Promotions: a signal of organizational health

Every company has its own system and terminology, but the idea is the same: advancing someone in recognition of their work. Beyond individual progression, promotions reflect how healthy the organization is.

Types of promotions

• Responsibility promotions: the employee becomes accountable for their work and others’.
• Role promotions: a change in business unit or daily responsibilities.
• Geographic promotions: a move to a different region or country.

Why promotions matter—and how to track them with HR reporting

Promotions indicate your HR system works:

• Employees seek progression—driving company growth and showing strong engagement.
• Promotion processes challenge employees; even without a promotion, they clarify areas for improvement.
• Criteria are fair and equitable.

HR reporting helps track a key KPI: average time to promotion. Analyze by department and level. HR data clarifies the dynamics at play.

At Reflect, we observe an average promotion cadence of about every two years, with significant differences by department. Technical teams often have more levels/grades than others.

Recommendation: adopt a common leveling framework across departments (e.g., junior – mid – senior). Criteria can differ by role (developer vs. sales), but shared levels and associated pay bands ensure consistency.

In short, promotions are a key indicator of organizational health. Monitoring time to promotion and reviewing granularity by department and level helps leaders maintain a fair, healthy environment for employees.