Job Promotion

What is a Job Promotion?

A job promotion is when an employee moves to a higher position in the same company. This leads to more responsibilities, higher levels of authority, and a better salary. Job promotions are often permanent, but a company may offer temporary promotions depending on its needs and requirements. For example, if a junior business analyst is promoted to a senior business analyst, he will perform extra duties, have higher status, and will receive a better salary.

Why is promotion important?

A job promotion is important because it officially recognizes an employee’s performance and commitment to work. This will motivate the employee to perform better in their role. Companies evaluate performance over a period and recognize it by promoting the employee to a higher role or grade. Employees can also take on new responsibilities and challenges, ultimately leading to career growth and job satisfaction.

What are the Types of Job Promotion?

While a job promotion generally means the movement of employee to a higher position or a better salary, it is divided into 4 different types:

Horizontal promotion

If an employee is promoted to a better position in the same department or category, it is called horizontal promotion. Often, there is no change in the number of skills or responsibilities undertaken in the new role. There is, however, a new title and a pay raise.

For instance, a junior sales representative being promoted to a senior sales representative is called a horizontal promotion. There may not be a change in the skills required or duties to perform, but there will be an increase in salary and a new title.

Vertical promotion

Vertical promotions give an employee more responsibilities and a change in skills. Higher positions that are vacant are filled by high performing employees. This results in internal promotion, career growth, and a change in experience.

Dry promotion

As the name itself suggests, employees only receive extra responsibilities. There might be an increase in status, but there are no monetary benefits. Employees should avoid this type of promotion as they are being underappreciated and undervalued.

Open and closed promotion

Any promotion falls under two categories – open or closed promotion. Any employee who meets the position’s requirements can apply for an open promotion. However, closed promotions are open to people who have a specific number of years of experience, skills set, and qualifications.

What are the Objectives of Job Promotion?

Job promotions help the company fill vacancies with internal talent and recognize employees for their high performance. On the other hand, employees feel a sense of accomplishment. The following are the 5 main purposes of promotion:

1. To recognize and reward

When an employee has been continuously contributing higher standards of work to the company, he is recognized and rewarded by a promotion. One main objective of job promotion is to appreciate employees and show that the company values their hard work and dedication.

2. To motivate employees

Employees who feel like they are valued and have more opportunities to grow are more likely to be motivated in their work.

3. To fill higher vacancies

Open positions at a higher level can be filled by qualified internal talent. This allows companies to fill higher vacancies with people who are already familiar with the company’s procedures, culture, and policies.

4. To attract and retain

Potential employees who see that the company offers great opportunities for advancement and growth will be interested in joining the company. Also, the existing employees are also more likely to stay with the company for a longer period.

5. To increase the overall efficiency

When qualified employees are placed in the right places, they are more motivated and engaged. This creates a positive work environment, thereby improving the overall efficiency of the company. It allows more rightful usage of skills and experience, increased productivity, and profitability.

What are the Benefits of Job Promotion?

Job promotions are advantageous to both employees and employers. While promotions can reward employees and fill higher vacancies, they also offer numerous other benefits. There are 5 benefits of a job promotion:

1. Reduces employee turnover

When employees are placed in their rightful positions, they are motivated, satisfied, and engaged. They are also provided with opportunities to grow and advance in their careers, leading to higher salaries and more benefits as well. This, ultimately, creates a more positive work environment and reduces any chances of employees leaving the company.

2. Increases career growth opportunities

Employee promotions directly facilitate career path and growth. They are exposed to new areas of business, have access to new training opportunities, and can mentor other employees. By growing in their career and learning new skills, employees can become more successful in their careers.

3. Saves costs

By promoting employees from within, the company can save costs on recruitment. This includes the costs of advertising, screening, conducting interviews, and training.

4. Motivates other employees

When employees see that their coworkers are being promoted for their high performance and contributions, it acts as a motivating factor that their hard work too will be recognized and rewarded.

5. Improves the company’s image

The company becomes more attractive to potential employees as it provides opportunities for career advancement. Top talent is always looking for opportunities to develop and grow in their careers, so they may be interested in working for a company that provides these opportunities.

What is a Promotion Policy?

A promotion policy determines if an employee is eligible for promotion. It includes the criteria, processes, and guidelines for the same. These are set by a company’s human resources team to set specific goals for employees to qualify for promotion. Developing a promotion policy is important as it allows the management to check if an employee has the required qualifications to get promoted.

A promotion policy contains the following:

1. Eligibility criteria

A promotion policy clearly states the eligibility criteria for being promoted to a higher level. It typically includes factors like experience, training, performance, skills, and so on, which are explained below.

2. Experience required for the new role

Companies require employees to have a specific amount of experience in their current role to be eligible for promotion. This makes sure that the individual has the required skills and knowledge to take on new responsibilities.

3. Training and development program

Apart from experience, employees may also need to have certain qualifications or training before being promoted. However, some companies provide qualified employees with training for a promotion, making sure that they have the required knowledge and skills.

4. Methodology for assessing employee performance

Promotion policies contain the factors that should be considered when taking promotion decisions. Some methods to assess employee performance include performance reviews, manager feedback, and assessment centers. This requires the company to maintain proper performance records.

5. Promotion process

A promotion process starts from identifying the need for promotion, developing eligibility, assessing performance, and making sure the employee is ready for the promotion. Promotion policies should mention the steps that should be taken, such as getting approval from stakeholders, updating job description, and so on.

6. Weightage of seniority-based promotions and merit-based promotions

Providing weightages to seniority-based and merit-based promotions is challenging. Most companies take a hybrid approach, giving equal weightage to both. Regardless of the weightage, companies should ensure the decision aligns with the culture, values, and goals. It should also be fair, giving all employees an equal chance of being promoted.

Whom to Promote During the Employee Promotion Cycle?

Promotion cycle is the period during which employees are evaluated on a number of factors to determine their eligibility for a promotion. There are a few factors employers consider when they are deciding whom to promote:

  • Performance
  • Experience
  • Seniority
  • Potential

One common mistake most companies make when deciding to promote someone is to rely only on one factor instead of considering all the factors.

To take an informed decision, investigate if the employee is taking on more responsibilities than what their title demands. Also, check if the high-performing employee has worked long enough without any appraisal or a promotion. Once these are in place, review the employee’s performance records and evaluate if the employee is fit for the company’s culture and vision.

How to Ask for a Promotion?

There are some cases when an employee has to reach out first to ask for a promotion. It is most common when the company doesn’t have a formal promotion process yet, the company might be too small, or the manager does not have enough time to identify and promote employees.

However, this should not stop an employee from reaching out first and asking for a promotion. He should make sure to be prepared before scheduling a meeting. To ask for a promotion, follow these 5 steps:

1. Research your current role

Employees should research the current market rate for their position and level of experience. This will help in negotiating salary effectively.

2. Gather data and prepare a report on performance

In the next step, individuals should gather data to show as evidence that they have performed well against the key metrics. Consider providing specific examples from peers and highlighting major accomplishments. Additionally, prepare a report of all data collected in a clear way.

3. Schedule a meeting with the manager

Once the report has been prepared, employees should be prepared to answer questions. Schedule a formal meeting with the manager by mail or direct communication.

4. Be confident

When asking for a promotion in the meeting, employees should show confidence in their abilities and the value they provide to the company. The manager will take the employee more seriously if the employee is confident.

5. Develop a plan for improvement

If the manager rejects the employee’s case for promotion, he should thank the manager for their time and ask for feedback on why they were rejected. By discussing the career plans with the manager and developing a plan together to achieve them, it shows the employee is serious and committed to the company. Once all the standards have been met, the employee can present their case again.


Hence, job promotions make employees feel a sense of accomplishment and excitement for their new role and opportunities ahead. A job promotion is an act of recognizing someone’s capability and rewarding them for it. One way employees can feel confident when asking for a promotion is to prepare their own self-evaluation. This helps highlight accomplishments, present peer feedback, and present a compelling case for why they deserve to be promoted. To prepare your own self-evaluation, click here.


What is a career promotion?

A career promotion is when an employee moves to a higher position within the company. This is an act of recognition from the employer and usually comes with more responsibilities, increased authority, and a better salary.

What criteria do employers typically consider for promotions?

When considering for a promotion, employers consider factors like performance, skills, seniority, experience, and personality.

What is the difference between promotion and upgrading?

While a promotion refers to advancement to a higher position with more pay, authority, and responsibilities, an upgrade means an increase in pay, but without any change in title and duties.



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