Difference Between Promotion and Demotion
PROMOTION
Promotion is a vertical movement of an employee within the organization. In other words, promotion refers to the upward movement of an employee from one job to another higher one, with an increase in salary, status, benefits, and responsibilities. This aspect of the job is what drives employees the most. The ultimate reward for dedication and loyalty towards an organization. In theory, a promotion requires more work and effort in a job.
TYPES OF PROMOTION
Horizontal Promotion: This kind of promotion rewards an employee with an increase in pay but little to no change in responsibilities. It is also regarded as an up-gradation of an employee. In the educational sector, an example of this is the move from lecturer to senior lecturer.
Vertical Promotion: Employee moves to the next higher level in the organizational hierarchy with greater responsibility, authority, pay, and status. This is the kind of promotion when an employee is promoted from a lower category. Generally, promotion means ‘vertical promotion.
Dry Promotion: Employee is moved to the next higher level in an organizational hierarchy with greater responsibility, authority, and status but no increment in salary. So When the promotion is made without an increase in salary, it is called ‘dry promotion’.
Open and Closed Promotion: Open Promotion is a situation wherein every individual of an organization is eligible for the position. Closed Promotion is a situation wherein only selected team members are eligible for a promotion.
Benefits of Promotion
- Expectations
- Reduce Attrition
- Cost-Efficient
- Career Growth
- Motivation & Productivity
- Need to Manage
- Rewards and Recognition
DEMOTION
A demotion refers to a permanent reassignment to a lower position than the employee had worked previously. Demotion can be either voluntary or involuntary and can occur due to poor employee performance, position elimination, disciplinary actions, or organizational restructuring. The position will generally have a lower level of responsibility or required skill, and a lower pay grade than the previous position.
TYPES OF DEMOTION
Voluntary Demotion: A permanent employee may request a voluntary demotion to a vacant position in a class with a lower salary rate, provided that the employee has previously achieved permanent status in that class or, the request for demotion is to a related class in the same job series as defined by the Personnel Commission.
Involuntary Demotion: An involuntary demotion is a disciplinary action and, as such, is subject to the disciplinary procedures in these Rules and Regulations. It is also called Compulsory Demotion.
Benefits of Demotion
- Reduced Expenses
- Less Risk
- Developed Employees
- Cause of Employees to quit
- Opportunity to Develop the Employee
- Additional Training
