What is the essence of the Peter Principle?

The essence of the Peter Principle revolves around the idea that individuals within an organization are often promoted based on their performance in their current roles rather than their abilities to perform in the new positions they are promoted to. As a result, employees may eventually reach a level of incompetence. This principle highlights a common phenomenon in workplaces where individuals excel in their jobs and are rewarded with promotions, but the skills that made them successful in their previous roles do not necessarily translate to success in higher-level positions. Consequently, over time, many employees may find themselves in roles where they are not equipped to perform effectively, leading to a gradual decline in overall competency within the organization.