Demoting an Employee Has Risks

financial-crisis-544944_1280Demotion is a rarely used personnel practice. So why include a demotion policy in your employee handbook, if you don’t expect to demote anyone anytime soon?

Because sooner or later you will have to change an employee’s duties in a way the employee sees as a demotion.  You may call it a transfer, or a reassignment.  But the employee will know it as a dreaded demotion.  And a demotion (no matter what you might call it) is hurtful and embarrassing. By putting a demotion and change-in-duties policy in your employee handbook, your employees will know the circumstances under which they might experience a demotion or reassignment.

If you think of demotion always as a negative form of discipline, take another look.

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