In an ideal world, promotions would always come with salary increases. But that`s not how business always works. If you`re offered a promotion, but not a raise, think about what you need to gain and lose before you decide to accept this new position or say goodbye graciously. Keep in mind that there is no rule that says you have to accept a promotion if it is offered. And saying no could send the message to your employer that it`s simply not the right thing to do is to ask people to take on more work without extra pay. You have every right to decline a promotion, but in order not to affect your relationship with the company`s management, you must do so in a very professional and courteous manner. But the value of a promotion without a pay raise goes no further. Without financial compensation to take on more responsibilities, the balance between workload and salaries is in turmoil. This discrepancy sends a message to employees that they are not being evaluated fairly. Or that the value they bring to the organization is negligible. Do you feel surprised or even offended by a promotion without a raise? While it`s not necessary to share all your emotions with your manager or the HR person who offered the promotion, you can inquire about the company`s reasoning. This way you can find out the why behind the offer. If you`re considering this approach, you should first look at recent promotions made at your company by employees in a similar situation.

Pay close attention to the demographics of employees who have been promoted in recent years and have received raises. “The manager has a lot of things in the toolbox besides financial compensation,” McMullen says. Even if money for raises and bonuses is tight, bosses could offer newly promoted employees more flexibility in terms of free time, training opportunities, or meaningful project work. For example, if you find that you recently promoted a white employee and received a raise, but now propose to promote a woman (or another employee in a protected class) without a raise, you may need to come up with a legitimate, non-discriminatory reason for that discrepancy. They must be able to demonstrate how the economic downturn played a role in the company`s decision to suspend the increase. These are the legal considerations. Next, let`s talk about the ethical considerations of a promotion without a raise. Even with that in mind, you`ll probably still be surprised by this dubious honor when presented to you. How can you prepare for the possibility of a promotion without a raise? (He says, “Thank you.

I think so? is not your strongest option.) We asked three career experts for advice on how to respond. This is also a good time to inform the employee of better working conditions or additional benefits of promotion. Financial compensation and job satisfaction are usually what motivate an employee to stay with the same company. Job satisfaction can come from better working conditions, not just financial gain. Salemi says promotions without raises are becoming more common as companies get creative in filling vacancies and saving money. But one unfortunate fact remains: “Your boss expects you to work at a higher level and contribute to that level without paying yourself fairly,” she says. Although I am annoyed that I have not yet obtained the promotion or raise, I am also happy in my company. I am passionate about what I do, I love my colleagues and the schedule fits well with my lifestyle. For this reason, and the current climate, I do not want to make an immediate job change unless the right opportunity presents itself despite updating my resume and portfolio and regularly browsing vacancies. However, my supervisor often claims that I have already received the title and often asks me to undertake more projects, things for which I would be responsible if I were promoted.

Is there a diplomatic way to say that I am not interested in more responsibility if I am not fairly compensated? Or should I try to get out as soon as possible? Nine months ago, a senior executive asked me to apply for a more senior position, which comes with a significant salary increase. I did so and stayed in regular contact with management about the position, but no progress was made. I was assured that the work is still mine, but it is delayed by bureaucracy and HR approvals. It may be naïve to say that, but I believe them. Our industry has been particularly hard hit by the pandemic, and to make matters worse, our parent company has been involved in a major merger. I`ve also been with my company for a decade, and during that time, my management has given me plenty of opportunities, rewards, raises, and fair bonuses, so I think they deserve the benefit of the doubt. Your next steps will depend on your particular situation and whether or not you find the company`s promotion offer without a justified increase. Here are some possible options: The issue of the Fair Labour Standards Act is never about employees` titles or a recent promotion, but about what their day-to-day duties entail.

An analysis of daily tasks helps determine if employees fall into one of the exempt categories, exempting them from paying overtime. You must also determine whether, despite the absence of a salary increase, the promotion provides the employee with the same working conditions and/or long-term compensation potential as those previously promoted. Your ability to provide a legitimate, non-discriminatory reason for refusing a raise for a promotion is directly related to your company`s records, circumstances and financial well-being. While you should be aware that promotion will not result in a salary increase for the employee, you should establish a clear timeline for when the company will re-evaluate their position. Once you have established the schedule and communicated it to your employee, stick to the schedule and conduct a follow-up interview with the employee so that they clearly understand the potential for an increase for additional responsibilities. The goal is to avoid the employee feeling that everything she received from the promotion was thankless responsibilities, which can lead to low morale, a sense of being exploited and likely consultation with a lawyer. It may seem offensive to be offered a promotion without a raise. But that doesn`t have to be the case. Here are some reasons why companies can offer a promotion without a raise: It is not illegal to promote employees without offering them a raise. Nevertheless, there are some important aspects that employers need to keep in mind to avoid litigation.

Even with the tight job market, you`ll probably be surprised if your boss offers you a promotion without a raise. So how can you prepare for such a scenario? We have some tips on how you should react. Even if it`s not as formal, the way people “deserve” a promotion is often by starting to take on responsibilities outside of their current job. (This is especially true for smaller organizations, where roles can be smoother and it`s normal to wear multiple hats, but it can be true regardless of the size of the company.) You may feel upset or exploited, which is not very conducive to doing your best. And if promotion involves twice as much work, you may feel exhausted. The best circumstance is if your supervisor offers you a promotion that comes with an even bigger pay raise than expected.