How to Decide if I Should Take a Demotion at Work
Deciding if you should take a demotion can be really hard. The concept of demotion seems to have a universal negative connotation. To many, it signals failure and loss. However, this is not always the case. The reality is that you can leverage demotion as an opportunity to advance their careers.
This article was written by a Career Coach. Here, we will explore why demotions happen, their pros and cons, and how you can decide to move forward in a way that benefits your career.
Why do demotions happen?
According to Forbes, demotions can happen for many different reasons such as downsizing, poor performance in a current role or as an alternative to termination. Whatever the reason for being demoted, the idea of taking a step back in your career can be seriously troubling and lead you to have valid concerns about your personal brand.
A demotion could actually be the right move for you and your career, depending on factors like where you’re at in your career and personal life, your relationship with your manager and if you want to stay at your current company during layoffs.
You don’t always have to climb the corporate ladder
When I transitioned from my past career in corporate Human Resources to become an independent Consultant, I ran a career coaching business. I worked with many clients and had many discussions about the overall impacts of taking a demotion.
I worked with Augustine who was offered a new position during a major company reorganization. The offer meant he would need to take a step back from his senior management role as several higher level positions were being eliminated at the time.
Augustine would have less responsibility, no direct reports but would continue to receive the same level of compensation in the new role. He was going through so many feelings, trying to process all the details of the new position. The new position was a clear step back in his career.
Like many professionals, Augustine had been taught the only way to climb is ‘up’ when it comes to the corporate ladder. As a result, he thought accepting the demotion was a signal of his failure. He feared what others would think and how this would affect his personal brand.
While Augustine’s concerns are valid, they are also problematic. His focus is outward and his concerns are related to external factors, like other people’s opinions. This is often the problem faced when it comes to demotion. You remain focused on what others think and make this more important than your own needs and preferences.
Back in my career coaching days, I heard people like Augustine say they don’t want to take a step back in their career. At the same time, the client would disclose that they are feeling stressed and miserable in their current position.
This always felt ironic to me. One possible solution to overcoming that stress, was to move forward with taking a demotion. However, the idea of demotion felt like such a failure, career professionals could not logically evaluate the pros and cons of taking this step back.
the disadvantages of a demotion
Demotion can be hard to process and downright embarrassing. Depending on the circumstances, you might feel like you have done something wrong, even though this is not always the case.
You might have to work through some tough feelings through a demotion. You might feel hurt, undervalued, underappreciated and upset. On top of this, demotion can take a serious toll on your confidence. All of this can be hard to work through and cause you to experience an emotional roller coaster.
A demotion might take a toll on your personal brand. As others watch you take a step back in your career, they might make assumptions about why you’ve made the transition, or why the company made the decision to remove you from your current position.
These assumptions can be dangerous, leading to negative impacts on your personal brand and professional credibility. It’s important to get ahead of this by taking proactive steps to manage any personal brand implications.
Video: how to rebound from a demotion
You can’t help but worry what other people will think following your demotion. And while you shouldn’t make decisions based on the opinions of others, you should acknowledge that a demotion could impact your personal brand if you don’t manage the situation effectively. For 5 ways to rebound after a demotion, and save your personal brand, check out this video on that topic.
Can a demotion be a good thing?
If you are feeling stressed, dissatisfied or just downright miserable in your current role, accepting a demotion might be a viable option for you.
Taking a step back in your career can be a good thing and help you to overcome some of these negative feelings. Taking a demotion might actually help you take care of your mental health and contribute to an overall positive quality of life.
On top of this, if you like your current employer and want to stay, despite being unhappy in your current job, demotion offers a great alternative. On the one hand, you are able to stay with the same company and all the perks that go along with it. On the other hand, you are able to get out of a position you no longer enjoy.
In many cases, you will keep the same pay and benefits if you are being demoted. Often, employers want to avoid any tricky legal ramifications that go along with demoting employees. Primarily, employers look to avoid any accusations of constructive dismissal. This can work in your favor, from a compensation perspective.
3 tips to help you decide if you should take a demotion
1.Make sure you fully understand your options
When it comes to making a decision about accepting a demotion, it’s important to understand your options fully. In many cases, you will be offered a demotion because your current position is no longer available due to a reorganization or layoffs. Because of this, your options might be fairly limited.
If your position is being eliminated, it is important that you get the details of the transition in writing from your employer. While discussions are important, it is equally important to formalize the details of those conversations. This allows you an opportunity to carefully consider the specifics of your new arrangement and ensure that your understanding is aligned with your employer’s.
You might be offered a demotion because it has been decided that you are not performing in your current position. In this case, again, make sure to get specific information from your employer. Any big transition, like a significant role change should be documented. Ask for something in writing that you can review.
Getting all the relevant information is the first step to fully understanding your options. You might also consider a variety of factors, external to the employment relationship. For example, you might consider accepting the demotion and holding that position for a period of time while you search for a new role.
2.make sure you know what you really want
It’s important to separate what you actually want from what others think. While this can be challenging, reflect on what you want for your career and life, independent of other people’s opinions.
For example, you might find yourself working more hours than you like in your current position. A demotion might offer some relief from long work hours and difficult to manage career demands.
As you progress in an organization, it’s fairly common that the time demands will increase. As a result, your senior position might be taking you away from your family, friends and non-work activities more than you like.
If your company is going through a reorganization and you are being offered a lower-level position, this might free you up to spend more time on those activities.
You might find the work easier to complete and you might find yourself with more free time. Working less might lead you to increased happiness and more fulfilling personal relationships.
There are many things to consider when it comes to understanding what you actually want. A good place to start is with finding career clarity. This process allows you to define your values and goals. For more on this topic, check out Why Underrepresented Job Seekers Need Career Clarity.
3.Assess your relationship with your current employer
As you work through understanding what it is you actually want, you will start to understand how much value you place on your relationship with your current employer.
If you are being demoted, you might have to take the new position to stay with the company. Often, the only alternative to accepting the demotion is ending the employment relationship altogether.
If your relationship with that employer is of the utmost importance to you, you may be left with no choice but to accept the demotion.
When assessing your relationship with your current employer it’s important to consider the financial implications of an exit. This means considering what you might earn if you start with a new company and what an exit might cost you in terms of any company benefits like pension, RRSP, health and dental insurance and other perks.
Your assessment of your relationship with your current employer should also include how you feel about how they treat you at work. You should also make sure to consider any future potential opportunities for growth.
Realizing it’s not time to climb the corporate ladder
Augustine was faced with a big career decision, where he had to choose between accepting a demotion or looking for a new job at a new company.
Augustine didn’t want to change companies or career. He was experiencing significant personal transition at the time he was offered the demotion. He was working through a divorce and felt like he couldn’t manage any more change. On top of this, he felt an employer change might not reflect favorably on his custody case.
Through reflection, Augustine learned his resistance to the demotion was driven by external factors, like what other people would think.
Instead of focusing on the opinions of others, Augustine made a decision that was based on what he needed at this point in his life. He made this decision by understanding his options, knowing what he wants and assessing his relationship with his current employer.
Conclusion: deciding to take a demotion should be based on your intrinsic needs, not what others will think
Being demoted can take a serious toll on our confidence and ego. You might feel embarrassed or ashamed by taking a step back in your career. The reality is, those outward perceptions matter far less than what’s happening on the inside.
While others might judge or make assumptions about the situation, the only person who knows the whole truth and decision drivers is you. If you’ve decided to take a demotion, rest assured that is the right decision for you.
Demotion is not universally bad and might actually help you to live a better life by allowing you to take better care of yourself and encouraging a focus on more important priorities like family and friends.
If we’ve learned anything from the quiet quitting trend, let it be that a job is just a job. And sometimes doing less is more. Especially if you don’t have to take a pay cut.
"You have to believe in yourself when no one else does.”
-brandy
Advancing your career starts from within. It's not just about climbing the corporate ladder or landing the next big promotion; it's about understanding your passions, values, and strengths. Self-reflection is the cornerstone of finding true career happiness. Taking the time to reflect on your experiences, challenges, and successes helps you gain clarity on what you truly want in your professional journey. By looking inward, you can identify what drives you and align your career goals with your personal values. This inner work sets a strong foundation for a fulfilling and purpose-driven career.
Embracing self-reflection allows you to navigate your career with intention and confidence. When you know yourself deeply, you can make decisions that resonate with your true self, leading to greater satisfaction and success. It's about finding a career path that not only utilizes your skills but also brings joy and meaning to your life. By continually assessing and realigning your goals with your inner values, you ensure long-term fulfillment and growth. Remember, the journey to career happiness is ongoing, and it starts with understanding yourself from the inside out.
