Is it true that if someone is doing well in their current role, managers think that’s the right role for them and keep them there instead of promoting them?

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Depends on the manager. Good ones won’t do that.

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Depends on what the next role up does and what current staffing for other people your level looks like. Generally no though, as promoting someone usually has them teaching new people best practices for their old job so the knowledge, expertise, and quality should more or less be preserved

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