35 8 EMPLOYMENT PSYCHOLOGY procedure, it is evident that in order to carry it out intel ligently, a past history of each employee must be kept so that the employment manager can, when the emergency arises, quickly and reliably learn about an employee’s average earnings, attendance, general ability, and so forth. The problem of transfers is a comparatively recent and troublesome employment problem. Practically every transfer from one kind of work to another is a turnover, and is economically equivalent to the hiring of a new worker. Transfers are due to many causes beyond and within the scope of the employment function. However, transfers can not be made intelligently unless they are based upon a worker’s past performance. In addition to this, every transfer should be regarded as a case of rehiring, and the individual should be as carefully examined for his new work as he originally was. This will to a large extent reduce the number of transfers and will help solve a problem which has been reaching alarming proportions. In summarizing thus the various phases of employment which have been previously taken up in detail, it has naturally been necessary to be somewhat sketchy. How ever, the individual who has had any experience whatso ever in employment work will recognize the significance of the procedure here outlined. Very little emphasis has been placed upon the observational method, because that method is so limited in its scope. Frequently, indeed, it fails even to enable the employment interviewer to distinguish between the unskilled laborer and the skilled operative; and as a basis for making the fine distinctions which are required by the division of labor to-day, it is entirely inadequate. As has been already pointed out, observation may tell us whether an applicant looks good