The Importance of Employee Promotion in Business Organization

 

Introduction

The advancement of an employee from his or her present job position to another job position that has a higher salary range a higher-level job title, and higher-level job responsibilities in an organization is defined as a promotion. Sometimes a promotion results in an employee taking on responsibility for managing or supervising the work of other employees. Decision making authority tends to rise with promotion as well (Heathfield, 2019).

 

Why employee promotion is so important?

Promotion or career advancement is a process, which an employee of a company is given a higher share of duties, a higher pay scale or both. A promotion is not just beneficial for employees but it also highly crucial for the business organization. Promotion boosts the morale of promoted employees, increases their productivity and hence improves upon the overall performance of the organization, which has direct impact to both top and bottom line (Belyh, 2020).

 

Behyh (2020) has stated that a promotion is a major form of boosting employee motivation and morale. This results in high productivity and prevents organization from losing its valuable and important employees. 

Promotions often bring new responsibilities that give a sense of being part of the management. This feeling is a critical factor in employee satisfaction as it helps them develop and grow. (Sachdeva, 2021)

 

Most of the business organizations around the globe are engaging in employee promotions regularly for their efforts considering below reasons.

§  Reduce employee resistance and discontent

§  Encourage employee retention

§  Develop competitive spirit at the work place

§  Appreciate and recognize employee performance

§  Boost employee motivation

§  Groom leaders for tomorrow 

The national digital service provider, Sri Lanka Telecom is engaging in employee promotions to give more opportunities to internal staff rather than going external or outsource model. As a result, all vacant and new positions within the organization are being filled by internal promotions and internal recruitments. In addition to that, grade promotions also being taken place regularly base on employee seniority.

Conclusion

Employee promotion plays a vital role in employee satisfaction. It helps in employee engagement, boost morale and ultimately in productivity of the organization. Employee promotion is also a helpful tool to reduce employee turnover. So, for these reasons, companies must promote deserving employees in timely intervals.

 

Reference

Belyh, A., 2020. CLEVERISM. [Online]
Available at: https://www.cleverism.com/when-and-how-to-promote-your-employees/
[Accessed 26 April 2021].

Heathfield, S., 2019. the balance careers. [Online]
Available at: https://www.thebalancecareers.com/a-promotion-rewards-an-employee-for-work-contributions-1918231#:~:text=An%20Employee%20Promotion%20Recognizes%20Their%20Contribution%20to%20the%20Firm&text=The%20advancement%20of%20an%20employee,organization%2C%20is%20cal
[Accessed 26 April 2021].

Sachdeva, P., 2021. Quora. [Online]
Available at: https://www.quora.com/What-is-the-importance-and-benefits-of-an-employee-promotion
[Accessed 26 April 2021].