Promotions are powerful tools for recognizing, rewarding, and motivating your most hardworking employees. By promoting top performers, you not only celebrate their contributions but also send an important message to the rest of your team: Hard work is noticed, valued, and rewarded. However, before handing out promotions, it’s crucial to ensure that you’re making a decision that benefits both the employee and the organization as a whole. Below are three steps to take before offering a promotion, along with expanded insights to help you make the right call.

1. Assess Current Performance

Evaluate the Employee’s Track Record

Before you even think of elevating someone to a higher position, take a close look at their performance in their current role. Ask yourself: Has this employee consistently met or exceeded their performance metrics? Do they demonstrate a strong work ethic, reliability, and initiative?

Identify Transferable Skills

Promotions often involve a change in responsibilities or an increase in scope. Determine whether the skills and qualities the employee exhibits (such as leadership, problem-solving, adaptability, and communication) align with the requirements of the new position. For instance, a customer service representative with outstanding conflict-resolution skills may be a prime candidate for a supervisor role, as they’ve demonstrated the ability to manage difficult situations effectively.

Look at Growth Potential

Performance is a solid indicator of success, but you should also consider the employee’s potential for growth. If someone excels in their current role and is eager to learn, they’re more likely to adapt successfully to a more challenging position. This potential can be gauged through regular one-on-one meetings, feedback sessions, and performance reviews.

2. Ensure There Is a Match

Evaluate Job Satisfaction

Being good at something doesn’t necessarily mean an employee will enjoy doing it long-term. A promotion might come with tasks or responsibilities that are vastly different from what the employee is accustomed to. Make sure the newly promoted role aligns with the employee’s interests and career aspirations. If the new responsibilities are a poor fit, it could lead to dissatisfaction, burnout, or even turnover.

Consider the New Responsibilities

Promotions typically involve more decision-making authority, strategic planning, and leadership tasks. Ask whether the employee is excited about these elements. If their passion lies in a different aspect of the business, perhaps a lateral move or a different developmental opportunity might be a better match.

Open a Dialogue

Don’t make assumptions about what your employee wants. Have an open conversation about what the new role entails, the expectations involved, and how it aligns with their career goals. This transparent communication not only helps the employee feel valued but also ensures that they are mentally prepared for any new challenges that lie ahead.

3. Experiment Beforehand

Assign a Test Project

Before making anything official, give your candidate a chance to prove themselves in a real-world scenario. Assign them tasks or responsibilities similar to those they would handle in the promoted role. This could involve leading a small team project, managing a budget, or overseeing a new initiative.

Monitor Performance and Challenges

During this “test run,” take note of how the employee handles challenges, time management, and team collaboration. Do they thrive under pressure, or do they struggle with the added responsibility? These observations will be critical in determining whether they can handle the demands of the new role on a permanent basis.

Gather Feedback

Encourage feedback from the employee’s peers, direct reports (if any), and even clients if applicable. A 360-degree view of their performance will give you a more complete picture of their readiness. If feedback is generally positive and the employee seems comfortable leading, it’s a strong indicator they’ll succeed in the promoted position.

Why These Steps Matter

Strengthen Employee Engagement

Taking the time to thoroughly assess, match, and test employees before promoting them demonstrates that you value careful decision-making. This thoughtful process can improve overall employee morale and engagement because the workforce sees that promotions are merit-based and well-earned.

Reduce the Risk of Bad Hires (Internally)

Promotions are essentially hiring decisions for a more senior role. A “bad hire” internally can lead to wasted resources, decreased morale, and lost productivity. By following the steps above, you minimize the risk of placing someone in a role they’re not suited to handle.

Establish a Performance-Driven Culture

When employees know that promotions are based on clear performance metrics, skills alignment, and demonstrated readiness, they’ll be motivated to reach similar milestones. This culture of transparency and fairness can drive better performance across all levels of the organization.

Frequently Asked Questions (FAQ)

1. How do I measure performance effectively before promoting an employee?

Use objective metrics such as key performance indicators (KPIs), project outcomes, and peer or manager feedback. Regular one-on-one check-ins and performance reviews can also provide insights into an employee’s progress and growth potential.

2. Should I discuss a potential promotion with an employee before finalizing it?

Yes. Having an open conversation about the requirements, responsibilities, and expectations of the new role helps ensure that both you and the employee are on the same page. This can prevent future misunderstandings and ensure a better long-term fit.

3. What if an employee has strong technical skills but lacks certain soft skills?

Technical expertise is essential, but soft skills such as communication, leadership, and adaptability are just as important—especially in a more senior or managerial role. If an employee has gaps in soft skills, consider offering training, coaching, or mentoring opportunities before finalizing a promotion.

4. How often should I reevaluate employees for potential promotions?

There’s no one-size-fits-all timeline. Some companies use annual review cycles, while others have ongoing evaluations. Look for key indicators—such as consistent overachievement, willingness to take on new challenges, and demonstrated leadership—that signal an employee may be ready to move up.

5. What if the employee turns down the promotion?

An employee may decline a promotion if they feel they aren’t ready, if the new responsibilities don’t align with their career goals, or for personal reasons. In such cases, discuss alternative paths for advancement, training opportunities, or future timelines for reevaluation.

Final Thoughts
Promoting the right individual at the right time can have a powerful, positive impact on your organization’s dynamics and overall success. By assessing current performance, ensuring there is a true match for the new role, and experimenting beforehand with test projects, you’ll set both the employee and your company up for long-term success. Remember, a promotion not only rewards past achievements but also paves the way for future growth—both for the individual and the organization.