Many successful companies prefer "promoting from within." This policy is especially important in a labor market where many jobs remain unfilled and employers need to focus on retaining and advancing current employees as much or more than attempting to find brand-new ones.

This article outlines some tips for implementing promotion practices that help retain employees and avoid or minimize risk of litigation about promotion decisions.

1. Have the right policies in place

All employers need to have written policies expressly prohibiting discrimination, harassment and retaliation. Other policies should explain that the employer will make reasonable accommodations or modify job duties for persons with disabilities, pregnancy or pregnancy-related conditions, religious practices or observances or similar protected characteristics.

A written, step-by-step procedure for employees to complain if they feel these basic policies have not been followed is also essential. These policies and procedures are the cornerstones of all employment decisions, including promotions.

In addition, employers need policies that explain who is eligible for promotion, how job postings or promotions will be advertised and filled and other logistics. If the employer is not committed to posting all openings, it is important to have a policy statement that indicates that not all positions will be posted internally. If performance evaluations or other criteria may factor into promotional decisions, that should be stated as well.

2. Publicize the promotion procedure

Employees need to know the process for applying for promotions. For example, they need to know whether they should take the initiative to ask to be promoted or wait on openings to be announced.

They also need to know details about the promotion process, such as how long are job openings posted, if they need to provide a resume or complete an internal “application,” if they’ll be offered an opportunity to interview for open positions, and other specifics.

3. Know who is in the pipeline

Employers should periodically assess the talent and skills of current employees and their interest in promotions before openings become available. Assessment can come in the form of performance evaluations, long-term goal-setting meetings with individual employees, succession planning, or through informal, day-to-day interactions.

These assessments can help employers identify weaknesses or deficiencies that can be addressed through one-on-one training, educational or other opportunities. These processes can be beneficial in managing employee expectations along the way, especially where a particular employee is clearly not ready for a promotion. These actions can also improve employee morale and engagement and help employees to get in a better position for future promotions.

By having a good idea about who is in the pipeline, employers can also shorten the time it takes to go through the process of evaluating internal candidates and filling open positions.

4. Communicate about openings/opportunities

When openings or opportunities for promotion become available, employers should have an established procedure for communicating the existence of the opening to all current employees. Employers who believe that promoting from within is one of their core values should promote that message and celebrate promotions.

5. Set criteria for promotions

Although job descriptions are not legally required, they can be very helpful in communicating expectations and requirements for particular jobs. In addition to a thorough job description, the job posting needs to be specific enough that candidates know the skills, abilities and experience that will be required to succeed in the job.

Effective job descriptions and postings give employees a clear image of the job. They can decide better whether they are interested in the job.

Having employees opt out of (or not apply for) a posted job can be helpful in minimizing legal claims and it can also save time for everyone by making the promotion process go more smoothly.

6. Interview and evaluate candidates

Candidates who meet the minimum requirements for an open position should be given an opportunity to interview in-person before any final decision is made. In-person interviews can help the employer ferret out more objective criteria for selecting the most qualified candidate and provide an opportunity to evaluate the candidates subjectively.

7. Communicate the decision to all candidates who applied

If a candidate is rejected and not interviewed, the candidate should be told why he or she was not selected to go farther in the process. Candidates who are interviewed but not selected should also be told why they were not selected.

Often times, the answer is that the employer selected a better qualified candidate and not that the rejected candidate was not qualified. This meeting is another opportunity to coach the unsuccessful candidate and to develop a plan for development to increase the likelihood of being promoted at a later time.

8. Periodically reevaluate your promotion policies and practices

As with most management processes, periodic reevaluation and adjustment is necessary for continuous improvement. Times and strategies change and employers who fail to adapt risk falling behind their competitors.

Employers should periodically stop to review promotion policies and practices. Among other things, employers should evaluate whether promotional decisions had a disparate impact on employees with protected characteristics.

For example, were men or whites promoted disproportionately more than women or minorities? Is there some indication of unintentional bias? If so, make corrections in the process to avoid downstream legal claims and improve the effectiveness of the process.

Conclusion

Promoting from within is a time-tested practice. It is particularly beneficial in times when qualified external candidates are in short supply.

By following the tips outlined in this article, employers can increase the effectiveness of their promotion procedures and minimize or even avoid legal claims that may arise from less structured or systematic process.