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One in Five Companies Awards Promotions Without Raises

June 14, 2011 — A corner office doesn't always come with a bigger paycheck. While most HR managers surveyed in a recent OfficeTeam survey said their firms rarely or never offer an employee a promotion without a salary increase, a surprising one in five (22%) respondents revealed this practice is at least somewhat common at their companies.

That won't stop most professionals from reaching for the next rung on the career ladder: Fifty-five percent of workers polled said they would be willing to accept a promotion that doesn't include a raise.

Responses came from 508 HR managers at companies with 20 or more employees and 433 workers 18 years of age or older and employed in office environments.

HR managers were asked, "How common is it for your company to award promotions without salary increases?" Their responses:

Workers were asked, "Would you be willing to accept a promotion from your company that didn't include a raise?" Their responses:

"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."
Hosking added, "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."
OfficeTeam identifies five incentives workers might be able to negotiate, aside from pay, when offered a promotion:

1. More vacation time. Consider asking for a few extra days or weeks off each year.
2. Bigger bonuses. It may be possible for your company to increase the percentage of your annual bonus or give you a spot bonus.
3. Flexible schedules. The ability to work from home or commute during off-hours may save you time and money.
4. Professional development. Pursuing training or continuing education can increase your marketability, which could pay off in the long run.
5. An equity stake. Perhaps you can negotiate restricted stock in the company based on your performance.

Additional Resource: WorldatWork Promotional Guidelines Report (December 2010)

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