Almost 1 in 3 (30 percent) business leaders in Singapore have demoted an employee at their company, recent study commissioned by recruitment consultancy Robert Half revealed.

In a survey report published on Tuesday (June 18), Robert Half suggested there are various reasons why Singaporean bossess decide to demote their staff. The most common reason was when the employee was seen to be unable to perform as expected in a newly promoted role, with almost half (46 percent) of leaders cited this as a reason, Straits Times reports.

The second most common was due to poor performance (37 percent), followed by organisational restructurings or the position having been eliminated (15 percent). Meanwhile, only 2 percent employers surveyed said that the demotion was voluntary on the part of the employee.

When it comes to the employee’s reaction when hearing about the demotion, more than half (54 percent) respondents said that the staff handled the news as gracefully as possible. However, demotion could be tough for some other people. According to the report, 21 percent managers found the employees affected became upset and lost interest in their work. Another 18 percent said that they saw a strong reaction where the employees quit in response to the demotion.

Meanwhile, only 7 percent bosses observed the demoted staff taking a proactive approach and focusing on excelling in their new position.

Commenting on the findings, managing director of Robert Half Singapore Matthieu Imbert-Bouchard said that companies need to be “very clear” in communicating the reason for the demotion, what the consequences are, what the new position entails, as well as what options the employee has after the decision.

As for employees, staying professional and keeping emotions in check will be the best way to move forward, regardless of why they were demoted. He suggested those who were demoted for restructuring reasons to quickly identify and seek new skills required for other roles within the same company.

“Demotions for performance issues, on the other hand, should be seen as both a wake-up call and an opportunity to reflect and gain constructive feedback for improvement and future advancement,” he added.

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