Your Top Performer Just Got Promoted. Here’s Why That Might Be a Mistake.

Promoting a top performer to a new role can be a double-edged sword. On one hand, it's a great way to reward their hard work and dedication, and it can also serve as a motivator for other employees to strive for similar achievements. However, as the article suggests, it can also set up not one, but two failures. The promoted employee may struggle in their new role, especially if they lack the necessary skills or experience, and the team they left behind may suffer from the loss of their leader and expertise.

This phenomenon is often referred to as the "Peter Principle," where employees are promoted based on their performance in their current role, rather than their ability to perform in the new role. It's a common pitfall in many organizations, especially startups, where the team is small and everyone is wearing multiple hats. The promoted employee may have been an excellent individual contributor, but that doesn't necessarily mean they'll be a good manager or leader. Moreover, their new role may require a different set of skills, such as strategic thinking, delegation, and communication, which can be a challenge for someone who's used to doing it all themselves.

So, what to watch next? If you're a founder or manager considering promoting a top performer, take a step back and assess whether they're truly ready for the new role. Consider providing training, mentorship, or coaching to help them develop the necessary skills. Also, think about the impact on the team they'll be leaving behind and have a plan in place to ensure a smooth transition. Lastly, be prepared to have an honest conversation with the promoted employee if they're struggling, and be willing to make adjustments or provide support to set them up for success.

Originally reported by entrepreneur.com. WiredBusiness adds analysis for business & startups readers.