How to Handle a Promotion Request

Evaluate promotion requests using data-driven criteria, budget impact analysis, and clear documentation processes.

1. Pull current compensation data and role benchmarks. Get their current total compensation: base salary, benefits cost, bonus/commission paid last 12 months. Research market rates for their current role and the target role using salary surveys or local HR data. Calculate the gap between current pay and target role market rate.
2. Assess performance against promotion criteria. Score them against your written promotion requirements: revenue impact, skill demonstration, leadership capacity, tenure minimums. If you don't have written criteria, create them before this conversation ends. Use specific metrics: sales numbers, project completion rates, team feedback scores.
3. Calculate total cost impact on payroll budget. Factor the full cost: salary increase, benefits bump, potential overtime classification changes, office/equipment needs. Include the ripple effect if other employees expect similar bumps. Calculate as percentage of current payroll and compare to your typical 3-7% annual increase budget.
4. Document decision rationale in writing. Write a brief memo covering your decision, the criteria used, and timeline for next review. If approved, note the effective date and any conditions. If denied, specify what needs to change and when you'll reassess. This prevents future disputes and sets clear expectations.
5. Deliver decision with specific next steps. Schedule a private meeting within 48 hours of their request. State your decision clearly in the first minute. If yes, provide timeline and new responsibilities. If no, give specific improvement targets and review schedule. Avoid vague feedback that creates false hope.