Never Demote

Posted on March 3, 2022 in Consulting

In the 28 years of practicing employment law, I have never recommended an employer demote an employee as a form of corrective action.  I have many times said what I’m telling you now: never demote.  While demotion may be an effective tool in the military, in my opinion, it has no productive place in the private sector.  Here are my three reasons employers should avoid and reject demotion as a form of disciplinary action.

1. Demotions sets bad precedent.

My job involves telling a story to the jury that explains, first, why an employer terminated the plaintiff, and second, how the decision was consistent with company policy and practice.  The task can be difficult without good written records.  But imagine the elected challenges if the employer has a practice or history of considering demotion as an alternative to termination.  In that situation, the employer not only has to prove termination was supported by the facts but must also explain why it did not consider demotion.

Tip:  If an employer eliminates the demotion option, it makes the choice between final written warning and termination easier.

2. Demotion is a way of kicking the problem down the road.

A demoted employee nearly always gets a new boss.  The theory is that maybe under different management and a new role the employee will emerge successful.  It’s a nice thought but not a realistic result.  A boss, unwilling to make the difficult termination decision recommends the employee get a new job in the form of a “transfer”.  As you might imagine, when the story gets to me, the employee is on their third boss who got snookered into thinking the employment relationship could be salvaged.

Tip: The manager who recommends demotion typically needs coaching on how to successfully manage the employment relationship.

3. Nothing good for the employee.

I cannot imagine a more humiliating way to treat an employee other than demotion.  Reprimands are private.  A termination removes the employee from the workplace.  Demotion tells everyone that an employee was not suitable for a role.

Thought:  Demotion might make a boss feel better about not firing an employee, but it does little for an employee’s long-term success.