One-in-five companies award promotions without raises

But more than one-half of workers OK with that: Survey
|hrreporter.com|Last Updated: 06/14/2011

At some companies, a corner office doesn't always come with a bigger paycheck, according to a survey by OfficeTeam. While most human resources managers surveyed in the United States said their firms rarely or never offer an employee a promotion without a salary increase, one-in-five (22 per cent) respondents revealed this practice is at least somewhat common at their companies.

When asked, "How common is it for your company to award promotions without salary increases?", just three per cent of HR managers said it’s very common, though 19 per cent said it is somewhat common. Almost two-thirds (63 per cent) said it’s not common at all and 14 per cent said they do not offer promotions without raises.

"Some companies may want to reward employees for taking on heavier workloads but aren't able to offer immediate raises due to budget constraints," said Robert Hosking, executive director of OfficeTeam. "In those situations, the intent may be to provide a higher salary as soon as the firm is more financially stable."

That won't stop most professionals from reaching for the next rung on the career ladder as 55 per cent of workers polled said they would be willing to accept a promotion that doesn't include a raise, found the survey of 508 HR managers and 433 workers in the United States.

"Professionals should think carefully about taking on increased responsibilities if a raise isn't in the offing. Before accepting a new role, workers may consider requesting a compensation review in six months or discussing other perks,” said Hosking.

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