Promotions without pay raises are becoming more common
NEW YORK (FOX5NY.COM) - Getting a promotion at work is usually something to be happy about. A new job title usually means more money, but sometimes that's not the case. What if you were offered a promotion without a pay raise? A recent study found that bosses are offering their employees promotions without more money at nearly twice the rate they did seven years ago.
"Retention in this market is a big thing as well because companies are in fact doing more with less," Richard Deosingh of Robert Half said.
The study was conducted by the staffing firm Office Team, which surveyed 300 human resource managers and 1,000 office employees. The survey found that 39 percent of employers commonly award promotions without salary increases, a 17 percent-point increase from 2011.
"So what they are doing, based on the survey, is recognizing great employees with the opportunity to continue to develop and grow with their organization," Deosingh said, "but with the understanding that I am not in a financial position to give you the raise."
And more workers are accepting it, according to the Office Team survey, which found that 64 percent of workers said they would accept a higher title that doesn't include more pay compared to 55 percent in 2011. Why?
Deosingh said that the job market has a lot to do with it but other factors are at play as well.
"Employees are staying with companies a lot longer so their preference is probably to use the equity that they have within that organization first and foremost before searching elsewhere," Deosingh said. "You always want to position yourself to not only do more but to be fairly compensated, especially in a market like this. So give yourself an opportunity to renegotiate it down the road."