More Companies Offering Promotions Without Raises — and Many Workers Willing to Accept Them
A better job title doesn't always come with a bigger paycheque, according to new research from staffing firm OfficeTeam. Nearly half of Canadian HR managers (47 per cent) said it's common for their company to offer employees promotions without salary increases. That's a 22-point jump from a similar 2011 survey.
HR managers were asked, "How common is it for your company to award promotions without salary increases?" Their responses:
Workers were asked, "Would you be willing to accept a promotion from your company that didn't include a raise?" Their responses:
• More male employees (59 per cent) are open to taking a promotion without a salary increase than women (51 per cent).
• Workers ages 18 to 34 (62 per cent) are most willing to take a new title that doesn't include a raise, compared to those ages 35 to 54 (52 per cent) and 55 and older (45 per cent).
• Professionals are promoted after 3 years in a role, on average.
"While providing advancement opportunities can be a valuable way for companies to motivate employees and reward success, many professionals expect a promotion to come with a raise," said Koula Vasilopoulos, a district director with OfficeTeam. "If limited resources make that difficult, employers should be prepared to deliver alternate perks like more vacation time or enhanced benefits to keep staff satisfied."
Added Vasilopoulos, "A new title may look good on paper, but before accepting an offer, employees need to schedule time with their manager to discuss whether the role fits their long-term career goals and the total compensation structure for the position."
Five tips for workers when considering accepting a promotion without a raise:
1. Get the details. Discuss the new role's responsibilities and expectations with your boss before making a decision.
2. Weigh the pros and cons. Think about whether the position aligns with your personal and professional aspirations.
3. Request a follow-up. Ask for a compensation review in three to six months.
4. Check on other incentives. Aside from pay, you may be able to negotiate a flexible schedule, extra vacation time, a bigger bonus, professional development opportunities or stock options.
5. Decline gracefully. If you decide to turn down a promotion, diplomatically explain how staying in your current role is better for you and the company.