The New Normal: Job Promotions Without More Money
You finally get the promotion. But what about the raise?
New data from an Office Team survey shows nearly 40 percent of companies offer promotions without a raise — a 17 point jump from 2011.
Office Team metro market manager Dora Onyscak says in today's economy, there are not a lot of companies that could potentially afford to give a monetary increase when they award promotions. So many of them are doing other things that are not specifically tied to money.
Some of those incentives include more vacation time, bigger bonuses and flexible schedules, says Onyschak.
The survey also finds that 64 percent of workers are OK accepting a promotion without a pay bump. That's up from 55 percent in 2011. Onyschak says that's because people are sometimes attracted to the better title. It certainly helps build their skills and career visibility.
"Promotion is always something good to have on a resume. It really demonstrates that your employer has confidence in you and trust in you. It's great for your career growth," says Onyschak.
According to the survey, male employees and workers ages 18 to 34 are most likely to take a promotion without a raise. That is in part due to some of the younger generation just starting out in their careers. Most male workers may be more focused on the advancement in climbing the corporate ladder, as opposed to women or more tenured workers, says Onyschak.
She says if employers are going to offer employees promotions minus the raises, then it's up to the employer to figure out what's important to the worker. Is vacation time important? Can the employer put in a budget where there's a bonus at the end of the quarter or year?
Maybe a manager can offer a flexible schedule, allowing the employee to work from home or perhaps schedule hours where the worker commutes in the off-hours.
Perhaps there's training you can offer the individual to help increase their skill set. Depending on the organization, maybe there is restricted stock or some sort of equity that you can offer in lieu of an increase with the promotion.