How to demote an employee in good way

Demotions are never pleasant. Let’s explore how to we can go about approaching the topic and best rearrange your team

CREDIT: This is an edited version of an article that originally appeared on Management Today

Demotions can be difficult for everyone involved but sometimes  there is a member of the team that you want around, but with less responsibility, or in a different role.

This is often seen publicly in government with Cabinet reshuffles and the Prime Minister rearranging the team around him; while they may be less common at an organisational level, sometimes it must be done.

In 2018 a study from OfficeTeam found that 46% of HR directors had witnessed a demotion and 14% of workers should expect to accept a lower-level role at some point in their careers. Perhaps unavoidably, this process or conversation may not be pleasant – so how do managers go about demoting someone in a way that limits negative ramifications? 

Gary Parsons, managing director at Talk Staff, advises, “Managers need to work with employees to identify the key strengths and future potential of each individual, as well as having a plan to overcome any challenges that may arise in the longer term”.

What other tips should managers remember?

Focus on the good

Demotions should not always be seen as failure but, at times, simply a change of responsibility or refocus on an employee’s strengths. “A sales manager I knew was demoted to being field-based again because that’s actually what he was best at” says Andrew Wilkinson, chair of the Institute of Directors. OfficeTeam concluded that 16% of demotions were caused by restructures, rather than errors or failures.

Planning

To avoid any anger or resentment, Claire Barnes, chief human capital officer at Monster Worldwide, advises that bosses consider, “how to create a better path forward. What do they need to do, or change, to show their value to the company? Is there a path to reinstatement, or can they start in a new direction?”.

Optimism

According to the study 38% of demoted workers are unsuccessful in attempts to get a new promotion. Sophie Hennekam, of Audencia Business School, says the answer is often “putting them (the employee) back in their old position”. Sophie says this shows that, “a career move has not gone to plan at this time – but a better fit isn’t impossible in the future”.

Legality

Employment lawyer, Jennifer Platt warns that a demotion “has to be agreed to by both parties”. Communication is vital. “Good demotions are best done when presented as a choice, rather than a penalty,” says Jennifer.