Demoting an employee: What to know and watch out for

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Demoting an employee may be one of the most awkward and difficult conversations you’ll have with someone on your team. Unless an employee approaches you to voluntarily request that they step back from their current responsibilities, it’s never easy to tell someone that they’re moving down the organizational hierarchy. After all, this can involve:

Fewer responsibilitiesA less prestigious titleA loss of managerial statusA reduction in pay

It can be demoralizing to the employee.

But it’s a very necessary conversation if you find yourself in a situation such as:

Your organization is restructuring or has undergone a merger or acquisition.

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