Management woes? How to overcome the Peter Principle

Introduced by author Laurence J. Peter, in 1969, the Peter Principle is a management concept most professionals have never heard of, even if we’re familiar with its trappings and trademark outcomes.

• A competent employee has all the required skills and talent for their current role and they’re eventually promoted based on merit
• When they’re promoted to a more senior role, skills and capabilities are tested
• Some individuals will achieve a new level of competence and be promoted in the future, or they will stumble into incompetence and plateau at the new position
• Eventually, every role will be filled by an incompetent employee

Now, that’s a very outdated approach in 2023 as there are tools and resources available to support employees rising up the ranks.

But the Peter Principle still has merit and it poses several questions: what happens when someone is promoted to a position where they can’t perform? How can employers manage those shortcomings in a beneficial way for your organisation and the individual?

Let’s find out.

How can competence turn into “incompetence”?

The use of incompetence by The Peter Principle author, Laurence J. Peter, can be quite harsh. His scathing look at promotion paints a murky picture where all workers reach a point of no return for overcoming skill gaps.

Reality is far more forgiving as even an inexperienced manager can turn into your best asset. However, it still stands that some exceptional employees will be promoted based on merit and they will struggle in the new role.

Every workplace has leading nurses, administrators, salespeople, etc. who set a high standard. So when a new role opens up they apply as suitable internal candidates. Often they’re appointed because they have a clear understanding of the business and a track record of success.

• Most employees will rarely say no to a promotion even if they believe they’re unqualified for the position – the lure of increased pay and a new title is often too strong
• Employees who have reached a point of career stagnation typically remain in that same position as there’s no reason to release them unless extreme incompetence is present

Some employees will flourish as they have inbuilt management skills, are quality communicators, effective organisers and easily adapt to new challenges. However, some employees will flounder because they have poor communication skills, ignore external advice and struggle to coordinate with others. 

It means you now have a previously competent employee in a position where they are incompetent and underperforming. You will likely see a downturn in productivity, low morale and more mistakes in due time. Thankfully there are plenty of ways to overcome the Peter Principle in the modern workplace, 

Saying goodbye to the Peter Principle

If you see a manager or a newly promoted employee struggling in a new position, training, education and support are essential. They need tools and resources to help them learn and grow, otherwise, you’re left with someone out of their depth. 

The flow-on effects can lead to additional problems for the team; ineffective management and direction can lead to workplace mistakes, low morale and increased turnover.

To avoid the Peter Principle, you should:

• Provide clear role expectations: Job listings with inaccurate or outdated role requirements are going to attract candidates expecting something entirely different to the actual role. Everyone will struggle if they’re unprepared for the duties and responsibilities.
• Offer support and training: If the issue is a skills gap, provide plenty of training and support to increase the employee’s abilities. You will have roles where a candidate has some shortcomings and it’s up to you to fill those gaps.
• Carefully assess abilities: You need to be careful when assessing candidates. Some will be perfect for their current role, but they may not have the communication skills of a manager. Even if they appear to be the best candidate based on past performance, consider who has the most suitable skills and where you can support them best.
• Recognise your missteps: What happens if you’ve just promoted an employee who’s really struggling in a new role, even with extra support? Do you let them go? No. Recognise where you went wrong and talk to them. They may be happier returning to their old role or taking on a more suitable position.