Promotion of Position = Demotion of Value

When a person is promoted, they usually turn to different responsibilities and roles which requires completely different skills and insights.

Later on, the company will notice that they made a mistake in choosing the right person but will not want to admit it. As a result, the position will be maintained but will either end up unfilled due to voluntary resignation or imminent dismissal of the person.

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The Peter Principle, a great management tool | ToolsHero

toolshero.com

Experience is not everything
Experience is a good thing, but this does not automatically make an employee the best person to be promoted to a more responsible job.

Before promoting an employee, the company should know the employee's level of knowledge, skills and ambitions. They should know if that person really deserves that spot. 

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