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Asif Tariq
25 April, 2025

What is Secondment and Why It Is Important?

Big changes, like mergers or transitions, put companies into a loop. All over, workers are making adjustments, procedures are changing, and who knows what the future holds. But there is some good news: secondment can be your secret tool for an effective and easy move. Come with me as I explain secondment, its mechanics, and why it could be the answer you’ve been looking for during these times of major change. 

What is a Secondment?

An employee might be “seconded” from one position to another, either within the same company or to a new one completely, for a limited time. This is like a “working vacation” for employees; they get to experience something new while staying as a part of their original team. Usually staying for some period, it’s a great way for companies to promote teamwork, learn new skills, or fill in gaps while they experience changes. 

How Does Secondment Work?

It is not a complicated procedure. The worker will be temporarily reassigned to a different role, either inside their present company or with one of its partners. There are a number of possible reasons for this, including improving one’s skill set, bridging a knowledge gap, or participating in specialized projects during company mergers or changes. 

Secondment agreements usually specify the duration of the assignment, the duties, as well as the employee’s salary, benefits, and job security. Both the employee and the business use it as a kind of trial run to assess how well they fit in a new position or environment. 

Types of Secondment Agreements

Depending on the specifics of the arrangement, there are a few different types of secondment:

Internal Secondment

Transferring workers to a new unit or department within the same company is a temporary measure. For short-term leadership or skill shortages, or to promote teamwork between departments, this is a common practice.

External Secondment

Staff members are sent on short-term assignments to partner or client companies to help out with tasks like project management, skill transfer, or offering specialized knowledge. Knowledge sharing is the most important in mergers, partnerships, and joint ventures, therefore this often occurs.

International Secondment

One strategy used by multinational companies to help with the worldwide transfer of information and skills is the temporary assignment of employees to different countries.

The Contract Terms of the Secondment

We can talk about the legal aspects now. Although the flexibility of secondments, a solid contract is necessary to protect the goals of both the employer and the employee. Standard terms of the contract include:

  • Duration: The duration of the secondment, from a few months to a year or more.
  • Job Role & Responsibilities: Detailed explanation of the employee’s responsibilities during the secondment.
  • Compensation and Benefits: Whether the employee’s salary and benefits will be altered, maintained, or not changed at all.
  • Performance Evaluation: Whether or if the secondment’s assessment will affect the intern’s chances for growth in the industry.
  • Termination: The terms and conditions for the early termination of the secondment or its duration.

Make sure everyone is on the same page before, during, and after the secondment by defining all of these factors. 

What Are the Benefits of a Secondment Contract?

Employees and employers both can get many benefits from secondments. How about we break it down? 

For Employees

  • Skill Development: Employees can improve their resumes, get useful work experience, and learn new skills through secondments.
  • Increased Motivation: Taking on a new task can give employees a fresh perspective, which in turn increases their engagement and energy.
  • Career Growth: Employees can benefit from a more broad career path if they have access to multiple business functions or industries.

For Employers

  • Knowledge Transfer: Using secondments, companies can improve their productivity by moving experience between departments or companies.
  • Employee Retention: Giving talented workers the chance to move up in their careers without leaving the company through secondments can help keep them on.
  • Smooth Transitions: Secondments are a great way to keep activities running smoothly throughout mergers and acquisitions through placing the right people in the right roles.

How Does Secondment Help Businesses?

Things can get very messy in a business during a merger or other big change. A secondment gives staff a structured, thoughtful way to deal with that chaos. How to do it: 

  • Filling Skill Gaps: During mergers, there may be an urgent need for experts in specific fields. Without hiring more permanent employees, you can temporarily cover any gaps using secondments. 
  • Building Relationships: Merging different company cultures is a common challenge in mergers. Before completely combining, secondments allow workers from different departments or organizations to build relationships. 
  • Managing Change: Employees can find change challenging. Everyone learns from a secondment since it gives people the chance to adjust to other teams, jobs, and ways of functioning. 

Common Secondment Challenges and How to Solve Them

There are benefits and drawbacks for using secondment during mergers and other company modifications. Here are some common issues companies face, along with some good solutions: 

  1. Role Confusion

Boundaries and responsibilities can easily become blurry when people are seconded to different teams or companies. 

The Solution: The secondment agreement should specify positions, reporting lines, and goals in detail. To make sure expectations are aligned, both parties should check in on a regular basis. 

  1. Cultural Misfit

The secondee’s engagement and productivity can decrease if they have difficulty in adjusting to the new work environment. 

The Solution: During the initial stages of the secondment, give cultural orientation or mentorship support. Creating a link between the two settings eases the changeover. 

  1. Legal and Compliance Issues

Legal risk might arise when there is a lack of clarity in contract terms or when employment regulations are not understood. 

The Solution: Create strong secondment contracts together with attorneys. Verify that they address issues of responsibility, privacy, data security, and solution of complaints. 

Expert Consulting for Secondment

It is important to have proper guidance throughout mergers or changes. Whether it’s for managing changes in leadership or quickly addressing talent gaps, experts like ICON Consulting help companies find the right places to put secondments to work. They maintain compliance, productivity, and mutual benefit for the company and employee by individualized planning and continuous support. 

Conclusion

Finally, secondment isn’t just a short-term fix; it’s a long-term strategy that can help businesses do well during times of change. Secondment is a flexible and effective way to keep activities running smoothly, whether it’s to handle business changes, fill skill gaps, or make deals go more smoothly.

If you’re considering secondment as a tool for your business, ICON Consulting can help you design and carry out a program that works best for your goals. Contact us now!