The musical chairs method in reorganizations involves (i) the elimination of an entire job group resulting in redundancy for employees in that position, (ii) creating a new position, and (iii) requiring employees to reapply for it. In other words, chairs are shuffled, and there are often fewer chairs available after a round.
Three misconceptions about musical chairs:
The seniority rule never applies because the entire job group is eliminated.
You can always choose who is best suited for the new position.
You don't need to justify this.
What do you really need to know about musical chairs?
Check if it is an interchangeable position. If yes, the seniority rule does apply: determine the number of positions in the new role. If there is room for everyone, automatic placement follows. If not, then the seniority rule is applied.
Apply the correct framework if it's not an interchangeable position. This is detailed in the Dutch UWV guidelines. Effectively, you partially apply the seniority rule when reassigning employees. Ensure:
A recruitment process with clear suitability criteria: Set up a recruitment process using objective, measurable criteria to determine suitability. This is also crucial to prevent arbitrariness.
Limited options in case of task overlap: Your freedom to offer the role to the most suitable candidate is restricted if a position is entirely eliminated and parts of its tasks return in a new role. In such cases, you must assign suitable employees whose tasks are returning based on reverse seniority. Other suitable employees will only be considered if spots remain.
Ensure careful preparation and consideration. Maintain transparency, documentation, and clear communication to avoid prolonged disputes. Successful and smart reorganizations are possible. Consider clear, substantiated differences between old and new roles.
