Every leader wants to reward their best employees, but what happens when a promotion ends up doing more harm than good? Enter the Peter Principle—the idea that people tend to rise to the level of their incompetence.
In simpler terms, employees are often promoted based on their success in their current role, but that doesn’t always mean they’ll thrive in the next one, especially when leadership is involved.
The Peter Principle was first coined by Dr. Laurence J. Peter in 1969. It’s the concept that people get promoted until they reach a point where they are no longer competent in their role. For example, a top-performing salesperson gets promoted to a sales manager position. They excelled at selling but have no experience managing people, so they struggle to lead a team effectively.
This happens more often than we think, especially in fast-moving organizations eager to reward their high performers. The mistake? Assuming that success in one role automatically translates into success in a completely different one.
Promoting someone beyond their abilities doesn’t just impact the person in the role—it affects the entire team. Here’s how:
In short, promotions based solely on past performance can backfire, hurting both the employee and the organization.
The good news? It’s entirely possible to avoid the Peter Principle with some thoughtful planning and evaluation. Here’s how:
Not everyone is cut out for leadership, and that’s okay! Before promoting someone, assess whether they’ve shown the qualities of a good leader. Look for traits like empathy, the ability to inspire others, and the desire to coach. These qualities are often more important than technical skills in leadership positions.
Tip: Start evaluating leadership potential long before promotions are on the table. This gives you time to develop leadership skills in those who show promise.
If you have someone who excels in their current role but lacks leadership experience, don’t rush the promotion. Instead, offer leadership training or mentorship. This way, they can build the skills they need before stepping into a management position.
Tip: Consider a gradual transition into leadership, where the employee takes on small leadership responsibilities while continuing to perform in their current role.
Not every promotion needs to lead to management. For high performers who excel in their technical skills but aren’t suited for leadership, consider offering different paths for growth. This could mean becoming a subject matter expert, a senior specialist, or creating new roles that capitalize on their strengths.
Tip: Create multiple career pathways within your organization so that top performers can advance without feeling pressured to take on leadership roles.
If you realize you’ve promoted someone into a role they’re struggling with, don’t panic. Here are a few steps you can take to support them:
It’s important to address the issue before it affects the broader team. A struggling leader impacts more than just their own performance. Sometimes employees leave because of their managers, not the work.
Before promoting your next high performer, ask yourself: Are they ready for this new role? Will they thrive, or are you setting them up for failure?
If you’re looking for more insights on building strong teams and avoiding common leadership pitfalls, watch our video on the Peter Principle here: https://youtu.be/GWClx7sjnoI
