How To Decide If You Should Accept a Promotion Without a Raise

The Benefits of a Promotion, Even If There Isn’t a Raise

Typically, you’ll get a better title and additional responsibilities. With a promotion, you may get to work on more interesting projects, or ones that are more important to the bottom line. Or, you may begin to manage people or projects.

Companies might give employees who went above and beyond during the coronavirus outbreak a new title or role as a reward. But more money is another story. More than one in five CEOs anticipate no wage increases for their staff over the upcoming 12 months due to the continued tightness of revenues. According to The Conference Board’s most recent executive survey, 5% of respondents said they might even lower wages. At the same time, more than 75% of executives tell Korn Ferry that their organization’s promotion cycles have not been affected by the pandemic. Even companies that continue to pay promoted workers more may give them smaller pay raises than those given to those who were promoted in 2019. Tom McMullen, a senior client partner at Korn Ferry and the head of the firm’s North America Total Rewards expertise group, predicts that the employee will be greatly dissatisfied: “What, I’m getting a promotion, but there’s no money involved?

It turns out that promotions without a net pay raise are more common than one might think. Smaller businesses, where many employees hold multiple positions, don’t always link promotions to pay increases. It also happens during many corporate reorganizations or mergers. But more frequently, especially in this time of crisis, employees are given management positions without pay increases, which puts them in a difficult situation and causes them great anxiety. Here are five ways experts say employees can handle it.

Almost everyone, to some extent, relates their sense of worth to their income. But success isn’t always measured in dollars. According to David Meintrup, a career coach at Korn Ferry Advance, it is the responsibility of the employee to determine what else they value professionally. Although a promotion may not result in a pay raise, it may open up opportunities for an employee to manage staff, take on challenging projects, or work more closely with clients. According to Meintrup, “that combination of new job responsibilities could result in higher job satisfaction.”

The change in responsibilities, along with any new skills the employee learns on the new job, could open up significantly more lucrative roles down the line, either at the current employer or elsewhere. Another question that employees should ask themselves is, “What’s my five-year goal?” The new title and responsibilities, at the very least, look impressive on a resume.

Employees need to determine whether their promotion-without-raise circumstance is particular to them, and they can begin determining this by speaking with their boss. Experts suggest asking about specific policies regarding raises and promotions. It might turn out that the boss is using one playbook and the business is using a different one.

Although the boss might not have the responses the worker is hoping for, understanding them can help decision-making in the future. Additionally, it will enable the worker to gauge the degree of equality on the job. “Employees want to feel that there’s some procedural justice. Most workers will be irate if they see everyone else receiving a zero, but they will still feel fine, according to McMullen. Only when a specific, recently promoted employee receives nothing while others in a similar position receive pay increases will someone become irrationally enraged.

Can we revisit this in six months when things might be better? is a question that can always be asked, according to Meintrup. In fact, right now would be a particularly good time to employ that tactic. About one-third of CEOs even stated that they anticipate their company to add jobs over the upcoming year, with nearly two-thirds of CEOs believing that the economy will continue to improve.

Additionally, it will give the newly promoted worker some time to adjust and start performing well in their new position. If they perform well, it’s possible that their value has increased not only in the eyes of their current employer but also in the eyes of other, higher-paying companies, increasing their appeal.

According to McMullen, promotions are opportunities that staff members can always turn down. They are not a given. Even with pay increases, switching to a new position could mean losing flexibility, dealing with heavier workloads and stress, being separated from respected coworkers, or doing something else an employee values. If the drawbacks outweigh the benefits, an employee may simply refuse. “‘You’re asking me to do more work and at a higher level while you don’t intend to increase my pay? No thanks,'” McMullen says.

I Got a Promotion But NO Raise! What Should I Do?

Why do employers offer promotions?

Promotions are frequently provided by employers as a token of appreciation for your commitment to and loyalty to their company. Theyre often meant to recognize you for your contributions. For instance, if your employer observes your continued success in your current position or your consistent going above and beyond the call of duty, they might offer you a promotion within the organization. Before granting you a raise, your employer may take into account the following:

What is a promotion?

The advancement of your position or job title at a company is referred to as a promotion. A promotion typically entails an increase in pay, new duties, additional perks, and overall status. While receiving a promotion is an honor, it also requires more work and effort.

How to decide if you should accept a promotion without a raise

To ensure you choose wisely regarding your future career, it’s crucial to think about a few things before accepting a promotion without a pay raise. You can decide whether or not to accept a promotion without a pay increase by using the following methods:

1. Consider your future career

As you think about getting promoted, do some research to learn more about what it might mean for your career. Remember that accepting a promotion can help you advance in your career even if you don’t get a pay raise.

Determine whether your new position is in line with your career goals and whether the additional work is ultimately worthwhile despite the lack of a pay raise. Determine if the promotion is ultimately worth forgoing a pay raise if you believe it will make it easier for you to advance in your career.

Consider your career objectives as well as whether the organization is a good fit for you. It might be best to look for another job if the company doesn’t give you the chance to get paid in accordance with your performance level. Remember that even if you accept the promotion, you can still bring up your new responsibilities in interviews in the future.

2. Do your research

As a working professional, its important to know your worth. Investigate the typical pay for employees with your job title using various online resources, such as Indeed Be sure to take into account your location and the cost of living there. You might want to request a salary increase even if your current salary is lower than the average for your position.

3. Negotiate other benefits

Although many people think of compensation as your salary, businesses can also pay you in other ways. For instance, they might offer you equity or more vacation days. Working for a company with a tight budget may give you the chance to bargain for additional benefits. What’s going on at your workplace will help you decide which type of compensation will benefit you the most.

4. Determine why you werent offered a pay raise

Never be afraid to inquire as to why you weren’t given a pay raise. Set up a time to speak with your manager. Thank them for the pay increase and let them know how excited you are to take on this new position. Have a direct discussion about why you weren’t given a raise along with the promotion after that. They might have had a good reason for not giving you one.

Your promotion might not have coincided with the time period during which they only offer salary increases, for instance. If this is the case, you might anticipate a pay raise at a later date. Determine when you can expect this raise. Try to negotiate for it to happen closer to three months out if it’s more than six months away. You may also state that you would like to discuss the compensation portion of the offer at a later time. As a result, even though you have no control over whether you get a raise, you can always check in with your manager to see if you will get a pay raise in the future.

5. Negotiate a raise anyway

Consider setting up a meeting or sending your manager an email if you did your research and didn’t receive a pay raise. Thank them for the promotion and inquire about a pay raise to better reflect your increased workload. Have a number in mind that you believe most accurately reflects your new obligations. Be sure to express how excited you are about the opportunity and how dedicated you are to assisting the company in achieving its goals in your new role. You won’t know until you ask, even though your manager might offer a lower salary.

FAQ

When promotion is made without increase in salary it is called as?

Dry promotions refer to promotions made without an increase in pay. For instance, a lower level manager may be elevated to senior level management without receiving a pay raise.

Do you get a pay increase with a promotion?

Promotions within the same organization typically result in pay increases of around 3%, whereas a person switching jobs can anticipate a pay increase of 10% to 20%. Additionally, you might be promoted without a corresponding pay raise.

Can I refuse to take on more work without a raise?

In general, you should have the right to refuse taking on extra responsibilities unless you are paid fairly for them, especially if those responsibilities are obviously associated with a higher-level, higher-paid position.

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