Employers have the skills and ability to know when to promote employees in their companies and when to not. Hiring from within your company and promoting your best team members are hallmarks of good personnel management. Promotions can help you make the most of your resources, but you must ensure that you go about them correctly.
When You Should Promote Employees
Timing, performance, and development goals are all critical factors in determining when you should promote your personnel.
Reduce Your Business’ Risk of Dealing With an Employment Practices Liability Insurance Claim
Employment Practices Liability Insurance will help your company mitigate liability risks considerably, but you also need to make proactive managerial decisions to reduce your exposure. The people who are most likely to make claims feel that their employer is taking advantage of them and not offering fair compensation.
Creating formal policies about compensation and promotions could make your business less vulnerable to an EPLI claim. Enforcing structured policies with consistency may prevent wage and hour law violations, allegations of workplace discrimination, and other costly claim scenarios.
Make the Most of Your Workforce
One reason why the timing of a promotion matters is that underutilizing your best team members for an extended period leads to operational inefficiency. If workers are capable of much more than what they’re doing, giving them a better job title and more responsibilities helps you get more practical value out of their employment, even if it means paying them more.
Keep Your Best Staff
Employees who are under-challenged by their job duties may gravitate towards more complex tasks and are eager to participate in new projects. A promotion may be in order if someone is always keen to take on new challenges. They may seek an employment opportunity with a competitor without a way to rise up in your business ranks.
Compensate People for the Work They Already Do
People often branch out at work before officially reorganizing their job duties. It is particularly true in small businesses where personnel may have to wear many hats and be ready to lend a hand wherever they can. Furthermore, when there’s an intelligent and capable person around, other people will look to that person for help with their job tasks. If you observe this dynamic at work, consider acknowledging the substantive value of an employee’s contributions with a promotion.
Protect Your Company Against Employment Practices Liability Insurance Coverage Problems
Pending claims against an Employment Practices and Liability Insurance policy can drive up costs. By taking calculated steps to manage promotions with an eye toward risk mitigation, you can avoid higher costs or gaps in coverage.
Ultimately, an organized approach to promoting personnel can enable your company to comply fully with key employment law areas. Strategic policies around promotions can also shape a strong company culture and incentivize your team members to excel.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
