3 Reasons A Company Can Decide to Demote an Employee

Employee demotion is the act of downgrading an employee’s rank and position because of disciplinary action. This can be because of an employee's work ethics, behavior, violation of rules, etc.

Demotion leads to employee loss of motivation, morale, and peace of mind. What's even worse is that there are countless reasons why a worker might face this situation.

 

 

Performance-Based Demotion

This is perhaps the most awkward form of demotion, usually due to a current employer being unsatisfied with your poor performance and wanting to give you a lower level of responsibility. It’s common for a person to get promoted into a management role only to prove that they’re not management position material. The company might plan a demotion accordingly.

 

 

Restructuring

Most times, this happens at larger companies where there’s a very specific hierarchy of positions within departments. This can also take place during the merger of two companies or under new ownership or leadership.

 

Pay Cuts

Sometimes an organization us into serious financial problems and suddenly makes a very difficult decision: to cut pay across the company because they simply can’t afford to pay. Again, a pay cut generally leads to a lot of team members quitting.

 

 

If you have recently been demoted, ask yourself these questions before making the next move

-       Is there a possibility of more time for you to prove yourself at the job?

 

-        Is there a possibility for a change of department/location/position instead of a demotion?

 

-       Can you take a few days to think about the new role?

 

 

-       What would be the repercussions if you don’t agree to the new role?

 

 

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