When You Can't Promote A Star Employee

From HBR:

They’re one of your best people—a director who’s been instrumental to your success. They’re seasoned, strategic, and ready for more. But there’s nowhere for them to go. No opening at the executive table, no clear path up, and no lateral moves look promising either. How do you help someone find the next step when the obvious one doesn’t exist? What conversations should you be having? And how do you keep them from checking out in the meantime?

What the Experts Say

Your rising star expects a promotion. It feels inevitable, the rightful reward for their effort. The problem is you can’t deliver it. Managing the gap between their expectations and reality is one of the hardest parts of leadership, and it’s becoming more common, notes Dan Schwabel, managing partner of Workplace Intelligence, a research firm, and the author of several books, including Back to Human: How Great Leaders Create Connection in the Age of Isolation. “We’re in a job-hugging job market,” he says, meaning employees are clinging to their jobs for fear they can’t find another one. “There’s less mobility and fewer spots to grow into.”

But career growth doesn’t necessarily require a title change. Your job is to drive that growth through expanded responsibilities, new skills, and greater visibility, says Anthony Klotz, an organizational psychologist at University College London and author of the forthcoming book Jolted: Why We Quit, When to Stay, and Why It Matters. “People tend to stay committed to organizations that invest in them, and investment is defined broadly,” he says. “They need to feel like their career is moving forward, not standing still.” Here’s how to make that happen.

First, be upfront

You might dread telling this person there’s no promotion on the horizon, but they can likely read the room. “You’re validating what they already know: The job market is tight and people are holding on,” says Schwabel. Still, he recommends being as transparent as possible: Acknowledge what’s going on, what’s driving it, and how long it may last. “There are so many moving parts and you can’t promise that there will be an opening in six months or even two years.”

Context is useful, adds Klotz. He suggests looking at senior-level turnover over the past two decades and comparing it with recent years. Showing them that turnover is low now in your organization helps them understand the situation for what it is: an external constraint, not a judgment on their performance. “They’re not being singled out,” he says. “The goal is to shift the conversation from ‘That’s unfair’ to ‘That makes sense.’”

Then, listen

That doesn’t mean they’ll buy it right away, however. They’ve put in the work, and it’s understandable if they feel the organization isn’t holding up its end of the bargain. “Promotions have become the primary way people track career success,” says Schwabel. “They want something they can post on LinkedIn.” Which is why Klotz recommends that once you’ve delivered the news, you shut up and listen. You don’t know how they’ll react. It could be relief, anger, disappointment, or they might say very little. “Let them know you support them and that you have ideas, but you want to hear from them first,” he says. “Give them room to be honest about how they’re feeling and what would help.”

Ask questions

They may need time to process. But once they’re ready, Klotz advises asking about the kinds of challenges they want to take on. “Show that you’re committed to keeping their career moving forward.” Your first priority is to understand what they want and where their ambitions lie, says Schwabel. “If they say, ‘I want to get to the next level’ or ‘I want to do what you’re doing,’ dig deeper.” Ask: What types of problems do you want to solve? Which parts of the business energize you? What capabilities do you want to be known for? Your goal is to turn their frustration into direction. “You’re trying to map what they want against what could eventually open up—even if there’s nothing available today.”

Make a plan

Next, devise a plan for growth. “Decouple career progression from org chart progression,” says Schwabel. “Show them that there are ways to advance without a new title.” After all, up isn’t the only way forward, adds Klotz. “Our careers go sideways, diagonal, and through a maze. We can only make sense of the path in retrospect.” In the here and now, this means finding ways for them to build skills and exercise new muscles. “Remember, you’re dealing with a high performer, someone who’s accomplishment-driven, who wants to be climbing the mountain and improving their resume.” As you seek out opportunities, our experts advise focusing on three areas in particular:

  • Broaden their scope. Help them expand their reach beyond their current role, says Schwabel. They could lead a cross-functional initiative or join a task force or steering group. “At the leadership level, it’s about breaking down silos—getting departments working together,” he adds. “This is the kind of experience that prepares people for higher-level roles.”

  • Increase their visibility. Create opportunities for them to gain exposure to senior leaders. Ask them to lead presentations to executives, take on a high-profile project, and encourage them to speak up more in meetings. “This builds their confidence and puts them on the radar for future opportunities,” says Schwabel.

  • Widen their influence. Give them more responsibility. Perhaps there’s a portfolio of products they could own, or an additional direct report to manage. Maybe they could absorb some of your duties. “Be open to their input too,” says Klotz. “They may have ideas about where they can add the most value you hadn’t thought of.”

Advocate where you can

There is, of course, a catch: You’re asking this person to take on more without a promotion. That means finding other ways to recognize their contributions, says Klotz. If leadership turnover has stalled, make the case to HR for broadening mid-tier pay bands. This person has taken on additional duties and deserves compensation. “If you want to retain high performers, you need to open the pocketbook,” he says. “Your job as a leader is to exercise some of your power on behalf of your high performers.” You can’t manufacture a role that doesn’t exist, but you likely have more flexibility than you think, adds Schwabel. Can you adjust their title slightly? Secure additional resources or flexibility? “Fight for them,” he says. “What matters most is that the person knows you’re trying.”

Be vigilant

This person is now a flight risk, which means they need to be top of mind for you. “Amplify your coaching—not in a micromanagey way, but make sure they continue to develop,” says Klotz. Watch for signs they’re checking out: Are they quieter in team meetings? Less helpful to coworkers? Bowing out of events? “Those are signs they may no longer see themselves having a future in the organization,” he says.

If you sense they’re going to quit, it’s decision time. He recommends looking up the org chart. Are there moves you could make to open a spot? Do you need to create a new position? Or, if none of that is possible, shift tactics: Make sure they leave on good terms. “If they’re going to quit anyway, keep the line of communication open and set them up for boomeranging back.”

Principles to Remember
Do
  • Provide data and historical context showing that turnover is low; it helps them see this as an external constraint, not a judgment on their performance.

  • Appreciate their perspective. They’ve put in the work, so it’s understandable if they feel let down. Offer support and ask what they need before suggesting solutions.

  • Show them career growth doesn’t require a promotion. Give them stretch opportunities that broaden their scope, increase their visibility, and widen their influence.

Don’t
  • Assume you know what they want. Ask which problems they want to own, what energizes them, and what skills they want to develop.

  • Give up if you can’t deliver the desired promotion. Fight for raises, title changes, and other forms of recognition.

  • Sit idly by if you get the sense they’re checking out. Can you create a spot for them? At a minimum, make sure they leave on good terms so they’re more likely to come back.