How You Promote People Can Make or Break Company Culture

Promotions are a crucial part of career development and company culture. They signal what your organisation values and expects, influencing employee morale, engagement, and long-term commitment.

A survey of over 400,000 workers found that when people believe promotions are managed effectively, they are more than twice as likely to put in extra effort and plan a long-term future with your company.

Additionally, they are five times more likely to trust their leaders' integrity.

The High Stakes of Promotion Management

Effective promotion practices can significantly boost your company's performance. Organisations with robust promotion processes enjoy nearly triple the market average in stock returns, half the industry turnover rates, and superior metrics in innovation, productivity, and growth.

Despite these benefits, even top-tier companies often struggle with promotion management.

Among the 100 Best Companies to Work For, only 75% of employees believe promotions are awarded to the most deserving.

Promotions are inherently personal and relationship-driven, serving as a tangible measure of how well your actions align with the company's values.

When managed poorly, promotions can breed resentment and stifle career aspirations across the organisation.

Enhancing Promotion Practices

You can significantly improve promotion outcomes by focusing on the individuals the process is meant to support.

Here’s how:

Before the Promotion: Clarify Aspirations

Begin by understanding each team member's long-term aspirations. This sets a foundation for aligning their growth with your company’s development.

For instance, consider a senior call center manager who met with each employee to understand their roles, interests, ambitions, and gaps.

When a customer support employee expressed interest in IT, she positioned him to handle all basic IT needs in the call center, showcasing his skills and ultimately securing him an IT role.

This proactive approach not only promotes individual growth but also fosters a supportive and celebratory team environment.

By aligning team members' aspirations with business needs, you can drive both personal and organisational success.

When a Job Opens: Encourage and Advocate

A common frustration is the perception that promotions are pre-decided. Counter this by actively encouraging and advocating for employees to apply for new opportunities.

This involves more than just posting the job; you need to personally invite and support potential candidates, ensuring they understand the requirements and feel confident to apply.

For example, when a sales manager noticed that a talented junior salesperson wasn't applying for a new senior position, he took the time to encourage her.

He highlighted her achievements, assured her of her readiness, and provided guidance on the application process.

This not only boosted her confidence but also increased her chances of securing the promotion.

After the Decision: Generate Buy-In

Transparency in the promotion decision process is crucial. While everyone is curious about the "who," the real engagement comes from explaining the "why."

Share stories and examples of how the promoted individual met the criteria and how their advancement benefits the team.

This approach not only celebrates the individual but also recognizes the collective effort that made the promotion possible.

For instance, a marketing director, after promoting a team member, took the time to explain to the rest of the team how the individual's consistent performance and innovative ideas had contributed to the team's success.

By doing so, he not only justified the promotion but also motivated others to strive for similar achievements.

Post-Announcement: Re-Calibrate

Following a promotion announcement, engage with those not selected to recalibrate their career paths. This involves identifying whether the issue was readiness ("not now"), aspiration misalignment ("not this"), or dissatisfaction with the company ("not here").

Each scenario requires tailored support to ensure employees feel valued and supported in their career development.

For example, if an employee didn’t get the promotion due to a lack of readiness, work together to identify development opportunities and training that can prepare them for future openings.

If the issue was a misalignment of aspirations, explore other roles within the company that better match their career goals.

And if an employee is dissatisfied with the company, take the time to understand their concerns and work to address them if they are a good fit for the organisation.

Bring it all together

Promotions are about people. When you adopt a caring, coaching-oriented approach, every promotion can be a shared win, reinforcing a culture of trust, growth, and mutual success.

By systematically empowering leaders to implement these principles, you can reconnect employees with their aspirations, foster trust in leadership, and create a vibrant, supportive company culture where everyone feels valued and excited about the future.

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