Is demotion the HR-solution of the future?

Is demotion the HR-solution for the future?

Purpose
The participation of older workers in Europe, and more specific in Belgium, is very low. To encourage firms to keep their over-45s in employment, the Belgian Government has obliged firms with more than 20 employees to draw up an employment plan. One of the suggested measures is demotion. The economic crisis forces firms more than ever to put the right man on the right place. In the light of cost-effectiveness demotion can be the right tool to do so. But employers aren't keen on applying demotion, amongst others caused by salary effects. There is very little empirical research on motives and effects of demotion (Hall & Isabella, 1985). The existing research limits itself to the consequences for the employee.
Literature learns that there are different kinds of demotion with different features. Ng, Sorensen, Eby & Feldman (2007) set up a typology for transitions, but applied to demotion this typology isn't complete.
Design/Methodology
Through an online questionnaire Belgian HR-managers (N=150) were surveyed on the typology, the objectives of the decision for demoting and the consequences of demotion.
Results
Cronbach's Alpha and factor analysis were used to analyze the data.
Limitations
To gain insights into the motivation of the application of demotion the questionnaire should be followed by focus groups.
Research/Practical Implications
For the moment only preliminary results are available.
Originality/Value
To our knowledge, this research is the first to be conducted from the perspective of the employer.