In this episode of People Problems, we delve into the intriguing concept of the Peter Principle, a theory that explains why employees often reach a level of incompetence in hierarchical organizations. I explore how promotions based on past performance can lead to roles requiring different skill sets, causing employees to struggle and impacting overall productivity and morale. Through real-world examples, we examine the principle's implications across industries, highlighting the challenges of misaligned promotions. I also discuss strategies to counteract these effects, such as continuous learning and alternative career paths, to foster a more effective and supportive workplace. Join me as we uncover how recognizing the limits of competence is crucial for personal and organizational growth.