If you don’t have a clearly defined promotion policy you should adopt one. Atlantic Payroll Partners understands that employee retention is important. We’ve put together some tips to help you retain employees with a promotion policy.

Being internally  promoted is usually a sign that the employee has made noteworthy contributions to the company. However, dilemmas can arise if other employees regard the promotion as unfair or inconsistent with normal business practices.

Promotions stemming from favoritism can trigger coworker resentment, or a discrimination lawsuit if the reason for the preferential treatment is due to a protected class such as gender, race or age. We’ve compiled the 5 steps to retain employees with a promotion policy.

1. State the Purpose of the Policy

Briefly describe your position on employee promotions and why the policy is necessary. You might say that your company believes in promoting from within, and the purpose of the policy is to establish guidelines that endorse this belief.

2. Define Promotion

Say that a promotion moves the employee to a more significant role in the company. Then, explain the basis for this escalation.

Per a report by WorldatWork, 80% of organizations defined promotions based on higher-level responsibilities or an increase in pay grade, band or level.

Some employers offer promotions without a pay raise, “employees will usually not feel completely satisfied with a promotion unless there is a meaningful increase in base pay,” according to the Society for Human Resource Management.

3. Be Clear About the Eligibility Requirements

Any employee in good standing with the company should be eligible for promotion consideration, provided they meet the qualifications for the role.

Employees should understand that promotion depends not just on external influences. External influence, such as experience, education and technical abilities — but also on their personal ambition and attitude. For example, an employee who doesn’t want a promotion, despite performing well in his or her current role, would not be suitable for advancement.

4. Describe the Application and Approval Process

Questions to consider:

• The methods that are used to communicate opportunities for advancement.
• How long will promotion vacancies be posted internally?
• What is the process when department heads wish to recommend one of their staff members for promotion?
• When and how should employees apply directly through HR?
• What are the procedures for promotions at the management and chief officer levels?
• Who is involved in the approval process?
• How long can an employee stay in his or her current role after being approved for promotion?
• When and how will applicants who were not selected for promotion be notified?

5. Communicate the Policy

According to SHRM, employers tend to under-communicate their promotion policies to the general employee population.  This could cause the organization to miss out on the chance to attract, motivate, and retain employees. Along with creating the promotion policy, make sure you develop a communication strategy for recruitment and retention purposes.

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