Promoting employees internally can have a profound and positive effect on your business. However, it’s important you promote the right employee.
Internal promotions can act as a motivation for team members, prompting them to work harder and smarter to grow within your organization.
But, employee promotions shouldn’t solely rely on seniority levels or age. You can’t promote Ahmed simply because he was hired before Rana.
This is where performance appraisals come in. There are many types of performance appraisals, such as team performance reviews, 360-degree feedback appraisals, sales team performance appraisals, among others.
One type is a performance review for employee promotion. This type of appraisal is specific for companies that aim to promote employees internally.
Read on to discover the benefits of performance evaluations and how to conduct a performance review for employee promotion!
Benefits of conducting performance reviews
Employee performance appraisals fall under the broad HR umbrella of performance management.
There are many reasons why companies conduct performance reviews or appraisals. From getting a clear view of an employee’s performance during a specific period, such as a month, quarter, or year, to promoting employees.
The top benefits of employee performance reviews include:
- Measuring and comparing performance: Performance appraisals allow managers and employees to see the latter’s performance on quarterly, semi-annual, and annual bases and compare it over time. They can also review an employee’s development, or lack of development, during the review process.
- Determine rewards: By reviewing employee performance on a regular basis, managers can determine the appropriate rewards or training and development programs needed.
- Uncover potential: Whether it’s leadership potential or hidden skills, performance evaluations can uncover hidden skill sets among employees.
- Decide who is eligible for promotion: Based on regular performance reviews, managers can determine which of their team members is eligible for promotion, especially if the new role involves additional tasks.
Evaluate if the employee is ready for a promotion
Before conducting any type of performance evaluation, it’s important to evaluate the person you’re considering for the promotion.
Unfortunately, many companies conduct performance reviews the traditional way, resulting in wasted time, money, and a process that benefits no one.
In addition, an ineffective appraisal will likely result in the wrong person getting the promotion. This will likely increase employee turnover in your company.
So, before conducting the employee performance review for a promotion, you must first assess the employee and their readiness for upgrade in employment status.
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Review the job description for the new role
To determine whether a team member is eligible for a promotion or not, you should first review the job description for the new role. Review the needed soft and hard skills and see if the employee possesses them, needs to improve in certain areas, or is lacking in certain areas.
This step also makes it clear if there are knowledge gaps between the employee and the new position’s requirements.
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Review performance and achievements
The next step is to go over the employee’s performance over the past period. This could be 4 quarter, year-on-year performance or something else.
Consider if the team member has made any achievements in their current role that make them a suitable candidate for promotion.
If the employee has created a self-development plan in the past, compare it to their current goals to see how they’re performing personally and professionally.
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Assess skills
Evaluate your team member’s soft or employability skills as well as their hard or technical skills for the new position.
If you’re promoting an employee into a managerial or senior role where they have to mentor others, you may need further considerations. For example, you can conduct a psychometric assessment to uncover hidden capabilities and weaknesses.
How to conduct a performance review for a promotion
Now, let’s look at how to conduct a performance review to promote an employee. It’s important you maintain transparency, fairness, and clarity throughout the process.
Stage 1: Preparation before the performance evaluation
This involves gathering the necessary documentation, or proof, of the employee’s performance during previous appraisals, achievements, psychometric test results, and others.
It can also include feedback from peers so you can get a 360-degree view of your employee and how they engage with others in the company.
This step also involves defining the skills, competencies, and any accomplishments required for the promotion.
Stage 2: The performance evaluation for promotion
This is a during-the-review stage. In this phase, you should begin by scheduling the performance review and creating a comfortable setting. Make sure there is enough time for discussion without interruptions or work pending for you or your team member.
Begin by highlighting the employee’s positive attributes, their achievements, and positive performance over the past months, quarters, or even years. Offer specific examples or situations when possible.
Conduct a regular performance review where you review past performance against recent results. Discuss the employee’s strengths and weaknesses and ask them to describe what they think requires further development.
Next, present the opportunity for promotion, the new job description, and potential additional tasks. Explain why you think they’re a good fit for this new role. In this stage, you should also mention any changes in who they’ll be reporting to, what they’ll be reporting, any dependencies,…etc.
Finally, you should discuss potential training and development opportunities needed or available for this new role. Ask the employee about the kind of mentorship they expect and resources they may need.
You should also set short and long-term goals for the new position and related achievements.
Stage 3: After the performance evaluation
Following the meeting regarding the performance appraisal for promotion, you should write a summary or minutes-of-meeting. Share the summary, including top points discussed, with the employee, the HR manager, and your manager (if applicable).
Clarify when the promotion will be effective, make an announcement to the rest of the team, and continuously support your employee during the transition.
Provide feedback during the transition and identify milestones the employee achieves in their new role.
Wrapping it up
Performance evaluations can offer many opportunities for employees, managers, and businesses. However, many companies continue to conduct traditional performance evaluations that employees and managers find ineffective.
Performance evaluations are designed to encourage employees to perform better. Yet, research by Gallup found only 14% of employees “strongly agree that their performance reviews inspire them to improve.”
So, conducting performance evaluations to tick off a box in your to-do list as a manager or HR manager is counterproductive. For you and for your employees.
Successful performance reviews involve “creating a cultural shift in how people work,” notes Gallup. If your performance reviews, whether for promotion or in general, don’t motivate people to perform better, something is wrong.
Further reading
