The Types of Employee Promotion

An employee promotion is a recognition of the person’s contribution towards the company. Employee promotion plays a big role in employee satisfaction. Promoting an employee from the lower level to the higher level brings satisfaction among employees in an organisation.

Benefits of Employee Promotion

1. Expectation

The employees expect a promotion for higher status in the company by upgrading and increasing pay for the same job or moving to a larger scale without changing the job. One of the main reasons for employees working hard is that they do not always fulfil the expectations and they may lose their job. Employee promotion happens once start meeting their target for over a period of time for the organisation.

2. Reduce Attrition

When an employee gets a promotion, this process increases morale and reduces the need for an employee to move out of the organisation. Employee promotion enhances employee retention.

3. Recognition

Employee promotion recognizes the efforts of the employees and promotes them to face new challenges. The good work of an employee deserves recognition and rewards. This will help more employees to reach a higher level of performance. 

4. Motivation

An organisation uses various incentives for employee motivation. Employee promotion may motivate employees to perform better in their roles. Motivation is the person’s need, desire, urges and want. The process of motivating individuals requires a driving factor that will help the employee to achieve their goals.

5. Cost-Efficient

Promotion is a cost-efficient process and involves less cost than hiring new ones. They encourage employees to achieve their objectives and help them to perform better in the workplace. 

The Types of Employee Promotion

1. Horizontal Promotion

A horizontal promotion is when an employee gets promoted in the same line or category or in the same department when a junior is promoted to senior in a respective role. This type of promotion is given to reward the employees for their hard work and dedication and gives them an opportunity to continue developing their skills.

2. Vertical Promotion

A vertical promotion is an upward movement of employees that changes in regard to skills, responsibilities and experience. Employee promotion occurs when an employee moves from one job to another, which offers higher pay, responsibility and status is also a vertical type of promotion. It is a movement where responsibility and prestige increase for an employee.

3. Dry Promotion

A dry promotion is when an employee is promoted without any change in salary in the same organisation. The employee’s job responsibilities and status can increase in the dry promotion. They do not receive any monetary benefit for the promotion they receive.

4. Open and Closed Promotion

Open promotion is when every individual is eligible for promotion and closed promotion is a situation where only selected team members are eligible for the promotion. A closed promotion is available only to a specific high-potential target. The aim of this promotion is to increase employee morale.

Basis of Promotion

1. Appraisal

Managers often look into the last appraisal of employees. Every human nature expects and desires higher positions in the company. If an employee has gone long without a job promotion, it will harm their employee satisfaction.

2. Emotional Intelligence

Emotional intelligence is essential for a higher-level job and this refers to the skill set required for them to connect well with others in the organisation. A key aspect of a manager is having a good relationship with their team. If your managers cannot communicate well with the employees, then how will they lead the team?

3. Performance reviews

Performance review is one of the important factors that organisations take into consideration while promoting an employee. The performance is based on a routine evaluation schedule to assess the employees for promotion and to provide struggling workers with improvement plans to get back on track.

Frequently Asked Questions

1. What are the benefits of employee promotion?

Promotion helps to encourage employees to excel in their work. It also helps in increasing the morale of employees by influencing the factors like their salary and nature of work.

2. What are the types of promotions for employees?

The types of employee promotion are horizontal, vertical, dry and open and close promotion. When an employee gets promoted to another company in terms of their pay rise and designation.

3. How do you promote employees?

The employee is promoted on the basis of their appraisal, emotional intelligence and performance reviews. The superior or the immediate employer should recommend the promotion. The final decision comes from the top executive to ensure that the employee promotion policy is consistently administered.

4. When should an employee ask for a promotion?

When the employee is ready for a new challenge and opportunity to develop skills will keep them engaged and productive while receiving their promotion. When they are at the company for a long time and prove their worth. If they have important skills such as interpersonal, problem-solving and analytical ability, then that will help them perform well.

Closing Thoughts

Promoting employees from a lower level to a higher level brings a feeling of satisfaction among the employees. This improves their job satisfaction and motivation by providing them with a pay raise, status and responsibilities.

The factors considered by an employee during the promotion stage are their skills and abilities, work performance, education qualification and leadership potential. Employee promotion is an advancement in terms of job designation, salary and benefits. It is a reward for the efforts displayed by an employee for an increase in responsibility or skill that is formalised by an increase in status and rank.

A need for an employee promotion is because they serve the purpose of the organisation. It is desirable to analyse how a promotion serves the needs of the organisation and the individual. Employee promotion serves to reward better work performance and renew their passion for their job..

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