Dealing with Demotions

08/19/08

Most managers will face this situation eventually: An employee’s performance after a promotion simply hasn’t measured up—despite counseling, coaching, and patience. The only way to keep that person on the payroll is to demote him to his old position.

How can HR help managers make this ego-crushing news go down easier? Here are some suggestions.

Be Empathetic
Some workers who have been busted down may quit just to save face. If they performed well in their old job, however, management should make every effort to retain them in that position.

Emphasize that the demotion is an attempt to salvage the employee’s career. Management is offering the opportunity for a worker with proven skills to stay on the payroll in what was, in hindsight, a more suitable job. Some people may actually welcome a return to work they knew and did well. If they were promoted over their heads, it may come as a relief.

In any event, managers must handle the situation with utmost tact for the sake of the employee’s pride and self-esteem.

Justify the Action
Managers should, of course, gather hard data on the employee’s substandard performance and the measures they took to improve it. These data may include, for example:Objective proof of the worker’s below-par performance, such as productivity reports that compare actual vs. required output in terms of quality, quantity, cost, or other criteria.

A summary of the training management provided to help the employee handle the new job’s responsibilities.

A history of manager/worker meetings that discussed the employee’s shortcomings, explored ways to correct them, and evaluated results.

Any performance memos, warnings, disciplinary actions.

Don’t Get Personal
Teach managers to stick to the facts like bark to a tree. The demotion wasn’t based on personalities, prejudices, or other petty motives. Rather, it happened because, despite the best judgment of both parties, the job just didn’t work out. On the positive side, however, management has made a good-faith offer of continued employment—which managers should point out at every turn.

Should They Rejoin Former Peers?
Assigning demoted employees to a different work group minimizes their embarrassment and the pressure to explain what happened. Small companies, however, may have no choice but to place someone with his or her former peers.

If that’s the case, HR might suggest that managers let the demoted worker decide how much information to volunteer about the circumstances. Demoted workers who were popular with the old gang may treat the situation like a homecoming. Others, however, may prefer to resume their old routine quietly.

Learn from the Experience
Once the matter is resolved, urge managers to learn from it by trying to understand why the promotion backfired. Ask introspective questions such as:

What specific management or technical skills did the employee lack? Which were major contributors to his or her downfall?

What remedial training did the company offer to strengthen those skills when signs of trouble appeared? Why didn’t it work?

Did the manager have enough time to coach and train the floundering employee adequately? If not, why not?

What types of training or experience might the company offer in advance to groom other lower-level workers to handle promotions successfully?

Do managers know which skills are essential for success in the higher position? Have they been trained to assess those skills accurately when weighing candidates for that job?