More workers are willing to take promotions without raises
- A growing number of employers are promoting workers without increasing their pay, according to a new OfficeTeam study — and nearly two-thirds of workers are accepting these arrangements. According to the Robert Half company, 39% of HR managers said the practice is common in their organizations. This is a 17-point jump over a similar study in 2011, Robert Half said.
- OfficeTeam found that among the 300 HR managers and 1,000 employees polled, more men (72%) than women (55%) said they're receptive to a promotion without pay increase. Workers ages 18 to 34 (72%) said they'll take a new title without a pay hike, compared to workers ages 35 to 54 (61%) and those 55 and older (53%).
- On average, professionals are promoted after nearly two and a half years of employment. Brandi Britton, an OfficeTeam district president, said employers can motivate and retain workers by providing them with advancement opportunities. She added that while promotions without raises aren't ideal, some budgets are limited and that the practice might be a consideration for workers receiving above-market rate wages.
Various studies have shown that career development is highly valued among employees. Some workers say they would leave their current position to work for another organization offering advancement opportunities; organizations that create a culture of development could be an employer of choice in the competition for talent.
This study isn't the first to point to the power of promotion even when a raise isn't feasible. An earlier Korn Ferry study showed that 63% of respondents would rather get a promotion than a raise, as employees want to know that their work is making an impact on the company and its future. Employees want to be seen and have opportunities for growth.
Not all employees would find getting a promotion with a raise acceptable, however, and employers should be careful to balance compensation needs with promotional opportunities. But organizations on tight budgets, especially small businesses, might be able to offer perquisites, such as one-time bonuses, or non-monetary benefits, such as a solid recognition program, to newly promoted employees to keep them motivated and engaged.