CIPD - Secondment

Learning, training and development

Revised February 2008

This factsheet gives introductory guidance. It:

describes the basic process
details different types of secondments
gives the benefits to the secondee, the home organisation and the host organisation
highlights the role HR can play.

What is secondment?

The term secondment is used broadly to cover a temporary movement or ‘loan’ of an employee to another part of an organisation or to a completely different organisation. Employees can be seconded into organisations ranging from major commercial concerns through public services and schools to small local groups and charities. Organisations benefit from both inward and outward secondment. Typically, paid secondments require formal arrangements, are full time and last up to twelve months.

Secondment is increasingly being recognised as valuable for development. As organisations adopt ever flatter management structures, opportunities for promotion through a succession of line management positions are limited. Secondments offer employees career development opportunities and are increasingly being used as part of talent management programmes. They also provide organisations with the chance to develop their skills base.

Although secondment is often regarded as a marginal activity that is supported mainly by large organisations, the increasing flexibility of working patterns means that it may become increasingly important in the future. According to the CIPD's Managing employee careers survey¹, secondment is one of the top ten most commonly used career management practices and 67% of respondents considered them to be ‘effective’ or ‘very effective’. Similarly in the CIPD/DDI leadership forecast², 63% of respondents identified external assignments as very effective (the highest response rate) for developing leaders.

The basics

How long does a secondment last?

The duration depends on the circumstances. Short-term secondments may last less than 100 hours (often part time); long-term secondments can last a year or more.

Who is eligible for secondment?

This is a policy decision made by each organisation. It may be open to all, or have restrictions such as only offered to managers, technical and professional staff, highfliers, those on talent management programmes or employees with a specified length of service.

Who pays?

Generally, the organisations that supply the secondees continue to pay their salary during the secondment period. For a commercial secondment, however, this cost might be reimbursed by the host organisation.

Types of secondment

Secondments can take place:

within an organisation
externally to another organisation (ie public sector to private or vice versa, to a voluntary organisation).

Secondment within an organisation

This is a valuable way of providing staff development opportunities, particularly within flat organisational structures with limited opportunities for promotion. It is also useful for resourcing short-term assignments or projects. The employee benefits by gaining wider experience and acquiring new skills without the disruption of relocation and with the benefit of continuity of employment. The main disadvantage for all parties is that there is not the completely fresh outlook that an external secondment may bring.

External secondment

By exposing firstly the host organisation and the employee, then subsequently the seconding employer, to different work practices, external secondments can benefit all three parties. However it is essential that all three are clear about their responsibilities in this situation. Specific questions that need to be answered prior to a secondment, include:

Is the secondment for a fixed term or for an indefinite period that is subject to notice?
Although the seconding employer will generally be responsible for basic salary, what are the arrangements for overtime, bonuses, expenses, training etc?
What will happen if long-term absence or persistent short-term absence occurs?
How will supervisory and disciplinary matters be dealt with?
If it is long-term, how will performance management and development be managed?
Does indemnity insurance need to be provided?
Who will fill the role in the home organisation? How will the secondee retain contact?
How will the end of the secondment be managed (for example, return to original role)?

It is essential that all parties are clear about their obligations, expectations, accountabilities and performance objectives.

The host employer should be careful that it does not treat the secondee as an 'employee'. For instance whilst it will need to know when an employee intends to take holiday it should not assume direct responsibility for either authorising or paying for holidays. Similarly expenses should form part of the 'charge' between the host and seconding employers.

The host employers should not be responsible for disciplining the employee, but will want access to a mechanism, by which it can require the seconding employee to institute such a procedure. Alternatively, the host employer may wish to define an employee's misconduct, as a 'trigger' event, allowing it to terminate the agreement with the seconding employer. 'Trigger events' could also include, for example, long term sickness of the employee.

Failure by the parties to resolve these matters prior to entering into a secondment arrangement could cause the employers, and particularly the host employer to lose the advantage (particularly associated with avoiding personnel problems) gained by entering into such an arrangement.

The voluntary sector

Employers release employees to work in voluntary organisations for periods of as little as 100 hours (either over a period of time or in a single block). As organisations are becoming increasingly aware of their corporate social responsibilities, this is gaining in popularity. The voluntary sector is also targeted for development of mid/senior level leaders from the commercial sector to give these individuals of leading in a completely new context.

Benefits of secondments

The secondee:

has the opportunity of wider career and personal development than at work
acquires valuable experience in project management
is able to test and apply specific skills in a different organisational environment
gains a new skills and experiences in challenging areas.

The secondee's employer:

gains enhanced employee skills, teamworking and cross functional communications
improves workforce morale and motivation
develops wider networks and contacts
builds a reputation as a good employer and contributor to the community.

The host organisation:

gains assistance with projects
gets an external perspective.

Possible challenges of secondments

The secondee may have difficulty settling back in their own role when the secondment ends.
The secondee's employer may have to deal with dissatisfied staff who were not selected for secondment.
The host organisation secondee fails to fit into the culture.

Examples of different types of secondments

Senior civil servants seconded into industry to gain experience of the private sector.
Junior/middle managers seconded into a voluntary sector scheme to gain project management and leadership experience.
Technical specialists gaining experience of the supply chain through secondment to their suppliers or customers.
Teachers exposed to industry to observe different cultures and working practices.
• Mid/senior level leaders being seconded to different organisations to provide them with experience of leading in different organisational contexts.

Jobs that might be easier to fill by secondment could include:

a review project
the introduction of a new initiative
policy development
a specific task of limited duration or with an uncertain future
a short-term appointment to start a new work area prior to making a permanent position.

A common feature of these is that they are discrete and often of limited duration and so are easier to manage as a project.

Examples of organisations that co-ordinate secondment opportunities

Business in the Community was founded in 1982 to meet the responsibilities that businesses have to their communities. It has a membership of about 700 companies. Its purpose 'is to inspire, challenge, engage and support business in continually improving its positive impact on society'. The involvement of employees, supported and encouraged by their employers, is central to the work of Business in the Community.

Visit the Business in the Community website

HTI is a not-for-profit social enterprise organisation which has been seconding senior teachers into business for nearly 20 years. By taking a funded secondment into business for anything from six weeks to 12 months, educationalists can undertake interim management responsibilities, stretch their leadership skills in a new environment and understand what industry requires of young people who will become the employees of tomorrow.

Visit the HTI website

Pilotlight works to help small, innovative charities grow by recruiting proven leaders and high fliers from business and industry who want to donate their skills to charities.

Visit the Pilotlight website

Volunteering England is an independent voluntary agency committed to supporting, enabling and celebrating volunteering. Their website has pages with information on Employer-supported volunteering.

Visit Volunteering England

The Whitehall and Industry Group (WIG) is an independent, membership organisation which brings senior people together to improve understanding and co-operation between the public, private and voluntary sectors and the government. It offers people exchange, leadership programmes and events. WIG's people exchange activities include the brokering of cross-sector attachments and secondments which provide opportunities for individuals to gain insights into other sectors through business-focused projects and remits. These are individually tailored to meet both the candidate's learning objectives and the host organisation's requirements.

Visit the Whitehall and Industry Group website

What HR professionals can do to encourage a successful secondment programme

Ensure that the organisation has an effective secondment procedure that is well publicised to all staff, eg in staff handbook or on the intranet.
Ensure that there is a clear business need for a secondment, with specific outcomes identified - ie in the performance management process capabilities and competences are identified.
Discuess with senior management the advantages of using secondment as an organisational and staff development tool.
Advertise secondment positions effectively to the widest possible audience.
Use local and national networks to make links with the external community.
Actively seek secondments themselves in order to widen their experience of other working environments.
Provide a tailored induction for both inward and outward secondees.
Ensure that secondments are carefully monitored throughout.
Encourage feedback and evaluation from secondees on their return.
Review how knowledge and experiences gained by secondee have benefited the organisation.
Be a contact point to facilitate communication between the home and host organisation.

References

CHARTERED INSTITUTE OF PERSONNEL AND DEVELOPMENT. (2003) Managing employee careers: issues, trends and prospects. Survey report. London: CIPD.
CHARTERED INSTITUTE OF PERSONNEL AND DEVELOPMENT. (2005) UK global comparisons leadership forecast 2005-2006: best practices for tomorrow's global leaders. Survey report. London: CIPD. Available at: http://www.cipd.co.uk/surveys

Secondment