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10 Tips for Successful Temporary Assignments

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Organizations use temporary assignments for a variety of reasons. These assignments are usually loosely controlled activities of convenience for the individual, the boss, the organization, the family, or all of the above. Sometimes temporary assignments are for a specific project, such as to serve on a transition or integration team during a merger or acquisition. Many of the most respected organizations use temporary assignments as a way to enhance the skills of an individual or to test the person in different ways prior to a promotion to a higher level. If a person is truly on a fast track and being seasoned by some temporary assignments, it is imperative that he or she be told this information. That will serve as a great source of motivation and fortitude to endure the hassles.

Temporary assignments can be delightful opportunities to pick up new knowledge and to shine in a different way that has more exposure than the status quo. As all businesses become more global, temporary assignments give rising executives a convenient way to become more sensitive to cultural differences. Not all temporary assignments involve relocation; they can be just a transient change in function.

In a merger or acquisition process, there are often numerous temporary assignments because, by definition, conditions are changing dramatically. It is important to have some people pulled out of the daily business decisions to focus on the integration effort. In the steady state, these design and policy-making positions will no longer exist, so during the transition there will be numerous people in temporary slots.

Note: I am not referring to “temporary” or “contract” jobs, which are often used by organizations to reduce costs due to lower benefit costs. I am focusing on permanently employed professionals who have a defined position but are given different duties for some short period of time, usually less than 2 years.

The science of making temporary assignments work well is rather eclectic, and the track record of success is spotty. This paper deals with some of the problems that can occur and several ideas that can help improve the probability of success.

  • Poorly defined position – This often occurs when the reason for the temporary assignment is done for convenience. The person needs to be moved in order to eliminate some issue or to provide a slot for another individual. The assignment is drawn up hastily, often without much documentation of what this person will actually do. The focus is on getting the person moved quickly. The cure is to take the time to consider at least a partial list of duties that will be transferred with the individual. Make the assignment one that includes a real challenge, along with the authority to make professional decisions that help the organization.
  • Inadequate facilities – Many temporary assignments require people to perform in ad hoc or formal project teams. Finding a central location with the proper facilities in which to do the work is a typical challenge. For some period of time, individuals will have to work out of hotel rooms or sparsely-equipped community gathering places. One obvious alternative is to rent fully equipped and furnished office space from a real estate vendor whose business is providing flexible and convenient housing for professionals on the move. Another potential source of facilities is the real estate listings. Often there are buildings that are being underutilized due to bankruptcies or other discontinuities. The owner may be happy to make some low cost office space available rather than have a location atrophy while waiting for a buyer.
  • Inconvenient location – In most cases, people chose their domicile location to allow a reasonable balance of work function and lost time due to the daily commute. If a temporary assignment changes the pattern significantly, it can present a real hardship. Since, by definition, a temporary assignment has an end point, it is not likely the individual will go through a change of residence, and instead will choose to endure the hassle of a much longer commute. Often the need requires an individual to live in a different city and fly home on weekends for months on end. Sometimes it is possible to arrange temporary housing for the person in a convenient location to the job that allows the entire family to move in yet still maintain the original residence for the return path. This is a typical scenario for expatriates. The downside is that the vacant home needs to be made secure while unused, which can get expensive.
  • Lack of Authority – Since the roles of a temporary assignment are transitory by definition, individuals often feel a lack of authority at a time when they are forced to assume greater responsibility. They can see all the work and the confusion of carving out a niche of credibility, but they have little formal purchasing power to make their decisions stick. If individuals do not like or are threatened by the changes represented by the person in a temporary assignment (which is often the case), then it is possible to make the assigned person miserable through any number of ploys. Some people will get cynical and drag their feet, others will take a passive aggressive attitude, still others will undermine the individual through rumor or other hostile means. All of these methods can be like a Chinese water torture for an executive who is already under immense pressure. The antidote here is to give decision rights to the individual on the assignment and back up this person’s decisions and actions publicly.
  • Bad Personal Chemistry – An individual doing a temporary assignment is often entering a society with little knowledge of the people, customs, and culture. The reason for this person coming in may not have been well explained, and the individual is forced to establish new relationships from a position of distrust. That may get things off to a rocky start and require extra effort to achieve a good social balance. The antidote here is simple. The person arranging for a temporary assignment owes the person being moved a good introduction to the new group that includes an adequate rationale and an expectation of fair play.
  • Sense of futility – A person in a temporary assignment can become depressed simply due to a lack of foundation. The work being performed is difficult and seemingly unappreciated. Not having daily interface with former peers at the central office gives one a lonely feeling of isolation. If the assignment is working on a merger transition team, there is the constant pressure of who will be the survivors on the ultimate team. Not being in close physical proximity to the top decision makers on a daily basis can lead to additional anxiety that the person might be overlooked. In this situation, top managers need to assure the individual that it is precisely due to this person’s worth to the organization that he or she was picked to help design the integration process. There will be a good job at the end of the ordeal. Actually, people on the integration team have a natural advantage because they help invent the structure and rules for the merged entity. It is the people left behind to run the ongoing business who have the greater jeopardy once the musical chairs game comes to an end.
  • Burn out – When temporary assignments are for the purpose of designing details of a merger or acquisition, the technical detail and amount of work can be overwhelming. Transition teams are usually kept lean because, during the integration, both of the former businesses need to keep operating at top efficiency as well. There are just not enough resources to cover everything, so both the ongoing business resources and the integration team are forced to stretch to the limit. It is easier for the ongoing business to stretch because some people from lower levels can step up to temporary management positions to cover. For the transition team, life is more difficult. There are literally thousands of details to consider, and many mutual processes that need to be invented. The work is endless, critical, urgent, and highly emotional in nature. That, coupled with the individual living or working out of temporary housing, causes many people in these assignments to burn out, have health problems, or get fed up and leave. For this reason, senior managers need to provide some modicum of work-life balance or “R&R breaks.” One observation is that people on the edge of total burn out often do not realize their peril. One must consider the ongoing health and welfare of each person serving on a transition team.
  • Guilt or sense of punishment – Some individuals will over-analyze the nature of a temporary move. They may feel a sense of failure; after all, other people were not moved out. They wonder if this is a signal from top management that there is a serious issue or some chemistry problem with the senior people. The individual may feel he or she is being punished for being too aggressive, outspoken, or some other interpersonal skill shortage. If there is a suspicion of this flavor in the body language, it will seriously undermine the motivation of the moved individual to do a good job. To prevent unwarranted worry, top managers need to be transparent and share the true reason for a temporary assignment. If there are issues, then the individual is due an explanation and a chance to mitigate the damage to his or her reputation before being moved out.
  • Squishy Return Arrangements – It is common for a person on a temporary assignment to have no visibility to his or her return path. Will there be a good job at the end of the assignment? When will the assignment end? Was this little adventure good or bad for the person’s ultimate career? It can be a lonely and scary situation for a good performer to find him or herself in a remote site with little connection to the home office and no concrete way back home. A simple fix is to have frequent communications with the remote individual to assure him or her that the temporary service is appreciated and a return path is not going to be forgotten. It is easy for managers to get embroiled in the urgent matters of daily decisions and neglect individuals in remote areas who may be feeling insecure about their future.
  • The pasture – Unfortunately, some groups use a series of temporary assignments to encourage an under-performing individual to leave the organization. The jobs have marginal value, yet keeping the person on organizational life support seems kinder than pulling the plug. People who are being led out to pasture are usually well aware of the intent. Many upper managers hope it will cause the person to quit and leave, unfortunately in a lot of cases it causes the person to quit and stay. Here again, the antidote is candor and transparency. Let the individual know the truth so he or she can make appropriate choices rather than guess.

These are just 10 of the common issues with temporary assignments and how upper management can reduce the stress and pain having to do with them. Properly managed, temporary assignments can be invigorating and helpful to both the individual and the organization. If done poorly or without care for the individual, they can be a real problem.

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Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is author of:  Trust in Transition: Navigating Organizational Change , The Trust Factor: Advanced Leadership for Professionals , Understanding E-Body Language: Building Trust Online , and Leading with Trust is Like Sailing Downwind . Bob had many years of experience as a senior executive with a Fortune 500 Company and with non-profit organizations. 

Bob Whipple is currently CEO of Leadergrow, Inc., an organization dedicated to growing leaders. For more information or to bring Bob in to speak at your next event, contact him by email, phone 585-392-7763, fill in the contact form on the Leadergrow Website, or BLOG.

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Temporary Assignments Policy

[Company Name] may periodically re-assign employees to other work locations for temporary duty based on business need. The purpose of this policy is to complement [Company Name]'s relocation policy and its business travel policy. Under this policy, temporary assignments are not less than 60 days and not more than 180 days.

Temporary assignments are subject to a written agreement detailing the terms of the assignment and the approximate duration. The distance of the new work location must be greater than 50 miles from the employee's regular work location. If the distance is less than 50 miles, the assignment is handled under the business travel policy.

Allowances during Temporary Assignment

Travel costs to and from the temporary work location by public transportation, personal vehicle or rental car will be reimbursed by [Company Name]. For public transportation, travel arrangements must be made through [Company Name]'s contracted travel service and costs will be paid directly by [Company Name]. For personal vehicle use, reimbursement will be made based on the standard mileage rate of [current IRS rate] per mile. All rental vehicles should be reserved through our contracted travel service.

Costs for return visits to the employee's home location every two weeks during the temporary assignment will be covered.

Per Diem and Lodging

The employee will receive per diem and lodging allowances during the temporary assignment. If known in advance that the duration of the assignment will be for more than three months, arrangements with a corporate apartment provider will be handled through our travel service. If the duration is unknown, the employee will be required to stay at a hotel scheduled through our travel service.

Payment of Expenses

Any expense that is authorized by [Company Name] will be paid through accounts payable. Expenses for lodging, meals and incidental expenses paid by the employee should be submitted weekly to the accounting department for reimbursement.

Tax Considerations

Reasonable expenses incurred due to temporary assignments are considered proper business expenses that can be deducted by the company and are not considered taxable income to the employee. Thus, actual expenses reimbursed to an employee are not subject to federal or state withholding.

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Debunking the Myths of Domestic Temporary Assignments 10.8.2014 | Jennifer Connell

  • Domestic Assignments
  • Short Term Assignment
  • Workforce Mobility

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As companies strive for greater flexibility to respond to the increasing speed of business and broader range of opportunities, temporary domestic assignments have grown in popularity.

In fact, according to the results of our 2014 Workforce Mobility Survey , more than half of companies now offer such assignments.

As their usage becomes more widespread, so have some myths concerning temporary domestic assignments. In this article, I’ll address and debunk them.

Myth: Temporary assignments only help us complete project work.

While the majority of organizations use domestic temporary assignments for project work-based needs, our survey revealed that a growing number of companies in the U.S. and Canada use them to develop future leaders and high potentials. In fact, high growth companies (companies with revenue growth of more than 5% over the past year) tend to use fewer short term assignments for “project work” and instead rely on these programs for career development purposes.

Myth: It’s less expensive to send my employee on a temporary assignment than a permanent move.

This is a common misconception. For short-term assignments, the vast majority of costs are typically covered by the company, including housing. While there is a favorable tax impact, companies are experiencing an increase among assignments that extend beyond one year. Not only does this increase the costs, it may affect the taxability of the provisions.

Prolonged family separation and other personal issues that arise over time could lead to more return trips home, dependent visits or time away from the project or assignment to tend to family issues. The costs involved in a permanent move may be comparable to the costs of a long-term assignment (greater than 12 months) when tax consequences are taken into account.

Myth: Temporary assignments are easier to administer than permanent moves because we only have to worry about the employee on the assignment.

Separation from family was cited as one of the top obstacles in using temporary assignments and can have a negative impact on productivity as the employee attempts to manage their home from the assignment location and connect with family. This can ultimately lead to higher turnover and retention issues and subsequently increasing recruiting and staffing costs.

Many companies structure temporary assignments based on the duration of the assignment and the family status (accompanied or unaccompanied). These aspects are closely aligned because not many families are willing to be separated for long-term assignments (more than 12 months). In addition, the longer the anticipated assignment length, it’s more common to develop a long-term policy that addresses accompanying family costs or the costs of property management.

Myth: Assignments that extend beyond a year are still not taxable.

Our survey indicates that more companies are extending the length of temporary assignments or transitioning them into permanent moves. This is not without tax consequences.

Therefore, when planning a temporary move, certain things need to be considered:

  • Time limit. In the United States, under federal tax law, certain reimbursed expenses incurred while on a short-term assignment (or “temporary assignment” in tax parlance) of up to 12 months could potentially be considered non-taxable to the employee.
  • Types of expenses. Expenses that may be considered non-taxable include travel between the home and the assignment location, accommodations at the assignment location, and meals or per diems while at the assignment location.
  • Intended length of the assignment. Consider the timeframe anticipated for the assignment and when the decision was made to extend the assignment past 12 months, if applicable.

For example, if your company has an employee nine months into a 12 month assignment and a decision is made to extend that assignment beyond the 12 month limit, any reimbursements made after that nine month point are considered taxable income to the employee. Likewise, if an assignment has not surpassed the one-year limitation, yet the assignment was expected to last one year or more, the IRS considers this a taxable event. At the point that an assignment is believed to be greater than one year, the taxability of the reimbursed expenses begins.

Myth: A lump sum should cover all of the living costs incurred on the temporary assignment.

Lump sums can be difficult for employees to manage for a temporary assignment, particularly if their attention is divided among their family/home residence and the demands of their position in the new location. If the funds are not managed closely, this can negatively impact the employee’s productivity and can lead to subsequent requests for additional funds. If using a lump sum, the simple (but costly) solution is to consider all lump sum allowances as income and tax protect those payments.

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What Is A Temporary Assignment?

Temporary assignment.

A temporary assignment is a short-term work arrangement where an employee is assigned to a different role, department, or location within their organization for a specified period. This arrangement is typically intended to fulfill a specific need or project and is expected to end after a predetermined time.

Temporary assignments serve multiple purposes for both the organization and the employee:

1. Fill short-term staffing needs

2. Provide cross-training opportunities

3. Cover absences or leaves

4. Support special projects or initiatives

5. Facilitate knowledge transfer between departments

6. Assess an employee's potential for permanent role changes

Key Characteristics

Temporary assignments can last anywhere from a few days to several months, depending on the organization's needs and the nature of the assignment.

The scope of work in a temporary assignment may differ significantly from the employee's regular duties, often involving new responsibilities or a different level of authority.

Some temporary assignments may require the employee to work in a different office, branch, or even country.

Compensation

Depending on the nature of the assignment, there may be adjustments to the employee's compensation, such as temporary pay increases or additional benefits.

Return Arrangements

Typically, there is an understanding that the employee will return to their original position or a similar role once the temporary assignment concludes.

Benefits of Temporary Assignments

For Employees:

1. Skill development and diversification

2. Exposure to different aspects of the organization

3. Networking opportunities

4. Potential for career advancement

5. Break from routine work

For Employers:

1. Flexibility in resource allocation

2. Cost-effective solution for short-term needs

3. Improved cross-departmental understanding

4. Identification and development of talent

5. Enhanced employee engagement and retention

Challenges of Temporary Assignments

Adjustment Period

Employees may need time to adapt to new roles, teams, or work environments

Workload Management

Balancing responsibilities from the temporary assignment with ongoing duties from the regular position can be challenging.

Knowledge Transfer

Ensuring smooth transitions at the beginning and end of the assignment requires effective knowledge transfer.

Team Dynamics

Temporary changes in team composition can affect group dynamics and productivity.

Career Impact

There may be concerns about how the temporary move affects long-term career prospects.

Legal and Policy Considerations

Contract Amendments

Temporary assignments may require formal amendments to employment contracts.

Organizations must ensure compliance with labor laws regarding job descriptions, compensation, and working hours.

Union Agreements

In unionized environments, temporary assignments must adhere to collective bargaining agreements.

Tax Implications

For assignments involving relocation, there may be tax considerations for both the employer and employee.

Best Practices for Managing Temporary Assignments

1. Clearly define the assignment's objectives, duration, and expectations

2. Provide thorough onboarding and training for the temporary role

3. Maintain open communication with the employee throughout the assignment

4. Ensure proper handover procedures at the beginning and end of the assignment

5. Recognize and reward employees for successful completion of temporary assignments

6. Use feedback and performance data from temporary assignments in career development discussions

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Compensation + Classification

Temporary assignments/stipends.

Policies and Procedures

Use the index below to navigate throughout this page

Temporary Job Changes

Incumbents may be eligible for additional compensation when  higher level  duties or  significantly different  duties are temporarily assigned. Typically the higher level duties must account for a substantial amount of the incumbent’s workload for a period of more than 30 working days and less than one year (different collective bargaining agreements may vary on this definition). Extensions beyond one year require approval by the compensation analyst. For instructions on how to submit a request for temporary stipend see Procedures for a Temporary Stipend. Updates to temporary stipends or requests for extensions must be submitted in Job Builder using the “Extend, Inactivate or Update Temporary Reclass/Stipend” action.

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Temporary Stipend (for Policy-Covered Staff)

A temporary administrative stipend may be paid to an employee who is temporarily assigned significant responsibilities of a higher level position or significantly different duties (25%+) not normally a part of the employee’s regular position ( see PPSM 30.III.B.9 ). Assignment of temporary responsibilities at a lower level does not warrant a stipend. Temporary Stipends are typically effective the date an employee begins performing the higher level duties at a significant portion of time (approx 25-30% or greater). They end when the higher level duties are no longer assigned. Stipends for employees are appropriate when increased responsibility lasts for at least 30 working days or longer. Temporary stipends may be approved by HR for up to one year. Stipends beyond one year require approval of Human Resources via an on-line request in Job Builder, but in no case may a temporary stipend extend beyond two years.

In recommending the stipend amount, managers should consider various criteria including the length of the assignment, position of employee in the salary range, complexity and scope of temporary duties, and comparisons with the salaries of others in the department.  The sum of the stipend and the base salary shall not exceed the maximum salary of the range into which the combination of permanent and temporary duties would be classified. 

Temporary Stipend (for Represented Employees)

An employee in a bargaining unit may be eligible to receive a temporary stipend when they are assigned  substantially all of the duties of a higher classification  for a significant portion of their time (usually 50% or greater), commonly referred to as an  "out-of-classification assignment" . Temporary stipends are typically effective the date an employee begins performing the higher level duties at a significant portion of time and they typically end when the higher level duties are no longer assigned by management. These appointments must be for a minimum of 2 weeks (longer for some bargaining units) up to a maximum of one year. Stipends beyond one year require approval of Human Resources via an online request in Job Builder, but in no case may a temporary stipend extend beyond two years. Please refer to the appropriate  collective bargaining unit agreement  for the policy on temporary out-of-classification assignments.

Procedures for a Temporary Stipend

To initiate a temporary stipend, the Department Head or Business Manager submits an online request by going into Job Builder, completing a "Temporary assignment (stipend)" action, and submitting it to Compensation for review. The online request must include all of the required pieces of information (see below) or it will be returned to the department with a request for additional information. Requests should be submitted as close to the begin date of the temporary assignment as is reasonably possible.

Process for an Online Submission:

  • Review the eligibility criteria for the employee. (For non-represented employees refer to PPSM.  For represented employees refer to the applicable collective bargaining unit contract.) 
  • Obtain needed departmental and / or Control Point approvals (as set by each department and division).
  • In Job Builder, select the employee's current job description, and begin a "Revise Job Description" action. Once you have begun the workflow, choose the "Temp Assignment (Stipend)" action type..
  • Complete the "Temp Assignment (Stipend)", Comp Information, and Action Justification tabs.  No changes are made to the content of the job description apart from completing any required fields that are new to the job description since the transition to Job Builder. 
  • On the Action Justification tab, attach an Organizational Chart and complete the Department Head and/or Control Point Approvals.
  • Submit the action to your Compensation Analyst for review and approval.

Finding the Right Compensation for Temporary Assignments

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  • Determine the criticalness of the assignment. There are various instances where an organization will need to temporarily fill a role, and how they go about compensating the employee assigned to the temporary role should be preset and determined on how critical it is to the business.  
  • Filling in for an employee on leave. In a scenario in which an employee goes on leave and a person is asked to take over their job responsibilities for a defined time, a compensation bump should be added as a premium in the form of a line item of pay with their typical paycheck. 
  • Put a formal process in place. Having an established process makes good business sense because when an employee takes on a new role for a period of time, exercising the same responsibilities as the employee on leave, they should have the same pay opportunity. 
  • Quick-fix scenarios. Some work scenarios are more difficult to formalize a compensation structure for temporary assignments, such as an employee in a call center not showing up for work for an extended period without notice. Employees who fill in when needed should receive other reward items such as free lunches or gift cards that say “thank you” for picking up the additional workload. 

Temporary assignments, or the assignment of duties to an employee outside their regular scope on a short-term basis, often come with an increase in direct compensation. 

But how should that amount be determined? 

It all depends on whether the assignment is for a new project or simply a fill-in for a missing employee, said Julian Pawlowski, senior principal at Mercer. 

“[Temporary assignments] are common practice in the context of a major project and typically involve an additional scope of responsibility,” he said. 

On the other hand, with constant organizational changes, such as a promotion or other employee transitions such as maternity/medical leave, organizations may need to assign an employee to a temporary role to both support that transition and any gaps in the workflow that a change creates. 

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“Some roles have less influence on results and pay should be commensurate with that,” he said. 

Therefore, leaders must first determine the criticalness of the assignment to the business, Pawlowski said.  

“What will be the impact if someone’s not in place?” he said. “There really has to be a discussion about the risk if the project isn’t completed on time. What’s the risk if no one is covering that person’s responsibilities? Risk must be determined up front.” 

With core strategic projects, for example, there typically are very defined project plans with dependencies and outcomes so that organizations understand the scope of work that’s occurring and the employee understands the part of the workflow and outcome they are responsible for. 

From an administrative perspective, this should include an assignment letter, a plan document explaining the terms and conditions of the program, the award amount, timing and any actions that occur if a person leaves.  

“All that should be in place before the project begins so they are clear about what they are eligible for, how they earn it and when they earn it.”  

But the extra compensation — paid out at the completion of preset milestones — should not just be based on an individual’s performance, Pawlowski said.  

“There’s the participant’s support and input that should be measured individually, but also the team’s outcome,” he said. “So a composite score should determine that temporary assignment’s compensation range.” 

In a scenario in which an employee goes on leave and a person is asked to take over their job responsibilities for a defined  time, however, the compensation bump should be added as a premium — a line item of pay with their typical paycheck. 

“That way the person is recognized immediately for the time and work done, and reinforces the idea that the person is getting the opportunity and extra money immediately,” Pawlowski said. “It really helps with both employee motivation and retention.” 

Formalizing the Process 

For McKesson Canada and its 4,500 employees, temporary assignments that last a minimum of three months occur often enough that the company has a formal process in place. 

Isabelle Brissette, a McKesson Canada compensation consultant, noted the company had 29 temporary assignments for the past fiscal year. “Some of our maternity/parental leaves can last up to 18 months,” she said. 

Having a formal process in place makes good business sense, Brisette said, because when an employee takes on a new temporary role, exercising the same responsibilities as the employee on leave, they should have the same pay opportunity.  

McKesson Canada employees on temporary assignments receive a compensation package that al teast matches the new career grade’s minimum salary range, Brisette said. 

For roles in which the employee will take on new responsibilities for three months or more — sometimes up to 18 months to cover maternity/parental leaves — the employee will be placed in the new job code, with the new grade level and get the new bonus target associated with that role. 

Base pay, however, will not be increased.  

“We will put in a temporary bi-weekly premium as a percentage of base,” she said. “This bi-weekly premium usually ranges from 5% to 15%.”  

However, in light of new pay transparency standards , as well as because the employee will have access to the new salary range, McKesson ensures that the bi-weekly premium added to the base pay comes to at least the minimum of the new range. 

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Once the assignment is over, the employee goes back into their regular position and grade level, and the bi-weekly premium stops.  

McKesson has another process for a temporary assignment for extra responsibilities, Brisette said.  

“This is where an employee would remain in their current role but take on responsibilities from a colleague or a superior who is on leave for an unknown period of time (short-term leave, jury duty, etc.).” 

In these cases, she said, compensation is simply made by a lump-sum payment. 

Other Scenarios 

Some work scenarios, however, are more difficult to formalize a compensation structure for temporary assignments, Mercer’s Pawlowski noted.  

“Maybe there’s an employee in a call center who doesn’t show up or leaves unexpectedly and the remaining team picks up the workload,” he said. “That’s fairly common and there needs to be consideration in other areas beside direct compensation.”  

Employees who fill in when needed should receive other reward items such as free lunches or gift cards that say “thank you” for picking up the additional workload. 

“That’s a really important detail,” Pawlowski said. “There are many cases where it’s not formalized and there are gaps in the work and workers still need to pick up the slack.” 

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Short-Term Assignments: Key Considerations and Essential Information

By Tracy Langlois, CRP, GMS

Short-term work assignments have been steadily increasing over the years and certain factors like the pandemic have shined a light on vulnerabilities within numerous industries. For instance, the demand for travel nurses has never been higher, as certain staffing agencies need to fill voids and provide additional support at hospitals all over the US. Other companies are asking employees to train new hires at different locations or attend workshop programs and conferences out of state. Those working in media may need to spend days, weeks, or months in different locations covering news stories. HR representatives are focusing on talent mobility, which may require employees to take on short-term work assignments for specialized training and upward growth within a company.

No matter the industry or reason, employers are recognizing the value of short-term assignments, as well as the logistical steps required to smoothly transition their employees from point A to B. With that in mind, CapRelo put together an overview of short-term assignments, so your company knows what is needed to assist your employee during the hectic transition of a short-term assignment.

What is a Short-Term Assignment?

A temporary assignment is defined as a work stint lasting for one year or less. A short-term assignment can be a series of shorter rotational assignments or an assignment that requires an employee to stay in one place for the entire duration. Similar to temporary duty assignments in the military, short-term assignments are not permanent and are meant to carry out a specific purpose. Companies may send one employee or a whole team out on temporary assignments, depending on the industry and work goal.

What is the Purpose of a Short-Term Assignment?

There are plenty of different reasons why companies would send their staff out on short-term assignments. For instance, an employee may need to assist a branch that’s struggling to perform and help them to increase their sales numbers. It’s also not uncommon for staff to oversee different departments during a company merger, requiring temporary assignments to ensure company policies are being carried out consistently across the board. Perhaps limited resources have prevented staff at different locations from being properly cross-trained, necessitating the need for temporary work trips.

Whether three weeks or three months long, short-term assignments typically require companies to cover lodging, food, transportation, and other travel-related expenses with stipends.

Benefits and Challenges of Short-Term Assignments

While short-term assignments sound like a breeze, they can pose some serious challenges for both the employee and the company itself. International short-term assignments can pose tax and immigration issues if companies don’t comply with the laws and regulations in each country. Secondly, some countries have turbulent landscapes, which could potentially put staff at risk. Employees may also get stranded in the assignment country due to canceled flights or COVID-related concerns, further implicating the company when temporary assignments do not go according to plan.

On the flip side, a company can create a robust talent mobility strategy with initiatives that reward current and new hires willing to take on short-term assignments. For instance, paying employees during travel time can lead to higher retention rates. Companies can also train staff across locations to improve their skills, eliminating any consistency errors. A change of scenery might help employees to improve productivity as well, especially in locations that offer plenty of sunshine and warm weather for post-work relaxation.

Short-Term Assignment FAQs

  • Are Short-Term Assignments International? Short-term assignments can be either domestic (within a country) or international (across country borders). Certain companies like Amazon, FedEx, and Apple are known for leading the way with the most corporate travel, requiring employees to rack up airline miles to fulfill their job duties.
  • How Does the IRS Define Short-Term Assignments? The IRS defines short-term assignments as work in one location that can be reasonably completed in one year or less (and is). Employees typically file taxes with their home state. If a work assignment lasts for longer than a year then it is considered an indefinite assignment, prompting an employee’s tax home to change.
  • What is Relocation Tax Assistance? Before 2018, any moving-related payments or reimbursements to employees were not included in their annual reportable wages. These expenses did not require withholding taxes and would have been paid by the employee and later deducted. The Tax Cuts and Job Act of 2017 changed the way payroll handled relocation expenses. Nowadays, employers can offer relocation tax assistance or tax gross-ups . A tax gross-up simply means that a company provides a larger payment sum to the employee to compensate for the taxes that will be withheld from their payment if that employee is relocating somewhere new.
  • Do Family Members Join Employees on Short-Term Assignments? When it comes to temporary assignments, most companies do not assist families to join the employee in the new location if the assignment is expected to have a duration of six months or less. Assignments greater than six months may include company support for family accompaniment. Some companies will offer to pay for visits home after a certain amount of time has passed for employees who are not accompanied. This could be anywhere from 8 to 12 weeks after the start of the assignment but depends on the company’s unique policies.

How Can Companies Assist Employees?

Companies should have well-defined relocation policies in place before sending employees out on temporary assignments. The policy should include details on the relocation services and benefits which will be provided to employees and who will be assisting them with these services. It is important to note for international cases that proper immigration documentation is required before the start of the assignment. Letters of assignment (LOA)s should also be created for employee and company signature and should include specifics on the location and duration of the assignment and specific benefits. Companies should have a dedicated budget in place to assist with short-term assignment relocation expenditures; a comprehensive cost estimate including tax costs can be prepared in advance to ensure appropriate approvals can be obtained. A survey of HR professionals conducted in partnership with CapRelo found that 33% of participants stated their relocation policies have been updated to accommodate employees’ mental health and well-being, which is another factor that should be taken into consideration to help employees cope better with their new surroundings.

Do You Need a Relocation Program?

So, you’re ready to send your employees out on short-term assignments, but don’t know where to start? Whether you need help transferring one employee intra-country, or flying a whole team across the globe for specialized training, we can help.

At CapRelo , we provide relocation solutions for companies that need them, covering a host of services including cost estimate preparation, corporate housing, auto shipment, property management, travel services, immigration coordination, and much more.

Our team specializes in seamless transfer operations and sorts out all of the logistical steps before your employee’s short-term assignment so you can have peace of mind knowing that they are in the best of hands. Allow us to take one more thing off your plate and contact our highly qualified team at CapRelo today to get started.

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Navigating civil unrest: protecting global assignments and employees, caprelo insider july 2024, winning the balancing act: duty of care and cost containment, caprelo insider june 2024.

Top Benefits of Temporary Work

There are a number of great benefits for professionals to take on a short-term assignment.

There are a number of great benefits for professionals to take on a short-term assignment. Temporary job opportunities are a great way to fill gaps in your resume, build your network of connections, explore new professional opportunities, and put money in your pocket! You might also find your next full-time position with this strategic move.

Here are some of the top benefits of taking on a temporary assignment:

1. TEMPORARY WORK ALLOWS YOU TO EXPERIENCE A NEW POSITION OR INDUSTRY.

Are you thinking of making a career change? A temporary assignment offers you the unique opportunity to test out a career move before fully investing yourself and your time into a permanent position. If you’re committed to moving into a new industry or role, completing a temporary job assignment in a related field can help get your foot in the door. Companies look to hire candidates with similar industry experience because you can quickly make an impact once you join the team.

2. TEMPORARY WORK FILLS THE GAPS IN YOUR RESUME.

It often takes more than a month to find a permanent job opportunity. Temp work can help keep income coming in and fill in gaps on your resume as you search – providing additional experience in the process. It keeps you going, growing, and looking good to potential future employers. It’s also an opportunity to build valuable references for future positions.

If you’re early in your professional career, landing your dream role without a long CV can make it challenging to get your foot in the door. Taking on a temporary role not only provides networking and upskilling opportunities, but also helps build your professional portfolio and adds professional experiences to your resume.

3. TEMPORARY WORK HAS FLEXIBILITY AND BETTER WORK/LIFE BALANCE.

Temporary positions often allow you to manage your work-life balance better than permanent ones. In between assignments, you’re able to spend time on your “side-hustle”, whether that’s your family, your Etsy business, Uber, or anything else. Depending on the type of position, there also may be limits on overtime so your work hours don’t encroach your personal time, and you’d be eligible for overtime pay that you wouldn’t otherwise have in a salaried position.

4. TEMPORARY WORK ALLOWS YOU TO EXPAND YOUR SKILLSET.

Not every temp job will be perfectly aligned with your skillset, and actually, that’s what makes temp work such a great opportunity for you. Not only can you continue to sharpen some of your current skills, but you can also pick up skills that may be brand new to you and learn new platforms you wouldn’t otherwise have exposure to. Research shows that every 4-5 years your skills become half as valuable. And for technology, it’s even less. By learning new skills and keeping your existing expertise up-to-date, you become the top candidate for future roles and an expert industry best practices.

5. TEMPORARY WORK ALLOWS YOU TO BUILD YOUR NETWORK.

You never know who you will meet while working on a contract job, who they know, and where they can potentially make introductions. Working a contract position only helps to expand your professional network. An estimated 85% of jobs are filled through networking . In addition to meeting valuable contacts, you have an opportunity to gain recommendations on LinkedIn to help build your portfolio of skills.

6. TEMPORARY WORK COMES WITH A BUILT-IN SUPPORT SYSTEM.

Staffing companies, like our team at LHH, are here to help guide you through each assignment you take. Our recruiters are trained to work with you to ensure that you’re working on the right assignment, with the right company, for the right compensation. You’ll receive benefits and a steady income, in addition to professional career guidance from your recruiter, all at no expense to you.

If you’re ready to explore short-term opportunities, we’d love to talk! Take a look at our open temp roles or reach out to discuss your goals with one of our talent recruiters.

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Temporary Assignment of Duties

For classification purposes, temporary assignment is defined as the assignment of new duties within the same departmental unit to an incumbent’s position for a short duration to meet temporary organizational needs. This commonly is done when another position is vacant, for example, as a result of a Leave of Absence or retirement, and duties assigned to that position require coverage.

Each situation will be reviewed for the appropriate classification/skill level and salary level . Employees should be informed that the adding of a temporary assignment may or may not result in a temporary reclassification/skill level change. In some instances the duties temporarily assigned are at the same level of difficulty leading to no change to the classification/skill level. The appropriateness of such an action must first be submitted in writing to Classification and Compensation Services who will assess the level and complexity of the newly assigned duties and determine and notify the department if a temporary action is appropriate. (Appropriate bargaining unit contract stipulations and deadlines must be applied where required; see the appropriate contract.)

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Are there any limits to how long I can keep a “temp”?

Sara bennett.

  • June 15, 2024

Myths.  Truths.  Misconceptions About “Length of Assignment”

Conversations about how long a temporary assignment can last have been around for a long time.  In December 2000, the now infamous Microsoft 97 million $ settlement  awarded 97 million dollars to temporary workers who were re-classified as core (common law) employees instead of as temporary employees as intended by Microsoft.  This re-classification requirement resulted in 8-12,000 “temps” working at Microsoft becoming “benefit eligible” and resulted in a pretty hefty financial obligation even for a company like Microsoft.

Unfortunately  this settlement catapulted the issue of assignment length into a confusing period for companies who were large users of temporary employees.   Based on some common misunderstandings of what created the MS settlement,  many employers created internal policies that limited the length of time an employee could be a “temp” believing that by doing so they were minimizing their exposure to “re-classification” issues.

Even the American Staffing Association (ASA) weighed  in on the issue by taking up the concerns of both the employer and their interim employees who were often negatively impacted by an arbitrary assignment ending.  In a series of white papers, ASA challenged  the employer community regarding their assignment limit policies claiming  that “the length of a temporary assignment” is only one, of multiple factors, important to establishing the employee- employer status and does not in and of itself mitigate the risk of misclassification.  They wisely noted that other components of the employee/employer relationship were, in fact, equally if not more important.     

What is the status of the length of assignment issue today?

As the dust settled in the early 2000s it became clear that the truth surrounding the MS settlement was far different from the initial headlines.    But the damage had been done.  Even though the arguments of the ASA prevailed, temporary employees are still asking how long an employer can keep them on in a temporary role without breaking the law.

What can employers do to protect themselves from unexpected liabilities related to how they use and manage temps?

 #1.  The easiest and most bullet proof decision is to use third party staffing agencies to employee all non-core, interim, contract or temporary employees rather than hiring them directly.

Many analysts believe that had MS obtained all of their temporary workers at the time of the lawsuit thru a third party employer, instead of hiring many of their temporary workers directly classified as 1099s, it is possible that some of the mis-classification claims could have been avoided.

Most companies have policies that forbid hiring managers from hiring a worker classified as a 1099…..requiring them to use a staffing agency to on board and pay them as interim workers even when those workers were sourced internally, not by the staffing agency per se. They do this to avoid the scenario where an employer classifies  a worker as a 1099 – “self employed”- and the IRS later refutes that claim, subjecting the employer to back taxes, fines, and penalties.   Employers want the peace of mind that comes from  knowing that the  applicable wages, payroll taxes and benefits costs are being calculated and paid by an employer other than themselves.

Many local staffing companies, PACE included, have created low cost “payroll service” packages for employers who have a need for third party employer services for interim workers they have recruited directly.  (See PACE’s Employer of Record service option) 

#2.  Write your key benefit plans to specifically exclude third party (i.e. staffing firm) employees. 

In 1999, Microsoft didn’t have any carve outs in their benefit contracts, and had to learn the hard way that easiest way to protect themselves from unanticipated benefit costs is to specifically exclude workers who are the employees of third party employers.

#3.   Include information about how to manage workers from third party employers as part of supervisory training.   

The IRS is still using specific tests to determine the employer relationship.  To make sure that the employer responsibility stays with the staffing agency and doesn’t  default back to the employer under audit, many employers are training their supervisors on temp management 101…

  • To limit their communications with temporary employees on any issue related to pay, length of assignment, benefit eligibility, employment status or work schedules, etc.
  • To allow,  and in some cases require,  representatives from their staffing vendors to be on site, communicating directly with their employees,  as needed.
  • To provide feedback on performance thru the employee’s staffing vendors, not directly.
If you are an employer and would like some training for your supervisors on how to legally and operationally optimize the employer services of a third party staffing agency, give us a call at 425-637-3312!

#4.  Make sure your staffing agency provides you with a contract or written agreement that spells out their duties as “employer”.  These agreements typically include the staffing agencies responsibility to….

  • Recruit, screen and evaluate employees to be placed on assignment
  • Determine employee pay rates, benefits and expense reimbursements
  • Hire, fire, and assign employees
  • Handle employee complaints and concerns
  • Pay worker, calculate and pay taxes, and distribute pay check
Getting these types of agreements or contracts in writing, makes it clear who is responsible to act as the “employer of record”.  It also can protects employers from unexpected liabilities resulting from workplace accidents or claims of discrimination.

While most of the legal concerns regarding how long a temp can remain on assignment have dissipated, there are still situations where internal “length of assignment” policies might be needed. 

For example….  .

You may want to limit length of assignment in order to protect your Intellectual Property…   

In 2016, Microsoft established a new set of “assignment limit” rules, based not on the risk of mis- classification or co-employment, but on their concerns about the integrity and security of their intellectual property.  Because they were uncomfortable allowing a temporary or contract worker to have long-term access to their proprietary information and systems,  they decided to place limits on the number of months an employee could access their systems without a break in service.  They decided  that after 18 months a temporary or contract worker needed to be removed from their assignment, forcing an arbitrary lay off of any contractors reaching that benchmark.

We are yet to see if MS can effectively enforce this policy without exception as we know first hand the negative impact of losing a valued worker – even if the are not an employee hired directly.

You may want to limit length of assignment in order to optimize the productivity and morale of your temporary employees… 

While higher wage temporary or contract workers  tend to prefer “longer term assignments”, many lower wage temporary workers consider themselves negatively impacted when asked to remain as temporary employees for long periods of time without being converted to a regular hire.   The impact to productivity and morale  is often highly visible when temporary workers are asked to work side by side core employees doing the same or similar work.

For similar reasons, in those situations where an employer regularly hires members of its temporary workforce, there is risk attached to keeping the temporary employee in the workforce once they know they will not be hired.

Many of our clients who regularly hire our temporary employees have rules whereby an employee will either be hired or removed from their assignment after a defined period.

Structured policies about how long an employee can work in your environment as a “temp” minimize the risk of discrimination….

The longer a “temp” is in your workforce, and the fewer policies you have to guide decisions your managers use to either end or extend assignments, the more opportunity there is for claims of “disparate treatment”.

Making “length of assignment” a matter of company policy rather than a decision left up to the discretion of an individual manager or supervisor,  mitigates the risk of an uninvited claim of disparate treatment.   At the same time, an across the board “length of assignment” policy, can reduce the resources manager’s have available to them to achieve important business goals.   

In Summary….

PACE  regularly provides employees for assignments intended to last as little as two days to multiple years and does so seamlessly, based on the employer’s internal policies and our assessment of our employee’s motivations for working.  While we will provide information on the operational risks an employer might face by either limiting or extending assignment lengths, in the end, it is a decision that is made by both the employer and the employee.  In reality, once the original agreement re: “length of assignment” has been satisfied, an employer can still provide an employee with the opportunity to extend their assignment and the employee can then decide if they want to accept the employer’s offer.  The law plays no role in those decisions for either party,  although a company’s internal policies might.   

———————————

If you’d like help with your next temporary staffing project or to learn more about how optimize your use of temporary employees,  give our Partner Services and Solutions a call at 425-637-3312 or e mail us at [email protected]

PACE Staffing Network is one of the Puget Sound’s premier staffing /recruiting agencies and has been helping Northwest employers find and hire employees based on the “right fit” for over 45 years.

A  5 time winner of the coveted “Best in Staffing” designation , PACE is ranked in the top 2% of staffing agencies nationwide based on annual surveys of customer satisfaction.

PACE services include temporary and contract staffing, temp to hire auditions , direct hire professional recruiting services , Employer of Record (payroll) services , and a large menu of candidate assessment services our clients can purchase a la carte.

To learn more about how partnering with PACE will make a difference to how you find and hire employees,  contact our Partner Services and Solutions team at 425-637-3312, e mail us at [email protected] or visit our website at www. pacestaffing.com/employers.

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10 Tips to Improve Temporary Assignments

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Many of the most respected organizations use temporary assignments as a way to enhance the skills of an individual or to test the person in different ways prior to a promotion to a higher level. If a person is truly on a fast track and being seasoned by some temporary assignments, it is imperative that he or she be told this information. That will serve as a great source of motivation and fortitude to endure the hassles.

Temporary assignments can be delightful opportunities to pick up new knowledge and to shine in a different way that has more exposure than the status quo. As all businesses become more global, temporary assignments give rising executives a convenient way to become more sensitive to cultural differences. Not all temporary assignments involve relocation; they can just be a transient change in function.

In a merger or acquisition process, there are often numerous temporary assignments because, by definition, conditions are changing dramatically. It is important to have some people pulled out of the daily business decisions to focus on the integration effort. In the steady state, these design and policy-making positions will no longer exist, so during the transition there will be numerous people in temporary slots.

Note, I am not referring to “temporary” or “contract” jobs, which are often used by organizations to reduce costs due to lower benefits. I am focusing on permanently employed professionals who have a defined position but are given different duties for some short period of time, usually less than 2 years. The science of making temporary assignments work well is rather eclectic, and the track record of success is spotty. This paper deals with some of the problems that can occur and several ideas that can help improve the probability of success.

1. Poorly defined position – This often occurs when the reason for the temporary assignment is done for convenience. The person needs to be moved in order to eliminate some issue or to provide a slot for another individual. The assignment is drawn up hastily, often without much documentation of what this person will actually do. The focus is on getting the person moved quickly. The cure is to take the time to consider at least a partial list of duties that will be transferred with the individual. Make the assignment one that includes a real challenge, along with the authority to make professional decisions that help the organization.

2. Inadequate facilities – Many temporary assignments require people to perform in ad hoc or formal project teams. Finding a central location with the proper facilities in which to do the work is a typical challenge. For some period of time, individuals will have to work out of hotel rooms or sparsely-equipped community gathering places. One obvious alternative is to rent fully equipped and furnished office space from a real estate vendor whose business is providing flexible and convenient housing for professionals on the move. Another potential source of facilities is the real estate listings. Often there are buildings that are being underutilized due to bankruptcies or other discontinuities. The owner may be happy to make some low cost office space available rather than have a location atrophy while waiting for a buyer.

3. Inconvenient location – In most cases, people chose their domicile location to allow a reasonable balance of work function and lost time due to the daily commute. If a temporary assignment changes the pattern significantly, it can present a real hardship. Since, by definition, a temporary assignment has an end point, it is not likely the individual will go through a change of residence, and instead will choose to endure the hassle of a much longer commute. Often the need requires an individual to live in a different city and fly home on weekends for months on end. Sometimes it is possible to arrange temporary housing for the person in a convenient location to the job that allows the entire family to move in yet still maintain the original residence for the return path. This is a typical scenario for expatriates. The downside is that the vacant home needs to be made secure while unused, which can get expensive.

4. Lack of Authority – Since the roles of a temporary assignment are transitory by definition, individuals often feel a lack of authority at a time when they are forced to assume greater responsibility. They can see all the work and the confusion of carving out a niche of credibility, but they have little formal purchasing power to make their decisions stick. If individuals do not like or are threatened by the changes represented by the person in a temporary assignment (which is often the case), then it is possible to make the assigned person miserable through any number of ploys. Some people will get cynical and drag their feet, others will take a passive aggressive attitude, still others will undermine the individual through rumor or other hostile means. All of these methods can be like a Chinese water torture for an executive who is already under immense pressure. The antidote here is to give decision rights to the individual on the assignment and back up this person’s decisions and actions publicly.

5. Bad Personal Chemistry – An individual doing a temporary assignment is often entering a society with little knowledge of the people, customs, and culture. The reason for this person coming in may not have been well explained, and the individual is forced to establish new relationships from a position of distrust. That may get things off to a rocky start and require extra effort to achieve a good social balance. The antidote here is simple. The person arranging for a temporary assignment owes the person being moved a good introduction to the new group that includes an adequate rationale and an expectation of fair play.

6. Sense of futility – A person in a temporary assignment can become depressed simply due to a lack of foundation. The work being performed is difficult and seemingly unappreciated. Not having daily interface with former peers at the central office gives one a lonely feeling of isolation. If the assignment is working on a merger transition team, there is the constant pressure of who will be the survivors on the ultimate team. Not being in close physical proximity to the top decision makers on a daily basis can lead to additional anxiety that the person might be overlooked. In this situation, top managers need to assure the individual that it is precisely due to this person’s worth to the organization that he or she was picked to help design the integration process. There will be a good job at the end of the ordeal. Actually, people on the integration team have a natural advantage because they help invent the structure and rules for the merged entity. It is the people left behind to run the ongoing business who have the greater jeopardy once the musical chairs game comes to an end.

7. Burn out – When temporary assignments are for the purpose of designing details of a merger or acquisition, the technical detail and amount of work can be overwhelming. Transition teams are usually kept lean because, during the integration, both of the former businesses need to keep operating at top efficiency as well. There are just not enough resources to cover everything, so both the ongoing business resources and the integration team are forced to stretch to the limit. It is easier for the ongoing business to stretch because some people from lower levels can step up to temporary management positions to cover. For the transition team, life is more difficult. There are literally thousands of details to consider, and many mutual processes that need to be invented. The work is endless, critical, urgent, and highly emotional in nature. That, coupled with the individual living or working out of temporary housing, causes many people in these assignments to burn out, have health problems, or get fed up and leave. For this reason, senior managers need to provide some modicum of work-life balance or “R&R breaks.” One observation is that people on the edge of total burn out often do not realize their peril. One must consider the ongoing health and welfare of each person serving on a transition team.

8. Guilt or sense of punishment – Some individuals will over-analyze the nature of a temporary move. They may feel a sense of failure; after all, other people were not moved out. They wonder if this is a signal from top management that there is a serious issue or some chemistry problem with the senior people. The individual may feel he or she is being punished for being too aggressive, outspoken, or some other interpersonal skill shortage. If there is a suspicion of this flavor in the body language, it will seriously undermine the motivation of the moved individual to do a good job. To prevent unwarranted worry, top managers need to be transparent and share the true reason for a temporary assignment. If there are issues, then the individual is due an explanation and a chance to mitigate the damage to his or her reputation before being moved out.

9. Squishy Return Arrangements – It is common for a person on a temporary assignment to have no visibility to his or her return path. Will there be a good job at the end of the assignment? When will the assignment end? Was this little adventure good or bad for the person’s ultimate career? It can be a lonely and scary situation for a good performer to find him or herself in a remote site with little connection to the home office and no concrete way back home. A simple fix is to have frequent communications with the remote individual to assure him or her that the temporary service is appreciated and a return path is not going to be forgotten. It is easy for managers to get embroiled in the urgent matters of daily decisions and neglect individuals in remote areas who may be feeling insecure about their future.

10. The pasture – Unfortunately, some groups use a series of temporary assignments to encourage an under-performing individual to leave the organization. The jobs have marginal value, yet keeping the person on organizational life support seems kinder than pulling the plug. People who are being led out to pasture are usually well aware of the intent. Many upper managers hope it will cause the person to quit and leave, unfortunately in a lot of cases it causes the person to quit and stay. Here again, the antidote is candor and transparency. Let the individual know the truth so he or she can make appropriate choices rather than guess.

These are just 10 of the common issues with temporary assignments and how upper management can reduce the stress and pain having to do with them. Properly managed, temporary assignments can be invigorating and helpful to both the individual and the organization. If done poorly or without care for the individual, they can be a real problem.

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This entry was posted on Sunday, February 13th, 2011 at 7:47 am and is filed under Communications , Enabling Actions , HR , leadership , Mergers , Organization , Teamwork , Trust , Trust and fear . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response , or trackback from your own site.

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How Temporary Assignments Boost Innovation

When front-line manufacturing employees are exchanged between company sites, they contribute more valuable ideas..

  • Workplace, Teams, & Culture
  • Innovation Strategy
  • Skills & Learning

consider temporary assignment

Image courtesy of Joyce Hesselberth/theispot.com

Just as digitalization and automation are transforming the shop floor, they are changing the role of front-line manufacturing employees. Workers increasingly create value not only by performing their core duties but by contributing to broader organizational objectives such as competitiveness and innovation as well. Those with creativity and aptitude for problem-solving have proved particularly valuable: Their front-line perspectives often generate promising process improvements and business opportunities that would not have been apparent to managers. As a result, front-line innovation has become one of the largest sources of sustained competitive advantage in manufacturing industries. At leading companies, up to 75% of annual productivity gains can be traced back to bottom-up ideas from non-R&D employees. 1

While front-line innovation is common, the ways in which managers can most effectively support it are not well understood. In our research, we have shown for the first time how strategic front-line mobility — the short, focused, and purposeful exchange of staff members between different company sites — can substantially boost these employees’ contributions to innovation and organizational learning in manufacturing companies.

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We engaged in a large-scale study of a multinational, multibillion-euro car parts manufacturer. We collected data on front-line ideas and their economic impact over four years and examined their relationship with individual worker mobility. To arrive at robust managerial insights on the causal effects of worker mobility, we analyzed more than 21,000 ideas submitted by almost 2,500 workers, using advanced econometric methods. 2 Key to our analytical approach was matching mobile front-line employees to similar colleagues who did not travel to other plants, which allowed us to precisely estimate the contributions originating from mobility.

Knowledge Transfer and Employee Learning

Our analyses reveal two distinct pathways through which front-line mobility fosters manufacturing innovation.

First, front-line mobility promotes knowledge sharing between factories. By virtue of their experience, shop floor employees frequently possess a wealth of tacit production knowledge at a level of detail that far exceeds what is covered in manuals or is known to engineers. For instance, it is usually the workers on the ground who learn firsthand how to iron out well-intentioned but occasionally impractical processes and product designs. When employees are strategically deployed to different sites, they carry this knowledge with them and help circulate it within the company.

About the Authors

Philipp B. Cornelius is assistant professor of technology and operations management at Rotterdam School of Management, Erasmus University. Bilal Gokpinar is professor of operations, technology, and innovation at the UCL School of Management at University College London. Fabian J. Sting ( @fast1005 ) is the chair of the Department of Supply Chain Management — Strategy and Innovation at the University of Cologne, as well as chaired professor of digital supply chain innovation at Rotterdam School of Management, Erasmus University.

1. F.J. Sting and C.H. Loch, “ Implementing Operations Strategy: How Vertical and Horizontal Coordination Interact ,” Production and Operations Management 25, no. 7 (December 2015): 1177-1193.

2. P.B. Cornelius, B. Gokpinar, and F.J. Sting, “ Sparking Manufacturing Innovation: How Temporary Interplant Assignments Increase Employee Idea Values ,” Management Science, published online, Aug. 20, 2020, https://doi.org/10.1287/mnsc.2020.3673.

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COMMENTS

  1. eCFR :: 5 CFR Part 334 -- Temporary Assignments Under the

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    Organizations use temporary assignments for a variety of reasons. These assignments are usually loosely controlled activities of convenience for the individual, the boss, the organization, the family, or all of the above. ... The cure is to take the time to consider at least a partial list of duties that will be transferred with the individual ...

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    7. Burn out - When temporary assignments are for the purpose of designing details of a merger or acquisition, the technical detail and amount of work can be overwhelming. Transition teams are usually kept lean because, during the integration, both of the former businesses need to keep operating at top efficiency as well.

  19. How Temporary Assignments Boost Innovation

    As a result, front-line innovation has become one of the largest sources of sustained competitive advantage in manufacturing industries. At leading companies, up to 75% of annual productivity gains can be traced back to bottom-up ideas from non-R&D employees. 1. While front-line innovation is common, the ways in which managers can most ...