Promotion Paths in Focus: Tenure, Performance, or Leadership Ability?

How does your organization decide who gets promoted?

Traditionally, promotions are granted based on tenure or performance. But there’s a third—and often overlooked—criterion that can dramatically improve leadership effectiveness: leadership ability.

Each approach sends a signal to your workforce about what your company truly values. More importantly, each method creates very different outcomes for team dynamics, morale, and long-term growth.

Let’s explore what these promotion strategies mean—and how leadership development coaching can help align your process with the kind of culture and results you want to create.

1. Tenure-Based Promotion: Loyalty ≠ Leadership

Promoting based on tenure rewards employees who’ve stayed the course. This model assumes that time served equates to readiness for greater responsibility.

Pros:

Encourages loyalty and retention.
Rewards institutional knowledge.
Seen as fair and predictable by long-serving staff.

Cons:

Doesn’t guarantee leadership capability.
Can lead to stagnation or entitlement.
May discourage high performers who feel overlooked.

Tenure-based promotions often put people into leadership roles simply because they’ve “earned it” chronologically—not because they’re skilled at leading people. While loyalty and long-term commitment matter, the assumption that experience equals leadership potential can backfire. A tenured employee may know the processes inside out but still struggle with motivating, coaching, or inspiring others. When this happens, morale can dip and teams may feel they’re being managed instead of led.

2. Performance-Based Promotion: Results Aren’t Everything

This model promotes top individual performers—those who consistently exceed targets or deliver impressive results.

Pros:

Drives a results-oriented culture.
Motivates high achievers.
Can identify high-potential talent early.

Cons:

Star performers aren’t always strong leaders.
May promote ego over collaboration.
Risks team resentment if soft skills are lacking.

Many organizations fall into the trap of promoting their best “doers” into leadership without ensuring they can manage, mentor, or mobilize a team. This often results in what’s called the “accidental manager”—a great performer who struggles to lead. For example, a top salesperson may exceed every quota but feel frustrated when tasked with developing others. Without guidance, they may micromanage, compete with their own team, or prioritize results over relationships—leading to burnout and turnover.

3. Leadership-Ability-Based Promotion: The Future-Ready Approach

Promoting based on leadership ability focuses on actual potential to lead, regardless of tenure or past performance. This model uses competencies such as emotional intelligence, decision-making, collaboration, and strategic thinking to identify future leaders.

Pros:

Builds a pipeline of true people leaders.
Creates a more resilient and adaptive leadership culture.
Often results in stronger team cohesion and engagement.

Cons:

Requires more assessment and intentional development.
May challenge traditional expectations of who “deserves” a promotion.
Needs cultural buy-in to prioritize leadership as a skill.

When done well, leadership-based promotion recognizes that leadership is its own discipline—not just a natural next step, but a role that requires specific capabilities and mindset shifts. This model invests in those who can influence, inspire, and elevate others, even if they aren’t the longest-serving or the top individual contributor. It also signals to employees that leadership is valued as a distinct and learnable skill—encouraging more people to grow toward it.

So… What’s the Right Approach?

There’s no one-size-fits-all model—but here’s the reality:

Tenure rewards loyalty but doesn’t predict leadership.
Performance rewards output but may neglect soft skills.
Leadership ability focuses on the actual role of leading, and often produces the most effective leaders over time.

Ideally, organizations should combine all three—but weigh them differently based on the demands of the leadership role. For example, a senior technical lead role may lean more on performance and expertise, while a people manager role should prioritize leadership skills above all else.

How Leadership Development Coaching Bridges the Gap

Regardless of how someone gets promoted, leadership development coaching helps ensure they’re equipped to succeed. Coaching turns potential into performance and experience into wisdom.

Here’s how coaching helps leaders grow:

Transition Support

New leaders often struggle to shift from “doing” to “enabling.” Coaching helps them reframe their role, delegate, and manage people effectively.

Self-Awareness

Leadership starts with knowing yourself. Coaching builds emotional intelligence, confidence, and perspective.

Communication & Influence

From difficult conversations to motivating teams, leadership lives or dies by how effectively people communicate. Coaching strengthens these skills.

Strategic Thinking

Coaches challenge leaders to rise above the day-to-day and think bigger—aligning their work with broader organizational goals.

Culture Building

Great leaders shape great cultures. Coaching helps leaders become intentional culture carriers, not just task managers.

Think of coaching as the “bridge” between promotion criteria and leadership reality. Whether someone was promoted for tenure, performance, or leadership potential, coaching ensures they don’t just have the title but also grow into the role with confidence and clarity.

What Can Organizations Do Now?

Audit Your Promotion Criteria
Are you promoting based on time served, performance stats, or actual leadership ability? Clarify what you value—and make it visible in your promotion process.
Identify Leadership Potential Early
Start assessing for leadership traits—not just job performance—early in an employee’s journey. Tools like 360 feedback, leadership assessments, and coaching conversations can help spot hidden potential.
Invest in Development Before Promotion
Don’t wait until someone is in a leadership role to build their skills. Provide coaching and development before they take the reins so they can hit the ground running.
Offer Coaching to New and Existing Leaders
Give leaders the tools, guidance, and support they need to succeed—not just a new title and increased pressure.

The Bottom Line: Building a Future-Ready Leadership Pipeline

Leadership is not a reward for sticking around, nor just for outperforming peers. It's a responsibility—and a skillset—that must be nurtured.

To future-proof your leadership pipeline, promote people based on their ability to lead, and invest in their growth through intentional development and coaching.

If you're ready to create a culture of strong, emotionally intelligent, and future-ready leaders, leadership coaching can be your strategic advantage.

Let’s talk about how to make that happen.