What is Bumping ?
‘Bumping’ refers to the phenomenon of ‘bumping’ a senior-level employee to a position of lower rank when the company is downsizing. It is usually done with the consent of the employee under consideration to make sure that the individual doesn’t lose his or her job while the company is also able to keep a valued individual.
Although adequate consent is taken, it is emotionally taxing on all the concerned parties as the employee is at a loss after losing the superior rank and related benefits. It might even demotivate the employee and prevent him or her from utilizing their full potential.
Hence, companies are usually against the practice of bumping. However, depending on the scenario, it might also prove useful for the employee as there have been instances where the bumped employee was again promoted to the earlier rank once the company is out of the bad phase.