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How your reward strategy may be destroying your business, one promotion at a time

Posted by Daniel Rose - June 2, 2010 - Blog

It’s com­mon to pro­mote staff from a front line posi­tion to a line man­ager posi­tion because of their excel­lent tech­ni­cal work or skills. It’s also com­mon that such pro­mo­tions often don’t work out well. These new man­agers don’t work out as was expected, for sev­eral reasons.

Pri­mar­ily, the pro­mo­tion of tech­ni­cally com­pe­tent staff fails because the com­pe­ten­cies are dif­fer­ent. Even at a rel­a­tively low man­age­ment level, such as a team leader, tech­ni­cal skills won’t keep a man­ager afloat. They need more exten­sive inter­per­sonal skills, enhanced analy­sis skills and great plan­ning abilities. These traits were prob­a­bly not present in their front line role, at least to the same extent. This cre­ates a skill gap, which means your staff mem­ber needs imme­di­ate devel­op­ment, to even come close to suit­ing the role.

Sec­ondly, a large num­ber of tech­ni­cal front line staff aren’t inter­ested in man­age­r­ial work. Often the pro­mo­tion comes because its the only (or easiest) way to reward top front line per­form­ers. In many organ­i­sa­tions there just isn’t pro­vi­sion to finan­cially reward staff any other way. Pro­mot­ing for such a rea­son does your organ­i­sa­tion an injus­tice. You may end up with one happy employee, but at what price. A poor per­form­ing employee is worse than no employee at all.

It’s really some­thing that needs to be included in a reward strat­egy. Fixed, heirar­chi­cal pay grades aren’t flex­i­ble enough, and the result is inef­fec­tive rewards that slowly but surely dam­age your organisation.

Buffer
HR, Strategy

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