Case: The Internal Transfer Program at Tencent
People involved Decisions to be made Details on the case Additional Questions
● Lin Lin ● Improvements on the ● Tencent initiated the
● HSP leader of the HR HSP program to ensure HSP in 2011 to
department smooth transitioning facilitate proper and
● HR department between employees and efficient internal talent
● HSP team managers at Tencent flow. Many employees
● Shenzhen employee and departments
● Tencent managers benefited from the
● Middle managers program, but there were
● Tencent employees also faults
● Li Tianyu ● In the beginning,
● Zhao Liwei matches for positions
● Xidan were done via a
● Tony mailbox but the
● Chen Bo problem was that some
● Sun Jian employees did not
● Zhang Xiaolong know of the mailbox so
● Ma Huateng they switched to online
● In 2011, according to
the rules, all employees
were eligible to apply
for an internal job
transfer if they had
worked at their current
position for more than
one year and their last
performance rating was
not “below
expectations”
● According to Tencent’s
● How effective would
the HSP Program be for
companies in general to
be adopted and
utilized?
● What are the actions
taken towards
managers who do not
follow the HSP policy
of not completely
interfering with
employees who wish to
transfer?
● How trustworthy are
these rating
performances if bias is
more than likely to
occur with managers’
decisions on these
ratings?
● Should it have been
easier to take the
traditional route
compared to all the
problems listed?
 HSP rules, the original
department could not
forcibly retain
departing employees
● In 2012, the internal
talent flow mechanism
the “Huoshui
Program.” or HSP

Cons:
● Lin Lin applied for a
transfer but since it was
made mid-year, her
performance was still
conducted by the
original department and
she was given a ⅖
review.
● In 2014, an employee
anonymously posted
that he had received a
poor performance
rating from the original
department due to the
upcoming job transfer
● A 5-point performance
rating scale was
conducted by each
department two times a
year.
● In 2013, a Shenzhen
employee faced
managerial problems
 that forced him into
resignation when a
manager kept putting
him on projects to
avoid him leaving.
● After investigation, the
HSP team discovered
that the greatest
obstacle to the HSP
came from the
managers in the
employees’ current
department. So they
tried to change their
perspective by inviting
employee
representatives from
each department to
share their perspectives
on HSP
● The HSP team then
also launched a
communication
platform called
“Linkshow” to connect
projects and talent.
● HSP team removed the
“two buttons” prompt
box that asked
employees if they
would like their
managers to be notified
because it brought a lot
 of stress on employees
● Employees expressed
concern that all
employees seeking job
transfers would receive
unjustified poor
performance ratings.
Managers thought it
was inconvenient for
them for employees
leaving without proper
notification
● HSP adjusted their rule
to “the performance
review may be
conducted by the new
department with the
consent of the head of
the new department”
● In 2018, employees
only needed to work for
three months in the
current position before
applying for a new
position in a strategic
project promoted by the
company
● In 2019, statistics
showed 509 employees
(20%) had their
performance reviews
from the original
department and 22% of
 them received a
performance rating of
1-2 stars
● HSP rule for managers:
managers could only
apply for a job at the
same or a lower level
● From employees
perspective, there was a
lack of mobile access to
apply

Pros:
● There were a few cases
where employees
transitioned with little
to no problems like Li
Tianyu
● Sun believed that the
HSP was a good way to
ease the talent crunch
by quickly bringing in
talent at a lower cost,
which was crucial to
the fast-changing
internet environment
● “The HSP provides a
market mechanism for
effective allocation of
talent. Only when each
individual finds his
passion and shows his
 energy in the
organization can the
entire organization
become more
dynamic.”
● Zhang, senior VP, said
“The HSP provides a
market mechanism for
effective allocation of
talent. Only when each
individual finds his
passion and shows his
energy in the
organization can the
entire organization
become more
dynamic.”
● Employee satisfaction
with the internal career
development
opportunities increased
from 49.3 points in
2015 to 60.3 points in
2019

How should a job rotation program be structured to ensure maximum success for the employees, the management team, and the
organization itself?

A well-designed job rotation program can provide numerous benefits for both employees and organizations. It is stated that a
well-designed and defined job increases employees job satisfaction, increases motivation, decreases workplace-related stress, and
encourages learning efforts (Kaymaz, 2017). However, developing effective rotation schedules can be complex in even moderate sized
service systems due to integer programming and a simulated annealing algorithm (Seçkiner, 2007). Therefore, to ensure maximum
success for all stakeholders involved, I have listed some potential essential considerations when structuring a job rotation program:
Clearly define program goals
The program goals should align with the organization's strategic objectives and be communicated effectively to all
stakeholders involved in the program. In the case, there were obvious and many improvements needed to be implemented in the HSP
Program from both the employees and managers. The rotation positions should provide meaningful experiences that align with
employees' career goals and interests while meeting the organization's current and future talent needs.Therefore, as an HR team, they
should invest a great amount of time to assess future challenges that might be brought up.
Set up clear communication and training
Managers and employees should be provided with training and resources to support communication and goal-setting during the
program, as well as to enable employees to perform well in their new roles. The program should have a set timeline and duration that
balances the needs of the organization with the needs of the employees. For example, the case showed the frustrations of managers
because they were not notified ahead of time of an employee leaving that it would leave them with a spot to fill in a timely manner. A
well-planned schedule allows employees to complete a meaningful rotation while also minimizing disruption to their day-to-day
responsibilities between both parties.
Measure and evaluate success
The program's success should be measured and evaluated regularly to identify any areas of improvement or changes required
to ensure that it remains effective. Employees should be encouraged to provide feedback and have input into the design and
implementation of the program to ensure that it meets their needs and is well-received. It was mentioned many times in the case of
HSP’s flaws. For example, one of their feedback was that managers would not take the transfers well and there was a concern for the
employees performance ratings due to that frustration. Even Zhao recognizes this concern in the case by stating “It is understandable
that a manager would be unhappy when an employee he highly values tells him he is leaving. How he deals with this depends on
whether the manager is open-minded. If the manager can approach this with an open mind, everyone will be happy…”. The
organization should foster a culture of learning and development to create a supportive environment that encourages employees to take
advantage of the opportunities presented by the job rotation program.
Overall, a successful job rotation program requires careful planning, open communication, and a focus on both individual and
organizational goals. By investing in a well-designed program with an amazing HR team, organizations can develop a more skilled
and versatile workforce while also enhancing employee engagement and retention.
Resources
Kaymaz, K. (2010). The effects of job rotation practices on motivation: A research on managers in the automotive
organizations. Business and economics research journal, 1(3), 69-85

.Seçkiner, S. U., & Kurt, M. (2007). A simulated annealing approach to the solution of job rotation scheduling problems.
Applied Mathematics and Computation, 188(1), 31-45.