Promoting or hiring a manager can cause turmoil among other employees who didn't get the job. Entrepreneurs recommend outlining the areas where those other employees need to improve in order to advance within your company and using regular performance evaluations to back up your explanation. Michael Portman of Birds Barbershop suggests doing away with titles. "You never have to explain why someone didn't get a coveted new title if there weren't any titles to begin with," he says.

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