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Loyalty vs. Performance: A Difficult Promotion Decision

Imagine this: you’ve got a promotion to fill. 

Do you go with the loyal employee who’s always been there, even if their performance is just okay? 

Or do you pick the rockstar performer, knowing they might be out the door in six months? 

It’s a tough call, and it’s one HR and business leaders face all the time. 

In this post, we’re getting real about those hard decisions. 

We asked top leaders how they approach this dilemma, what factors they consider, and how they balance the need for great performance with the value of loyalty (and the cost of losing someone good!).

Read on!

Chris Giannos
Co-Founder & CEO, Humaniz

Promote Leadership Potential And Adaptability

The decision to promote a loyal but average performer over a high-performing employee who may leave depends on the long-term impact on the team and the organization.

While loyalty is valuable, a promotion should be based on leadership potential, adaptability, and the ability to drive results rather than tenure alone.

If the high performer is a strong cultural fit and contributes significantly to business success, efforts should first be made to retain them by addressing their career growth needs.

If they’re leaving due to a lack of advancement opportunities, a promotion could be a strategic move to keep them engaged and invested in the company.

However, if their long-term commitment is uncertain despite these efforts, promoting someone else who consistently supports team stability and growth might be the better choice.

Loyalty alone doesn’t justify a promotion, but if the average performer has demonstrated leadership qualities, the ability to develop skills, and a strong influence on team morale, they may be the better long-term investment.

The key is to ensure that any promotion aligns with business goals, maintains team motivation, and strengthens leadership without compromising performance.

Noah Musgrove
HR & Marketing Specialist, Liberty Financing LLC

Balance Performance And Long-Term Stability

When deciding between promoting a steady, loyal employee or a high performer who may leave, it is important to weigh both long-term and short-term stability impacts.

A top performer brings strong results, but if they decide to leave early the organization could face disruptions in workflow, morale, and overall team cohesion.

On the other hand, a reliable, consistent employee may not stand out as much in terms of performance but offers dependability and a stronger likelihood of long-term contribution.

The best choice depends on the company’s priorities and the potential for growth in each individual. If the high performer is open to staying with the right support, offering career development or incentives might make sense.

However, if their departure is likely, investing in the loyal employee’s growth and leadership skills can provide long-term stability.

It’s all about striking the right balance between immediate performance and sustainable success!

Vasilii Kiselev
CEO & Co-Founder, Legacy Online School

Balance Performance And Retention Strategies

When it comes to promoting a loyal average employee versus a high-performing potential flight risk, it all comes down to long-term strategy.

At Legacy Online School, we value performance and loyalty equally, but also recognize that every employee has his or her own unique set of strengths to bring to the table.

In this case, I would prioritize the high-potential flight risk performer first, with some major caveats.

The reason is simply this: performance drives results. A top performer is one who can potentially have an immediate and substantial effect on the organization’s growth.

That said, this does not mean loyalty is irrelevant–it most definitely is. Loyalty, however, can be cultivated and nurtured.

The strategic thought behind this is to sit down with the high performer and discuss their career path, hear their concerns, and find out how we can match their aspirations with the company’s aspirations.

If we can retain top performers while providing them with the right opportunities, the ROI will be tremendous.

On the other hand, a loyal average performer can add cultural value but not necessarily move the bottom line in terms of results. The business would then be missing out on growth opportunities.

What really matters, ultimately, is a balance between retention and performance strategies–because performance, though a possible game-changer, is transient, while loyalty can be nurtured and developed with a good strategy.

Alex Cornici
Writer, Cheap Places To Go

Assess Performance And Company Needs

Promoting an employee involves a mix of assessing their current performance, potential for growth, and overall impact on team dynamics.

If faced with choosing between a loyal, average performer and a high-performer who might leave the company, the decision isn’t just about their individual contributions.

The loyal employee’s consistent performance provides stability and can be crucial for maintaining a cohesive team environment. However, their average performance might limit the company’s growth potential, especially in roles that demand high innovation or technical skills.

On the other hand, a high-performing employee often drives significant improvements and results, potentially bringing more value to the company in the short term. Yet, the risk of them leaving could result in a disruptive gap, especially if they occupy a critical role.

This decision depends greatly on the specific needs and strategic goals of the company; for instance, if a business is navigating through a critical transformative phase, the high performer’s cutting-edge skills might be indispensable.

Ultimately, the choice could also reflect on the company’s culture and values, possibly influencing future recruitment and retention.

Carefully weighing these factors will guide a decision that supports not only immediate needs but also long-term stability and growth.

Aviad Faruz
CEO, FARUZO

Align Promotion With Company Goals

The decision to promote a loyal yet average performer over a high-performing but potential flight risk depends on the long-term strategic goals, team stability, and leadership needs of the organization.

While performance is critical, leadership roles require reliability, cultural fit, and commitment–qualities that an average but loyal performer may bring, while a high-performer at risk of leaving might not.

If the role is high-impact and requires immediate results, promoting the high performer with strong incentives and a clear career growth plan might be the best move to retain them and maximize short-term success.

However, if the role demands long-term team stability, mentorship, and cultural reinforcement, then promoting a steady, loyal employee could provide more lasting value, even if their individual output isn’t exceptional.

A strategic middle ground could be tailored retention efforts for the high performer, such as a stretch assignment or leadership training, while investing in skill development for the loyal employee.

Ultimately, promotions should be based on a combination of performance, leadership potential, and alignment with the company’s future goals–not just immediate output or tenure.

Michael Kazula
Director of Marketing, Olavivo

Assess Impact On Team Dynamics

Choosing between promoting a loyal but average performer and a high-performing employee at risk of leaving is complex.

Promoting loyalty fosters a positive culture and reduces turnover, enhancing team stability.

However, the potential loss of a high-performer could disrupt projects and knowledge flow.

Each option requires careful assessment of how they impact team dynamics and the company’s long-term objectives.

Rob Clegg
Senior SEO Manager, Exclaimer

Promote Based On Merit And Transparency

In any company, the most essential way to manage expectations is to create a culture that’s based on merit and transparency.

When someone is offered a promotion, it should be obvious to everyone why the person was chosen, which achievements and what skill set recommends them for the promotion.

Resentment happens when employees feel like they are owed a promotion based on tenure alone, which should not be the case.

If someone has not showcased any interest in expanding their responsibilities, leading the growth of the business, there is no reason they should be promoted.

This is what employees need to understand and where transparency can have such a huge impact, effectively communicating what a promotion requires.

It will automatically create a natural selection, where many employees will not want the added responsibility for the increased reward and will develop an appreciation of those who do.

Anna Blood
Founder & Managing Attorney, Blood Law PLLC

Prioritize Internal Promotions And Growth

When a company grows rapidly, I believe it’s important to prioritize promoting from within.

As a business leader, I want to reward and recognize my existing team for their hard work and leverage their knowledge and experience.

If multiple qualified individuals are interested in a promotion, consider factors such as their performance, potential for growth, and their long-term goals.

Transparent communication is key to ensuring that everyone feels valued and understood, even if they don’t get the promotion.

It’s also crucial to avoid overwhelming employees with excessive responsibilities.

If someone is promoted, ensure that their previous role is filled to maintain productivity and prevent burnout.

Kate O’Sullivan
Founding Partner & Executive Coach, CoachSelect

Reward High Performers Without Management

This is a common situation, and I often hear companies worrying about what to do when they have a high performer and no leadership position to promote them to.

However, companies are overlooking the reality that not everyone wants to be a people manager.

In fact, I hear it all the time– I want to progress in my career, but I don’t want to manage a team.

So a great solution is for companies to think of ways for high performers to expand their impact without leading a team. This could be through leading high-profile projects, giving them more autonomy on what work to pursue, or increasing the scope of their responsibility.

Another key consideration is that high performers want to be rewarded for their hard work, which means compensation has to be a part of the retention conversation. If the only way to reach a certain salary level is to become a people manager, companies will inevitably lose top talent.

Make sure that compensation is aligned to the incentives of achieving team and company goals.

If high performers know what their expectations are, are incentivized by fair and competitive compensation for their efforts, and are a part of open conversations about career progression, you have a recipe for keeping top employees retained and engaged.

Levi Hemingway
Co-Founder, City Storage By Nomad Capital

Prioritize Consistency And Team Stability

At City Storage USA, promoting a loyal yet average performer over a high-performing but potential flight risk would depend on the long-term impact on the business.

Just like in storage, where long-term occupancy and stability often outweigh short-term gains, we prioritize consistency, reliability, and growth potential when making leadership decisions.

One key consideration is cultural fit and team stability.

A loyal employee who embodies our values, supports the team, and is invested in the company’s mission may be a better long-term leader than someone who delivers top results but is disengaged or likely to leave.

Leadership is about more than just numbers–it’s about trust, collaboration, and the ability to motivate others, much like how a well-managed storage facility thrives on strong customer relationships rather than just maximizing unit rentals.

However, performance cannot be ignored.

If the high performer has the potential to stay with the right incentives, we would explore ways to retain them, such as offering professional development opportunities, customized incentives, or leadership training.

If they remain a flight risk despite these efforts, promoting a steady and dependable team member who is willing to grow into the role may ultimately be the smarter choice for long-term stability and business continuity.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

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