Some leaders might think that giving employees a better job title honors their contributions and shows appreciation. Sometimes promotions are given based solely on title changes as a way to retain talent amid high turnover rates or pressure to demonstrate progress in diversity, equity, and inclusion commitments. Some companies look for shortcuts without putting in the necessary effort. This practice is known as a “fake promotion.”
Causes of Fake Promotions
According to management expert Mohammed Al-Qahtani, companies often grant fake promotions to retain employees feeling burnt out or due to external pressures to show progress in diversity and equity. Signs that a promotion might be fake include:
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No formal announcement about the promotion at the team or organization level.
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The employee is forced to change their job title on email signatures or LinkedIn to show clients/suppliers they have a “prominent” new role.
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No update in the company’s HR systems (like Oracle PeopleSoft or Workday) reflecting the new title or status.
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No increase in monthly salary or bonuses despite increased responsibilities.
Essential Strategies for Successful Promotions
The Harvard Business Review recommends these strategies for effective and genuine promotions, which managers should apply and employees should understand:
1. Clear Criteria and Transparency
Set clear, measurable performance standards aligned with company goals. This not only guides employees on how to succeed but ensures promotions are based on objective criteria rather than vague impressions. Employees should also understand career progression paths, stages of growth, and required skills at each level to stay motivated and aligned with the company’s vision.
2. Skill Development and Continuous Training
Regularly evaluate employees’ skills to identify areas for improvement and provide targeted training opportunities. This helps employees fill skill gaps and prepare for future career steps.
3. Growth Opportunities and Responsibilities
Encourage employees to lead projects and collaborate across departments. This exposes them to new challenges, develops their skills, and prepares them for higher-responsibility roles. New tasks should be rewarded fairly and not overwhelm their main duties or comfort zone.
4. Promotion Policy
A clear and transparent promotion policy is fundamental to fair and consistent employee growth and helps prevent fake promotions. Such policies outline the procedures and guidelines for earning and implementing promotions. Transparent promotion policies promote fairness and align career development with company values and goals.
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