The need for promotions in a company is a given.
At HC-Resource, we believe that promotions are a key part of the company's growth. We know that new leadership opportunities make our employees feel valued, motivated, and empowered.
We also know that promotions can help us achieve our company goals and objectives. By promoting from within, we're able to save money and time by investing in the skills and knowledge of our employees rather than hiring new people.
As an organization, we want to support our employees in growing and developing their careers. Promotions are not just about money—they are also about recognition and appreciation. When we promote internally, it sends a message to our employees that we value their contributions. And when it comes to retaining talent, it's a great way for us to keep our best and brightest on board!
On the other hand, promotions can be expensive, time-consuming, and downright stressful. But if done right, they can help everyone involved feel valued and appreciated—and make your company stronger in the long run.
So, what steps should you take to develop a promotion program that will help both your employees and your business thrive?
1. Start with the basics—Make sure you have a clear understanding of what "promotion" means for your company—is it just a raise? Is it also about moving up in rank? Do you have quarterly reviews with your team? Do you have annual reviews where merit is discussed, annually?
Ideally, if these standard SOPs are happening within your establishment your team should never be surprised about who does or does not gain that promotion.
2. Determine who should be eligible for promotions, and why— Are there certain criteria employees must meet to be eligible for promotion? If so, what are they? Are promotions only given to those who have worked at your company for a certain number of years? If so, how many years? What are the KPIs for your expectations?
Set clear standards for what it takes to earn a promotion. This will help employees know exactly what they need to do to get promoted—and whether or not they're on track with their goals.
3. Develop a plan for how often promotions will occur—and when they'll happen—for each position within your company. This is important because if you're not clear on how often these things will happen, it could cause confusion among employees and make them feel as if they're being left out of something important or valuable to their professional lives.
We find top performers on the job market every day, their number one reason for seeking new opportunities is always not being valued where they currently are. This metric has not changed post-COVID.
4. Create an employee handbook that outlines all policies related to promotions—including eligibility requirements and benefits associated with being promoted (such as raises or bonuses).
It's crucial that you make sure promotions are done fairly so that everyone feels like they have an equal chance at getting one. This means making sure everyone knows what criteria they'll be judged on (e.g., sales numbers) so that there aren't any surprises when it comes time for the decision-making process. It also means avoiding favoritism or bias in any way possible (e.g., giving raises or bonuses based on friendship rather than merit). If employees feel like there's no transparency in who gets promoted and why, they will start to lose trust in management—and eventually leave or stop working as efficiently.
When you decide to promote someone at your company, keep these things in mind:
What skills does this person possess? It's important that they have the necessary skills needed for the position they're being promoted into so that they can excel in their new role.
How well do they work with others? The ability to collaborate with other departments within your business is crucial if you want your business to grow successfully in today's competitive marketplace.
Is there enough room in your budget for this promotion? If you're promoting someone to a higher-level position, it's important to make sure that your budget can accommodate the new salary. Hopefully, these budgets were aligned in P1, not P4.
Are there enough resources available to support your new hire? For example, if you're promoting an employee who will be managing a larger team of people, make sure your company has the necessary equipment and software available so they can do their job effectively.
How does this promotion affect other employees in your company? If someone is promoted into a position that was previously occupied by another employee, it's important to discuss how this will affect his or her workload as well as responsibilities for other tasks.
