In many organizations, the Compensation Department meets a manager's promotion request with skepticism. We automatically doubt the truth of the request, sure that the manager is only after a higher salary for a demanding employee. Of course it's our job to keep salary administration on the up and up. But think about the atmosphere that we create by challenging a manager who has contacted us with a genuine request. It's contentious, plus it demeans the manager's judgment. Bottom line, we're immediately setting up practical and emotional roadblocks to collaboration.
Why do we need to build collaboration with the manager when Compensation has the final say? In practical terms, we need the manager's cooperation in the way the decision plays out because we may have to say no, and we don't want the decision to seem unfair or divisive. We also need to support the manager through the entire process since the impact on the employee is such a sensitive issue, both when the promotion is not approved and when it is.
In a broader sense, immediate skepticism of a manager's promotion request undermines the value proposition we have worked so hard to build. If we want employees to think the company believes in their career development, a balanced treatment of promotion requests is crucial. Instead of thinking about a promotion request as a transaction, we should consider shifting our thinking to career development, with the employee's understanding and acceptance of their current and future roles as our goal. We should coach managers to this mindset as well.
How can things be done differently? Meet manager requests with a scheduled discussion using a career architecture framework, if available. Ask the manager to itemize examples that illustrate how well the employee qualifies for the new level of responsibility -- rather than allowing them to follow the natural habit of outlining successes in past performance. Then identify the behaviors needed at the new level of contribution and discuss whether the employee can currently be relied on to perform at that level. If your organization encourages career movement, discuss whether this is going to be a growth assignment instead of a comfortable match for which the employee has already qualified.
Commit to mentoring managers through the decision process and, if needed, through their discussions with the employee. If you need to say no to a promotion request, don't just leave it at that. In alignment with the career development mindset, discuss where the employee's behaviors and performance need to improve, and help them strategize how to talk over the development plan with their employee to support the emotional and engagement dimensions of promotion requests as well.
Margaret O'Hanlon brings deep expertise to discussions on employee pay, performance management, career development and communications at the Café. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans. Earlier, she was a Principal at Willis Towers Watson. A former Board member for the Bay Area Compensation Association (BACA), Margaret coauthored the popular eBook, Everything You Do (in Compensation) Is Communications, a toolkit that all practitioners can find at everythingiscommunication.com.
Good reminder post. Having just gone thru the annual increase process, promotions are always an issue not only on the appropriateness and ability of the employee but more the financial aspect. Never enough dollars in the increase budget for all the promotions desired. The post reminds us that this is an annual year long process of discussion and planning. To my mind that means being able to budget approved promotions separately from the increase budget but which requires much advanced planning. How to get managers to plan ahead for the financial part as well - that remains a challenge!
Posted by: Karen Kervick | 04/21/2021 at 07:36 AM
I appreciate your thoughts, Karen. They have gotten me wondering whether there are ways to improve managers' understanding of budgeting for promotions--definitely worth another article if I can pull enough details together. Thanks!
Posted by: Margaret O'Hanlon | 04/22/2021 at 10:18 AM