Job Demotion Question:

If you're faced with an employee who isn't a good fit with his or her current job, is termination the answer or is demotion a better alternative?

The answer is, of course, it depends.

Demotions should always be considered on a case-by-case basis. The key factor is whether or not the employee is worth keeping around. However, a demotion will be more effective in some situations than others.

Poor performance. If an employee is underperforming, you must first investigate to find out why. Is the employee simply unsuited for a particular role, but could thrive elsewhere? If so, he might be relieved at the opportunity to be moved back to a position that better suits his talents and skills.

For example, say an outstanding employee was promoted to management, but is floundering in a supervisory role. Some employees are happier (and better at) doing the work than managing it.