Promotion policy

Promotion policy - is a change in contract conditions to make them more attractive for an employee which means a higher position and salary. Promotion is an upward reassignment of an individual in an organization's hierarchy, accompanied by increased responsibilities, and status for which can mean an increased income. The employee being promoted, the promotee's duties and responsibilities usually increase and become different from those of there earlier job title. Promotion is an employee's reward for good performance or positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience. A promotion can involve advancement in terms of designation, salary and benefits.

Purposes

Purposes of promotion in organization:

• To utilize the employee skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction which in turns increases productivity.
• To develop individuals competitive spirit and skill set in workplace as an employee to acquire the skill, knowledge understanding of there new role etc., required by higher level jobs.
• To develop a competency both internal to there new role, while enhance company's goals.
• To promote employee self-development and retention of staff to develop a culture of internal recruitment. Thus reduction in labour turnover.
• To promote a feeling of content with the existing conditions of the company and a sense of belongingness.
• To promote interest in training, development programmes and in team development areas.
• To build loyalty and boost morale.
• To reward committed and loyal employees.

Bases for promotion

Organizations develop a policy depending on the basis on which promotions are to be made:

• Merit: denotes an individual employee's skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. It helps employees to acquire new skill, knowledge.
• Seniority: seniority is based on the length of service knowledge of an employee in an organization. It is relatively easy to measure the length of service and judge the seniority,the results could be perceived to encourage employee turnover and thus quails interest to develop among young people.
• Seniority-cum-Merit: there is a need to strike a balance between merit and seniority. Hence a combination of both seniority and merit can be considered the basis for promotion satisfying the management for organizational effectiveness and employees and trade unions for respecting the length of service.

Every organization need to specify clearly its promotion policy based on its corporate policy and HR policy. The policy should contain clear defined norms and criteria for promoting an employee. The policy should be fair and impartial and should be applied uniformly across company for all employees without giving scope for, favoritisms etc. Promotion systems necessitate a twofold balance between the choice of the individual most suited to fulfill the job role and thus that contribute effectively to the organization's mission, and individual's aspirations for promotional opportunities, which need to be satisfied. Organizations have adopted a variety of promotion policies depending upon their culture, size, and business.

Examples of Promotion policy

• Performance-based Promotion Policy: This policy is based on the performance of an employee. Companies that have adopted this policy promote their employees based on the performance and merit.
• Career Development Promotion Policy: This policy is based on the development of an employees career path. Companies that have adopted this policy provide employees with opportunities to enhance their skills and knowledge, and facilitate their growth.
• Time-in-Grade Promotion Policy: This policy is based on the length of time an employee has been with the company. Companies that have adopted this policy promote their employees based on the seniority in the organization.
• Merit Promotion Policy: This policy is based on the merit of an employee. Companies that have adopted this policy reward their employees for their hard work and dedication by promoting them.
• Compensation Promotion Policy: This policy is based on the compensation of an employee. Companies that have adopted this policy promote their employees based on the salary they receive.

Advantages of Promotion policy

• Promotion policies can provide employers with the opportunity to reward employees who have consistently demonstrated exemplary performance. This can motivate and encourage employees to strive for advancement, thus increasing overall productivity and profitability.
• Promotion policies can also provide employees with the opportunity to take on additional challenges and responsibilities, thereby providing them with the opportunity to develop their skills and expand their knowledge base.
• Promotion policies can also provide employees with the opportunity to receive higher salaries and better benefits. This can allow employees to feel more secure and satisfied in their positions.
• Promotion policies can also help create a positive culture in the workplace and encourage a sense of loyalty and commitment among employees. This can help create a more positive atmosphere in the workplace, thus increasing morale and productivity.

Limitations of Promotion policy

Promotion policy can have a number of limitations, such as:

• Lack of objective criteria: If an organization doesn’t have a clear and established criteria for promotions, it can create a situation where promotions are based on subjective factors such as favoritism, political alliances, and personal relationships. This can lead to employees feeling that the system is unfair and that promotions are not based on merit.
• Unclear job roles: If the job roles are not clearly defined, it can be difficult for the organization to decide which employees should be promoted. This can lead to employees being unsatisfied with the promotion decisions and feeling that they have been overlooked.
• Unclear career paths: If there is no clear career path for employees to follow, it can make it difficult for the organization to identify which employees are ready to be promoted and which employees need more time and training before they can take on a higher position.
• Limited resources: Promotions require additional resources such as increased salary, additional staff, or specialized training. Organizations with limited resources may not be able to provide these resources for promotions. This can lead to employees feeling that the organization does not value their contributions and is not willing to invest in their career advancement.

Other approaches related to Promotion policy

A promotion policy is a set of strategies and guidelines to ensure that employees are rewarded for their hard work and dedication with a higher position and salary. There are other approaches related to a promotion policy that help to achieve this, including:

• Performance evaluation: Companies should evaluate the performance of their employees on a regular basis in order to identify individuals who are ready for promotion.
• Training and development: Companies should provide training and development opportunities for their employees in order to ensure that they have the skills and knowledge necessary for the new position.
• Mentorship: Companies should provide mentorship programs to help employees transition into their new roles and responsibilities.
• Rewards and recognition: Companies should recognize and reward employees for their hard work and dedication with promotions and other incentives.

In summary, a promotion policy should include a variety of approaches in order to ensure that employees are rewarded for their hard work and dedication. Performance evaluation, training and development, mentorship, and rewards and recognition are all important elements of a successful promotion policy.

Promotion policy — recommended articles

Career pathing — Bonus scheme — Adaptation of workers — Skills transfer — Organizational commitment — Personnel strategy — Strategic human resource management — Non financial motivation — Multi skilling

References

• Machado C., Melo P. (2015) Effective Human Resources Management in Small and Medium Enterprises: Global, IGI Global, USA,
• Mamoria, C.B, Ganker, S.V., (2008) Human resources management, Himalaya Publishing House, Delhi,
• Mirza S.Saiyadain, (2003) Human Resources Management,Tata McGraw-Hill Publishing Company Limited, New Delhi,
• Punnett B.J., (2015), International Perspectives on Organizational Behavior and Human Resource,Taylor & Francis, New York,
• Roman M., Zgiep Ł. (2013) Promotion as part of the marketing mix and its application in enterprise activities Warsaw University of Life Sciences, Warsaw,
• Subha Rao.P., (1997) Personnel/Human Resource Management,Konark Publishers Pvt Ltd, Delhi

Footnotes

Author: Alicja Ficek