Job promotions are really good for retaining and rewarding a hard working employee. Let's understand about it in this lecture. Job promotion refers to the progress of employee in his or her company. When an employee is promoted, they are given more responsibilities and their pay is also increased. Not just this, they are given more prestige and higher status in the company. Why is it beneficial for an employee?
Job promotion helps in satisfying the esteem needs of an employee. It increases the satisfaction level which means the employee perform better and increases his productivity. Why job promotions are important or beneficial for an organization job for motions help in expanding the responsibilities of those who have shown progress in their previous position. That means they are capable of handling more responsibilities and they can contribute more towards the growth and expansion of the company. The second reason is that promotions increase the job satisfaction of employees, which means they can be retained for a longer time. When they are promoted, they become more loyal towards their job and the company.
This is useful because the company would not have to spend resources in hiring someone who could replace them simply by offering promotions and retaining. It also promotes productivity in other employees because they start working better so that they can also receive job promotions. If a company does not offer promotions Do it high potential employees such employees which leave the organization and find jobs and other companies where they are more valued. This should not be allowed to happen, because it would cause a lot to the company in doing external recruitment in case the good employees leave their company. So, what factors are assessed before promoting an employee some of them are shown here. The first one is performance, which could be judged on different parameters like efficiency, effectiveness, or productivity, or even the targets achieved.
Next is educational qualification and work experience. Then comes the length of service of an employee in a particular company. Other factors include assessment of skills, abilities and potential leadership and management skills. Let's see the types of job promotions that are commonly offered. The first one is vertical promotion. In this type of promotion, the employee is moved from the current job position to a different one.
When someone is promoted vertically, the responsibilities salary and prestige which is enhanced or increased. Second is horizontal promotion. This type of promotion happens when the employee is given more responsibilities and salary, but the authority is not increased. This means that the designation could remain seen, but the work responsibility and the pay is increased. Next is open promotion. This is where the company announces the openings and vacancies to all the existing employees.
This means that current employees get a chance of being promoted, because it's an open promotion that is happening within the organization. Next is implied promotion. This is when the position status and responsibilities are increased, but the financial benefits like salary would remain the same. So, when drive promotion given the employee moves to a higher position or designation, but the pay is not increased. The takeaway from this lecture is job promotions are very essential to maintain the employees interest and involvement in the company. The top performing employees can be retained by offering good promotions which include better salary package by creating a performance and please culture, the productivity efficiency of every employee could be increased