Leadership: Rethinking Promotion as a Reward for Good Performance

I am going to say something controversial …. “organizations need to stop using promotions as a reward for great performance!”

While promotions signify advancement within an organization, their effectiveness as a reward for performance should be questioned. The hard truth is that stellar performance at one level does not guarantees success at the next higher level. This is because excelling in the current role does not necessarily equate to readiness for increased responsibilities nor the ability to deal with complexities associated with a higher position — strategic thinking and planning. Hence, relying on promotions as a recognition and reward for good performance will lead to an adverse outcome on organizational performance.

Promoting individuals who lack the necessary skills or aptitudes to perform at elevated roles can have several significant negative impacts on both the individual and the organization:

• Decreased Performance: Individuals promoted beyond their capabilities will struggle to fulfill the demands of their new roles. This will result in decreased productivity, lower quality of work, and an inability to meet performance targets. Ultimately, this will undermine team effectiveness and organizational success.
• Loss of Confidence: Being promoted…