, they display suitable strategies for
managing each turnover. The strategies may include Retention or Termination.
Organizations usually retain high performing employees. Formulation of retention strategies
for such employees are:
More career development opportunities
Customized incentives based on performance
Backup for the employees who are hard to replace
The organization terminates the employee with low performance and easy replacement. It
results in cutting costs and a leaner organizational structure.
Final Words
Employee separation is the discontinuation of employees services from his workplace. The
reasons are personal or organizational factors.
Employee separation has several benefits. But, it has adverse effects on the mental health of
the departing and existing employees. Firms should manage separations strategically and try
to minimize their impact.

Employee Counselling

In the present highly complex environment, HR counselling has become very important
responsibility of HR managers as counselling plays vital role in different aspects of managing
human resources like career planning and development, performance management, stress
management, and other areas which may affect employees emotionally. Counselling has very
wide application both within and without organizational context.
In the organizational context, it is a sort of discussion with an employee about a problem that
has usually emotional content in order to help him cope with it in a better way. The basic
objective of counselling is to bring an employee back to his normal mental position in which
he was before the emotional problem emerged.
Such an emotional problem might have emerged due to the mal-adjustment of the employee
because of organizational factors or his personal factors. Some of the organizational factors
causing this mal-adjustment may be nature of job, nature of supervision, apathetic work
group, interpersonal conflict, etc.
Employee’s personal factors may be his personal and family life, unwelcome happening in
his family life, his inability to meet job requirements, etc. All these factors lead to emotional
mal-adjustment, and if it is not overcome by proper counselling, the employee may show the
sign of breaking up which is dysfunctional to both the organization as well as the employee.
There may be situation in an organization when despite of everything being in perfect shape
the employee does not perform well. This poses serious threats. An employee, who may be
doing the work, but not performing well, is a liability for the organizations. The most
effective and proven method of dealing with these kind of problems is counselling.
Counselling has numerous benefits it not only supports good employee performance but also
addresses the causes of poor and marginal performance.
Employee Counselling is the most important tool of a supervisor who wants to improve the
performance and behavior of employee. If performance problems persist even after feedback
and coaching which are other two important tools with a manager, one may need to proceed
to counselling.
Counselling focuses on the problem, not the employee, and is positive and constructive.
Counselling is a formal straight, face-to-face conversation between a supervisor and an
employee concerning conduct, and performance. It is an efficient means for a supervisor to
have a positive effect on employee performance.
There are certain prerequisites of a successful counsellor. The first and foremost is that he/she
should be approachable and possess good interpersonal and communication skills. Armed
with an open mind and flexible and challenging attitude, should have a genuine desire to help
others.
Employee Counselling takes place in the context of a helping relationship in which both the
counsellor and the employee work together to resolve a problem, change behavior or foster
personal growth and awareness. The counselling relationship is confidential and not
reciprocal. The focus of a counsellor is to offer support and encouragement to the employee.
Employee Counselling is based on the premise that employee performance can be enhanced
if the employee is properly counselled by skilled managers. Employee Counselling is defined
as working to help poor or underperforming employees improve and therefore it is vital to
have an effective and well-documented counselling for two important reasons – firstly to
improve performance and secondly to serve as support and possible evidence for subsequent
termination if the employee fails to improve.
Managers frequently identify counselling as a task that they have trouble implementing. For
successful counselling it is important to win the employee’s confidence that change is
needed, identify the problem, agree to specific actions the employee would take, providing
regular feedback and recognizing improvements. Counselling helps in improving employee
performance when applied properly and at the appropriate time.

Employee Counselling – Meaning

Employee counselling is a vital part of performance review and potential appraisal, if these
are to achieve their basic purpose of helping employees to improve and develop. Unless
carefully and sensitively handled, employees may become more dissatisfied after the
counselling than before.
Counselling is described as the help provided by the supervisor to the subordinates in
analysing their performance and other behaviours on the job, in order to improve their
performance. Counselling is also used sometimes in the sense of coaching and reviewing
one’s performance. Such a review identifies not only the potential for development but also
the training needs for further improvements.
Employee counselling is a method of understanding and helping individuals who have
technical, personal and emotional adjustment problems interfering with their work
performance.
The personal adjustment of an employee is often improved when he is able to obtain
information that he needs for reaching an intelligent solution to his problems or when he is
able to express his feelings without fear of reprisal. Counselling is a sophisticated form of
communication in which attempts are focused to maintain constructive attitudes.
Viewed in this manner, counselling has been practised in one from or the other since the
evolution of mankind. In every field which requires dealing with people, counselling is
essential. The origin of counselling as a scientific procedure can be traced back to the
psychoanalytical method of Freud and client – centred counselling method of Carl Rogers
used in therapeutic setting.
Though counselling in the context of employment is different from counselling in a
therapeutic setting, what is commonly applicable to both is a strong relationship between the
client and the counsellor by developing and expressing attitudes of congruence, acceptance
and empathy by the counsellor. These attitudes must have been experienced by a client and
he must feel that he is psychologically well received by the counsellor.
The counselling activity in industries may be said to have emerged from the founding stages
of the human relatives movement when the Hawthorn Plant of the Western Electric Company
in Chicago installed a personnel counselling programme that utilized special rules for
interviewing derived from the need of eliciting from the employees matters of emotional
significance to them.
Since then, counselling in industries has been found to be useful and of special assistance in
alleviating attitudes that are detrimental to both the employee and the organization. At
present, counselling in industries can be thought of as a type of interview in which attention
is focused on the individual’s feelings and attitudes towards a problem area and in which an
attempt is made to help the person to reach a satisfactory solution to his problem.
Counselling in industries is a special method of problem solving which adopts the perspective
that people can think well when they think aloud with someone else who will question their
thoughts, help them to clarify their thoughts and help to start the process of generating
solutions or managing situations more effectively.

Employee Counselling – Concept

Counselling is a two-way process in which a counsellor provides help to the workers by way
of advice and guidance. There are many occasions in work situations when a worker feels the
need for guidance and counselling. The term ‘counselling’ refers to the help given by a
superior to his subordinate in improving the latter’s performance.
It is a process of helping the employees to achieve better adjustment with his work
environment to behave as a psychologically mature individual, and help in achieving a better
under-standing with others so that his dealings with them can be effective and purposeful.
Thus, the basic objective of counselling is overall development of the employee.
According to Keith Davis – Employee counselling involves a discussion of an emotional
problem with an employee with the general objective of decreasing it.
This definition has three concept:
(i) Counselling deals with emotional problems.
(ii) Counselling involves discussion i.e., it is an act of communication. Successful counselling
depends on communication skills, primarily face- to-face, by which one person’s emotions
can be shared with another.
(iii) The general objective of counselling is to understand and/or decrease an employee’s
emotional disorder. If two individuals merely discuss an emotional problem of either of them,
a social relationship may be established, but hardly a counselling one, because intent is not
there. For counselling to exist, an employee must be seeking an understanding or help and/or
the other (known as counsellor) must be offering it.

Employee Counselling – Need and Objectives

Need for Employee Counselling:
Employees undergo tremendous stress of completing the targets, work-load, meeting
deadlines, relations with subordinates or colleagues, work-life balance, lack of time and
higher responsibility.
Therefore, following are some of the reasons as to why there should be counselling at
work places:
1. There is a need for the employees to come out from the problems, gives a new way to deal
with the problems.
2. The employees need to know as to how much the employer care for the employee.
3. There is also a need to identify the work related problems and the poor performance.
4. There is a need to increase the productivity of employee and the confidence about the
work.
Objectives of Employee Counselling:
The objectives of employee counselling are multidimensional and all concerned parties are
benefitted due to employees counselling. The parties involved in benefits from employee
counselling are employee, family member, peers, subordinates, seniors, organisation and
society as a whole.
Due to this the popularity of employee counselling is increasing day-by-day in corporate
section and mainly in medium and large sizes of organisations. The role of employee
counselling in future will be more important.
The objectives of counselling could be stated as follows:
(i) Counselling is an exchange of ideas and feelings between two persons.
(ii) It is concerned with both personal and work problems.
(iii) Counselling may be performed by both professionals and non-professionals.
(iv) Counselling is usually confidential so as to have free talk and discussion.
(v) It tries to improve organisational performance by helping the employees to cope with their
problems.
i. Helping employees to realize their potential.
ii. Helping employees to understand their strengths and weaknesses.
iii. Providing employees an opportunity to acquire more insight into their behaviour and
analyse the dynamics of such behaviour.
iv. Helping employees to have a better understanding of the environment.
v. Increasing personal and interpersonal effectiveness through effective feedback.
vi. Encouraging employees to set goals for further improvement; and
vii. Providing employees an atmosphere for sharing and discussing their tension, conflicts,
concerns, and problems.
In an organizational setup, the trusting relationship with the supervisors is known as a dyadic
relationship but the dyad need not always be the subordinate’s supervisor. He/she may be
his/her mentor with whom the subordinate has developed a trusting relationship which
nurture, support, and guide him/her.
The concept of mentoring relates to emotional support and guidance usually given by a senior
person to a younger one known as protege. Both counselling and mentoring involve help and
support by a senior person to a younger one.
The three basic ingredients of the process are:
i. Communication
ii. Empowering, and
iii. Helping.
Communication involves receiving messages (listening), giving messages (responding), and
giving feedback. The counsellor or the mentor does all these. The process of empowering
enables the other person to exercise more autonomy, providing positive reinforcement so that
the desirable behaviour is further strengthened and creates conditions in which the person is
able to learn from the behaviour of the mentor. Finally, helping primarily involves
identification of the developmental needs of the person being counselled so that he/she may
be able to develop and increase his/her effectiveness.

Employee Counselling – Top 8 Types: Directive, Non-Directive, Cooperative,

Participative, Desensitization, Catharsis, Insight & Developing the New Patterns
Effectiveness of counselling largely depends on the methods and techniques as well as the
skills used by the counsellor. Methods and techniques of counselling change from person to
person and from situation to situation.
Normally employee counselling involves the following types:
1. Directive Counselling,
2. Nondirective Counselling,
3. Cooperative Counselling,
4. Participative Counselling,
5. Desensitization,
6. Catharsis,
7. Insight, and
8. Developing the new patterns.
Type # 1. Directive Counselling:
It is full counselling. It is the process of listening to an employee’s problem, deciding with
the employee what should be done and telling and motivating the employee to do it. This type
of counselling mostly does the function of advice, reassurance and communication. It may
also perform other functions of counselling.
It centers on the counsellor. The counsellor, after hearing the problems of an employee,
decides what should be done and gives advice and suggestion to him to resolve the problem.
But directive counselling seldom succeeds, as people do not wish to take up advice normally,
no matter how good it might be.
Type # 2. Non-Directive Counselling:
It is the process of skilfully listening to the emotional problems of an employee, understand
him/her and determine the course of action to be adopted to resolve his problem. It focuses on
the counselee hence it is called ‘client centered’ counselling. Professional counsellors usually
adopt this method of counselling. The unique advantage of this type of counselling is its
ability to cause the employees reorientation. The main stress is to ‘change’ the person instead
of dealing with his immediate problem only.
The non-directive counsellor deals with respect the person so affected. He takes the person as
best to solve his own problems and he facilitates the person to reach his goal.
In non-directive counselling, the employee is permitted to have maximum freedom in
determining the course of the interview. It is the process of skilfully listening and
encouraging a counselee to explain troublesome problems, understand them and determine
appropriate solutions. Fundamentally, the approach is to listen, with understanding and
without criticism or appraisal, to the problem as it is described by the employee.
The employee is encouraged, through the manager’s attitude and reaction to what is said or
not said, to express feelings without fear of shame, embarrassment, or reprisal. The free
expression that is encouraged in the non-directive approach tends to reduce tensions and
frustrations. The employee who has had an opportunity to release pent-up feelings is usually
in a better position to view the problem more objectively and with a problem-solving attitude.
Type # 3. Cooperative Counselling:
Is the process in which both the councillor and client mutually cooperate to solve the
problems of the client. It is not neither wholly client centered nor wholly counsellor centered
but it is centered both councillor and client equally. It is defined as mutual discussion of an
employee’s emotional problem to set up conditions and plans of actions that will remedy it.
This form of counselling appears to be more suitable to managerial attitude and temperament
in our country.
Among the three from of counselling, the advice offered in directive counselling considers
the surface crises; the nondirective counselling goes to the underlining cause, the real crisis
that leads the employee to understand his problem. It is thus suggested that nondirective to
counselling is, probably, the best among the three forms.
In attempting to help an employee who has a problem, a variety of counselling approaches
are used. All of these counselling approaches, however, depend on active listening.
Sometimes the mere furnishing of information or advice may be the solution to what at first
appeared to be a knotty problem.
More frequently, however, the problem cannot be solved easily because of frustrations or
conflicts that are accompanied by strong feelings such as fear, confusion, or hostility. A
manager, therefore, needs to learn to use whatever approach appears to be suitable at the
time. Flexibility is a key component of the employee counselling process.
Type # 4. Participative Counselling:
Both directive and non-directive methods suffer from limitations. While the former is often
not accepted by independent employees, the latter needs professionals to operate and hence is
costly. Hence, the counselling used in most situations is in between these two. This middle
path is known as participative counselling.
Participative is a counsellor-counselee relationship that establishes a cooperative exchange of
ideas to help solve an employee’s problems. It is neither wholly counsellor centered nor
wholly counselee-centered. Counsellor and counselee mutually apply their different
knowledge, perceptions, skills, perspectives and values to problem into the problems and find
solutions.
Type # 5. Desensitization:
According to Desensitization, once an individual is shocked in a particular situation, he/she
gives himself/herself no chance for the situation to recur. This method can be used to
overcome avoidance reactions, so as to improve the emotional weak spots. If an employee is
once shocked by the behavior, approach or action of his superior, he would continue to avoid
that superior.
It is difficult for such superiors to be effective counsellors, unless such superiors prove
otherwise through their behavior or action on the contrary. Similarly, once an employee is
shocked by a particular situation, he can be brought back to that situation only if he will be
convinced through desensitization that the shock will not to take place further. Counsellor can
make use of desensitization in such situations.
Type # 6. Catharsis:
Discharge of emotional tensions can be called catharsis. A Catharsis is an emotional
discharge through which one can achieve a state of moral or spiritual renewal or achieve a
state of liberation from anxiety and stress.
Catharsis is a Greek word and it means cleansing.
Emotional tensions can be discharged by talking them out or by relieving of the painful
experience which engendered them. It is an important technique as a means of reducing the
tensions associated with anxiety, fear, hostility, or guilt. Catharsis helps to gain insight into
the ways an emotional trauma has been affecting the behaviour.
Originally, the term was used as a metaphor in Poetics by Aristotle to explain the impact of
tragedy on the audiences.
The most common interpretation of the term ‘Catharsis’ is purgation and purification, and are
still widely used. The most recent interpretation of the term catharsis is “intellectual
clarification”
Type # 7. Insight:
Founded by Sigmund Freud, psychoanalysis or insight delves deep into an employee’s past
and brings to light past experiences and current unconscious thoughts and behaviours of the
employee, that are believed to be the cause of their current problems. Specifically, it targets
how inner drives such as the id, superego, and ego conflict with outside pressures such as
cultural or religious obligations.
Insight is the ability to acquire a new accurate awareness or comprehension about a thing or
person. Insight therapy is a type of therapy that helps the employee to understand how events
in the past are negatively influencing the current thoughts, emotions, and behaviours. This
type of treatment can be quite empowering for employees, because it is identifying the source
of their problems. Identifying the reasons for low self-esteem, insecurity, depression, anxiety,
etc., is the first step towards resolving those conflicts and issues.
With the help of insight one may find that he/she has devalued himself/herself unnecessarily,
or his/her aspirations were unrealistic, or that his/her childish interpretation of an event was
inaccurate. Then he/she can overcome the weakness.
Type # 8. Developing the New Patterns:
Developing new patterns becomes very often necessary when other methods to deal with
weak spots remain ineffective. In order to develop new, more satisfying emotional reactions,
the individual needs to expose himself to situations where he can experience positive
feelings. The manager who deals with such individuals may motivate or instigate them to put
themselves into such situations, so that their self-confidence may increase.
Every counsellor must concentrate his/her full attention on two aspects viz., using of
assessment tools, and utilizing counselling methods, choice of which differs from person to
person, situation to situation, and from case to case.
i. The id represents a constant in the personality as it is always present. Fraud saw sexual
energy as the only id, however, Freud added another instinct to the id Thanatos – the death
instinct. The id is unconscious by definition – “It is the dark, inaccessible part of our
personality”. It is filled with energy reaching it from the instincts, but it has no organization,
produces no collective will, but only a striving to bring about the satisfaction of the
instinctual needs and is based on the ‘pleasure principle’.
ii. The ego is the surface of the personality; the part one usually shows the world. The ego is
governed by the ‘reality principle’, or a practical approach to the world. It seeks to turn the
id’s drive to behavior which brings benefits in the long term rather than grief. Conscious
awareness resides in the ego, although not all of the operations of the ego are conscious.
iii. The Super-ego aims for perfection. It comprises that part of the personality, mainly
unconscious, which includes the individual’s ego ideals, spiritual goals, and conscience, that
criticizes and prohibits his or her drives, fantasies, feelings, and actions.
“The Super-ego can be thought of as a type of conscience that punishes misbehaviour with
feelings of guilt.” For example – having extra-marital affairs.

Employee Counselling – Process: Rapport Building, Exploration and Action Planning

Counselling, basically, is to help the employee grow and develop in the organization. An
effective counsellor is one who helps employees to make them aware of their strengths and
weaknesses and to improve upon them. Through mutuality, he/she helps the employee to
develop providing them the proper emotional climate.
Mutuality involves working together with the employees and developing future plans of
action for their growth in the organization. Counselling requires certain interpersonal skills
which can be acquired easily if a person is genuinely interested in developing his/her
subordinates. Such skills are important at the time of potential appraisal and performance
review.
The counselling process has three important phases:
(1) Rapport building
(2) Exploration, and
(3) Action planning.
1. Rapport Building:
Rapport building is essential for any effective counselling outcome. In this phase, a good
counsellor attempts to establish a climate of acceptance, warmth, support, openness, and
mutuality. He/she does this by listening to the employees’ problems and feeling, by
communicating his/her understanding to the employees, and by expressing a genuineness of
interest in them.
2. Exploration:
In the exploration phase, besides accepting the employees, listening to them, and establishing
a climate of openness, the counsellor attempts to understand as well as help the employees
understand their own situational strengths, weaknesses, problems, and needs. Counselling
skills lie in this.
3. Action Planning:
In the action planning stage, the counsellor and the employee jointly workout or plan specific
action steps for the development of the employee.

Employee Counselling – Steps and Various Requisites Involved in Employee

Performance Counselling
The counselling techniques are used to help employees deal with personal problems that may
interfere with the achievement of these goals. Counselling may address such issues as
substance abuse, stress management, smoking cessation, or fitness, nutrition and weight
control.
The employees counselling helps lot in the performance achievement.
Let us analyse the various steps involved in employees performance counselling:
(a) To establish rapport or prepare a base for communication – This step is very necessary as
it generates the necessary confidence in the subordinate and assures him of his superior’s
genuine interest in helping him. For the success of this step it necessary that the counsellor
carefully listens to what the subordinates says and displays warmth and responsiveness from
his behaviour.
(b) To explore information about performance – During this stage the counsellor puts to the
subordinates various questions, which may elicit elaborate information on the latter’s
achievement, strengths, failures and short coming. The object is to make the subordinate
himself to introspect and define his strengths and weakness.
(c) To help define the future goal and internalise the problem – Once the counsellor has
succeeded in making the subordinate reflect on his strengths and weaknesses he can easily
make him realise what his problems are. There is generally a tendency to attribute ones’
failures, weaknesses or shortcoming to external reasons. The counsellor has to help the
subordinate to internalise the problem and its causes. He must also help him in setting his
future goals.
(d) To draw action plan – Both the counsellor and the subordinate jointly consider all
possible alternative solutions to the problems. Their pros and cons are weighed and the best
alternative selected and a stepwise action plan is prepared along with the timetable. The
subordinate is allowed to monitor the plan himself. The plan is reviewed by the two parties at
regular intervals.
Counselling the employees should be taken utmost care in the HRD. It is one of the
prestigious functions and the great intervention of HRD in which the employees can be
motivated and his latent skills can be extracted for the benefit of the organisation.
The various requisites of the counselling are listed below:
1. Individual’s Desire to Improve:
The first most important requirement for effective counselling is that the individual to be
given counsel should be interested in developing himself. Superiors usually hold the view
that subordinates do not take sufficient interest in their growth and development. On the other
hand, subordinates allege that they do not feel free to participate in the process of the review
and feedback.
2. Continuous Dialogue:
Counselling is not one-way process of communicating to the employee what he should or
should not do. It is a process of continuous dialogue directed toward better understanding of
the situation. This presupposes the existence of a general climate of openness, mutuality and
trust.
3. Interest of Superior in Subordinates’ Development:
In order to make counselling effective it is necessary that the counsellor should have
empathetic attitude towards his subordinates. To put it differently, counselling should not be
considered as a burden or an unpleasant task and practised half-heartedly or as a compulsion.
4. Mutual Participation:
Both the superior and the subordinate should whole-heartedly participate in the goal setting
and reviewing of goals and performance. Without such collaboration counselling would be
reckless.

Employee Counselling – 6 Main Functions: Advice, Reassurance, Communication,

Release of Emotional Tension, Clarified Thinking and Reorientation
The basic objective of counselling is to help employees to improve their mental health and
develop self-confidence, understanding, self-control and ability to work effectively. This
objective can be achieved by performing various counselling functions.
They are:
Function # 1. Advice:
One of the important functions of counselling is offering advice “to the counselee.” The
counsellor has to understand the problem of the counselee completely, before offering advice
and suggesting a course of action.
Function # 2. Reassurance:
In order to give courage to face a problem confidently, counselling provides employees with
reassurance. Normally reassurance is not acceptable to the counselee. However, it is useful in
some situations.
Function # 3. Communication:
Counselling helps improve both upward and downward communications. In an upward
direction, it is a key for employees-to make the management know their feeling. Counselling
initiates an upward signal. Another part of the counsellor’s job is to discover emotional
problems relating to company’s policies and to interpret those problems to top management.
Function # 4. Release of Emotional Tension:
Releasing emotional tension is an important function of counselling. People feel emotional
release from their frustration after counselling. Release of tension may not solve the entire
problem, but it removes mental blocks to the solution.
Function # 5. Clarified Thinking:
Another function of counselling is that of clarified thinking. As emotional blocks to straight
thinking are relieved while narrating the problems to the counsellor, one begins to think more
rationally. Clarified thinking tends to be a normal result of emotional release, but a skilled
counsellor can act as a catalyst to bring about clear thinking more quickly. The client begins
to accept responsibility for his own problems and strives to be more realistic in solving them.
Function # 6. Reorientation:
It involves a change in the employee’s psychic self through a change in basic goals and
values. Mostly, it needs a revision of the employee’s level of aspiration to bring it more in
line with actual attainment. It is largely a job of the professional counsellor.

Employee Counselling – Qualities and Role Necessary for a Counsellor

Qualities of a Counsellor:
1. Counsellor should be a morale booster for the employee
2. Counsellor should be unbiased and must never compare one employee with other
employees
3. Counsellor should have warm manners and social etiquettes
4. He/she must be well versed in excellent communication skills
5. The counsellor should possess professional qualifications, experienced, maturity
6. Effective listening skill
7. Pleasing personality
8. Immense Patience
9. Compassionate approach
10. Non-judgmental towards a problem or an employee
11. Research-Oriented as counselling is an ever evolving profession
12. Empathetic and sympathetic towards the employees
13. Discrete outlook
14. Ever encouraging to employees to come forward for redressal.
Employee counselling has a positive impact on the employee’s life as their problems are
solved and they lead a stress free life.
Role of Counsellors:
Counselling is a two-way process in which a counsellor provides help to an employee by way
of advice and guidance. There are many occasions in work situations when a worker feels the
need for guidance and counselling. In big organisations, counsellors are appointed who are
experts in industrial psychology.
They help the employees in the following ways:
(i) To provide emphatic atmosphere of genuine concern about his difficulties, tensions,
worries, problems, etc. so that he can freely discuss and share his views with counsellor;
(ii) To understand himself better and to gain knowledge about his potential, strengths and
weaknesses;
(iii) To gain an insight into the dynamics of his behaviour by providing necessary feedback;
(iv) To have better understanding of the environment in which he functions;
(v) To increase his personal and interpersonal effectiveness by assisting him in analysing his
interpersonal competence;
(vi) To prepare alternate action plans for improving his performance and behaviour.
The counsellor enjoys a good status in the organisation as he provides an important service in
achieving good human relations. He essentially communicates with the employees (listening
and responding to their psychological problems) and tries to influence them.

Employee Counselling – Factors Necessary to Build a Successful Counselling Program

The philosophy behind a counselling program is based on the belief that each person is a
unique individual with specific needs and talents. Believing and promoting a respect for
human dignity and fostering that concept among employees are important for their positive
growth.
The counselling program plays a key role in coordinating and facilitating growth and
development of the employees. One of the most widely used counselling programs is
interviewing which maybe directive, authoritarian, non- authoritarian or non-directive.
Whatever the method of Interviewing, it is directed at finding a solution to the problem at
hand.
Counselling is essentially helpful. Morrisey in 1972 has suggested many techniques, some of
which are as follows –
1. You-we technique where in the compliment is directed towards ‘you’ and the criticism
towards ‘we’. This is effective way of establishing a rapport since collective acceptance of
blame instead of throwing it on others help to break the ice and build in confidence.
2. Second hand compliment technique is passing on the compliment received from a third
party on behalf of the counselee.
3. Advice-request technique as the name itself suggests it is seeking the solution to the
problems.
4. Summary technique is summing up the decisions and fixing responsibilities and integrating
the whole decision.
The counselling programs are aimed at developing the employee and eventually developing
the organization. It includes supplementing the Developing Capable People program through
self-awareness guidance; decision making and problem solving strategies on various issues.
The counselling works on the dictum of Bradley which says that “If you touch me soft and
gentle, If you look at me and smile at me, If you listen to me talk sometimes before you talk,
I will grow, really grow” and should be as a rule by every manager.
Factors Necessary to Build a Successful Counselling Program:
The corporate world is getting changed and so the HR process also. Counselling not only
helps employees but also show how much the organization cares for employees.
Employee Counselling needs to be tackled carefully, both on the part of the organization and
the counsellor.
1. The counsellor should be either a professional or an experienced, mature employee.
2. The counsellor should be flexible in his/her approach and a patient listener.
3. The counsellor should have the warmth required to win the trust of the employee so that
he/she can share thoughts and problems without any inhibitions.
4. Active and effective listening is one of the most important aspects of the employee
counselling.
5. Time should not be a constraint in the process.
6. The counsellor should be able to identify the problem and offer concrete advice.
7. The counsellor should be able to help the employee to boost the morale and spirit of the
employee, create a positive outlook and help employees to make decisions to deal with the
problem.
8. Counsellor must give that kind of advise which is workable and possible to follow by the
employee.
Counsellor must give an advise which is workable and possible.
This is most important & can be understood with the help of a fable about a Centipede who
had pain in all 100 of his legs & on the advise of his fellow centipedes, it went to an Owl,
considered to be a wise bird to seek a solution to its problem. The Owl asked it to become a
Crow so that it would lose 98 legs and fly to solve the problem. Centipede’s initial happiness
turned sour when it asked the Owl as to how it can become a Crow? The Owl simply told it
the “my job is to give advice, how you do it is your problem”.
Therefore, an advise must be workable so that the employee receives actual benefit of
counselling.

Employee Counselling – Benefits and Challenges

Employee Counselling offers employees a facility that is confidential, easily accessed,
provides a properly qualified and supervised practitioner, does not raise the threat of a
diagnosis of psychiatric disorder, and promises to alleviate distress within a reasonably short
period of time.
Workplace counselling offers a service that is valued by employees. It has the potential for
reducing sickness, absence, takes pressure off managers through the availability of a
constructive means of dealing with ‘difficult staff or situations’, and contributes to its
reputation as a caring employer.
Employee Counselling is often viewed by employers as an insurance policy against the threat
of compensation claims made by employees exposed to work-related stress.
Some benefits may be highlighted as under:
1. It helps employees to tackle with the problems effectively
2. Employees are able to sort out their problems with ease
3. Counselling Helps in taking correct decisions, be it personal or official
4. Counselling gives a new way to look at the situation with a new perspective and positive
outlook
5. It also May reduce the number of absenteeism of employee
6. It may prevent termination from employer or resignation from employee
7. It reduces the cost of hiring new employee and training new staff as old staff is retained
8. It results in Possibility of smooth coordination between employer and employee
9. It Helps the individual to understand and help him/herself
10. It provides Alternate solutions to problems
11. Counselling helps in Coping with the situation and the stress
12. Employees frustrations and stress are removed with the help of Counselling
13. The employee is able to overcome his personal weakness, his emotional irritants and
come out with refined behaviour
14. He/she is able to improve his/her behaviour to full potential.
Challenges to Effective Employee Counselling:
(i) Employees are not comfortable sharing their problems with manager/counsellor.
(ii) Lack of trust in counselling procedure.
(iii) Providing counselling to employees is a time-consuming and costly process.
(iv) The very purpose of counselling is defeated if the counsellor is ineffective.
Employee counselling can go a long way in helping employees face their day-to-day
problems more effectively and deal with stress in a better manner. It helps them to take
increased control over their job and life and maintain a healthy balance between work and
personal life.
Counselling helps the organization to identify the problem areas at the earliest and handle
them before they blow out of proportion. Workplace stress and anxiety can affect the mental
health, productivity and behaviour of the employees. Counselling is necessary to manage the
stress so that the productivity and efficiency of the employees is maintained.
Counselling also addresses the psychological and behavioural issues of the employees,
thereby helping them to become better human beings who are more loyal and enthusiastic
about their workplace commitments.

Internal Mobility

Internal Mobility means the internal movement of employees within a firm, including vertical
and horizontal shifts to new career opportunities, skill development, and projects. It includes
transfers, skill enhancements, promotions, and project assignments. Such programs facilitate
employee growth, career advancement, and skill acquisition, promoting engagement,
retention, productivity, and innovation. By strategically leveraging existing talent, internal
mobility initiatives enable organizations to minimize hiring costs and cultivate a flexible
workforce capable of adapting to evolving needs and opportunities.

Importance of Internal Mobility

1. Streamlining Hiring and Onboarding Processes: Detecting and hiring suitable
candidates, along with completing the onboarding process, can be time-consuming tasks for
businesses. It becomes even more challenging when hiring for senior or technical roles,
which requires specialized skill sets. Leveraging internal talent can expedite the process,
particularly when faced with strict deadlines or projects needing specific skills.
2. Cost-Efficient Hiring Practices: The financial implications of hiring are significant, with
distinct expenses incurred through advertising, recruitment agencies, or labor costs for
interviewers. Promoting or relocating in-house employees to fill vacancies can substantially
reduce these costs. For instance, promoting an existing employee to a senior role and
backfilling their previous position may require less time and investment than recruiting
externally.
3. Enhancing Employee Retention: Employee Retention is crucial for ensuring work
continuity and operational efficiency. Employees who perceive favorable career advancement
prospects within a company are less likely to seek opportunities elsewhere. Moreover, long-
tenured employees possess extensive knowledge of company processes and clients,
facilitating smoother operations and client relationships.
4. Attractive Benefits for Qualified Candidates: Highly qualified candidates consider
benefits a crucial aspect of their employment package. Offering internal mobility and career
development opportunities is an attractive benefit, demonstrating a commitment to employee
growth. By investing in training and development, companies can showcase their dedication
to nurturing talent, thereby attracting top-tier candidates.
5. Fostering an Inclusive Work Environment: Internal development opportunities promote
inclusivity and diversity within the workplace. By providing equal chances for skill
enhancement and knowledge growth, businesses cultivate a diverse workforce, bringing in
fresh perspectives and enriching the organizational culture. A positive work environment
resulting from inclusivity contributes to higher job satisfaction and productivity.
6. Developing In-House Skills and Capabilities: Internal Mobility aids long-term business
planning by detecting and addressing specific skill gaps. Companies can groom internal
employees to meet specialized needs that might be challenging to fulfill externally.
Supporting team members in growing into specific roles enhances the company's agility and
adaptability in meeting evolving business requirements.
7. Boosting Employee Satisfaction: Supportive workplaces foster higher levels of employee
satisfaction, translating to improved productivity and performance. Internal career mobility
initiatives empower employees to advance within the organization, enhancing their sense of
fulfillment and engagement. Satisfied employees are more likely to take initiative, contribute
proactively to business objectives, and deliver superior results.
Advantages of Internal Mobility
1. Supporting Talent Retention: Internal Mobility initiatives play a crucial role in talent
retention by offering employees avenues for career progression, skill enhancement, and novel
challenges within the organization. Prioritizing employee development and advancement
significantly impacts retention rates, ensuring that valuable talent remains engaged and
motivated to contribute to the company's success.
2. Achieving Cost and Time Savings: Promoting internal mobility not only facilitates talent
retention but also yields cost and time savings associated with recruitment and onboarding.
Utilizing existing talent familiar with the company's operations streamlines the onboarding
process and reduces recruitment expenditures, optimizing resource allocation and operational
efficiency.
3. Promoting Workplace Diversity: Internal mobility programs contribute to fostering
workplace diversity by enabling employees to transition into new roles based on their skills
and interests rather than conventional criteria. This approach promotes a more inclusive
workforce and mitigates bias in career advancement decisions, cultivating a diverse and
equitable work environment.
4. Enhancing Employee Engagement: Encouraging internal mobility initiatives enhances
employee engagement by providing opportunities for skill development, career advancement,
and personal growth. Engaged employees exhibit higher levels of productivity, motivation,
and commitment to their roles, positively impacting organizational performance and fostering
a culture of continuous improvement.
5. Facilitating Knowledge Sharing: Internal Mobility fosters knowledge sharing within the
organization as employees transition into new roles, bringing their expertise and experiences
with them. This cross-functional movement facilitates the exchange of knowledge and skills
across different teams, fostering collaboration, innovation, and collective learning.
6. Supporting Career Agility: Internal Mobility programs support career agility by
empowering employees to explore diverse roles, projects, and tasks, fostering a dynamic and
adaptable workforce. In an ever-evolving business landscape, adaptability is essential for
employees to acquire new skills and expertise, enabling them to meet emerging challenges
and seize opportunities for growth and development.
Disadvantages of Internal Mobility
While internal mobility within a company can offer numerous benefits, there are also several
limitations associated with it:
1. Limited Opportunities: In smaller companies or those with a hierarchical structure, there
may be fewer opportunities for internal mobility, especially at higher levels.
2. Competition: Internal mobility often involves competing with other internal candidates for
available positions, which can be challenging, particularly in organizations where there is
high demand for advancement.
3. Skill Misalignment: Sometimes, employees may not possess the necessary skills or
experience required for the available internal positions, leading to mismatches between their
qualifications and the roles they aspire to fill.
4. Perceived Favoritism: Internal mobility processes may be perceived as favoring certain
employees over others, potentially leading to resentment or dissatisfaction among those who
feel unfairly overlooked.
5. Limited Career Growth: In some cases, employees may find that their career growth
potential within the organization is limited, either due to a lack of available advancement
opportunities or because the company's structure does not support extensive internal mobility.
6. Risk of Losing Institutional Knowledge: When employees move between departments or
roles frequently, there is a risk that valuable institutional knowledge and expertise may be
lost, impacting the organization's overall performance and efficiency.
7. Resistance to Change: Employees may be resistant to change or reluctant to leave their
current roles, even if there are opportunities for advancement, which can hinder internal
mobility initiatives.
8. Training and Development Needs: Internal mobility often requires additional training
and development to prepare employees for new roles, which can be time-consuming and
costly for the organization.
Examples of Internal Mobility
1. Advancing through Promotions: Promotions happen when existing employees are
moved up to higher positions within the company. It gives them a chance to grow in their
careers and take on more important roles. Encouraging employees to strive for excellence
increases the likelihood of promotions.
2. Moving Around Departments: Employees can switch to distinct jobs within their
department (intradepartmental transfers) or move to jobs in other departments
(interdepartmental transfers). It helps the employees learn new things and grow their skills.
It's like exploring different rooms in a big house to find where you fit best. Encouraging
cross-departmental movement fosters a well-rounded understanding of the organization.
3. Embracing New Opportunities: Sometimes, companies need to make new roles to keep
up with changes. They might need someone to do a job that didn't exist before. When this
happens, they often choose someone who is already working for them and has the right skills.
It gives employees a chance to try something different and take on more responsibilities.
Embracing new roles demonstrates a commitment to innovation and adaptation.
4. Learning from Others: Employees can learn from colleagues in other parts of the
company through mentorship programs. It is like having a wise friend at work who can show
you how to do things better. Creating a culture of mentorship fosters knowledge exchange
and professional growth.
5. Taking on Special Projects: Sometimes, employees work on short-term projects or tasks
that are distinct from their usual jobs. It helps them learn new skills and work with different
people. It's like trying out new games to see which one you like best. Providing opportunities
for special projects encourages creativity and flexibility in problem-solving.
How to Promote Internal Mobility?
1. Engage and Support Managers: Managers should be trained to motivate and help their
teams grow. This creates a work environment where employees feel they have opportunities
to advance within the company. Additionally, providing ongoing support and resources to
managers ensures they can effectively guide their teams toward success.
2. Encourage Ongoing Conversations: Regular talks with employees about their career
goals and how they're progressing keep them interested and driven to do well. Moreover,
offering coaching and mentorship opportunities can deepen these discussions and provide
valuable guidance for employees.
3. Empower Employees to Plan their Careers: Employees should be given the tools and
information to plan how they want to grow in their careers. It means knowing what
opportunities are available and what skills they need to develop. Furthermore, offering career
development workshops or resources can empower employees to take proactive steps in their
career paths.
4. Make Internal Opportunities Clear: Employees need to know what jobs are open inside
the company, how to apply for them, and if they're eligible. This information should be easy
for them to find. Additionally, creating a transparent and accessible internal job board can
facilitate the process of exploring internal opportunities.
5. Prioritize Internal Candidates: Before hiring from outside, the company should consider
its current employees for open positions. It gives them a chance to move up in the company.
Moreover, offering internal referral programs can encourage employees to recommend
qualified colleagues for open roles.
6. Identify Talent within the Company: Using systems to find employees with the right
skills for open jobs helps the company recognize and promote talent from within. This shows
employees that their hard work is noticed and valued. Additionally, providing feedback and
recognition to high-potential employees encourages them to continue excelling.
Best Practices of Internal Mobility
1. Embrace Internal Mobility: Encourage employees to explore opportunities within the
company by offering an environment where internal mobility is openly discussed and
celebrated. Normalize the idea that career growth can happen through internal moves,
removing any stigma associated with it.
2. Support Middle Management: Provide managers with the necessary tools, training, and
resources to effectively support their teams in pursuing internal mobility. Equip them with the
skills to detect talent, coach employees, and facilitate career development discussions.
3. Develop an Internal Mobility Strategy: Craft a strategic plan that outlines how internal
mobility will be promoted and facilitated throughout the organization. It includes conducting
skill assessments, establishing communication channels, defining processes for internal job
applications, and setting measurable goals.
4. Define Career Paths: Provide clear career paths for employees, outlining the steps they
can take to advance within the company. Work with managers to create personalized
development plans aligned with employees' career aspirations and organizational needs.
5. Prioritize Learning and Development: Invest in learning and development initiatives that
empower employees to acquire new skills and competencies necessary for internal mobility.
Promote a culture of continuous learning, where employees are encouraged to seek
opportunities for growth and upskilling.
6. Promote Internal Recruitment: Shift focus from external hiring to internal talent
promotion by actively promoting job openings to existing employees. Create a seamless
internal recruitment process that permits employees to easily apply for new roles and
showcase their qualifications.
7. Utilize Effective Technology: Implement technology solutions that facilitate internal
mobility, such as internal job boards, applicant tracking systems, and learning management
platforms. Leverage these tools to streamline internal recruitment processes and support
ongoing employee development.
Types of Internal Mobility
. Vertical Mobility (Promotions and Demotions)
Promotions: Employees advance to a higher position with greater responsibilities, usually
accompanied by a salary increase. This is often based on performance, seniority, or
completion of certain development goals.
Example: A marketing analyst who consistently meets performance targets and shows strong
initiative is promoted to senior marketing analyst or marketing manager, gaining more
decision-making power and managing junior analysts.
Demotions: In rare cases, employees may be moved to a lower position, often due to
restructuring, performance issues, or as an alternative to termination. It allows organizations
to retain employees in a role that better suits their capabilities.
Example: A manager struggling with leadership responsibilities might be moved to a senior
specialist role, where they can focus on individual expertise without direct people
management.
2. Horizontal Mobility (Lateral Moves)
Job Transfers: Employees move to a different department or function at a similar level. This
broadens their skills without changing their rank or salary.
Example: A sales executive with an interest in operations may transfer to a role in supply
chain management. This allows them to learn about logistics and operations, adding
versatility to their skill set without a promotion or demotion.
Job Rotation: Employees periodically rotate across various roles or departments. This
provides a comprehensive understanding of different functions and reduces monotony, while
helping organizations develop cross-trained employees.
Example: In a leadership development program, a trainee might rotate between roles in HR,
marketing, finance, and operations. Each rotation period allows the trainee to gain hands-on
experience in different departments.
3. Temporary Mobility
Secondments: Employees are loaned to a different team, department, or even another
organization temporarily, often to work on special projects or develop new skills.
Example: An IT specialist in Company A might be seconded to a partner company for six
months to help with a systems upgrade. After completing the assignment, they return to their
original team.
Project-Based Assignments: Employees are assigned to a specific project outside their usual
role, giving them exposure to new tasks and colleagues. Once the project ends, they resume
their regular duties.
Example: A finance officer might be temporarily assigned to a team launching a new product,
where they assist in budgeting and financial planning for the project’s duration.
Interim Positions: Employees temporarily fill a higher or different role, often to cover for
someone on leave, serving as a trial period for a potential promotion.
Example: When a department head takes parental leave, an assistant manager might step into
the role on an interim basis. If successful, this experience can later support a permanent
promotion.
4. Cross-Divisional Mobility
Cross-Functional Transfers: Employees move across different functions or business units,
gaining exposure to various aspects of the organization and broadening their skills.
Example: An engineer from R&D might transfer to a product management role, allowing
them to work closely with marketing and customer-facing teams, and understand market
needs better.
Global Mobility (Geographic Relocation): Employees relocate to a different geographic
location or regional office, which can be temporary or permanent. This type is common in
multinational companies to transfer knowledge and skills.
Example: A project manager from the U.S. office of a multinational company is relocated to
the Singapore office to manage a new regional project, bringing their expertise to a new
market.
5. Promotional Ladders and Dual Career Tracks
Promotional Ladders: Employees move up through a series of roles in their area of
expertise.
Example: In a software engineering team, a developer might progress from junior developer
to developer, senior developer, and then lead developer.
Dual Career Ladders: Employees are offered a choice to advance in technical expertise or
leadership roles, catering to both technical and managerial aspirations.
Example: A senior engineer might choose to either move into a technical architect role
(technical track) or pursue a position as an engineering manager (management track).
6. Skill-Based Mobility
Skills-Based Rotations: Employees move between roles that focus on certain skills they aim
to develop. This is aligned with specific competencies the employee wants to enhance.
Example: A data analyst interested in developing coding skills might be rotated into a data
engineering team, where they gain hands-on experience in Python or SQL, adding technical
skills that can benefit their main role.
Internal Gigs or Short-Term Assignments: These are short-term, skill-building
assignments in other teams or functions, allowing employees to develop specific skills
without changing their core role.
Example: An HR generalist might take a short-term assignment in talent acquisition to
improve their recruitment skills, then return to their generalist role with added expertise in
hiring.
7. Redeployment
Restructuring-Based Redeployment: When organizational restructuring occurs, employees
are moved to new roles or teams aligned with the updated structure, ensuring skills are not
wasted.
Example: During a merger, a product manager is redeployed to a newly formed team
handling combined product lines, ensuring their experience is utilized in the new structure.
Skill Realignment: Employees are reassigned to roles that better match their evolving skills
or organizational needs.
Example: An administrative assistant with strong graphic design skills might be moved to the
marketing department to support content creation, utilizing their design skills more
effectively.
8. Reverse Mobility
Role Simplification: This type is generally for senior or long-tenured employees who wish to
stay active in the workforce but prefer reduced responsibilities.
Example: A senior manager nearing retirement might transition into a consulting role within
the company, where they provide expertise on a part-time basis without direct managerial
responsibilities.
Benefits of Internal Mobility
Career Growth and Development: By moving within the organization, employees can
experience diverse roles and career advancement, fostering long-term loyalty.
Increased Skill Versatility: Internal moves help employees develop a broader skill set,
making them adaptable and valuable to the organization.
Higher Employee Retention: Providing employees with growth opportunities reduces
turnover, as they are less likely to seek new roles outside the company.
Enhanced Knowledge Sharing: Cross-divisional and cross-functional mobility facilitates
knowledge transfer and collaboration across departments, enriching the organization’s
capabilities.
Challenges of Internal Mobility
Resistance to Change: Some employees may feel anxious or uncertain about changing roles
or responsibilities, especially if it involves moving to a different team.
Skill Gaps: Employees may need additional training or support when shifting to unfamiliar
roles, which can require significant organizational resources.
Potential for Conflict: Internal competition for promotions or desired roles can create
tension among employees, requiring careful management and communication.
Managing Expectations: Organizations must set clear expectations to avoid confusion and
ensure employees understand the scope and limitations of new roles.
Internal mobility is a powerful tool for both employee development and organizational
flexibility, allowing companies to leverage existing talent while offering employees a
dynamic, growth-oriented workplace.

retirement and retirement benefits

Retirement benefits in India vary significantly based on employment type, including central
government, state government, and private sector employees. These benefits, regulated by
various laws, ensure financial security and well-being for retirees. Here’s a detailed look at
retirement and benefits across different employment types in India, with examples to
illustrate each.

1. Retirement for Different Employee Groups

Central Government Employees: Central government employees in India have a fixed
retirement age, generally 60 years. However, specific roles may have different retirement
ages, such as 58 for some defense personnel. Retirement benefits are guided by central laws
and regulations, including the Central Civil Services (Pension) Rules, 1972.
State Government Employees: State government employees also typically retire at 60, but
states may set different ages based on regional policies. While central and state government
employees have similar benefits, states often adapt retirement schemes based on local
budgets and policies.
Public Sector (PSU) Employees: Public sector units (PSUs) follow rules similar to
government employees but may have additional corporate-specific benefits. PSUs typically
align with central government policies but are semi-autonomous in implementing retirement
benefits.
Private Sector Employees: Private sector retirement policies are governed by the
Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and various labor laws.
Private companies offer retirement benefits like the Employees' Provident Fund (EPF),
Gratuity, and often, an optional pension scheme through the Employees’ Pension Scheme
(EPS).

2. Types of Retirement Benefits Across Sectors

A. Pension Benefits
For Central Government Employees: Central government employees who joined before
2004 receive a defined benefit pension under the Old Pension Scheme (OPS), calculated as
50% of the last drawn salary. Employees who joined after 2004 are covered under the
National Pension System (NPS), a defined contribution scheme with partial government
contribution.
Example: A retired central government officer under OPS receives ₹30,000 per month,
whereas an officer under NPS receives pension based on accumulated corpus.
For State Government Employees: Many states still offer the OPS for employees who
joined before 2004, while others have adopted the NPS for post-2004 recruits.
Example: A state government employee who retired after serving in Madhya Pradesh for 30
years under OPS might receive a monthly pension. In contrast, new recruits in states adopting
NPS receive pension based on their NPS account balance.
For Public Sector (PSU) Employees: Some PSUs provide additional pension schemes,
though they largely follow NPS for employees joining after 2004. Older PSU employees may
have a PSU-specific pension plan.
Example: A retired PSU employee from ONGC under the NPS may receive pension based on
accumulated contributions from both the employer and the employee.
For Private Sector Employees: Private employees primarily rely on EPF, EPS, and NPS,
with employers contributing to EPF (mandatory for companies with 20+ employees). Some
private companies also offer voluntary pension schemes.
Example: A retired private employee may receive a lump sum from EPF and monthly
payments from EPS, with the option of additional pension from personal NPS contributions.
B. Provident Fund (PF)
For Central and State Government Employees: The General Provident Fund (GPF) is a
savings scheme for government employees, where only the employee contributes, earning an
interest rate set by the government.
Example: A central government employee retiring with GPF may receive a lump sum
accumulated over years of contributions with interest, typically providing a substantial
retirement fund.
For Public and Private Sector Employees: Employees' Provident Fund (EPF) is mandatory
for organizations with more than 20 employees, with contributions from both employer and
employee. The EPF includes the Employees' Pension Scheme (EPS) for pension benefits.
Example: A private sector employee retiring with EPF may receive a substantial corpus,
especially if they’ve contributed to it over a long career.
C. Gratuity
Applicable to All Sectors: The Payment of Gratuity Act, 1972, mandates gratuity for
employees who have completed five years of continuous service with an employer. The
gratuity amount depends on years of service and the last drawn salary.
Example: A state government teacher retiring after 30 years of service with a last salary of
₹50,000 receives ₹15 lakh as gratuity (capped as per law).
D. Social Security Benefits
For Central and State Government Employees: The government covers retired employees
with the Central Government Health Scheme (CGHS) or similar state-run schemes, providing
medical benefits and treatment access.
Example: A retired IAS officer can continue receiving medical treatment through CGHS,
including medicines, check-ups, and hospital reimbursements.
For Public and Private Sector Employees: Employees in PSUs often have health schemes,
while private sector retirees might have employer-funded health insurance. Many also rely on
Employee State Insurance (ESI) if applicable or personal insurance.
Example: A retired PSU employee may receive health coverage under an employer-
sponsored scheme, while a private employee may continue with a personal health insurance
plan.
E. National Pension System (NPS)
For Central, State, and Some Private Employees: The NPS is a voluntary, contribution-
based scheme where employees contribute to an individual pension account throughout their
career. Government employees receive partial government contributions, while private sector
employees can contribute voluntarily.
Example: A central government employee enrolled in NPS accumulates a corpus of ₹50 lakh.
Upon retirement, they can withdraw 60% as a lump sum and convert 40% into a monthly
annuity.
F. Retirement Savings Accounts (e.g., Public Provident Fund)
For All Sectors: The Public Provident Fund (PPF) is a voluntary retirement savings option
open to all citizens. It offers tax benefits and interest income, with a lock-in period of 15
years.
Example: A state government employee contributes to PPF for additional retirement savings.
After 15 years, they withdraw the matured amount, supplementing their pension income.
G. Other Retirement Benefits (Stock Options and ESOPs)
For PSU and Private Sector Employees: Many PSUs and private companies offer stock
options or Employee Stock Ownership Plans (ESOPs), enabling employees to buy company
shares at a reduced rate, which they can sell post-retirement.
Example: A private sector IT professional participates in an ESOP program, purchasing
company shares at a discounted rate. Upon retirement, they sell the shares for additional
financial gain.

3. Retirement Benefits under Different Laws

Central Government: Benefits for central government employees are governed by the
Central Civil Services (Pension) Rules, 1972, the GPF Rules, and CGHS. Post-2004
employees follow NPS guidelines, with regulations under the Pension Fund Regulatory and
Development Authority (PFRDA).
State Government: State employees are generally covered by GPF, with some states opting
into NPS. Gratuity, health benefits, and pensions vary by state but are generally aligned with
central policies.
PSUs and Private Sector: Retirement benefits for PSU and private employees are governed
by the EPF Act, Gratuity Act, and the NPS Act. Many PSUs align with government policies,
but private companies may offer additional voluntary benefits.

4. Examples of Retirement Packages Across Employment Types

Central Government Employee: A central government employee retires with benefits
including pension (either OPS or NPS), gratuity, GPF, and CGHS healthcare. They may
receive ₹15 lakh in gratuity, a monthly pension, and CGHS medical coverage for life.
State Government Employee: A teacher in a state government school retires with OPS-
based pension, gratuity, and GPF. In states with NPS, they might have an NPS-based
pension, GPF, and access to a state health scheme.
Public Sector Employee: A retired PSU engineer receives NPS-based pension, gratuity, and
health insurance through the company. If eligible, they may also have access to EPS or
accumulated shares under ESOP.
Private Sector Employee: A private company employee retires with EPF corpus, EPS
pension, gratuity, and possibly, employer-provided health insurance or stock options.
Additional retirement savings might come from PPF or NPS.
Retirement benefits in India reflect a structured approach to supporting employees post-
retirement, but vary by sector, with specific benefits tailored to employee type and governed
by national and state laws. These benefits ensure financial security, healthcare access, and a
stable lifestyle, recognizing the employee’s long-term contribution.

safety and health ( Refer Factory act 1948