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Keep or toss: Is a demotion a good alternative to termination?

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in HR Management,Human Resources

If you’re faced with an employee who isn’t a good fit with his or her current job, is termination the answer or is demotion a better alternative? The answer is, of course, it depends.

Demotions should always be considered on a case-by-case basis. The main factor is whether or not the employee is worth keeping around; however, a demotion will be more effective in some situations than others.

Poor performance. If an employee is underperforming, you must first in­­ves­­tigate to find out why. Is he simply unsuited for a particular role, but could thrive elsewhere? If so, he might be relieved at the opportunity to be moved back to a position that better suits his talents and skills. Example: An outstanding employee was promoted, but is floundering in a supervisory role.

Misconduct. Using demotion as a disciplinary tool for misconduct is dangerous. First, does it actually solve the problem, or will the employee carry those same is...(register to read more)

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