What happens if there are no vacancies for promotion in an organization 2?

In my last post, I wrote about a common problem that occurs in many organizations. That is: what happens when there are no vacancies for promotion of employees? In that post, I gave some tips on how employees should go about it. In this post, we will look at how organizations should react to that. Although some organizations do not recognize it, the problem is real. Some people in the senior management level positions do not know that those below them also want to go up in the hierarchy. When there is no chance for this to occur, those at the bottom feel frustrated and some tend to leave the organization. 

     It is very important for those at the top to know that what is good for one is also good for another. Based on this principle, they should create a mechanism whereby talented employees can be rewarded. Although there are some forms of rewards, the most fulfilling one is acquired by promotion. People want title as a form of recognition. It is understandable that in small organizations, hierarchical levels are limited. However, there can be a way out.

     The solution to this problem is to have subdivisions in each hierarchy. For example, an employee can go from consultant 1 to consultant 2, 3, and 4 instead of going directly from consultant to coordinator. The same thing happens between coordinator to manager. These little moves has a lot of psychological impact on the ego of the employees. It gives them satisfaction and motivation to do more. Many organizations loose good employees because of lack of propects of promotion. These employees do not tell the organization the main reason for leaving. Using subdivisions can keep many employees from leaving their present organization and, consequently, will reduce high turnover.