How to Tell an Employee They’re Not Ready for a Promotion 24/1/24, 20:19

Managing People

How to Tell an Employee

They’re Not Ready for a
Promotion
by Luis Velasquez

December 11, 2023

Westend61/Getty Images

Summary. Discussing a promotion with an employee when you’re not ready to

give them one is a delicate balancing act, but it’s also a golden opportunity. It’s a
chance to turn a potentially negative situation into a constructive, forward-looking
dialogue. By approaching the... more

Managing a team is complex and nuanced, requiring a balance of

interpersonal skills, understanding of business dynamics, and
empathy. One particularly challenging aspect for many managers

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is discussing promotions, especially when the employee is eager

for career advancement but you’re not ready to give them that
opportunity yet.

Research has shown that employee engagement is highly

correlated with career progression; however, career planning and
manager recognition also play key roles. In my many years of
coaching executives, I’ve seen both sides of this situation: a leader
dreading and struggling to give an employee the bad news about
not granting their promotion, as well as the team member’s
subsequent confusion, surprise, and disappointment.

How to Approach the Conversation

I’ve found that leaders who take a structured approach to these
difficult conversations are far more successful at handling them.
Success looks like not only maintaining a positive working
relationship after the conversation, but also laying out a plan for
future growth. Done right, it’s a win-win approach: The employee
leaves with a clear understanding of where they stand, feels
valued, and is equipped with a plan that motivates them to move
forward. The organization also increases retention and
engagement. The key is to approach the conversation with
empathy, support, and a future-focused mindset.

Empathy

Start by acknowledging their efforts, validating their feelings, and

assuring them that their hard work hasn’t gone unnoticed. Shift
from a mindset of delivering bad news to one of developing
shared understanding. This compassionate approach can ease the
disappointment and foster a more positive, open dialogue.

For example, you can say: “I recognize how hard you’ve been
working and the dedication you’ve shown in your role. I know you
were looking forward to a promotion, and I want you to know that
I see and appreciate your efforts.”

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Support

This conversation is not merely about explaining why the

promotion isn’t happening now; it’s an opportunity to affirm your
belief in your employee’s abilities and potential.

Outline the positive aspects of their work. For example, you could
say, “You’ve demonstrated excellent skills in [specific area], and
your contributions to the team in [another area] have been
invaluable. I believe further development will position you
strongly for a future promotion. Let’s look at what opportunities
we can create together for you to develop the skills to get you
ready.”

Future focus

Don’t let the conversation end in disappointment but rather in

hope for future possibilities. A future-focused mindset will not
only help identify what your employee needs to work on but also
actively helps them get involved in chartering a path for future
action.

You could say, “I see a lot of potential in you, and I believe in your
ability to grow into your aspiring role.”

How to Discuss the Reasons

When discussing the specific reasons your employee isn’t getting
their desired promotion, you need to address three dimensions:
competence, potential, and perception. As you do so, anchor your
conversations in where the person is now and what they need to
do in order to advance. This focus on “now vs. needed” provides a
roadmap that keeps the conversation constructive, supportive,
and oriented toward future success.

Competence

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Competence refers to the specific skills, knowledge, and

capabilities required for a role. When discussing a promotion, it’s
essential to identify the competencies a team member has
demonstrated and the gaps they need to address to prepare for
the next level. Emphasize that being competent makes an
individual “good enough” for their current role, but advancing
also requires growth and mastery.

Begin by acknowledging their accomplishments and completed

projects, highlighting what they’ve achieved and commending
their dedication and ability. Make it clear that while these
successes are valued, they may not equate to mastery of a
particular competency needed for the next role.

Engage them in recognizing and understanding their current

competencies and how they need to develop them further.
Encourage open dialogue and ask questions like, “How do you
feel you’re doing in competency X?” Ensuring that both parties
agree on what needs further development creates a joint
commitment to addressing it. Make sure to emphasize that failure
on a specific project doesn’t necessarily mean a lack of
competency, and likewise, that meeting a goal doesn’t guarantee
competency.

Here’s how you might phrase the conversation: “Right now,

you’re excelling in [current competencies], which have been vital
in your current role. What’s needed for the next step is further
development in [specific competency]. Let’s explore targeted
training or projects to bridge this gap and prepare you for the
responsibilities of your next role.”

Potential

An employee’s potential refers to their inherent capacity and

willingness to grow and take on greater organizational
responsibilities and challenges, demonstrating the ability to

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perform at a higher level in future roles. Moreover, assessing

potential involves recognizing what the employee is doing now
and what initiatives or changes are needed to prove readiness for
the next step. While there are many frameworks for assessing
potential, I’ve found Claudio Fernández-Aráoz’s four hallmarks of
potential most helpful:

Curiosity: Not just a desire to know, but a desire to question

the status quo.

Insight: The ability to gather and make sense of

information that suggests new possibilities.

Engagement: Emotional intelligence that goes beyond

simply connecting with people to truly resonating with
them to increase their influence.

Determination: The grit to overcome obstacles and turn

them into stepping stones.

Based on those four dimensions, I created a matrix you can use to

guide your conversation about potential.

A Matrix for Assessing an Employee’s Potential

This matrix, based on Claudio Fernández-Aráoz’s four hallmarks of potential, can help
you and your employee determine where they stand today and what they should do to
advance.

Level 1 Level 2 Level 3 Level 4 Level 5

CURIOSITY Minimal Occasionally Consistently Highly Exceptionally

interest in shows curious; curious; curious; a
exploring new interest but actively always thought leader
ideas or lacks seeks new pushing who inspires
learning thoroughness knowledge boundaries curiosity in
and and to learn and others
persistence experiences grow
in exploring
topics

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beyond a
superficial
level

INSIGHT Rarely offers Sometimes Regularly Exceptionally A visionary who

new provides contributes insightful; consistently
perspectives or insights, but valuable often sees delivers
solutions they are often insights that what others groundbreaking
surface level benefit the don’t and insights
team or improves the
project project
significantly

ENGAGEMENT Minimal Shows Consistently Highly Exceptional

engagement occasional engages engaged in a ability to
with the team engagement with the way that engage in a
or project, but lacks team and adds value to way that
regardless of consistency project in a the team and inspires and
communication in connecting meaningful project; unites the
style with team way, capable of team,
members or whether forming deep regardless of
the project through connections being
one-on-one without introverted or
interactions necessarily extroverted
or in group being the
settings loudest in
the room

DETERMINATION Gives up Shows some Consistently Highly Exceptionally

easily; shows determination determined; determined; determined;
little resilience but is easily works hard not only turns
in the face of discouraged to overcome overcomes challenges into
challenges challenges challenges opportunities
but also for growth and
learns and inspires others
grows from to do the same
them

Source: Luis Velasquez

Before sharing your own observations, ask your employee to rate

themselves on each dimension. Remind them that these are not
personality traits. For instance, being introverted doesn’t mean
you can’t excel in engagement, because it’s about the quality of
interaction, not the quantity.

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After they’ve shared their self-assessment, offer your own

perspective, and use specific examples to back it up. For example,
“It’s interesting to see you place yourself at level 3 in curiosity. I’d
actually place you at level 4 because you’re always seeking new
ways to improve our processes. You rated yourself at Level 2 in
engagement, and I agree. You’re great at one-on-one interactions
but could contribute more in team settings.”

Then, discuss specific steps for improvement in terms of now vs.

needed. For example, “To move to level 3, you could lead our next
team meeting or take charge of a collaborative project to start
moving that needle.”

Perception

Perception is the lens through which skills, contributions, and

potential are viewed by others in the organization. It’s the sum
total of the impressions people make, from the way they handle
meetings to how they resolve conflicts. Unlike competence and
potential, perception is often shaped by intangibles (such as
empathy, influence, and how they approach challenges and
stressful situations) and influenced by the collective opinion of
peers, supervisors, and direct reports.

Begin by acknowledging a common misconception: that results

alone should be enough for recognition and promotion. You could
say, “Many believe that their results should speak for themselves,
and that should be enough for recognition or even a promotion.
While results are crucial, they’re not the only factor. Perception of
your professional image is influenced not just by what you do but
also by how those actions are interpreted by others, and you can
change how you’re perceived at work.”

Before diving into your own observations, ask your employee how
they think they’re perceived within the team and the broader
organization in a specific area you find concerning. For example,

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“How do you think you’re generally perceived by the team as a

collaborator?”

Once they’ve shared their thoughts, offer your own perspective.

Use specific examples to back up your assessment, as perceptions
are often formed by a series of moments rather than a single
event. It helps if you have 360 data or feedback from the team.
Highlight any discrepancies between the person’s self-perception
and how they’re actually perceived. This is crucial for identifying
areas for improvement.

For example: “You see yourself as an active collaborator, but the

feedback I’ve received suggests that you could be more proactive
in giving credit to your peers. How can we align your self-
perception with the broader perception?”

Then discuss actionable steps they can take to improve the

perception others have of them. For example, “To improve the
team’s perception of you as a collaborator, perhaps you could lead
the next project or actively seek feedback from team members
and highlight their contributions. What are your thoughts on
that?”

Summarize the key points of the discussion and reiterate your

commitment to helping them change a perception that might be a
blocker for a promotion.

How to Plan for the Future

An individual development plan (IDP) is a collaborative and
proactive action designed specifically for professional growth. It’s
not to be confused with performance improvement plan (PIP),
which targets corrective measures to address performance.

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The IDP must be built on three foundational components —

performance, potential, and perception — as well as the actions
required to move from now to needed. An effective IDP serves to:

Clearly define career goals

Identify the target role, level, and function

Create an action plan to become “ready” for the target role

An IDP should be designed to simultaneously enhance

performance, unlock potential, and positively shape perception.
This ensures a well-rounded development strategy. To do it,
follow the 70/20/10 rule: 70% of the focus should be on hands-on
experience, 20% on exposure to new ideas and people, and 10% on
formal education.

Experience

Experience is the “putting in the miles” part of the ultramarathon

of one’s career. Consider stretch assignments, job rotations, or
cross-functional projects as avenues for experiential learning that
also boost performance, demonstrate potential, and improve
perception.

For example: “You’ve excelled in your current role. To prepare for

the next level, how about leading a cross-functional project? This
will not only help us hit performance targets but also showcase
your potential and improve how you’re perceived.”

Exposure

Exposure is about broadening your network and perspectives.

Encourage your employee to join professional organizations,
present at industry conferences, attend cross-functional
meetings, or even get an industry mentor.

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For example: “Your technical skills are strong, but networking

within the industry could elevate your career and improve your
perception among peers. How about presenting at the next
industry conference?”

Education

While it represents the smallest slice of the pie, education is

crucial for filling in knowledge gaps and staying updated. This
could range from executive education courses to e-learning
programs or certifications.

For example, “You’ve shown interest in data analytics. There’s an

upcoming e-learning course that could strengthen your skillset,
demonstrate your potential, and positively influence how you’re
perceived.”

The IDP is not just a checklist; it’s a strategic tool that can act as a
catalyst for meaningful career growth when aligned with
performance, potential, and perception.

...

Discussing a promotion when you’re not ready to give one is a

delicate balancing act, but it’s also a golden opportunity. It’s a
chance to turn a potentially negative situation into a constructive,
forward-looking dialogue. By approaching the conversation with
empathy, support, and a focus on the future, you set the stage for
a collaborative relationship with your employee.

So the next time you find yourself in a “not now” promotion

conversation, remember: It’s not just about deferring a
promotion; it’s about laying the groundwork for future success.
After all, the journey to the next level is not a sprint but an
ultramarathon, requiring preparation, focus, and a thoughtful
strategy.

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Luis Velasquez, MBA, Ph.D. is an executive

coach who works with senior leaders and their
teams to become more cohesive, effective, and
resilient. He is the founder and managing
partner of Velas Coaching LLC, a leadership
facilitator at the Stanford University Graduate
School of Business, a former University
professor, and research scientist. Connect with
him on LinkedIn.

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