{"id":55827,"date":"2021-12-29T08:31:00","date_gmt":"2021-12-29T12:31:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=55827"},"modified":"2022-01-10T17:02:53","modified_gmt":"2022-01-10T21:02:53","slug":"demoting-an-employee","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/","title":{"rendered":"Why Demoting an Employee (Almost) Never Works"},"content":{"rendered":"\n<p>Is it a good idea to demote an underperforming employee? Why should you think twice before demoting someone?<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/www.shortform.com\/blog\/who-is-ray-dalio\/\">Ray Dalio<\/a>, you should think twice before demoting an employee. There are only two situations in which demotion may be a good idea: 1) when a high performer fails to meet the same standards in a managerial role, and 2) when the employee possesses skills that would better serve them in another role.<\/p>\n\n\n\n<p>Here is why you should beware of demotion, according to Dalio. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-beware-of-demotion\">Beware of Demotion<\/h2>\n\n\n\n<p><strong>If the person is failing in a role they were promoted to, Dalio cautions against letting them step back into their previous role.<\/strong> The person may resent being demoted to a job they probably can\u2019t advance beyond. It may be better for them to start anew elsewhere. It\u2019s hard to fire people you like and care about, but it\u2019s necessary for the good of the organization.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Is Demoting an Employee Ever a Good Idea?<\/strong><br><br>While Dalio says you should beware of demoting people, there are <a href=\"https:\/\/www.forbes.com\/sites\/jeffhyman\/2018\/08\/29\/demote\/?sh=177d014e3195\">two situations where a demotion might work<\/a>:<br><br>A high performer doesn\u2019t translate their performance into a managerial role. You might promote a strong individual contributor without considering if their skills translate well into management. If you see them struggling, try training them first. If you don\u2019t see any improvement, consider restoring them to their previous role where they were able to make good contributions.<br><br>The employee has skills that don\u2019t match their current role. For example, a salesperson with weak interpersonal skills but strong technological know-how might do better if they step down to a sales support role.<br><br>As Dalio says, an employee may resent getting demoted, so handle it with care: Say that the organization would like to offer them a position that\u2019s better suited to their skills, let them know that you want them to stay, and map out a more viable career plan for them.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-look-elsewhere-for-fit\">Look Elsewhere for Fit<\/h3>\n\n\n\n<p><strong>Figure out whether the person is a better fit for another job in the organization. <\/strong>But be careful\u2014understand why they failed, and make sure this won\u2019t happen again in the new job. (Shortform note: <a href=\"https:\/\/www.businessnewsdaily.com\/8121-employee-job-transition.html\">If you\u2019re considering an internal transfer<\/a> for an underperforming employee, communicate that your goal is to help them make use of untapped skills and to help them reach their full potential\u2014but, make sure those untapped skills actually <em>exist. <\/em>Otherwise, the employee just becomes someone else\u2019s problem.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-for-people-who-are-excelling\"><strong>For People Who Are Excelling<\/strong><\/h3>\n\n\n\n<p>Great people with great values and capabilities are rare. Dalio doesn\u2019t offer detailed tips for managing these people. He only says that you should think about how to keep them and encourage them to speak up about how things are going.<\/p>\n\n\n\n<p>(Shortform note: Companies that find ways to recognize high performers have a turnover rate that\u2019s 31% lower than \u201clow-recognition\u201d companies. In <a href=\"https:\/\/www.shortform.com\/app\/book\/measure-what-matters\"><em>Measure What Matters<\/em><\/a>, venture capitalist John Doerr writes that you can <a href=\"https:\/\/www.shortform.com\/app\/book\/measure-what-matters\/part-2-chapters-15-16\">establish a \u201chigh-recognition\u201d culture<\/a> by introducing a peer-to-peer recognition system, where employees can show their appreciation for their colleagues. For example, you can allot time during <a href=\"https:\/\/www.shortform.com\/blog\/weekly-meetings\/\">weekly meetings<\/a> for employees to recognize colleagues who did good work. You can also use the company newsletter to tell stories of how people contributed to achieving the company\u2019s goals.)&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is it a good idea to demote an underperforming employee? Why should you think twice before demoting someone? According to Ray Dalio, you should think twice before demoting an employee. There are only two situations in which demotion may be a good idea: 1) when a high performer fails to meet the same standards in a managerial role, and 2) when the employee possesses skills that would better serve them in another role. Here is why you should beware of demotion, according to Dalio.<\/p>\n","protected":false},"author":7,"featured_media":44946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,30],"tags":[129],"class_list":["post-55827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-work","tag-principles-life-and-work","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Demoting an Employee (Almost) Never Works - Shortform Books<\/title>\n<meta name=\"description\" content=\"According to Ray Dalio, you should think twice before demoting an employee. There are only two situations where demotion might work.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Demoting an Employee (Almost) Never Works\" \/>\n<meta property=\"og:description\" content=\"According to Ray Dalio, you should think twice before demoting an employee. There are only two situations where demotion might work.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-29T12:31:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-10T21:02:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/08\/colleagues-workplace-office-feedback-meeting-lesson-manager.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"Why Demoting an Employee (Almost) Never Works\",\"datePublished\":\"2021-12-29T12:31:00+00:00\",\"dateModified\":\"2022-01-10T21:02:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\"},\"wordCount\":559,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/08\/colleagues-workplace-office-feedback-meeting-lesson-manager.jpg\",\"keywords\":[\"Principles: Life and Work\"],\"articleSection\":[\"Management\",\"Work\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/\",\"name\":\"Why Demoting an Employee (Almost) Never Works - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/demoting-an-employee\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/08\/colleagues-workplace-office-feedback-meeting-lesson-manager.jpg\",\"datePublished\":\"2021-12-29T12:31:00+00:00\",\"dateModified\":\"2022-01-10T21:02:53+00:00\",\"description\":\"According to Ray Dalio, you should think twice before demoting an employee. 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