Q&A talks about promotions and pay with Kelleigh Marquard, Hartford branch manager for OfficeTeam and Robert Half International.
Q: According to a new Office Team survey, one in five human resource managers say that promotions don’t automatically mean raises. Why are companies increasing a worker’s responsibility without increasing their compensation?
A: Awarding promotions without salary increases is not ideal, but companies may need to go this route if they aren’t financially able to award raises. We’re finding that while these companies may not be able to increase compensation for top performers, they still want to recognize their hard work, especially since many employees took on heavier workloads in the downturn. Employers who are caught in this situation need to talk with workers about their dilemma of wanting to recognize their efforts with a promotion, but explain that while the company cannot yet offer a raise, they may be able to provide other incentives.
Q: Probably just as surprising in the survey was the revelation that 55 percent of workers would take a promotion without a raise. Why is that? Do people take promotions just for the increased power? Future potential?
A: There are a few different reasons that professionals would be willing to take promotions without salary increases. Some workers are still wary of the uncertain economic conditions, so they might accept this type of promotion because they’re concerned about job security and feel that they have no other choice. Others are happy to accept increased responsibility because they recognize that, regardless of compensation, a new title shows career progression and could make them more marketable down the road.
Q. When does it make sense to take a promotion without a raise? It seems as if increased responsibilities would deserve some form of increased reward.
A. Even if it doesn’t come along with a raise, employees should consider accepting a promotion if it might pay off later on. For example, managers are typically impressed by self-starters who are willing to accept more assignments when teams are lean and resources are scarce. If you’re looking to stay with your company and move up the ranks, taking this type of promotion could position you for advancement and greater compensation when conditions improve. On the other hand, there are some situations where it might not make sense to accept a promotion without a raise. If the disadvantages outweigh the advantages or you’d like to pursue a different career path, you might want to turn down the offer.
Q. Is it a mistake not to accept a promotion just because there is no additional money? Are you perceived going forward as only being interested in money and not career advancement?
A. It’s important to carefully weigh the pros and cons (not only compensation) when trying to decide whether to accept a promotion. Things to consider are whether or not the position is satisfying, if you’re capable of the work, whether it fits into your career plan and other factors in the new role that would make it fulfilling. If you want the position but more money isn’t on the table, try to negotiate other perks besides a raise (e.g., more vacation time, flexible schedule, etc.) to ensure you’re properly compensated for the added responsibility. Also explain to your manager that you’d like a compensation review in three to six months. If you decide to turn down a promotion, be prepared to explain why. Give your manager a brief explanation about why you prefer your current role or want to take a different career path. This is a good opportunity to share with your manager how you see yourself growing with the company, even if it’s not taking the position he or she offered.
Q: Is it acceptable to take a promotion with the promise of a raise down the road? Is it acceptable to get such a promise in writing? Are such promises enforceable?
A: Before making big decisions, employees should be direct and ask their managers about the possibility of increased compensation in the future, if it’s not an option immediately. Agree on a date to regroup and make sure it doesn’t fall off the radar. A good strategy is to ask for a compensation review in three to six months and check in with your manager later on to schedule it.
Q. What incentives can managers can offer with promotions if raises aren’t possible?
A. If resources are limited, budget-friendly ways to reward staff might include providing them with extra vacation time, flexible schedules or telecommuting options. Offer professional development opportunities that show you’re invested in the employees’ career growth. Examples include sending staff to conferences, reimbursing them for tuition costs or paying for industry association dues. You could also consider providing spot bonuses at the end of a major project or team accomplishment.
Showing appreciation for your employees’ efforts sounds basic, but it’s a fundamental element of motivation. Top performers thrive on being recognized for excellent work and they will remain loyal and productive if their manager honors their achievements. A supervisor’s failure to recognize workers’ achievements can lead to individuals feeling undervalued and expendable — feelings that may prompt good employees to look elsewhere for new opportunities.
