How to promote staff

Andra Glyn-Jones

Managers who elevate employees into more senior roles show staff their contributions are rewarded - plus they can reduce training costs through better succession planning. But assuming it's as much science as it is an art, how can they make internal promotions that add value?

To Andra Glyn-Jones, people partner at Deloitte, the key to successful internal promotions - while appeasing those who miss out - is applying good systems to the selection process.

That means ensuring the competitive process for internal promotions is based on good documentation about the role, competency models and other objective criteria.

But managers of small-to-medium enterprises (SMEs) have neither an HR department nor performance management systems run the greatest risk of promoting the wrong person, says Glyn-Jones.

So what can these SME owner-operators do to engender similar levels of objectivity into internal promotions? Glyn-Jones recommends they identify the following:

* The soft and hard skills required for that role.

* Sound employee performance-evaluation processes.

* A specific communications plan for announcing promotions.

* Well-conceived training plans aimed at enhancing the potential of employees who are promoted.

A bad promotion costs a firm up to seven times the promoted manager's annual salary, and Glyn-Jones says this sort of mistake can put many SMEs out of business. But regardless of size, she says managers within any firm can minimise the risk of getting promotions wrong by creating a "no-surprise" working environment for staff.

For example, as well as monthly self-generated reviews, her staff undergo a catch-up every six months.

Ideally, Glyn-Jones says these reviews should take into consideration their pay, what is on an individual's career-plan horizon, what they need to do to get their next promotion and identify what the company can do to help.

By refusing to include others in the internal promotion process, HR specialist Geoff Summers claims many managers risk making decisions that aren't in the best interests of their organisation.

Without sufficient objectivity he says managers from big and small firms run the risk of promoting people who most closely resemble themselves.

"The danger in being too paternalistic is you risk falling for the 'halo effect' and only promoting people who mirror your own behaviour rather than on merit and competency," says Summers, national vice-president of the HR Institute of New Zealand.

Within larger firms he says promotions should include the manager to whom the applicants will report and an HR manager to offer advice on appropriate selection criteria. The biggest danger of managers "going solo" with internal promotions, explains Summers, is the risk of other candidates feeling unfairly dealt with by the decision.

He says managers should recognise that by including another person in the internal promotions process they are doubling the observation of candidates. Line managers should get a colleague to help and owner-operators of an SME should never do it alone. They should always consider input from a third party, says Summers.

As well as helping in the evaluation process, he says another person in the room during an interview for promotion can act as a witness if unsuccessful candidates challenge the decision.

More experienced managers are able to make core judgment calls because they have seen situations before.

Nevertheless, he urges everyone responsible for internal promotions, especially new managers, to seek third-party input.

"And for SMEs, that could mean seeking independent advice from industry associations, such as the Employers' and Manufacturers' Association," says Summers.

He says the hardest internal promotions are those where two or more candidates rank equally on an objective analysis of technical competencies.

But in those situations, Summers says it is not uncommon for managers to go with their gut instincts on who will add the greater value to the organisation by boosting productivity and team collaboration. More often than not he says the softer skills that decide who gets the nod for promotion include:

* The way someone relates with staff.

* People-management qualities.

* How they delegate responsibility and authority.

* Their ability to coach and motivate.

* The ability to listen and diagnose problematic issues.

* The ability to influence others and build productive cross-departmental relationships.

* Their integrity and conscientiousness.

Nick Ang, HR manager with civil constriction firm Infracon says part of that gut instinct is knowing your industry, its people and how candidates have performed. The second step is to compare each candidate's skills and competencies against pre-established managerial attributes.

"What often tips the [promotion] balance is the commitment and overall contribution an individual brings to the climate and culture of their organisation," adds Ang.

So how do you ensure being pipped for promotion doesn't affect the productivity of unsuccessful candidates or trigger their decision to resign in disillusionment? Glyn-Jones says the key to keeping good people who have been overlooked for promotion is to keep the communication channels wide open.

"This is especially important if someone from a graduate intake is suddenly promoted well ahead of their peers."

She says not properly announcing a promotion to employees in a professional manner can lead to workplace issues, such as rivalry and jealousy.

"That's why we clearly explain what individuals need to do to meet the promotion bar and what they need to do [after the event] to improve," says Glyn-Jones. "For those continually failing to meet the performance bar it might mean playing to existing strengths and re-working their existing role accordingly."

Within Infracon, handling the disappointment of missing promotion means having face-to-face meetings with all unsuccessful candidates before the promotion is broadcast to the rest of the organisation.

From Ang's experience most people who miss out on promotion take it on the chin if they know why they were not selected.

That is why he tries to ensure unsuccessful candidates have the necessary skills and training needed to enhance their opportunity for promotion next time around. And if candidates lack people-skills, the company will work to mentor any needed behavioural changes.

"But don't forget to help the newly promoted employee to grow successfully into their new position by offering adequate training and consistent feedback," recommends Ang.

Tips to internal promotions

* Avoid the halo effect.
* Defer to gut instinct where appropriate.
* Communicate the decision throughout your organisation.
* Front up to unsuccessful candidates with explanations.
* Establish objective performance measurement criteria.
* Never interview candidates solo.
* Create a no-surprise environment for staff.
* Include your HR professionals.
* Promote on merit.
* On "line-ball" decisions let softer skills tip the balance.
* Help unsuccessful candidates to hit the performance bar.