Ahoy Captain,
When you return to port after a mission, you can promote crew where you give out the medals. The tab in the middle just right of the medals. If they are eligible, they will be promoted. Just drag the stripes over the picture of the sailor you want to promote. If you have to many in sailors on the ship that are at or above CPO, no one can be promoted until someone is removed from the boat. To remove, click on the icon of the sailor and drag him to the left. You can also use renown to get sailors. Click on the candidates on the left of the screen to see how much, if any they cost. Hope this helps to answer your questions!
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