What term describes the advancement of employees based on the evaluation of their job performance?

The term that describes the advancement of employees based on the evaluation of their job performance is promotion. A promotion typically involves recognizing an employee's contributions, skills, and achievements within an organization, leading to increased responsibilities and often enhanced salary and benefits. This advancement is usually a result of positive performance reviews, meeting or exceeding goals, and demonstrating the necessary qualifications for a higher position.

In contrast, transfer refers to moving an employee to a different role or department at the same level, and demotion involves a reduction in rank or responsibility, often due to performance issues or organizational changes. Retention focuses on keeping employees within the company rather than evaluating their performance for advancement purposes. Therefore, promotion specifically addresses the context of advancing employees based on their demonstrated job performance.