When Promotion Isn’t Possible: Strategies for Retaining or Redirecting Employees

In my last newsletter article, I discussed strategies around preparing for a promotion when opportunities aren’t available. But what happens when you’re the leader managing an employee eager to advance but no current opportunities available?

In this situation, you may encounter two types of employees: the high-performing employee and the counterproductive employee. Let’s look at both of these types and how to address each situation.

Managing the High Performer

We’ll start with the high performing employee: reliable, results-driven, strong expertise, takes initiative. Retaining and motivating this employee is essential— for you (retaining your top talent) as well as for them (continuing momentum towards their own career goals).

Here are strategies to keep a high performer engaged:

1. Align Development Opportunities with Career Goals. High performers have already proven their capabilities. Identify stretch assignments that align with their aspirations. Can they take a lead role in an assignment that is mission critical to the organization? Are they able to work with another leadership member for greater exposure throughout the organization?

2. Invest in Professional Development. Offer tailored opportunities like workshops, conferences, or mentorship programs that enhance their skills and expose them to industry trends. These investments keep the high performer ahead of the curve and make them more valuable to your organization (which continues to build the case for promotion).

3. Publicly Recognize Contributions. Celebrate their achievements both internally and externally. Internally, acknowledge their efforts in front of leadership and key decision-makers (e.g., acknowledge their specific contributions on a project, use internal systems on how you acknowledge employees like employee newsletters or awards). Externally, highlight their accomplishments for the world to see (e.g., spotlights on social media or your organization’s website, nominations for industry awards).

4. Offer Alternative Benefits. When promotions or salary increases aren’t feasible, explore other meaningful benefits that can make this employee feel valued. Flexible work schedules, remote work options, additional vacation time, or increased autonomy in their role can show your appreciation and support for their work-life balance.

Addressing Counterproductive Employees

Now let’s talk about the counterproductive employee: the one who may have been a high performer in the past but are now struggling because upward mobility isn’t available. This frustration now manifests as negativity, resistance to feedback, or undermining team performance. While it may be possible to redirect their behavior and turn this ship around, addressing the complex situation requires a careful balance of empathy, clarity, and boundary-setting.

Here are the steps to effectively manage a counterproductive employee:

1. Acknowledge Concerns from Both Perspectives. Start by listening to their frustrations and validating their feelings. Then, share an honest assessment of the organization’s current limitations regarding promotions or compensation (e.g., “Thank you for sharing your goals of where you see your career progress. I also want to share with you where the organization is currently at regarding promotions and compensation.”). Emphasize your commitment to supporting their career goals within these constraints.

2. Identify the Impact of Their Behavior. Be specific about how their actions are affecting the team and their career trajectory. For example, highlight instances where a lack of collaboration has strained relationships or disrupted projects. (e.g., “In our last team meeting, you made a statement that you would not help Stephanie with the campaign because it wouldn’t help you get your promotion. This lack of teamwork and collaboration is causing a rift with your team members and some have asked not to be assigned to work with you.”).

3. Collaborate on Solutions. Ask for their input first on how they can adjust their behavior to align with team and organizational goals. Are they able to see the negative effects this behavior is causing to their career? Are they willing to do something about it? See if you can come to solutions that will work for both of you.  

4. Set Clear Expectations. Once you have brainstormed solutions, outline the behavioral changes you expect. If the negative behavior is mitigated, discuss opportunities outlined above for high performers. If the negative behavior persists, outline the consequences that will occur.

5. Follow Up and Document Progress. Schedule regular check-ins to track improvements and address any ongoing issues. Document agreements, progress, and action plans to ensure accountability. If needed, collaborate with HR to implement a formal performance improvement plan or any other strategies your organization uses.

The Bottom Line

Every employee’s situation is unique, and understanding their motivations is key. While you may be able to keep some employees engaged until opportunities arise, others may find their needs unmet within your organization—and that’s okay. If you’ve exhausted all options and their goals still don’t align with your organizational realities, it may be time to help them transition out. It’s better to part ways with a high performer on positive terms than to allow frustrations to escalate into counterproductive-turned-toxic behaviors. By handling these situations with empathy and clarity, you protect the well-being of the individual, your team, and your organization.