When it's a wise career move to accept a demotion

by Bob Weinstein

May 4, 2001 —

It was a brisk sunny day, the roads were traffic-free, and you felt like you were on top of the world. And why not? You had a great job, you liked your company and you were treated well. You mistakenly thought things would only get better until your boss called you in and said you were being "reclassified."

You were expecting a promotion and a raise. Instead, you were demoted to a lesser job with a salary cut to boot. Sorry friend, "but it's only business," as a hit man said in The Godfather before he garroted a snitch. Instead of the term "reclassification," some companies prefer the long-winded "reassignment of duties consistent with your new status" -- if you can believe that.

In corporate circles, "reclassification" is considered a softer and kinder word than "demotion." Companies have been demoting employees for years. The new twist is that it's more prevalent now than in the past -- especially among technology companies. Most of the major technology companies as well as midsize and small firms are doing it, according to Bill Lutz, trend-watcher and author of The New Doublespeak, Why No One Knows What Anyone's Saying Anymore (HarperCollins, 1996). Lutz has been tracking corporate trends and translating corporatespeak for 20 years.

These days, uncertainty is a fact of life. Companies are cutting costs in different ways. Some are mercilessly paring ranks without severance pay or any warning. And, a growing number are opting to demote, I mean, "reclassify," employees rather than fire them. I forgot, the word "fire" is also forbidden. Instead, HR spin-masters prefer doublespeak like "dehired," "terminated," and "redundant."

Before the word "demotion" was uplifted to "reclassification," it was called restructuring, Lutz explains. "Restructuring is now a passé term," he says. "Restructuring was so common, everyone assumed it meant layoffs. But, it actually meant knocking employees down a few pegs. It was very common in IT departments of big brokerage houses a few years ago." In the mid-1990s, AT&T used the words "assigned" and "unassigned" when it laid off thousands of workers. "'Unassigned' meant you were fired and 'assigned' meant you were put in a new job and usually demoted," says Lutz.

Why demote? It depends on who you ask. Beyond cutting costs, it's also a performance issue, according to Brian Stern, vice president of SHL, an HR consulting company in Cleveland, Ohio. "It's a way to correct mistakes made in the past," he says. "Companies have finally realized that putting people in the wrong slots is dangerous because performance and quality can be seriously impaired, all of which crimps profits."

Lutz adds, "What's happening is kind of normal. Practically speaking, demotion makes sense. Companies realize they over expanded and threw bodies into job slots without critically evaluating whether the person was right for the job. On another level, companies want to hold on to demoted employees because they're afraid they'll take a job at a competitor."

Jeff Heath, president of the Landstone Group, an executive search firm specializing in technology in New York City, feels demotion is a double-edged sword. "It's great in theory, but I question whether most workers will stick around. If not handled properly, it can be a demoralizing blow."

It doesn't have to be that way, according to Jeff Durocher, a spokesperson for RHR International, a psychological consulting company in Wood Dale, Ill. RHR manages demotions for corporate clients so that employees can make successful adjustments to their new jobs. "If managed sensitively, it could mean a new and exciting career path." Companies have come to realize that retaining high-potential workers in a sensitive market is ultimately the best move. The fact that they weren't given pink slips is proof companies want to hold on to them.

"It's a myth thinking everyone wants to be on a fast track to a corner office," Durocher adds. That doesn't mean they don't want to be promoted and get regular raises. Many employees just want a stable, secure job they like and a pace that doesn't trigger ulcers or high blood pressure. And, not everyone wants to work 12 to 14 hours a day. Many employees want to leave at 5 p.m. so they can go home and spend time with their families. What's wrong with that? Demotion to a job that they enjoy and that also has a future gives them those options. Techies promoted to management slots often welcome returning to their old jobs as long as the pay cuts aren't insulting.

"From the employees' perspective, demotion could be an opportunity to move into a job that best suits their personality," Stern points out. "We're advising companies to present it as an option to employees rather than an order," he says. "Rather than making employees feel like they screwed up, the company takes on the burden and says, 'We made a mistake by not providing the mentoring and support you needed to do your job well. We would like to put you in a job better suited to your skills and personality.' It's all about giving them a sense of control and choice."

What do you do if you're "reclassified"? Don't burst out crying or quit. Once you get over the initial hurt, think about your options and where you can go from there, advises Sharon Keys Seal, president of Coaching Concepts, an executive coaching company in Baltimore, Md. "Don't throw in the towel. Instead consider it carefully. Find out what kind of career path it offers; who you'll be working with; whether you will learn new skills; if the company is behind you; and the likelihood of moving up the ladder."

Initially, give it time and don't rush to judgment. You might be pleasantly surprised. But, "if things don't work out, find a new job and leave," says Keys Seal. "It's that simple."

ITworld.com