What Should You Do If You Are Given A Promotion Without A Pay Increase?

The ideal situation is when your boss promises you a promotion and a raise exceeding your expectations. However, this is not always the case with promotions. Employers do not always provide additional pay in conjunction with a promotion. What should you do if you are offered a promotion but receive no raise in your basic salary pay?

The situation could be more common in cases. According to the staffing firm OfficeTeam, 39% of employers frequently offer a promotion without a pay increase. What should you do if this occurs to you?

 

The Advantages of a Promotion

Let's start with what tends to happen when you get a promotion. You'll usually get a higher status and more responsibilities. A promotion may allow you to work on more promising projects or ones that are essential to the company's bottom line. You could also start managing people or projects.

This could be beneficial to your career. You will be able to accomplish the following with a higher-level title:

• Improve your knowledge and experience.

• Have more visibility within the company.

• Add a new job description and duties to your resume.

• Apply for higher-level positions at other companies.

• Prospective employers will be impressed if you can demonstrate your professional development.

A different (and better) job title is worth more than a pay raise. It demonstrates career advancement on your resume and LinkedIn, increases your marketability, and positions you to qualify for higher-paying jobs in the future. According to a Korn Ferry survey, 63% of employees will choose to receive a promotion without the need for a raise rather than a raise without a promotion.

 

Why do businesses offer promotions without pay raises?

It can feel insulting to be offered a raise without a pay raise, but this does not have to be the case. Here are some reasons why a company might offer a promotion without a pay raise:

• It's an indication that you're doing well. An organisation sometimes uses promotion to show you you're doing well.

• You've already assumed the responsibilities that come with the title. You may have naturally assumed the role and responsibility of the new title. In other words, the title has changed, but the work has not.

• The company has no funds in its budget. You may be doing an excellent job, but the organisation as a whole may be underperforming. As a result, your employer might want to raise you but cannot afford to do so.

• Policies of the company. Perhaps you have already reached the top income range for your current and proposed new titles. In some cases, organisations have strict guidelines regarding the timing of raises. It's also probable that the organisation is poorly organised or your leader isn't a strong advocate for you.

Remember that a promotion may not always result in a pay raise but may provide other advantages such as performance pay or additional paid holidays.

 

What Should You Do If You Are Given a Promotion Without a Raise?

Inquire Questions

Are you surprised or even offended by a promotion without a pay raise? While it is not necessary to express your emotions to your leader or the HR (authorised representative) who decided to offer the promotion, you should feel free to find out more about the company's reasoning. Inquire about the company's policies on promotions and raises. That way, you can learn why the offer is being made.

Remember, you don't have to make a decision right away. You can take your time, just like with a job offer. When offered a promotion, it is a good idea to begin by expressing gratitude for the opportunity.

Then you can inquire, "When do you need a response?" You could also say that you'll need X days to consider the offer and consult it with your family.

You have every right to decline the promotion but do so professionally and politely to avoid jeopardising your relationship with company management.

 

Compensation for Research

You should look into the salary ranges for the job description—that is, what individuals with this job title generally earn in your industry. You can also use wage research sites like Glassdoor and PayScale to learn more about how much similar jobs pay.

Investigate how people with this title are compensated at your specific company. This can be difficult because most people don't want to share personal pay slips, and asking is awkward. Some companies, however, have pay disclosure policies and share salary information.

A broad sense of the pretty standard pay for this role at your company and elsewhere can help you make a compelling case as to why you deserve both a raise and a title change.

 

Choose Your Next Steps

Your situation will determine your next steps and whether you believe the company's offer of career advancement without a raise is justified. Among the options are the following:

• Accept the package as is. In certain cases, this may be the best option. After all, the title change may benefit your career in the long run, and you may believe that the company's reasons for not giving you a raise are valid.

• Accept the promotion, but inquire about future pay raises. If you're overjoyed with the promotion and weren't expecting a pay raise, all you have to do is say "thank you." If you're taking on more responsibilities, you should inquire about when to assume a pay raise.

• Accept the offer, but request a salary review at a later date. Have an open discussion with your leader and express your desire for your salary to be seriously considered later. Set a deadline for when this basic pay reconsideration will take place if possible.

• Set goals and objectives. Establishing objectives or milestones that will result in a raise can also be beneficial. Ask your boss if that is an option; if so, get the information in written form.

• Inquire about additional benefits. It can be advantageous if you accept compensation other than salaries, such as more flexible work hours, more paid time off, extra training, or additional help from other team members.

• Be prepared to bargain. You can inquire with your boss if you can discuss the offer. Arrive at the negotiating process prepared with knowledge of how others in your industry in similar roles are compensated.

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