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Changes in the promotion policy. They may also conduct an all-hands meeting to discuss it and answer any questions. The employee promotion policy should also be paired with internal job openings. 2. Reinforce knowledgeWhen changes are made to the existing promotion policy, email updates should be sent across the organization. Some companies also develop a mandatory internal quiz to ensure all employees know and understand the new promotion policy. When should I implement a promotion policy?Implement a promotion policy when your company is big enough to have hierarchies. Normally, companies with ten or more employees should have a promotion policy in place to give opportunities for career growth. Do small businesses need promotion policies?Businesses consisting of small teams of under ten employees may not need a promotion policy. However, Fountain would argue that all companies that plan to advance talent internally should have promotion policies in place.Promotion policies help structure a business when it divides functional teams in its growth stage. As their business enters this stage, founders should consider implementing a policy to internally promote employees to managerial positions before hiring new talent.Are there consequences to not creating a promotion policy?Not having a defined promotion policy gives way to unfair promotions and discrimination in the workplace. “The advancement gap (the gap that occurs when marginalized individuals are promoted at a slower rate than others) can be mitigated through an effective promotion plan,” says Fountain. “A promotion plan also helps guard against other equity issues and EEOC issues.”Not having a promotion policy may discourage talented candidates from applying to the organization. This could be due to an (apparent) lack of value for hard work or career growth milestones in place. Keep empathy at the heart of your employee promotion policyAt the end of the day, employees simply want to know that they're working towards something meaningful and that they have a fair shot at achieving it. While your company's mission and ESG initiatives can help support that, your workers also need to know what's in it for them. They want to know how your organization intends to help them meet their professional goals. Having a formal promotion policy and communicating it to your staff can go a long way toward employee retention and engagement. Some employees may have a record of good performance and be eager to reach a higher level or move laterally within your organization. If they don't have the perfect mindset or skillset, coaching is an excellent tool to help them get there. Investing in your team’s career development is a powerful way to show them that you care. Navigate career decisions with confidence. Download BetterUp Digital for free and get personalized guidance from MartyAI to help

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