How Can We Create a Fair Promotion Policy for Our Rapidly Growing NBFC?

Hi,

I work for an NBFC that is only 4 years old. Over this period, the company has grown in leaps and bounds, both in terms of business and the number of employees. The company is a 'performance-oriented' company, and, to date, promotions etc., were given based on performance only. I work in the HR department, and we believe that moving forward, a Promotion Policy should be established to ensure equity and clarity in the process.

Could any of you guide me in formulating the same?

Thanks,
Mrinal

Hello,

Promoting for performance is rewarding for performance and may not necessarily increase the job responsibility - such promotions will become a problem in the future.

For formulating a promotion policy, you will need to define the structure of the organization with levels. At this stage, you should ignore who is the individual - but depending on the scope of work, scope and depth of decision, impact on business, level of accountability, number of reporting staff, social networking level, technological aspect of the job, education, and experience required.

These factors can help you "calculate" or arrive at the "Position Value" of a position.

So, if a person is to be promoted, there should be a "justification" of how the role and responsibility of the individual will be enhanced from his/her current level. A position evaluation format can be used for this purpose.

There is also a need to communicate that promotion is not a reward for good performance - while performance is certainly a prerequisite.

Promotion decisions should be considered through a committee consisting of senior management - who, based on the organization structure and overall people review, will approve the promotions.

Certain guidelines like the total number of promotions in a year to be restricted to [say 10%] can be defined in the guidelines and may change from year to year as per relevance.

If you need a format for position evaluation, please let me know your email ID - I will send.

Hope this will be useful.

Regards,
Nishikant