What is the Peter Principle?
It is actually a paradox which consists in the fact that most companies promote employees on the basis of their merits; in other words, based on above average performance in their current position. An employee excels in one position, is promoted, excels in the new position, is promoted again, and so on. Inevitably, the employee reaches a position where they are less effective, and only then does the promotion stop. Paradoxically, they end up in a position where they perform less well as they have reached their so-called "level of incompetence", a point at which they remain.
How to mitigate the negative effects of the Peter Principle?
Here are some tips on how to reverse the Peter Principle and mitigate its negative effects, according to the ManagementToday website.
Do not reward employees for good work with promotion. Avoid allowing employees to reach a level of incompetence by ensuring that even if an employee excels in a position, you do not promote them. You can increase their salary or offer other rewards, but you do not necessarily need to expand their competencies.
- Have the employee undergo training before promotion. When you promote a worker, have them undergo training before they start their new position. This is so that it is clear in advance that the worker really knows what they will need in their new position.
- Regularly sit down with the employee for review meetings. Hold regular debriefing sessions with the employee in the new position. Ask if everything is going well, if they are coping in their new position, and if anything is causing them problems.
- If necessary, offer the worker another position. There is always the option of finding alternative employment for the worker if you find that they have reached their level of incompetence. You can demote them and return them to their original position. Or offer alternative employment in a completely different position.
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