What is Bumping? | Definition & Meaning | Akrivia HCM

When a company downsizes or restructures, senior-level employees whose position has been selected for elimination are given the opportunity to remain with the company in another position of lesser seniority. In situations where this happens, it is known as ‘bumping.’

If a highly paid professional is bumped down financially, it may not make sense to take on a lower-paying job with less job security. If a person has transferable skills and experience within the organization, they may consider bumping. However, if they plan on working only for a short time at the new company, they may be better off seeking new opportunities elsewhere.

What are the employment bumping rights?

Employment Bumping Rights is a term used to address the opportunity of senior employees being laid off to be placed over junior employees who are not laid off. Employment Bumping Rights are contractually promised perks provided to senior employees with years of experience and knowledge. This may also be termed as “bumping.”

Is bumping illegal?

Bumping is not illegal, but there are strict rules governing bumping in many organizations. In all cases, the organization must have fair and transparent redundancy procedures that all employees must follow.

What does bump redundancy mean?

Bump redundancy is a type of redundancy when an employee who is considered at risk to be made redundant can transfer into another job role instead. This makes the latter employee redundant instead of the former, thus protecting both employees from redundancy.

What is the difference between bumping up and down?

Bumping up is the term for when a company transfers an employee, internally or through acquisition or merger, to a higher position in the organizational hierarchy. Bumping down is the term for transferring an employee to a lower position in the organizational hierarchy.

Is bumping good or bad practice?

Bumping is a commonplace practice in most companies, often done for the betterment of the employee. Bumping may bring about a loss of benefits or a drop in salary. In such cases, bumping would be bad for the employee’s career growth and should not be done.

Is a bumping requirement legal?

No, there is no legal requirement for taking another employee’s job or leaving your current job. You cannot simply bump into another position because you prefer that other position over the one you currently hold. Employees generally follow their company policies when it comes to bumping employees.

Let’s Recruit, Reward, and Retain
your workforce together!

Request a Demo
Request a demo image