Demotion increasingly popular amongst employers

Demotion is becoming an increasingly popular option for employers. Almost half of Dutch organizations have demotion on the agenda for their personnel policy.

This is according to a study done by management consultancy Berenschot and payroll processor ADP among 800 staff officers, NOS reports.

A quarter of the participating organizations are already demoting people. A demotion translates to being asked to switch to a lower, less serious function. This mainly affects older people, but younger people who are not adding value in their current jobs also have to deal with it.

"The aging population and increase in the retirement age are reflected in personnel policies", Hans van der Spek, manager of the HRM Knowledge Center at Berenschot, told the newspaper.

According to the study, 15 percent of surveyed companies have cut back on employment conditions, including cutbacks on salaries or holidays, this year.