If you haven’t heard of the Peter Principle, it’s nothing new. But it’s a stark reality that happens in the world over and sort of, well, without intention.
The management theory was defined by Dr. Laurence J. Peter in 1968. It states employees receive promotions based on their performance in their current role. Instead, they should be promoted based on their ability to perform in the new role. As a result, employees in this predicament reach a level of incompetence. Thus, they are no longer capable of performing at their new level. Businesses then experience decreased productivity. Job satisfaction for both the employee and the organization are affected.
So, should we build risk management into Human Resource strategies? After all, it’s never the intention to make anyone incompetent in their job role. How can we avoid this common scenario?
Here are seven ways to avoid the Peter Principle
1. FOCUS on potential, not just performance:
Consider employees for promotion. Look beyond their current performance and assess their potential for success in the new role. Evaluate their skills, experience, and personal characteristics, their interest in and willingness to learn new things.
2. PROVIDE training and development opportunities:
Invest in the development of employees. Ensure they have the necessary skills and knowledge to perform at higher levels. Providing training, mentoring, and coaching helps develop skills and prepare for new roles.
3. OFFER a clear promotion process:
Well-defined promotion processes help employees and the business. Create job descriptions for higher-level positions. Establish clear criteria for promotion and involve stakeholders in the decision-making process.
4. ENCOURAGE self-assessment:
Encourage employees to assess their own strengths and weaknesses. This helps them identify areas where they may need training or development. Before being considered for promotion, this may suggest they are better suited in another role.
5. FEEDBACK and performance evaluations:
Regular feedback and performance evaluations helps employees understand their strengths and weaknesses. This can help them prepare for new roles and give them the confidence they need.
6. CONSIDER lateral moves:
Employees may be better suited for an alternative move rather than a promotion. Moving to a different department or taking on a new project, will challenge their skills. Offering new learning opportunities is also an option before promotion.
7. LOOK beyond technical skills:
Technical skills are important but consider a candidate’s other qualities. Interpersonal skills, leadership abilities amongst others are important for success in higher-level roles.
When someone becomes a victim of the Peter Principle, performance deteriorates. Employees may experience frustration, stress and decreased job satisfaction. A lack of confidence can affect those around them. The consequences of which could reduce staff retention rates and absences due to sick leave.
By implementing these simple strategies, organizations can help avoid The Peter Principle. Ensure your employees are promoted based on their ability to perform in the new role. Every business strives for increased productivity. Job satisfaction, and overall success for employees are key to securing the future of a business.
About Tarvinder
Tarvinder Puri, is HR Director and owner of ADP Advisory Services. She has over 25 years of international experience working with some of the biggest global brands. For HR tips and stories follow her on LinkedIn @tarvinderpuri. Find more resources here.