assignment 10 promotion

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13.1 The Promotion Mix and Its Elements

Learning outcomes.

By the end of this section, you will be able to:

• 1 Define the promotion mix and explain its importance.
• 2 List and describe the elements of the promotion mix.

What Is the Promotion Mix?

We are all consumers, and we have all been the target of promotional campaigns. To connect with consumers of a target market, companies conduct extensive market research so that they may better understand the consumer. When companies understand the consumer, they can better structure a message to appeal to the consumer and also find the best channels for reaching the customer.

The created messages aim to get consumers’ attention. Sometimes they create awareness of a new event, a new product, a new idea, or a place to visit. Sometimes they are asking consumers to make a purchase. Marketing promotion is all around us.

According to the marketing firm Yankelovich Inc. , the average digitally connected person is exposed to around 5,000 ads per day. 4 Among the biggest promotional spenders in the United States is Disney . 5 Disney produces ads for everything from its movies and toys to its vacation clubs and theme parks. While we should be flattered that these companies are thinking of us and trying to figure out how to reach us and what messages they should send, many consumers are busy trying to figure out how to shut out the messages.

When you sit down to watch television, you are typically exposed to ads that a company believes that you will respond to based on the research it has done about the audience watching the show you tuned in to watch. During your time scrolling through your news feed on Facebook , you are being served ads that correspond to your Internet search history and even products you may have mentioned while your phone was on and your news feed open. Digital advertising relies heavily on algorithms of your search history and site visits.

As recipients of these marketing messages, many consumers believe that marketing is only advertising or sales. However, advertising and sales are simply two options in a marketer’s arsenal of communication tools used to connect with the target market. Developing a marketing communications strategy is something marketers should only do after they have developed the rest of the marketing mix.

In fact, marketers have a wide variety of strategies to use from the overall promotional mix (see Figure 13.2 ). Most companies choose to use a combination of the promotional mix methods to create an integrated marketing communication message that reaches the customer in many different ways. When the messaging is integrated, the consumer receives the same message no matter which method of promotion is chosen. If the consumer is watching the news and hears a story about the company or product, public relations has impacted them. If they then scroll through their social media accounts at the end of the day and they see an ad for the same product, advertising has impacted them. When they sort through their email and have a message from the company, they have received a direct marketing communication.

No longer does promotion need to rely heavily on just one method of marketing communication. Marketers can be much more targeted and more cost-effective in the promotional methods they choose. Using a combination of methods to send the same message allows the marketer to be more strategic in their messaging and in their budgeting.

The best products are nothing until the consumer knows about them. Without good promotion, the best products are just secrets. We all have things we want to say, and on any given day we make phone calls, create Instagram posts, upload TikTok videos, send emails, shoot off text messages, and talk face-to-face with people. And just like us, marketers also have things to say. Usually, they want to tell consumers about their new brand extension of Reese’s, a trade-in allowance for a new Toyota Camry that just hit the car lot, or even a buy-one-get-one-free promotion for your Starbucks latte. How marketers decide to say and send the message is the promotion mix.

The promotion mix is the set of strategies marketers use to communicate with their customers. With combined strategies, the promotion mix creates a powerful method of connecting with the customer and conveying all the other marketing mix elements for a holistic marketing approach. The promotion mix allows marketers to reach customers in many different ways, ensuring that the message is seen, heard, and understood. After determining and defining the target market, creating a good product, selecting a pricing strategy and optimal price, and deciding on the distribution method, the marketer is ready to communicate with the customer.

Messages sent by multiple methods provide a better opportunity for consumers to see and hear the message and make the connection back to the company. When a message is only sent by one method, the potential for interference, noise, and avoidance is more likely to occur. Marketers use a multichannel approach to send an integrated message.

Promotion Mix Defined

The full set of strategies that combine to make up the promotion mix include advertising, sales promotion, personal selling, public relations, direct marketing, and Internet/digital marketing. Each of these methods is intended to produce different results when used. Combining the elements creates an overall integrated message designed to reach consumers at various points in their path to purchase. Marketers call this integrated messaging integrated marketing communications.

The Importance of the Promotion Mix

Of all the marketing mix variables, the promotion mix can be further divided into different message channels that allow for connection and communication with the customer. When the promotion connects with the customer, it is the moment when all the marketing activities come together. When the messaging and method of delivery reach the customer and create the desired result, the marketing has achieved its purpose.

The strategies in the promotion mix provide the marketer with an arsenal of methods to achieve their marketing objectives, such as increasing sales or introducing a new product. However, consumers are bombarded with marketing messages throughout the day, and these are combined with the business of everyday life events like news, music, work, chores, family, and friends. With this busy pace and activity, the consumer is very difficult to reach. For the busy consumer, one communication method alone is not likely to cut through the clutter and noise to reach them and make an impact. Marketers must combine the various communication elements to connect with the customer and meet the communication objective.

Elements of the Promotion Mix

When analyzed individually, each of the promotional mix elements is powerful. They each have a part to play in the overall success of a company. When combined and carefully executed, they create powerful brands with legions of loyal fans and followers—the consumers. What do each of these promotional mix elements do, and how do they contribute to the whole process of connecting with the consumer?

• Advertising

Advertising is a multibillion-dollar industry. According to Statista, in 2020 alone, worldwide advertising spending reached $586 billion. 6 Advertising is paid, nonpersonal communication from an identified source that allows for creative messaging about all aspects of a product, service, idea, person, or place. Consumers are able to quickly point to advertising as a form of promotion. It is perhaps the element of the promotional mix that we are most familiar with and the one we have been most exposed to throughout every phase of our lives.

From our very first commercial showing how much fun it is to build with LEGO to imagery of a toddler walking the Disney streets with a costumed princess and Cinderella’s castle in the foreground, we know what advertising looks like. And while advertising can take many forms, it is important to note that advertising consists of carefully designed messaging from the company to the consumer. Advertising is meant to produce a response in the viewer. And advertising is all about what the company wants to tell us.

Advertising can be the pop-up window while we are doing a Google search. It can be the Chick-fil-A billboard we pass every day on our way to work. Advertising can be the trailer we watch before our movie starts. And advertising can be the fun Doritos spots we look forward to during the annual Super Bowl.

While advertising can be a costly means of communication with the customer, it is relatively inexpensive based on the number of people reached. When NBC priced the 2021 Super Bowl at $6 million for a 30-second spot, with a record 96 million viewers, the price averaged out to around $0.06 per person reached. 7

Advertising is effective based on the frequency with which it is usually viewed. And because of the media, the advertising message can usually be repeated many times, depending on the budget. Due to its repeatability, production costs have a better return on investment (ROI) the more an ad is used, and the recall of the ad increases significantly.

Sales Promotion

Most consumers love a sales promotion . It creates a feeling of excitement and often includes a bit of a gaming experience into the purchase decision. Marketers value the benefits of sales promotions because the results are immediate and they have a wide variety of options when using this promotional mix element. A sales promotion is a method for a marketer to induce sales in the short term. Sales promotion is not a long-term strategy but is geared toward specific calls to action, typically aimed at getting the consumer to buy something immediately or enter a sweepstakes or contest (see Figure 13.3 ).

Using sales promotions can be an effective method of getting the consumer to try a product or buy more of a product, or it can be a way to quickly deplete an inventory to make way for new products.

While sales promotions have many tactics that the marketer can employ, several commonly used examples of sales promotion include the following:

• Buy One Get One (BOGO) . When Domino’s Pizza offers the customer a free pizza when they buy a medium one-topping pizza, this BOGO deal is used to get an immediate increase in sales for Domino’s pizza. Consumers may buy Domino’s over other pizza brands because they can get more pizza for their money.
• Enter to Win . PepsiCo needed to gain traction with the millennial audience. It needed to boost the Lay’s brand of potato chips and compete with new flavorful organic chips that were getting market share in the category once dominated by Lay’s. To generate new interest in its brand, Lay’s launched a campaign for consumers to create a new flavor. New flavors could be entered, Lay’s would create samples, and the winner of the new chip flavor would win $1 million.
• Coupons . This method of promotion has come a long way with the use of technology. While consumers are still able to “clip” coupons and redeem them at the point of sale to receive savings on the products they are buying, many companies are making coupons available through mobile apps and discount codes to apply at the point of sale through an e-commerce store. Using coupons is a great method of inducing trial of a new product and increasing market share.

For National Ice Cream Day (see Figure 13.4 ), Cumberland Farms wanted to increase the sales of its house brand of ice cream, Ultimate Scoop . 8 It offered consumers a digital coupon for $1 off a pint of the ice cream. Cumberland Farms’ existing customers received their coupon via text message, and new customers could text in to get the coupon.

• Rebates . Companies offer rebates to induce purchase and generally to receive something in return besides the sale. When a rebate is offered for the purchase of an Energy Star–certified product, the consumer gets a designated dollar amount off the price of the product, and in turn they must submit the proof of purchase along with identifying information about themselves.

Personal Selling

Personal selling is one of the most expensive forms of promotion because it is a one-on-one, person-to-person form of communicating with the customer. The role of the salesperson is to inform and persuade the customer. This is usually done in what is termed an exchange situation. The salesperson is exchanging knowledge and something of value, while the customer is exchanging money for the item of value. Personal selling is ideal for products that can be customized, are complex, and have a relatively high price point.

Typically, personal selling is most often used in business-to-business (B2B) markets. Business buyers have longer buying cycles, more complex buying situations, and larger budgets. The pharmaceutical industry is well-known for using personal selling. Company representatives must have a high degree of training and knowledge about the products they are selling to physicians and hospitals. It is also very common to have a sales force to sell equipment and machinery to manufacturing plants. Businesses rely on the knowledge and service of the sales force selling them products.

In the business-to-consumer (B2C) market, personal selling is used for items that cost more or items that have a high degree of variation. We find sales representatives when we buy automobiles, home improvement products, and insurance. The job of the sales representative is to determine our needs and provide solutions that fill those needs.

When compared to advertising, which has a very general message directed to a very large audience, personal selling is an individualized message for one or several people within the buying group. When evaluating the costs of personal selling, it is typically hundreds to thousands of dollars per person reached.

The process of personal selling can be time-consuming. The process of selling and the tasks of the sales force can be complex. The sales professional is tasked with prospecting to identify the right customers and then qualifying them to make certain they are a good fit for the product.

It is not uncommon to hear people say, “You talk a good game. You could sell to anyone.” In reality, salespeople do not want to talk people into a product. A good sales force only wants to sell to customers who want and need the product. The best sales force knows that when the customer is a good fit, they will bring repeat business and good word of mouth.

While some salespeople have a natural inclination for selling, others are highly skilled with the technical knowledge of the products they are selling. Understanding customers, the buying situation, and the product being sold are a few of the skills needed to master the art of selling. Good sales professionals know that the real work of the sale is to service the needs of the client long after the sale has been made.

Public Relations

Public relations is a nonpaid, nonpersonal form of promotion. Because it is nonpaid, it has a high degree of credibility and is beneficial because a typically credible, non-biased third party is the messenger. While there are many tactics that marketers might use for public relations, some of the most commonly used include press releases, press conferences, events, and annual reports.

Many of the other promotional tools focus specifically on communication with the customer. By contrast, public relations includes efforts to work with the community where it operates, media, government officials, educators, and potential investors.

When Nordstrom opened its flagship store in Manhattan, it unlocked the doors a few days early for a VIP celebration that included Vogue ’s editor, Anna Wintour , along with actresses, models, and designers. Some of the noted attendees included Zoe Saldana , Katie Holmes , Olivia Wilde , Karlie Kloss , Joan Smalls , Winnie Harlow , Tory Burch , Tommy Hilfiger , and Stacey Bendet of Alice + Olivia . Guests formed long lines around the store in an attempt to access the party. 9

TOMS shoes has long been a leader in cause marketing (see Figure 13.5 ). When you buy from TOMS, one-third of the profits go to Grassroot Good . 10 TOMS’ annual report highlights the people the company helps and how it helps them. Investors and any interested parties receive the annual report that details the work TOMS does right along with the profits it is making.

When celebrities wind up in the news, it is public relations, and it works to keep their name before the public and their fans. So the headline that hits the front page of the New York Times or is a leading story on the NBC nightly news both create publicity for the celebrity. Businesses also use publicity. A business might have a product as part of a movie, such as BMW vehicles showing up in 37 of the highest-grossing movies of 2018. 11

Public relations can also include crisis communication when negative issues occur. One of the biggest public relations issues happened in 1982 to Tylenol . A malicious person or persons in the Chicago area tampered with a few bottles of Tylenol Extra Strength capsules by replacing the actual capsules with cyanide-laced capsules. Consumers who unwittingly bought the Tylenol ended up dead. Johnson & Johnson , the maker of Tylenol, was facing issues that could easily have destroyed its business. The issue was the leading story for every news outlet.

Johnson & Johnson faced the issue head-on and made the bold move to have Tylenol removed from all shelves. The recall resulted in the removal of 30 million products from store shelves. 12 In the end Tylenol was a hero and won the trust of a nation.

Direct Marketing

Direct marketing allows for direct communication with the customer. Messages can be tailored to specific market segments and even personalized toward individual consumers. Early tactics of direct marketing included telephone and mail; however, technology has allowed for new methods of connecting with the customer to include text messaging and email marketing.

In 2019, the Data & Marketing Association (DMA) reported that the direct mail industry was valued at $44.2 billion. 13 It’s the second largest channel for ad spend in the United States, and it continues to grow. Transformed by technology, direct marketing is finding new methods to connect with the customer. Most connection includes a call to action that provides for immediate feedback on the effectiveness of the method.

Internet/Digital Marketing

Internet/digital marketing includes uses of technology to reach customers at many different points of interaction. Marketers have at their disposal a variety of methods to reach their customers and brand products. Some of the tools include websites, landing pages, social media pages, widgets, and customer relationship management (CRM) systems. All the digital properties work together to drive traffic to the branded properties and engage the consumers.

Digital marketing is geared toward very specific market segments and is primarily interactive. Think of digital marketing as the mechanism that produces the immediate interaction with the customer and produces some type of feedback. Digital is considered two-way communication between the company and the customer. During the early stages of launching the SPANX brand, Sara Blakely primarily used digital marketing with a heaving emphasis on social media. 14 She involved her women friends who were in her target market demographic and had them post about the brand through their social media.

By contrast, Internet marketing is sending a message to a mass audience. The Internet is used to for digital marketing and includes websites and digital ads as well as the two-way communication of social media. Other forms of digital marketing include mobile technology such as SMS and mobile apps.

When a consumer completes a Google search for shoes and then jumps to Facebook to scroll their feed and are served shoe ads from Nordstrom, Macy’s , and Steve Madden , they have been targeted by these shoe companies. The targeting, immediacy, and changeability of the messaging makes digital a quick and efficient method of reaching consumers. Digital promotional tools are extremely effective and can cut through the clutter and reach the consumer when they are in the demand phase of the buying process and have signaled an intent to purchase.

According to a 2020 chief marketing officer (CMO) survey from Gartner , two-thirds of promotional budgets are being spent on digital. 15 Because of the tremendous analytics available, marketers are able to assess the effectiveness immediately. Messages can be tested for effectiveness and quickly changed if they are not producing results. It is very difficult to get the same quick feedback with any of the other forms of promotion. Through careful tracking and robust customer relationship management (CRM) systems, marketers are quickly able to promote products, increase brand awareness, and move consumers down the sales funnel to instantly purchase through online e-commerce sites.

Utilizing mobile app technology, marketers are able to push promotions to customers while segmenting them by their behaviors and simultaneously filling their CRM with insights and analytics that can help drive promotions and sales.

Careers In Marketing

Integrated marketing career.

An integrated marketing communications (IMC) professional builds and manages campaigns that integrate all the facets of marketing—advertising, public relations, digital campaigns, sales, etc. If you’re interested in this job role, check out this article to learn about the qualifications, experience, and salary . You can also refer to programs offered by educational organizations that specialize in integrated marketing. A few examples of those educational organizations include San Diego State University , Marist , Northwestern , and Eastern Michigan University, to name a few. Check out this list for the Best Marketing Communication Colleges according to Best Accredited Colleges .

Additional resources to explore include the following video:

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• have all of a company’s marketing and promotional activities project a consistent image and message to its target market
• control all facets of a product’s distribution
• communicate with customers only through television commercials
• have complete control over all facets of the marketing mix
• communications about a good, service, or company
• paid forms of nonpersonal communication about a good, service, or company
• communication that moves the product from the wholesaler to the retailer
• communication from a company sales representative to a company buyer
• Sales promotion
• Personal selling
• Public relations
• sales promotion
• public relations
• personal selling
• Internet/digital promotion
• advertising
• direct marketing

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Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/13-1-the-promotion-mix-and-its-elements

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• U.S. Code All Titles
• title 10 ARMED FORCES
• subtitle A General Military Law
• part II PERSONNEL
• chapter 36 PROMOTION, SEPARATION, AND INVOLUNTARY RETIREMENT OF OFFICERS ON THE ACTIVE-DUTY LIST
• subchapter II PROMOTIONS
• § 619 Eligibility for consideration for promotion: time-in-grade and other requirements

Collapse to view only § 619. Eligibility for consideration for promotion: time-in-grade and other requirements

• § 619. Eligibility for consideration for promotion: time-in-grade and other requirements
• § 619a. Eligibility for consideration for promotion: designation as joint qualified officer required before promotion to general or flag grade; exceptions
• § 620. Active-duty lists
• § 621. Competitive categories for promotion
• § 622. Numbers to be recommended for promotion
• § 623. Establishment of promotion zones
• § 624. Promotions: how made
• § 625. Authority to vacate promotions to grades of brigadier general and rear admiral (lower half)
• § 626. Acceptance of promotions; oath of office

CITE AS: 10 USC 619

CITE AS: 10 USC 619a

CITE AS: 10 USC 620

Under regulations prescribed by the Secretary of Defense, the Secretary of each military department shall establish competitive categories for promotion. Each officer whose name appears on an active-duty list shall be carried in a competitive category of officers. Officers in the same competitive category shall compete among themselves for promotion.

CITE AS: 10 USC 621

Before convening a selection board under section 611(a) of this title for any grade and competitive category, the Secretary of the military department concerned, under regulations prescribed by the Secretary of Defense, shall determine (1) the number of positions needed to accomplish mission objectives which require officers of such competitive category in the grade to which the board will recommend officers for promotion, (2) the estimated number of officers needed to fill vacancies in such positions during the period in which it is anticipated that officers selected for promotion will be promoted, and (3) the number of officers authorized by the Secretary of the military department concerned to serve on active duty in the grade and competitive category under consideration. Based on such determinations, the Secretary of the military department concerned shall determine the maximum number of officers in such competitive category which the selection board may recommend for promotion.

CITE AS: 10 USC 622

CITE AS: 10 USC 623

CITE AS: 10 USC 624

CITE AS: 10 USC 625

CITE AS: 10 USC 626

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• A–Z Index

• Operating Status

Resources For

• New / Prospective Employees
• Federal Employees
• HR Professionals

Fact Sheet: Promotions

Description.

A promotion is a change of an employee while continuously employed from one General Schedule (GS) grade to a higher GS grade.

Employee Coverage

Only GS employees who are promoted to a higher grade under the General Schedule without a break in service are covered by the two-step promotion rule in 5 U.S.C. 5334(b) and 5 CFR 531.214 (also, 5 CFR 531.243 for GM employees).

Two-Step Promotion Rule

The two-step promotion rule states that a GS employee promoted to a position in a higher grade is entitled to basic pay at the lowest rate of the higher grade that exceeds his or her existing rate of basic pay by not less than two step increases of the grade from which promoted. The two-step promotion rule must be applied using one of two methods--the standard method or the alternate method.

Geographic Conversion Rule

When an employee's official worksite is changed to a new location upon promotion where different pay schedules apply* , the agency must convert the employee to the applicable pay schedule(s) and rate(s) of basic pay for the new official worksite based on the employee's position of record before promotion before applying the two-step promotion rule . Set the employee's rate(s) of basic pay in the applicable pay schedule(s) in the new location based on his or her position of record (including grade) and step (or a GM employee's GS rate) immediately before the change in the employee's official worksite. The resulting rate must be used as the existing rate in applying the two-step promotion rule . (See 5 CFR 531.206 and 531.214 for information on processing other pay actions that may occur simultaneously with a promotion action.)

*In the context of applying the geographic conversion rule, the phrase "where different pay schedules apply" means that an employee's official worksite is changed to a new location that would cause the employee to lose or gain coverage under a location-based pay schedule (i.e., locality rate schedule or special rate schedule) if the employee were to remain in the same position of record.

Standard Method

Apply the standard method for the two-step promotion rule if the employee is covered by the same pay schedules before and after promotion. For example, an employee may be covered by the General Schedule and the same locality rate schedule before and after promotion. The steps for the standard method are as follows:

Back to Top

Alternate Method

Apply the alternate method for the two-step promotion rule if the employee is covered by different pay schedules before and after promotion and if the alternate method will produce a higher payable rate upon promotion than the standard method. For example, an employee may be covered after promotion by a special rate schedule that did not apply to him or her before promotion, and the alternate method will produce a higher rate.

Exception: An agency may apply the alternate method for an employee covered by different pay schedules before and after promotion, even though the alternate method produces a lesser payable rate than the standard method, only under the following conditions:

• The agency determines it would be inappropriate to use the standard method based on a finding that the higher pay for the position before promotion is not sufficiently related to the knowledge and skills required for the position after promotion; and
• The agency informs the employee of the determination to use the alternate method before the effective date of the promotion.

Retained Rate Employees

If an employee was receiving a retained rate before promotion, apply the promotion rule as follows:

• If the employee's existing payable rate of basic pay before promotion is a retained rate, apply the standard method or alternate method, as applicable, as if the employee were receiving the maximum rate of the employee's grade before promotion.
• If the payable rate of basic pay after promotion determined under paragraph (1) is greater than the employee's existing retained rate, the employee is entitled to that payable rate.
• If the existing retained rate is greater than the rate determined under paragraph (1), the retained rate must be compared to the highest applicable rate range for the position after promotion, as provided in 5 CFR 536.304. The employee is entitled to the lowest step rate in the range that equals or exceeds the retained rate or, if the retained rate exceeds the range maximum, to the retained rate.

Maximum Payable Rate

An agency may use the maximum payable rate provisions of 5 CFR 531.221 through 531.223 (and 5 CFR 531.247 for GM employees) to set an employee's pay at a higher rate upon promotion. The maximum payable rate provisions allow an agency to set pay based on higher pay the employee previously earned in another Federal job. However, agencies may not use the maximum payable rate provisions to set an employee's pay at a lower rate than that provided by the two-step promotion rule . See the fact sheet entitled " Maximum Payable Rate Rule " for additional information.

Highest applicable rate range means the rate range applicable to a GS employee based on a given position of record and official worksite that provides the highest rates of basic pay, excluding any retained rates. For example, a rate range of special rates may exceed an applicable locality rate range. In certain circumstances, the highest applicable rate range may consist of two types of pay rates from different pay schedules--e.g., a range where special rates (based on a fixed dollar supplement) are higher in the lower portion of the range and locality rates are higher in the higher portion of the range.

Pay schedule means a set of rate ranges established for GS employees under a single authority--i.e., the General Schedule, an LEO special base rate schedule (for grades GS-3 through 10), a locality rate schedule based on GS rates, a locality rate schedule based on LEO special base rates (for grades GS-3 through 10), or a special rate schedule. A pay schedule applies to or covers a defined category of employees based on established coverage conditions (e.g., official worksite, occupation). A pay schedule is considered to apply to or cover an employee who meets the established coverage conditions even when a rate under that schedule is not currently payable to the employee because of a higher pay entitlement under another pay schedule.

Position of record means an employee's official position (defined by grade, occupational series, employing agency, LEO status, and any other condition that determines coverage under a pay schedule (other than official worksite)), as documented on the employee's most recent Notification of Personnel Action (Standard Form 50 or equivalent) and current position description. A position to which an employee is temporarily detailed is not documented as a position of record.

Rate of basic pay means the rate fixed by law or administrative action for the position held by a GS employee before deductions. A rate of basic pay includes a GS rate under 5 U.S.C. 5332, a law enforcement officer special base rate under section 403 of the Federal Employees Pay Comparability Act of 1990, a special rate under 5 U.S.C. 5305, a locality rate under 5 U.S.C. 5304, or a retained rate under 5 U.S.C. 5363. (See section on retained rate employees for more information.)

• 5 U.S.C. 5334(b)
• 5 CFR part 531.203 - 531.206, 531.214, and 531.243
• Promotion Examples
• Questions and Answers on General Schedule Promotions

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10 criteria for employee promotion justification

Promoting internally solves a lot of problems for organizations. Employers are 32% more likely to be satisfied with the work quality of internal hires — not to mention the y’re less likely to leave or get dismissed within the first year of their tenure.*

However, internal promotions can be tricky to navigate. A well-made promotion decision has the potential to boost morale and inspire trust in employees. A poorly made promotion decision, on the other hand, can lead to disengagement and resentment among team members.

Having solid justification for the promotion choices you make is essential — and that starts with developing specific promoting criteria to inform your decisions. That’s why we’ve outlined ten promotion justification criteria in this guide, so keep reading to understand what qualities to look for when you’re considering who to promote.

* Deloitte Insights , 2024

🚀 Make easy promotion decisions with Leapsome Discover how Leapsome Compensation can streamline your entire promotion process and empower you to take a data-driven approach. 👉 Take a 5-min product tour

What are the biggest reasons for promotion?

No single quality or skill can determine when one employee should be promoted internally over another. After all, roles across diverse organizations require different levels of experience, qualifications, and soft skills. However, we’ve come up with a list of ten reasons for promotion that’ll point you in the right direction when you’re considering an upcoming promotion decision. While deciding on the best person for an open position isn’t a box-checking exercise by any means, this list of reasons for promotion should act as a good starting point:

• Comfortable with feedback
• Managerial and leadership skills (management roles)
• Personal motivation
• Sustainably exceeding expectations
• Fit for the role
• Tenure or experience
• Excelling in their current role
• Strong self-management skills
• Future-oriented

💡 Making promotion decisions doesn’t have to be a stressful process. Create, communicate, and implement internal employee promotion best practices and stay consistent with them over time. Implementing a dedicated tool like Leapsome Compensation means you can stop overthinking all the possible reasons for promoting an employee. Instead, you can rely on streamlined review cycles and automatic recommendations to help you make fair, data-guided decisions.

1. Curiosity

Transparency may be one of your company’s professional values, whether it’s explicit or implicit. Whatever the case, you should see curiosity as a strength. When an employee asks questions, that’s a sign that they’re engaged and trusting. This trust also shows that you’ve created more psychological safety in your workplace.

Curious team members also foster transparency by wanting to understand the “why” behind your practices. They may also suggest a better way to do things — which should be valued by any organization that wants to embrace creativity and innovation. As noted in an article in the New York Times about curiosity: “We feel most curious when exploration will yield the most learning.”

With that in mind, it’s important to seek out employees who appreciate curiosity in others and don’t become defensive when their peers, direct reports, or managers ask them questions. If they’re receptive to inquiry and open communication now, they’re more inclined to maintain that attitude when they have a higher-level position with greater responsibility.

🧐 You know that employee promotions can help you retain your best talent and save you money. However, did you know that they can have a positive effect on other team members, too? We discuss everything you need to know in our guide to employee promotions .

2. Comfortable with feedback

‍ Giving feedback to employees builds trust, motivates them to improve, and shows that you care about their growth. However, team members should also understand the role that empathy plays in feedback, especially in managerial positions. So, look for candidates who are skilled at something called redirecting feedback .

In redirecting feedback , you point to problem areas with a constructive mindset. Here are two examples:

I know it’s been a busy month for you. I think that what may help the team move ahead with this project is if you set aside your current project, as it’s not as urgent. 

If you’re ever struggling with prioritization, I’d suggest looking at the potential impact of a task. You can tackle the most impactful ones first and move forward from there. I’m always here to offer support in prioritizing!

Do you have five minutes to talk through your work on the most recent project? I especially liked your work on the first sections, but I noticed some errors in the last few. I thought that might reflect a lack of clarity, and I wanted to let you know that I’m here to help you understand anything that might be unclear to you.

With this in mind, when you’re thinking about reasons to promote an employee, ensure they understand the value of receiving continuous feedback and praise . If they’re accustomed to constructive criticism in their current position, they’ll be more open to it as they go through growing pains in their new role. ‍

3. Managerial & leadership skills (management roles)

Not all employees seeking promotions want to manage people or develop the skills they’d need to do so effectively. Indeed, a 2024 CoderPad study revealed that as many as 36% of tech workers didn’t want to take on a managerial role. As this reality becomes more apparent, people-oriented companies are trying to create more diverse opportunities for internal mobility and non-managerial growth. 

If you are looking to fill a manager role, you need to know for certain that your candidate is excited about managing people and building their leadership skills . What does that look like? Here are some ideas as a starting point:

• They rely on quantitative data to make decisions
• They proactively set up 1:1 meetings with colleagues and leadership
• They have a clear sense of their long-term goals
• They know how to make their performance goals specific and measurable
• They’re skilled at prioritizing projects and helping others prioritize
• They’re good at acknowledging strengths in others
• They appreciate feedback and receive it well
• They’re skilled at giving both positive and constructive feedback
• They understand why it’s important to celebrate successes at work
• They’re open to continuous learning and improvement around biases and diversity, equity, inclusivity, and belonging ‍

4. Personal motivation

Motivated, engaged employees tend to be 23% more productive . This knowledge has led many organizations to ramp up their engagement initiatives with employee surveys and rewards and recognition programs . However, many businesses fail to understand how multifaceted motivation is in their employees. 

So, what might motivate your promotion candidate?

Intrinsic motivation — There’s an internal driving force motivating the employee. Some drivers of intrinsic motivation could be:

• The opportunity to learn new skills or develop areas of expertise
• The pleasant feeling that comes from helping others
• The ability to express themselves in a creative way

Extrinsic motivation — There’s an external reward or threat motivating the employee. In the workplace, external motivators could be:

• Recognition in the form of acknowledgment for a job well done or good scores in their performance reviews
• A promotion or a new job in a different department
• The desire to be a part of a team and collaborate meaningfully with colleagues
• Monetary incentives , like a bonus or extra paid time off

When your candidate can articulate what motivates them, it shows that they’re thinking critically about their workplace performance. Whatever motivates them at work will produce positive outcomes for themselves, their team, and the organization. ‍

5. Sustainably exceeding expectations

You need to ensure that you measure employee success against objective benchmarks like performance reviews and goals and OKRs — and not based on your own potentially biased perception or instincts . 

Let’s say that, when looking back at a candidate’s recent review cycle, you see that they’ve exceeded expectations. While that’s a great start, you should look back at more performance reviews.

Why? What you’re looking for is sustained performance — have they demonstrated their ability to consistently go beyond what is expected? If so, that’s a green flag. If not, you may need to investigate why. 

Employees sometimes have an “off” review cycle due to a personal situation, a challenging time for the company, or another circumstance altogether. Those factors certainly shouldn’t work against them when you’re considering potential reasons for their promotion at work. They’re human beings, after all, and they deserve empathy.

This is why it’s best to talk to the candidate, their manager, and even their peers. They may need a bit more time to work on any weaknesses in their performance.

💬 “By using clear KPIs, we’re able to ensure that promotions are based on objective criteria rather than subjective opinions. And by making our hiring process transparent, we ensure that everyone involved in the process can see exactly how we’re evaluating candidates.” — Arif Michael Boysan, People Ops Consultant and Coach at AMB Performance Group

6. Fit for the role

When you’re promoting from within, it can be easy to assume that your candidate has enough familiarity with your culture and processes. However, it’s a good idea to assess them the same way you would with an external candidate:

• Are they a cultural fit? Even if they’ve been with your company for a year or more, do they understand why your company prioritizes diversity, equity, inclusion, and belonging, for example? Can they articulate what makes your organization different from others?
• ‍ Do they have the right skill set? If your company has competency frameworks for employees at every level, you can use this to assess whether the candidate has the needed soft skills for the next role.

😬 Do you have a promotion decision to make soon? Learn how to make the process easier and more collaborative with Leapsome Compensation .

7. Tenure or experience

Anyone making a hiring decision or thinking about reasons for a promotion should be cautious of promoting solely or even mostly based on time with the company. It can cause employees to feel that they won’t be able to earn a promotion without stagnating in the same job for a few years.

At the same time, tenure with the company and experience in a role can be useful criteria. The caveat is that you should assess it in tandem with other factors, like performance review results, project results, OKRs, and the skill set they’ve developed during their tenure.

As noted in SHRM , the most important factor in your promotion decision shouldn’t be how long someone has worked with the company. A more well-rounded and practical approach involves prioritizing those who have a deep understanding of the open position’s deliverables, as well as at least 70% of the required skills and applicable real-world experience.

“In today’s fast-paced corporate world, we don’t just count ‘time served.’ Instead, employee achievements made against the time served are a more reliable metric. Suppose a relatively recent hire is skilled enough, consistently adds value to your organization, and has a stellar track record of success. In that case, they’re more deserving of a promotion than a seasoned employee with low productivity who has developed a habit of procrastination due to a lack of motivation to progress.” — Anjela Mangrum, President and Founder of Mangrum Career Solutions

8. Excelling in their current role

You can use your competency framework to help determine if your employee has excelled in the technical and soft skills that are relevant to their current role. You can also ask their peers or colleagues they may have worked with on cross-functional projects for their input — 360° performance reviews are the perfect moment for that. 

Here are some signs that your candidate has performed at a high level in their current role:

• They’re one of the first people you go to when their manager, reports, peers, or people leaders need help with something — The candidate is consistently reliable. Their colleagues, leadership, and direct reports know they’ll be able to take a task off their hands if they have time, or help them find the right solution. ‍
• You can always count on their performance — While it may be hard for managers to let go of direct reports who consistently do great work, perhaps it’s time to promote them before they lose momentum and feel they’re not progressing at the company. ‍
• The candidate is ready for a new challenge — They’ve been asking to help on other projects and are willing to learn new skills.
• ‍ Their peers already see them as a leader or expert — They may not be up for a management role, but if their peers go to them for their expertise, that’s a sign that they’ll have more success engaging and building trust with their direct reports when they’re in a leadership position.

💡 Is your current skill framework working for you? Or do you need to start from scratch? Check out our People Ops Playbook on creating a career progression framework .

9. Strong self-management skills

An employee may want to take on more responsibilities and work with less managerial intervention. If they do, they need to demonstrate great self-management skills. Here are a few key areas to assess for skills:

• Organizational skills — While this doesn’t come naturally to everyone and is a skill that can be improved over time, the ideal candidate should understand how to set up their tasks, processes, and work environment for success.
• Identifying and setting priorities — As their list of responsibilities and tasks increases, they’ll need a solid ability to prioritize the most impactful, urgent projects. If they’re in a managerial position, they’ll also have to offer their direct reports guidance and support with prioritization.
• Time management — Do they consistently meet deadlines, especially when those deadlines impact others? 
• Managing stress levels — Your ideal candidate should know that more responsibility could bring more challenges. They must be ready to handle these and know when to ask for support. ‍

10. Future-oriented

The future of work demands that we no longer rely on external experts to be well-informed about organizational trends and innovations. Instead, forward-looking companies should ask that leadership and people ops teams stay current and open channels for employees to participate in these conversations. Why? Because everyone has a part to play in shaping bigger-picture decisions that companies make for the future, not just C-level executives and thought leaders.

In light of that, the ideal candidate should embrace this same mindset and be excited about their role in contributing to future outcomes for your organization. ‍

Make the right promotion decisions with Leapsome

Promotion decisions don’t happen in a vacuum. They significantly impact people’s careers and the way employees collaborate on a daily basis. That’s why it’s vital to be consistent, open, and transparent about your approach to promotions to engage all team members, foster trust within your organization, and nurture a healthy work environment.

If you’re struggling to understand what motivates you to promote employees and build a clear system to that end, we recommend keeping the ten promotion justification criteria we covered in this article in mind as a starting point. In addition, consider implementing a dedicated promotion tool like Leapsome Compensation . The platform is designed to make the promotion process more fair, efficient, and scalable. You’ll no longer have to worry about understanding someone’s career progression or remembering when someone’s due for a promotion review. Instead, you’ll be able to focus on what really matters — having meaningful development conversations and helping team members further their careers.

Because Leapsome knows people-centered organizations want their best people to grow with them.

💥 Feel confident about your promotion decisions ‍ Leapsome Compensation empowers users to build transparent promotion processes for a better employee experience. 👉 Chat with an expert

Leapsome Team

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