This document proposes a policy for promoting middle-level managers and employees below that level at a Somali microfinance institution. It outlines criteria for promotion based on performance, experience, skills, and motivation. It also discusses preventing subjective or discriminatory promotions, the promotion process, career development outside of promotion, and the effects of merit-based versus seniority-based promotion systems.

1. Somali MFI
Human resource management and development department
Middle level management promotion Policy proposal
Although our institution has succession planning in general but the following proposal is a
special document prepared for branch managers and levels below that level. In this regard the
concerned committee might have to digest and reach a consensus in order to make it standard
line without any doubt and bias.
Having succeeded in the matter it will enhance our status as an institution in general and will
promote the reputation of the institution.
1. criteria for promo
In this regard We will promote employees based on their performance and workplace conduct.
Acceptable criteria for promotion are:
• Experience in the job or tenure, in which the incumbent staff must have stayed in the
work place or in the institution for at least one year and six months (1 ½).
• High performance level in [two] recent review cycles which has been approved by
immediate as well as higher echelons in the hierarchy .
• Skillset that matches the minimum requirements of the new role including the leadership
style, computer literacy level, and trustworthiness.
• Personal motivation and willingness for a change in responsibilities including attitude
towards the job and the organization, personal behavior, relationship with the collogues
and senior officials .
These criteria reflect the bigger picture of an employee’s work. Managers should avoid
making decisions for promotion based on recent or insignificant events. They should keep
logs with important incidents that they might want to consider when it’s time to promote one
of their team members at all levels in consultation with the HR committee.
2. preventing susceptive acts
In accordance with our institutions policies, we will not tolerate promotions that are based on:
subjective opinions unsupported by performance evaluations or metrics.
Discrimination.
Fraternization.
Favoritism.
Nepotism.

2. To avoid such incidents, we must keep good records of their promotion
evaluation process.
3. When can we consider employees for promotion?
Promotions may occur when:
• A job opening is advertised internally as well as externally( when its
necessary to fill a gap).
• A position opens unexpectedly and our institution wants to fill it from
within.
• An employee has consistently good performance evaluations and their
manager deems them ready for the next step in their career.
• An employee acquires a credential (licensure, degree etc.) that allows
them to advance (e.g. the necessary qualification may be degree in
accounting/management/economics/related fields/ IT and related fields to
mention a few.)
Also, our institution has an updated career plan that indicates each employee’s
possible career path. Managers should take this plan into account when deeming
to promote or advance their team members.
4. Process for standard promotions
Our company will establish a promotion review process every [end of year.] During this process,
managers may consider selecting employees to move to a higher-level position, or a position that
better matches their skills and aspirations. Spontaneous promotions may also occur if a business
need arises.
3.1. Managers should follow this process:
Meet with employees to talk about their career goals and/or aspirations for a promotion.
Managers should create career plans for their team members.
Identify opportunities to promote one or more team members, if applicable (by either filling
vacancies creating new jobs or enhancing job titles.)
Discuss the promotion with [HR/ direct supervisor/ department head] to receive approval.
Managers should also ask HR about the new position’s salary range and any new benefits they
should present to their team member.
Arrange a meeting with the employee to determine whether they’d be happy with this career
move.

3. Managers must keep detailed records of the process to support their decisions to promote
employees. These records may also come in handy if other employees find the decision unfair or
sue the company.
3.2. Internal job posting
We encourage hiring managers to post job openings internally. Hiring teams
may post the job internally for a period of time before they post externally or
post at both places at the same time. Internal candidates may be given priority in
the hiring process since they’re already familiar with our culture and
expectations.
Job postings should mention if the promotion involves relocation.
Discrimination against protected characteristics is prohibited both for internal
and external hiring decisions.
Managers who post job openings internally should:
1. Consider all applications equally, based on their predetermined
requirements.
2. Determine whether an internal candidate has the skills to perform the job.
3. Examine recent performance evaluations of internal candidates.
4. Interview qualified internal candidates if necessary.
5. Inform candidates whether they were selected for promotion. After the
employee has accepted the job, hiring managers should inform HR and
the employee’s current supervisor, if appropriate.
6. Keep records of the application review process and note the criteria with
which they rejected/hired an internal candidate.
4. Career development outside of promotion
Managers may often choose to expand employees’ duties, authority and autonomy without
promoting them directly. For example, a salesperson may become a team leader and a junior
coder may begin participating in engineering operations. For employees climbing the corporate
ladder, the distinction between advancement and promotion can be insignificant. However,
advancement differs from job promotion in several ways. Differences can include salary,
authority, job duties and responsibilities and even location or territory. Presumably, all
promotions are deemed career advancement, yet all instances of career advancement aren’t
promotions.

4. These changes may not always come with a formal title change. Employees may be awarded a
higher salary, bonuses or stock options. The new benefits depend on the position and are at the
immediate supervisor’s discretion.
Managers should keep an updated promotion plan in their team members’ file and discuss future
career moves during performance reviews.
5. The Effects of Merit-Based Promotion Vs. Seniority
An organization seeking to promote its workers may choose to do so based on seniority to take
advantage of the employees' experience with the organization and to reward them for their service.
Another option is to promote based on merit, a measure of the employees' contributions based on
performance. Each method offers potential advantages and disadvantages for the organization.
5.1 No Favoritism
A seniority-based promotion structure can eliminate the perception of favoritism. Employers
typically won't have to worry about a newer worker coming in and quickly leapfrogging them
to obtain a promotion simply because they are friends with an upper-level supervisor or
because of the way they dress or that they are more effective at playing the game of corporate
politics. Instead, workers have a sense that if they pay their dues, they will be rewarded at
some point in the future.
5.2 Workplace Harmony
Promotion based on seniority can also help maintain a more harmonious workplace. Workers
who know they need to put in the necessary time with the company before advancement
opportunities present themselves are less likely to resent those who attained promotion because
they worked for the organization longer. This can eliminate the backstabbing often associated
with merit-based programs where employees may attempt to present themselves in the most
favorable manner possible, sometimes by attempting to make coworkers look incompetent.
5.3 Motivation Boost
A merit-based program, on the other hand, can provide motivation leading to increased
productivity. Workers who recognize that the best performers are the ones who get ahead may
put forth the extra effort they believe it takes to receive promotions. For instance, salespeople
who realize that a sales manager position is awarded to the person with the highest sales
numbers may strive to produce the desired results, generating additional revenue for the
company in the process.
5.4 Reward for Ability
Workers possess varying levels of skills and abilities, and a merit-based program rewards those
who may have the most to offer the organization in the long run. While tenured employees

5. offer the benefit of greater experience, this does not necessarily equate with more ability. A
less experienced worker possessing a greater flair for innovation or creativity may be more
likely to generate ideas that help the company move forward in the future.
5.5 Importance of Incentive Plans
Incentive plans are formalized approaches to offering recognition and reward to employees for meeting
pre-established goals or objectives. Incentives may include cash bonuses, profit sharing, additional paid
vacation time or any range of prizes such as gift cards, corporate merchandise or other products or
services. To be effective, incentives must be clearly defined and considered a viable, valuable reward
for the associated workload.
5.6 Motivational Tool
Incentive programs motivate employees to push and challenge themselves to achieve higher
degrees of productivity. This ultimately translates to increased earnings for your company.
When incentive plans are in place, employees recognize that significant effort on their behalf
will be acknowledged and rewarded. This can increase the amount of time, effort and energy a
staffer is willing to put forth on your company’s behalf.
5.7 Promoting Teamwork
Incentive plans tied to teamwork or group initiatives can help promote collaborative work
efforts in your business. Staffers working in teams that collectively rely on each others'
productivity for the group to receive a bonus or award may support and encourage each other
to perform at top levels. Peer pressure may also encourage additional degrees of performance
from underperforming staffers who don't want to let their team members down.
5.8 Morale Boosters
Incentive plans have the potential to raise morale and increase job satisfaction in a company.
Employees see a direct correlation between their work effort and their earning potential.
Higher workplace morale can decrease turnover, which saves your company money associated
with recruiting, hiring and training new staffers. Additionally, staffers with high levels of job
satisfaction often exhibit lower degrees of absenteeism, which can also help improve a
company's bottom line.
5.9 Service Levels
Employees competing for or striving to meet the goals of an incentive plan may provide higher
degrees of service to your customers. This can encourage repeat business, improve customer
satisfaction and enhance your company's reputation. Improved service levels can also
encourage referral business as well as positive word-of-mouth advertising.

6. Incentive Program Essentials
For an incentive program to be effective, goals and objectives should be clearly defined for
staffers. Workload should also be equitably distributed, or it could create resentment if staffers
feel they have to carry slow or poor-performing team members. Consider both individual and
group incentives to promote the concepts of solo effort and teamwork.
If there are any additional comments please don’t hesitate to jot down here
Team comments
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Mohammed I Rage
@mirage.