Promotion Policy Template

Promotion Policy

Purpose of Promotion Policy

This Promotion Policy explains the principles and procedures [Company Name] uses to assess, select, and confirm employee promotions. The policy exists to support fair, transparent, and consistent career progression decisions that align individual development with business needs and resourcing plans.

Scope

This Promotion Policy applies to all employees of [Company Name], including full time, part time, and fixed term staff, unless otherwise stated in an employment contract or collective agreement. Contractors and temporary agency workers are covered only where their contracts specify eligibility for internal promotion.

Eligibility

Employees must meet the following general conditions to be considered for promotion:

• Completion of any applicable probation period, unless waived in writing
• Satisfactory performance as demonstrated in performance reviews and manager assessments
• No active disciplinary sanctions that would reasonably preclude promotion
• Possession of required qualifications, licenses, or training for the target role
• Demonstrated readiness for the responsibilities of the higher role

Promotion Criteria

Promotion decisions are made on the basis of job-related criteria that may include, but are not limited to:

• Consistent high performance and achievement of objectives
• Demonstrated competencies and skills required for the higher role
• Leadership potential and the ability to manage increased responsibility
• Business need and availability of suitable roles
• Results of formal assessments, interviews, or tests where applicable

Types of Promotion

Promotions may take various forms, including vertical promotions to higher grade levels, lateral moves that reflect increased scope or specialization, and acting or interim appointments. The type of promotion determines applicable terms, such as trial periods or temporary pay adjustments.

Application and Nomination

Employees may apply for advertised internal vacancies or be nominated by their manager. Applications should follow the internal vacancy process and include supporting information about performance, achievements, and readiness for the role. Managers may nominate employees where a suitable vacancy exists and should document the rationale for nomination.

Evaluation and Selection

Selection for promotion is based on objective evaluation against the role profile and promotion criteria. The evaluation process may include manager assessments, interviews, competency assessments, panel reviews, and reference checks. Decisions must be consistent, non-discriminatory, and aligned with business priorities.

Compensation and Effective Date

Compensation changes resulting from promotion are made in accordance with [Company Name] pay structures and budget approvals. Any salary adjustment, grade change, or new benefits entitlement is confirmed in writing with the effective date. Where applicable, a trial period or probationary period may apply following promotion.

Approval Process

All promotions require documented approval in accordance with the following general process. Specific approval levels and required documentation may vary by business unit and job grade.

• Employee applies or is nominated for a vacancy
• Hiring manager completes assessment and obtains supporting documentation
• Manager obtains approval from the department head or business unit leader
• HR reviews the proposal for policy compliance, pay equity, and appropriate documentation
• Final approval is obtained from the authorised compensation approver or executive where required

Role of Managers

Managers are responsible for identifying candidates, providing fair assessment and feedback, documenting performance evidence, and initiating promotion requests through the established channels. Managers must ensure the process is objective and supported by documented evidence.

Role of HR

HR is responsible for advising on policy application, reviewing promotion proposals for consistency and compliance, confirming pay and grade changes, coordinating assessments where required, and maintaining records of promotion decisions. HR may also convene calibration or selection panels to ensure consistency across the organization.

Non-Compliance

Failure to follow this Promotion Policy may result in the delay or reversal of a promotion, removal of improperly obtained benefits, and other corrective actions where appropriate. Managers and employees who circumvent established procedures may be subject to disciplinary measures in line with [Company Name] disciplinary policies.

Note

[Company Name] may update this Promotion Policy from time to time to reflect business needs, market conditions, or operational changes. Employees should consult HR for clarification or guidance on how the policy applies to specific circumstances.

For questions about this Promotion Policy or the promotion process, employees should contact their manager or the HR department.