How to handle promotions when there aren’t enough leadership roles

When a company experiences rapid growth, there are usually more employees gunning for leadership positions than available titles. This means managing promotions requires a delicate balancing act to avoid causing resentment.

A diverse group of experts, including CEOs and career coaches, offered tips for navigating these growing pains and suggestions for effectively tackling promotion dilemmas.

Promote based on demonstrated leadership skills

Navigating rapid corporate growth and high employee expectations is a challenging journey I embarked on as a general manager. One strategy that served us well was promotion based on demonstrated leadership skills, not just seniority or tenure. We focused on identifying individuals who showed initiative, the ability to overcome complex business challenges, and a knack for inspiring others.

For instance, a project manager stepped up during a major project, demonstrating exceptional strategic planning skills and team management—elements critical for leadership. This led to his promotion, inherently setting a bar for others.

To manage expectations and prevent resentment, we ensured the process was transparent and communicated openly about the skill sets and aptitude required for leadership roles.

Simultaneously, we invested in an open-feedback environment, nurtured an inclusive culture that valued everyone’s contribution, and developed a comprehensive training program to prepare promising individuals for future leadership roles.

Gianluca Ferruggia, general manager, DesignRush

Tailor recognition to individual performance drivers

You want to avoid assuming that promotions are the only way top talent wants to be rewarded for their performance.

While it takes time and effort, you can retain talent and avoid resentment by learning each employee’s individual performance drivers. Although some employees will indeed want to be rewarded with promotions, other opportunities would likely be even more meaningful. This might look like additional compensation, participation in special projects or initiatives, or work-exchange opportunities.

The key is to match recognition to the individual, particularly among top leaders, rather than assuming everyone wants to be recognized the same.

Kyle Elliott, MPA, EdD, founder and tech career coach, CaffeinatedKyle.com

Use accountability charts

I like to follow the principles of the Entrepreneurial Operating System (EOS) when managing rapid company growth and limited leadership positions. One of the main tenets of EOS is clearly defining roles and responsibilities, which is critical for organizational success.

The first step in this process is creating an accountability chart. By collaborating as a team to identify and define the roles and responsibilities the company needs, we can ensure that we are addressing the organization’s requirements first. We then decide who (if anyone) fills these roles, which helps to remove personal biases and focus on the company’s needs.

This approach also allows employees to see which opportunities are still open, even if they aren’t immediately filled. To support our team in preparing for these roles, we can develop tailored development programs and career-path planning. This helps employees understand what they need to achieve to be considered for these future positions.

If there are no current open positions, I make it a point to communicate regularly that as the company continues to grow, new roles will emerge. By consistently updating employees on potential upcoming opportunities and ensuring they know they have a career path plan in place, we can mitigate frustration and maintain motivation. This open communication helps employees feel valued and reassured that their growth is a priority and that we are diligently considering their next steps within the organization.

Keep the communication open and always solicit feedback from employees.

Kare Ullerup, CEO, Beyond Culture Plateau

Implement a mentorship program

An effective approach to this situation is to implement a mentorship program. This allows employees ready for more responsibility to step into leadership roles in a supportive, hands-on environment, even if they don’t have an official title yet. This not only helps them build essential skills and confidence but also prepares them for future leadership opportunities when they arise.

Mentorship creates a two-way street. Mentors gain valuable leadership experience, while mentees receive guidance and support to grow their capabilities. This setup encourages knowledge sharing and collaboration, fostering a culture of growth and continuous learning. Plus, it helps to identify potential leaders early on, making it easier to fill positions as they become available.

To further mitigate feelings of resentment, it’s vital to maintain open lines of communication with your team about their career aspirations. Regular check-ins can provide insights into individual goals, allowing you to align opportunities with each person’s ambitions. By discussing pathways for advancement transparently, you help create a shared understanding of the journey ahead.

Encouraging feedback and actively listening to your employees’ concerns can reinforce a culture of trust. When team members feel heard and see a clear path for their professional growth, they’re less likely to feel overlooked or undervalued, even when promotions are limited. Recognizing and celebrating achievements—big and small—also contributes to maintaining morale.

In essence, by fostering mentorship and maintaining open communication, you not only support employee development but also cultivate a more engaged, motivated workforce that can weather the challenges of rapid growth together.

JD Lloyd, business development and project manager, Bella Virtual Staging

Involve supporters in goal-setting discussions

When a company grows quickly, building a leadership team is a challenge. People who helped grow the company often expect they will be tapped for leadership positions. However, that may not be their skill set.

I witnessed this while serving as a board member for a fast-growing organization. The founder knew the experience and expertise she had on her team, but she wanted to retain some of the early supporters.

After some discussion, we settled on an approach that included involving those supporters in identifying the goals of the organization and the best people to help lead the organization to meet those goals, as well as the expectations of customers and stakeholders.

This led to conversations about the skills, abilities, and time commitment needed to do this. Many of the early supporters realized that their skills did not match what was needed for the leadership positions. Some moved into advisor or board positions, and others took positions that enabled them to support the organization in lesser roles.

The biggest surprise was that during this process, the founder decided she should not be the chief executive but rather the chief of staff. The board and leadership team recruited and selected an external candidate for chief executive.

The best way to handle promotions for leadership roles is to define how the position supports the mission and goals of the organization by setting forth the skills, abilities, and experience needed. This includes the expectations of the position by the employees, customers, and stakeholders.

Cheryl L. Mason, CEO, keynote speaker, author, Catalyst Leadership Management

Clarify job descriptions and performance processes

One of the best things you can do to clarify your promotion process is to have both a clear job description and a clear performance management process. Why are both necessary? They make the selection process fair and equitable while helping team members know how to best structure their career path and qualify for leadership.

You want the job description to be extremely clear in identifying what skills and qualifications are required to be considered for the new role. Additionally, you want the job description to convey a clear “day in the life” view of what tasks and responsibilities the person needs to do in that role.

Finally, a clear performance management process gives the hiring manager the role’s talking points and standards to hold interviewees and prospects accountable. In a rapidly growing company, you need to rely on truth and data to anchor you amid change. A performance management process is helpful on the front end for an incumbent to know what they’re required to accomplish and helps the manager of the role coach and guide the incumbent towards success!

Joey Price, president and CEO, Jumpstart HR

Separate leadership from management roles

Leadership and management are two separate roles. The key for organizations is to identify not only who wants a position but also who is suited for it. All too often, top individual contributors are promoted into management, only to struggle and miss their old jobs. The management track isn’t for everyone, and that should be talked about openly.

Both leadership and management require specific skills that need to be developed. Setting expectations from both sides is crucial. I think people who are interested in leadership and management should raise their hands and get trained. Then they need to interview for the role just like anyone else would. I don’t think resentment will arise if the right tools are given fairly. People seek growth and need both direction and clarity behind decisions.

Brianna Rooney, CEO, TalentPerch

Introduce career growth frameworks

One strategy for managing promotions without causing resentment is to introduce career growth frameworks that emphasize individual development rather than just title advancement. This way, employees understand how to grow without necessarily moving into leadership roles.

For example, employees could be offered increased ownership and visibility on critical projects. This would allow them to have leadership-like experiences—driving results, managing teams, and influencing business strategy—while keeping the organizational structure stable. It would also help manage high expectations by showing that the company is committed to their career growth, even if a permanent leadership position isn’t immediately available.

When implementing something like this, set clear goals and timelines. Ensure there’s a structured feedback system so employees know what to work on. Also, ensure that these experiences are varied and meaningful, offering real challenges and responsibilities. This will not only better prepare them for future roles but also help maintain their engagement and loyalty to the company.

Emilio Javier, head of People Operations, Shortcut