Monday, January 31, 2011

Promoting peace in the workplace

Apparently, according to a report on Stuff.co.nz, January is the best month to get promoted in many countries. That’s heartening to hear, and I fondly think it’s because companies like to give a late Christmas present. The real explanation is more mundane and hard nosed – January is the end of the fiscal year in many countries.

This got me thinking about promotions from the point of view of the employer. Rather like with a new hire, everyone gets a warm fuzzy feeling when there’s a promotion. However, there are a few issues that sometimes get forgotten in all the excitement.

1 If the lucky employee has not worked at the new level before, there is a chance they won’t cut the mustard. Although the employer can’t impose a Section 67A 90 day trial period, as the employee will not be a new employee, it should make it a written condition of promotion that the employer can review the performance during the first 3 months or so and decide that the employee should revert to his or her old position (if it is still available) and old salary if the performance is unsatisfactory.

2 Pay increases and extra benefits should be expressly linked to the new higher level post in case the employee decides he or she does not want to carry on in the new post and wants to revert to the old position – that way employers can reduce the pay to former levels. There would be no obligation on the employer to agree to the employee reverting to the former post though.

3 Obviously, no one wants staff to fail in their new post, and so employers should put in place training and support during the first few weeks of a promotion to reduce the chance of failure. This is especially useful with new managers – man management skills are often something that are just assumed to evolve - sometimes training can make a big difference.

4 Allowing employees to “act up” to the new position prior to a promotion to help them learn the ropes and settle in is another good way of minimising failure.

5 If the employee has new responsibilities that bring them into contact with important clients and contacts, or important confidential information, check that the Employment Agreement contains enforceable restraint of trade and confidentiality provisions. It’s no good shutting the stable door after the horse has done a bunk. The employee will have to sign the new EA for the clauses to be binding.

6 In fact, the occasion of a promotion should prompt the review of the employee’s EA to check the terms are still appropriate in general. About to be promoted staff are often much more willing to sign new agreements.

7 If the employee gets a company car for the first time, ensue they read and sign a copy of the company car policy. Don’t assume that they know the rules just because they are a current employee.

8 Finally, there may be resentful co-workers who think the promotion should have been theirs. They may need careful handling to ensure they don’t sabotage the newly promoted colleague.

All in all, promotions are a cause for celebration. Just ensure all the ducks have been arranged in a nice neat row first though.

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