Salary Talk: Could an employee get a promotion without a raise?
the economic downturn, many employees took on additional responsibilities
without extra rewards. What happens if you give someone a promotion
without a raise?
an employee get a promotion without a raise?
Would you discuss the risks of promoting a deserving employee (title
change) but not increasing salary due to current economic conditions?
A promotion is when an employee is moved into a job with greater
scope and responsibility than his or her current job. Promotions
in and of themselves do not mean a monetary increase in salary.
But in general, companies adjust salaries with promotions when the
monetary value of the new job is higher than the value of the job
the incumbent currently holds.
is understandable that a company might not be able to afford to
offer an employee more money in the current economic conditions.
If the employee's current salary without an adjustment is competitive
with the market rate of the new job, you don't need to offer an
if the employee's salary is below the market value of the job to
which he or she is being promoted, I would offer an adjustment to
make the employee's pay competitive.
yourself how much it would cost to replace the incumbent if he or
she left the company to take the same promotion somewhere else.
Look at the implications of not rewarding the employee for doing
a job you concede is beyond his or her current classification.
an alternative, consider whether a bonus is appropriate until you
can give the job title and monetary increase the employee deserves.
Erisa Ojimba, Certified Compensation Professional