Promoting an internal employee is one of the most powerful ways to retain talent and strengthen culture. That said it requires thoughtful planning to ensure credibility, continuity, and team stability. Here are the best practices specifically for promoting an internal employee and managing that transition well:
Before the Promotion
1) Ensure the Promotion Is Clearly Justified
- Think it through. Does the position warrant an internal (and/or external) interview process? If not, why? Will peers feel passed over?
- If you wrote a job description for what your company needs, not based on the person you’re considering promoting, would they be your choice?
- Base the decision on documented performance, competencies, and readiness, not just tenure. Confirm the employee has demonstrated skills needed at the next level (especially leadership skills if applicable).
- Consider using a promotion readiness checklist or competency matrix.
2) Prepare for the Ripple Effects
Internal promotions create a chain reaction:
- What new duties will come onboard for the person promoted? What is the timing of those new duties?
- Who takes over their current duties?
- Will reporting relationships change?
Plan for:
- A transition plan for the new duties and timing.
- Backfilling responsibilities.
- Potential morale issues. Think through how and when the promotion will be communicated.
3) Align Leadership First
Make sure senior leaders and HR (if applicable) agree on:
- Title: These should be well thought through in regard to your overall organizational chart and duties.
- Compensation: What is the market rate for the new title? Review your payroll. Does the promotion cause any pay equity concerns?
- Scope of authority: What will they have the authority to put in place individually vs. checking in with someone first.
- Start date: When will the promotion take place? What will be communicated as initial job transition vs. future job transition?
- Communication plan: How, when, and what are you communicating with the rest of your team?
- Identify information (e.g., pay, performance notes, etc.) the promotion will result in sharing.
Announcing the Promotion
4) Tell the Employee First — With Context
Explain:
- Why they were selected. Talk about their competencies. Have them help identify any areas you or they feel they need to shore up to be successful in the new role.
- Define expectations in the new role. Work on the transition plan together.
- What success looks like in 6–12 months. Be clear with expectations. Set up check in meetings.
- How their relationships will change. Talk about the transition from peer to Supervisor.
5) Communicate Transparently to the Team
A strong announcement should include:
- The business rationale both why the business needs this role and the person’s accomplishments
- What changes (and what doesn’t) – the transition plan comes in handy here!
- New reporting lines. Who reports to whom.
Transitioning Duties
6) Use a Structured Transition Plan
Break the transition into phases:
Phase 1: Overlap (if possible)
- Knowledge transfer.
- Introductions to stakeholders..
- Project handoffs.
Phase 2: Gradual Shift
- Reduce old duties.
- Increase new responsibilities.
- Provide coaching.
Phase 3: Full Assumption
- New role fully active.
- Old role fully reassigned.
7) Document Institutional Knowledge
Have the promoted employee capture:
- Key processes.
- Contacts.
- Deadlines.
- Lessons learned.
- “Watch-outs”
This protects the organization from knowledge loss.
Supporting the Newly Promoted Employee
8) Address the Peer-to-Leader Shift
This is the hardest transition. Managers should reinforce the new leader’s authority publicly. Encourage them to:
- Reset boundaries professionally.
- Avoid favoritism.
- Have one-on-one conversations with former peers.
- Clarify decision authority.
9) Provide Early Leadership Support
Internal promotions often assume “they already know how things work,” but they still need help. Be sure to provide:
- Mentoring.
- Leadership training.
- Regular check-ins (weekly to start.)
- Clear priorities (so they don’t try to fix everything at once.)
Managing Team Dynamics
10) Watch for Morale Issues
Others may feel:
- Disappointed, overlooked, and/or concerned about change. Listen to them.
Address this by:
- Acknowledging contributions of others.
- Explaining future growth opportunities.
- Being available for questions.
After the Transition
11) Set 30-60-90 Day Goals
Give the promoted employee a roadmap:
- Immediate priorities.
- Relationship building.
- Quick wins.
- Strategic initiatives.
12) Evaluate and Adjust
After 2–3 months:
- Assess performance.
- Identify support gaps.
- Adjust workload or authority if needed.
Common Mistakes to Avoid
- Promoting based only on technical skill (not leadership ability), tenure only, favoritism, or past promises.
- Leaving the person to do both old and new jobs indefinitely.
- Failing to communicate changes clearly.
- Not supporting the emotional side of the transition.
Could you use some assistance in navigating these kinds of conversations? We can help with that! We offer comprehensive fractional HR services. Reach out to us at Milestones HR, LLC at 608-370-4642 or angie@milestoneshr.com for a free, no obligation 30-minute exploration conversation. Check out our website at www.milestoneshr.com for all of our fractional human resources services.
Angie Addison, SHRM-CP, PHR
Founder & Owner of Milestones HR, LLC
www.milestoneshr.com