Promotions are based upon two things – merit, and availability. Good, skilled, dedicated personnel usually receive promotions. Starfleet rewards committed personnel who do well in their postings, and want to move up in their careers. Personnel who do not live up to their potential, and consistently fail to exceed expectations, rarely receive promotions. They either remain where they are (if their skills or training are of value to that posting), or they are released from service to pursue other civilian jobs that are more suited to their abilities.
In addition to skill, personnel are also promoted according to open duty positions. This is left up to the executive officer of the individual’s current posting (with departmental recommendations). If a position opens on the ship, station or facility (due to the previous holder of that position being promoted, transferred, or retired), the promotion-qualified officer or enlisted person best suited for that position is given the job (often with a rise in rank). Preference is usually given to personnel already assigned to the current posting, however, available personnel from other assignments can also be considered, if they fit the needs of the open position, or are preferred by the command staff.
If a service individual wishes to move up in status, but no opportunities are available at their current posting, they can request a transfer, and if approved, they may find themselves at a new posting with better advancement opportunities.
Contrary to the belief of some critics, the Federation does have an economy, and Starfleet is funded by the Federation. Starfleet officers and enlisted personal are paid a monthly salary according to their rank. Pay is dispersed digitally, transferred securely, and can be slightly delayed when a vessel is operating beyond Federation borders.
-Lieutenant Sam Archer
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January 10, 2365 -- (Original Devron Timeline)