What is a Re-Designation Letter? How is it Used?

Re-designation letter is written by the employer or by the concerned department to the employee in order to re-designate, re-promote, or change his/her job role on the basis of his/her performance.

Re-designation does not always mean increments. Rather it can also mean demoting an employee if he/she is underperforming.

In such cases, a re-designation letter is given to the employees in order to inform them about the same. The purpose of this letter is to re-designate the employee. This type of letter, should be printed on the company’s letterhead and contain all the pertinent information, such as the change in the employee’s designation, position, or job role, his/her new duties, and responsibilities, as well as the changes in his/her salary or remuneration with the grade and level changes, is written to encourage employees to perform better.

What is Re-designation?

Re-designation means changing the job role or the designation of an employee working in your organization. Re-designation can be both positive and negative based on the employee’s performance.

People often confuse Re-designation with promotion. However, both have a lot of differences.

What is the Difference Between Re-designation and Promotion?

Redesignation means just changing the job title, be it to a higher grade or to a lower grade while promotion means getting a better job role with a higher salary than the current position.

In re-designation rules, usually, the company wants to give you a higher role with the same or a less salary, or they might be looking to demote or fire you. Always be ready to accept the upgrades in re-designation, but always ask what the upgrade consists of, i.e., more salary, more work, etc. Re-designation letters and promotion letters differ in content. Click here to know more about promotion and promotion letters.

However, in promotion, you are given a higher role, higher responsibilities, with a higher salary. So, when your company changes your job role, always look at whether it is re-designation or promotion.

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Why Do Companies Only Change the Designation and Not the Salary?

1. For some employees, designation matters more than salary. In such cases, employees ask the employers to re-designate them to a higher post without any increase in other benefits. It helps the employees to apply for new jobs for better positions when compared to their current job roles.
2. Sometimes, at the joining time of the employees, companies promise to change their designation after a certain period of time. In that case, also companies change employee designation with the same salary.
3. There are also cases when employees cannot afford salary increments. In such cases, they change the designation of an employee to a higher position but do not increase the pay. This is done considering that a higher position may motivate other employees.
4. Last but not least, some employees themselves ask their employers to change their designation after gaining significant experience. If an employee’s experience suits the asked position, they get re-designation without salary raise.
5. In many cases after offering employees a promotion to a higher position, they do not match the responsibilities of that particular job role. Here, companies re-designate an employee to a lower position and may also decrease the pay.

In all the above cases, a re-designation letter is issued to the employees informing them about the same. Also, it acts as proof when needed.

Re-Designation Letter Format

Re-Designation Letter Example

Conclusion

Re-designation means changing the job title of an employee with or without salary increments. For example, changing the job role from Manager to Senior Manager with the same salary and same benefits. Re-designation letters come into action in such cases.

If you are planning to re-designate an employee, get access to a free Re-designation letter template at UBS HR Toolkit. Also, we can help you reduce your HR Document workload by providing you with more than 500 ready-made documents including HR letters, HR forms, Emails, Job descriptions, and more. Book a demo with UBS HRMS Software to know more.