Demotion
Demotion is the process by which an employee is given a lower position, often with fewer responsibilities and sometimes less pay. A demotion can occur when an employee is not performing well in their current role, or when a company needs to reorganize. The latter often happens when a company achieves poor results. There are then fewer financial resources and may choose to cut back on staff. Demotion helps place employees in appropriate positions or reduce operating costs. Demotion occurs in any business where there is a need to adjust staff roles due to changing circumstances. This applies to both small and large companies.
Demotion as a career strategy
Demotion can also be part of a career development strategy. Employees who find the workload in a higher position too heavy can then choose a lower level. It also provides opportunities for employees who are closer to retirement and want fewer responsibilities.
