What is Demotion?

Demotion refers to a condition where an employee is transferred to a lower rank or position in an organization. Such a situation might be caused by factors such as failure to perform in a satisfactory manner, or due to restructuring the organization, or punitive actions.

A demoted employee takes a subordinate’s position or that of someone with lesser authority and, consequently, lesser remuneration as well. Even though demotions sometimes need to be worked out since the employee’s capability no longer fits the job requirements, any such demotion must be treated with extreme caution and sanctioned by an appropriate authority.

Causes of Demotion

Demotions can also be due to numerous reasons such as:

• Poor Employee Performance: Where an employee fails to meet performance expectations continually.
• Position Elimination: Sometimes due to restructuring or downsizing.
• Disciplinary Punishment: Demotion would often come in as a penalty for committing against company policy.
• Reorganizational Adjustment: Role changes may also be a result of shifts in organizational structure.
• Voluntary Reduction in Responsibilities: In other cases, the employee might request a reduction in their responsibilities due to personal issues or dissatisfaction with the job.

What is the difference between demotion and termination?

Demotion is the movement of an employee from a higher position to lower-grade position which is also a part of the organization while termination allows the employee to leave completely from the role wholly due to some malpractice or certain valid reasons.

How to Demote an Employee

Demotion can be tough on both the employee and the employer. Because while an employee may feel humiliated by being demoted to a lower position, an employer might find it difficult to manage this change.

1. Communicate the Change: Privately communicate the change of demotion to the employee with the reasons for the same.

2. Define the New Role: Establish expectations and responsibilities of the new role.

3. Develop a Transition Plan: Present a plan to help the employee transition into the new role, including timelines and support resources.

FAQs

What are the problems with demotion?

While demotion brings some disadvantages, like having low morale and job satisfaction, employees will be demotivated and have low productivity because they are humiliated and devalued. Re-integration into a team where they exercised supervisory powers complicates it also if the employee was in a supervisory position before being demoted.

What are three kinds of demotion?

There are three types of demotion that have been described below:

1. Forced Demotion: Resulting from the employer, for instance, poor performance or reasons behind organizational.

2. Compulsory Demotion: The employee demoted on his own suggesting less responsibility or want out of such pressures.

3. Term Demotion: A temporary reassignment to a lesser position and normally for a period. This may be used when there is a performance improvement plan or when there is a specific matter being addressed.

Is it good to accept demotion?

Accepting demotion may be proper under certain circumstances. For instance, an employee may feel overwhelmed by the job and think that moving to a lower position will make the work-life balance easier for her, giving her more time to solve and work on personal issues. However, the employees should remember the consequences that may creep in professionally and financially to validate their acceptance of a demotion.