Employee promotion is the recognition of an employee’s contribution to the organization. Promoting your employees is crucial because it is a significant way to retain them. The reason is that every employee wants to be recognized and compensated for their effort. A detailed employee promotion policy makes the process easy for your organization.

The promotion can come in different forms, but it mainly includes the combination of a higher salary, a more senior job title, higher-level responsibilities, new leadership responsibilities, and decision-making power. In addition, it is regarded as a reward for loyalty, high performance, and dedication to the company. Therefore, when the promotion is spoken about, the first thing that comes to mind is “higher position, higher salary”. There are, however, three main types of promotion which are horizontal, vertical, and dry.

• Horizontal Promotions:

It involves a higher title and increased salary for the employee. However, there is little to no change in the responsibilities handled by the employee. This type of promotion is mainly referred to as “up-gradation”. It recognizes the employee that has gone above and beyond in the job and offers them a fair contribution but does not ask the employee to take on more responsibilities.

An example of this promotion is moving a Manager to a Senior Manager without increasing their responsibilities.

• Vertical Promotions:

This type of promotion is what we would immediately think of when the promotion is mentioned. It includes upward movement, a more senior title, higher salaries, and more responsibilities. This type allows the employee to contribute more to the company and gives them a more senior seat at the table. This promotion type could also change the nature of the job description to include leadership responsibilities or more direct reports.

An example is a Manager moving to be a Director with increased direct reports and decision-making responsibilities.

Promotion can come in different forms, but it primarily includes the combination of a higher salary, a more senior job title, higher-level responsibilities, new leadership responsibilities, and decision-making power.

• Dry Promotions:

The dry promotion includes all the responsibilities of a new title but does not include the benefits of the new title and responsibilities. This means that the organization will ask for more contributions from the employee but will not provide compensation and recognition in return. Employees are not in favour of this promotion type.

Promotions can be done in a discretionary method or paired with a job opening that employees can apply to. Granting promotions to outstanding employees has excellent benefits, some of which are:

1. Motivating other employees 
2. Showing that you value and reward efforts 
3. Reducing hiring costs
4. Reducing employee turnover
5. Showing that you value and promote the career growth of your employees.

The benefits of promoting employees cannot be overemphasized, and we hope this article has shed light on the importance of promotion.

Are you in need of further assistance with promotion policies to adopt? Please get in touch with us at +234 805 972 0824 and hello@talentaboard.com. 

Reference Link: https://recruitee.com/articles/employee-promotion