Promotions Without Raises? What's Up With That?

Promotions Without Raises When you dream about getting a promotion, you have visions of a better office, more responsibility, bigger perks, a more prestigious title, and -- best of all -- a substantial raise, right? Unfortunately, times have changed, and an increasing number of employers are ducking out on the latter -- giving promotions without raises.

According to a new OfficeTeam survey, a surprising one in five (22 percent) of responding employers revealed this practice is at least somewhat common.

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"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 Hoskins, 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." But not always.

Still, a promotion is a promotion, according to most American workers. Fifty-five percent of employees polled said that they would be willing to accept a promotion that doesn't include a raise. "Professionals should think carefully about taking on increased responsibilities if a raise isn't in the offing," Hoskins added. "Before accepting a new role, workers may consider requesting a compensation review in six months or discussing other perks."

Some other incentives workers might be able to negotiate, aside from pay, when offered a promotion include:

  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.

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Filed under: Pay Raises, Benefits
Lisa Johnson Mandell

Lisa Johnson Mandell

Editor

Lisa Johnson Mandell is an award-winning multi-media journalist and author of Career Comeback--Repackage Yourself to Get the Job You Want.  Her work has been translated into 20 different languages, and she is a frequent expert guest and commentator on news and talk shows. She has been featured in The Wall St. Journal, on the CBS Early Show, NBC Today, CNBC, Fox Business News, Dr. Phil, Oprah.com and many other media outlets.  Lisa discusses her AOL pieces each week and interviews vital guests on the web TV show, This Week in Careers. Learn more on LisaJohnsonMandell.com.

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HEllo Morissha

http://www.cashcrate.com/1901174

July 03 2011 at 8:16 PM Report abuse rate up rate down Reply
Raul

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June 26 2011 at 8:33 PM Report abuse rate up rate down Reply
linmarco

People still don't seem to get it. Can't they see where this is all headed? According to past articles numerous companies, large and some smaller ones, are sitting on piles of cash. The question is why aren't they using some of this cash to hire needed employees? Many of them are sitting tight with their present employees and demanding more work out of them for the same pay. If they complain it's off with their heads. Add to this the dislike of many of them for the president and his policies and soon they will be able to kill two birds with one stone as the saying goes. If nothing changes, unemployment may be between 15-20% by November 2012. They'll be happy with this. Everyone will be angry with the president. Once he loses, hiring will begin but with a caveat. The wages will be lower. People will be so desperate until they will accept it. Never get on the bad side of big business.

June 17 2011 at 12:45 PM Report abuse rate up rate down Reply
wfreeberg

I can't believe the comments here. Always take the offer of promotion. Promotions open opportunities to both do and earn more. Turn down the offer and you are then just working for the paycheck and not the companies future and you will be slated to be replaced.

June 16 2011 at 5:07 PM Report abuse rate up rate down Reply
peapers

Instead of whining about what you didn't get, look at the situation for what it is. A chance to learn new skills that you can sell in the open market.

A company that gives you a promotion is offering you an opportunity to learn new and valuable skills. If they are not wise enough to compensate you for the new position, learn what you need to find the same position at another company. Not only will you be getting paid more, but the increased salary is nothing more than a starting point to increase from.

People often miss the obvious financial benefits of being taught something new, whether it's with or without monetary compensation. They're usually too busy paying attention to nickles to see the potential dollars ahead.

June 16 2011 at 3:55 PM Report abuse rate up rate down Reply
pete

Whine whine whine.

obama told major companies to give promotions instead of raises, and count them as "jobs create or saved." He needed this to "prove" his stim-u-less worked as advertised. I believe he knew full well when he enacted stim-u-less that it would do no good, and intended to make the argument "look where we'd have been without it." The historical truth about modern day recessions/depressions is that the less government got involved the quicker the rebound. (JFK, Reagan, and Bush all had better than 7% growth 18 months into their recovery. obama is sitting at 0.2% and struggling to stay there.)

You were all behind him then, so what's your gripe now?

Finally seeing the light, are you!

June 16 2011 at 11:38 AM Report abuse +1 rate up rate down Reply
1 reply to pete's comment
linmarco

When did he say this? Can you cite the source? I don't remember seeing it.

June 17 2011 at 12:47 PM Report abuse rate up rate down Reply
sasha

Well conservatives. You hated the unions because of the benefits and guarantee of a job. Now that corporate America is using politics to get what it couldn't otherwise, be ready when all jobs will become more demanding and less rewarding. Good luck on anyone getting a raise and climbing from their present position. The Soviet Union could not have done it better.

June 16 2011 at 10:37 AM Report abuse rate up rate down Reply
cctgos

whitcombc- request to speak to someone in America they have to switch you to a person working here this will save our jobs - anytime you get a call ask where the person is and request to speak to someone in America if not available inform them to have them call you back when they are open, the best time to reach a customer service person in the USA is before 11:00am EST. this is the best shot a a USA person.

June 16 2011 at 10:24 AM Report abuse rate up rate down Reply
whitcombc

Promotion? That word, like so many words, has been corrupted and now has a totally different meaning than it did. It comes from the French, Latin promotio - meaning to move forward. But what it means for the worker is to move backwards. Back to the Corporate Dominance of thinking and writing in this country, it was one of the reasons for Union Bargaining - that workers were given more and more to do, the same pay, and threats of loss of any employment if they balked. McDonlds wrote labor laws so that their "managers" were exempt from overtime pay but had to work overtime.If they balked they were replaced by hourly counter staff who were promoted to "managers' in rapid order. As unions are busted, blamed and eliminated, we can expect to find more and more employers demanding more work, more unpaid hours, and LESS base pay for the same jobs, while re-naming the jobs as promotions. The truck driver who now loads, packs, unloads, drives and fixes his truck is a perfect example. But that is what has happened as teamsters have lost out to non-union shops.
Eventually all jobs of all sorts are going to have to be done in foreign countries where $6 a week is a good deal. But I have to wonder if 20 calls a week to get me to pay my past due mortgage debt is cost effective when the calls are from the Philippines, take 45 minutes each due to the inability of this 64 yr old American to understand the accent. I know they only get $4 an hour or so, but a call from an American resulting in the same thing takes less than 4 Minutes each. (I timed it). $60 for the Philippines and $16 for the American calls @ 12 bucks an hour. Same with IT jobs, Customer Service for Cable and Phones and Computer sales, Same for Parts Distribution Centers. The only way this can be good for anyone is if the Corporations have some sort of tax break to make spending more money overseas better for their bottom line. AND OF COURSE THEY DO. So promotions are now designed to get the American worker to go backwards to the days of pre-Trusbusting and labor laws. Maine Leads the way. The rest will follow until there are NO jobs worth trying to do.

June 16 2011 at 9:16 AM Report abuse rate up rate down Reply
sagg1948

Those 55% of people surveyed that said they would take a promotion without a pay raise must definitely be those assinine college graduates. What idio would take on more work for less pay talk about a dopey society, that is why this country is going backwards. Only the thieves on wall st and the crony CEO;s get to steal from the country.

June 16 2011 at 8:48 AM Report abuse rate up rate down Reply

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