A demotion is a reduction in rank, often accompanied by lower pay and status.
There are many situations in which demotion might occur; any kind of rank system, like a police department or military, for example, uses demotions as a disciplinary tool, while some employees are at risk due to reorganization or substandard work.
What is Demotion?
Most people view demotion as a punishment since it implies that they cannot perform at a higher rank. It is opposite to promotion, an elevation in rank or status.
Demotion occurs when an employee moves from one job to another with lower pay, responsibility, and status. Demotion seldom holds positive outcomes for the individual.
Usually, they are associated with discipline; the individual is demoted for poor job performance or inappropriate behavior such as excessive absenteeism or incompetence.
Demotion may also be due to organizational factors such as the reduction of the workforce, market conditions, changes in technology and production method, and product mix changes.
Demotion is just the opposite of promotion. It refers to lowering the status, salary, and responsibilities of an employee.
Demotion is generally used as a punitive measure and is a preliminary step to discharge. The usefulness of demotion as a corrective measure is questioned on many grounds.
Losing pay over a period of time is a long form of constant humiliation.
Moreover, a demoted employee will always be dissatisfied, and his dissatisfaction may spread to co-workers, adversely affecting the workforce’s morale, productivity, and discipline.
Demotion becomes necessary,
- If a company curtails some of its activities and employees with longer service bump persons in lower jobs with shorter service.
- It may be used as a disciplinary weapon.
Demotion will serve its purpose if it satisfies the following conditions;
- A clear and reasonable list of rules should be framed, violation of which would subject an employee to demotion.
- This information should be communicated to employees.
- There should be a proper investigation of any alleged violation.
- If violations are found, there should be a consistent and equitable application of the penalty, preferably by the immediate supervisor.
- There should be a provision for review.
Since demotions adversely affect employee morale, they are made infrequently.
2 Types of Demotion
- Voluntary Demotion.
- Involuntary Demotion.
Voluntary Demotion
A permanent employee may request a voluntary demotion to a vacant position in a class with a lower salary rate, provided that the employee has previously achieved permanent status in that class or the request for demotion is to a related class in the same job series as defined by the Personnel Commission.
Involuntary Demotion
An involuntary demotion is a disciplinary action and, as such, is subject to the disciplinary procedures in these Rules and Regulations.
6 Advantages of Demotion
Telling an employee that he is being demoted to a different job is rarely a positive experience for a manager.
However, employee demotions usually benefit the company and maybe even the employee.
Good managers weigh the benefits of demoting employees against the possible psychological effects on the worker and the organizational culture.
Forces Employee To Leave The Company
Common benefit employers seek with demotions is getting an employee to quit as opposed to firing him. Some managers use this tactic to avoid the conflict of telling someone he is fired.
Save on Salary Expenses
Another financial benefit of demoting employees is a salary reduction. Typically, a demotion means the employee works in a lower-paying position.
This can save the company a substantial amount. In some cases, a demotion results because the company believes it overpays a worker for the production he generates.
Lowering Legal Risks
Employee demotion may involve fewer risks of lawsuits or other grievances than termination.
Developing Employees’ Skills
One of the more positive benefits of employee demotions is developing the employee through more training and coaching.
Sometimes, employees take a position they are not adequately prepared to handle. A demotion may prevent burnout or employment separation.
If the employee is demoted to a position he is most comfortable with, he can work toward additional training to eventually grow into the position from which he was demoted.
Keeping Promising Employees’ In Organization
A demotion could be the best option for keeping an employee with potential who needs more training and experience.
Sometimes companies grow faster than anticipated, and employees get pushed into roles they don’t want or aren’t ready to handle.
An employee who can excel in the company may respond more favorably to a demotion if provided with an opportunity for additional job training.
After all, the employee may realize he’s over his head and unfit for his current position.
Phasing Out Unnesesary Departments and Positions
Sometimes a company’s structure change and demotions are necessary because departments are phased out, and fewer high-level positions are needed.
Such changes can be an opportunity for improvement for all involved as people assume new responsibilities to take the company in a different direction.
Some people won’t view the changes or demotions as an opportunity and will quit. Yet, the remaining people may be more motivated and excited about the company’s new direction.
Conclusion
One problem with demotion is that the demoted employee may become de-motivated or, worse, openly antagonistic toward those responsible for the demotion decision.
Sometimes, demotions are intended to be a kindly alternative to firing an employee who cannot do his present job.
Rather than sever the employment relationship, a decision is made to retain the employee but at a lower level of responsibility.
All rules and regulations are to be clearly laid down in writing, including a clause that a violation of the same may result in demotion.