As a former employment law attorney and now as an organization consultant and executive coach, I’ve encountered many situations where, instead of a problem employee being let go, he or she is demoted. With rare exceptions, I believe this approach is a mistake.
The demotion decision often arises from what I call the “insidious instinct to avoid,” as well as a misguided belief that a demotion is more humane than a termination. I’ve encountered the following result on a great many occasions: A disgruntled, disengaged employee continues to cause damage to the organization. The person may accept the demotion out of perceived economic necessity, but don’t expect gratitude from them.
