An organization can use various forms of incentives to motivate its employees. Employee motivation is important for ensuring that various activities for which employees are responsible are carried out in the best interests of the organization. Employees with low motivation levels may feel frustrated with additional tasks assigned to them and may not contribute to the best of their abilities.
It is important to note that well performing employees expect reward in the form of extra incentives such as salary hikes, bonuses, promotion and so on. An employee who has been working with an organization for past many years may also expect promotion on account of his/her loyalty towards the organization.
Management should ensure that efficient and well deserving employees are promoted on a timely basis. However, it is not possible to promote every employee in the organization.
Employees should be promoted on the basis of their contribution towards the success of an organization. Promotion process should be free from any kind of favoritism towards any particular employee; otherwise it may result in conflicts and dissatisfaction among the employees.
Five Important Benefits of Employee Promotion
Timely Promotion Helps in Employee Retention
Management should identify talented employees and ensure their timely promotion. Any delay in promotion can result in high level of dissatisfaction which may force an employee to leave the organization on account of better opportunities which are available outside the organization. Every organization should set predefined parameters on which an individual’s performance will get evaluated. This evaluation should be used as a basis for recommending employee promotion. Hence, employee promotion can be used as a measure of retaining employees with the organization.
Promotion helps to Control and Save Costs
An employee already working with an organization will have a better understanding of business processes and systems. Hence, it will be easier for him/her to learn and implement new activities in comparison to an employee hired from outside the organization. An outside employee may take time to adapt to new work environment which may result in delayed execution of key tasks. Costs that may have to be incurred in order to hire and make a new employee comfortable with the organization’s business and work environment will be saved by promoting an employee from within the organization.
Internal Promotion Reduces Employee Resistance
Employees may find it difficult to work with and report to an individual who has been hired from outside the organization. Any employee who has been internally promoted may find less resistance and negative reaction from his/her subordinates or team members.
Promotion Improves Motivation Level
Timely promotion can give a boost to employee motivation which will help in increasing the level of employee satisfaction. A satisfied employee will always make extra efforts to increase his/her level of contribution in the achievement of individual as well as organizational objectives.
Promotion Helps to Improve Company Image
Promotion may give a sense of belongingness to an employee. A loyal and satisfied employee will always appraise his/her organization. He/She may even recommend others to join the company which may help the company in attracting more talented employees.