Why Do or Don’t Companies Promote Their Employees

The decision to promote an employee within a company is not merely based on their current job performance but encompasses a multitude of factors, including managerial skills, company culture, succession planning, and overall company growth. Here, we dissect the reasons behind these decisions and the factors that companies consider when making a promotion.

Understanding the Decision-Maker

The Influencer of Promotion Decisions: Who decides if someone ‘deserves’ a promotion plays a crucial role. Doing your job exceptionally well for several years may indicate strong performance but does not necessarily mean you are a suitable candidate for a management position. The transition from an individual contributor to a manager requires a different set of skills, such as leadership, strategic thinking, and the ability to mentor and guide other employees.

Another factor is the qualifications and competencies required for the role. Even if an employee has a strong track record, they may not get promoted if another candidate is better qualified. Managers at higher levels may require additional qualifications or experience, such as a business degree or previous experience in a similar position. Therefore, the decision is not solely based on a single factor but a combination of qualifications, competencies, and performance.

Considering Company Culture and Growth

Company Culture and Promotion: The culture of the company significantly influences promotion decisions. In certain work environments, there is a preference for maintaining the status quo and promoting individuals who are better at managing existing tasks rather than leading new initiatives. Conversely, if the company culture values innovation and leadership, they may promote those who excel at leading teams and driving change.

For instance, a company I worked for over a decade promoted based on managerial skills more than leadership. The company prioritized managing rather than leading, meaning those who were better suited for managing the team rather than leading it would be promoted. However, if the company culture is geared towards fostering a leader-like environment, they would promote individuals who effectively lead their teams, ensuring the company’s long-term success.

Exploring Promotion Vacancies and Possibilities

No Position Vacancy: An employee may deserve a promotion, but if there are no vacant positions, the company will often consider whether to provide a raise. This is a practical approach where the employee’s salary can be adjusted to reflect their increased skills and responsibilities even without a formal promotion. Asking for a raise can be an effective way to negotiate for recognition of their value and potential.

Company Growth and Succession Planning

Growth and Succession: Companies that have a clear growth strategy and effective succession planning are more likely to promote their employees. Succession planning involves identifying and grooming individuals for key roles within the organization. This ensures that the company has a pipeline of qualified and capable individuals ready to step into higher positions when the time comes.

Quora’s Case: On the other hand, when a company, like Quora, appears to promote an individual who is unsuitable for the role, it creates unforeseen risks. Not only does it undermine the trust of the employee, but it also poses challenges for the company’s reputation and the morale of other employees. When the board of directors and the public recommend against a promotion, it highlights the importance of due diligence in the decision-making process. Such a promotion decision can lead to demoting someone who was incorrectly promoted in the first place, indicating a lack of effective management and oversight.

For companies, promoting the right individuals is not just about assigning titles but also about fostering a culture of excellence, recognition, and development. By considering all these factors, companies can create a more robust and sustainable environment for employee growth and success.