You get promoted to the big job, you collect the bigger paycheque that comes with it, right? Unfortunately, not always.
A new report out from the human resources company OfficeTeam reveals that nearly half of Canadian companies (47 per cent) commonly offer promotions to workers that do not come with salary increases.
Does your job title matter more than money? This trend is on the upswing. OfficeTeam found that there has been a 25 per cent increase in this practice since 2011.
There are pros and cons to the title bump without a pay boost.
Pros: When you move up a level at work, it shows career progression. This recognition looks good on a resume and can allow you to secure higher positions at other companies when the time comes to move on. Also, the added responsibility can allow you to participate in more impactful decision-making activities at your company allowing you to progress both personally and professionally.
Making new connections, learning new skills, and achieving meaningful accomplishments on the job – these are the building blocks of career success.
Cons: By increasing your job title without a raise, your employer could simply be dumping more work, more responsibility, and more pressure on you – without compensating you for the increased efforts and stress.
Most Canadian workers seem to be on the glass-is-half-full side of the equation. Office Team found that 55 per cent of workers surveyed would appreciate the higher job title – even if it came without a pay raise.
OfficeTeam’s Koula Vasilopoulos offers some advice for those people finding themselves in that situation. “A new title may look good on paper, but before accepting an offer, employees need to schedule time with their manager to discuss whether the role fits their long-term career goals and the total compensation structure for the position.”
Five tips for considering accepting a promotion without a raise:
Get the details.
Find out your new role’s responsibilities and expectations before making the decision to accept it.
Weigh the pros and cons. Think about whether the position aligns with your personal and professional goals. Will it take your career to the next level, or just pile more work on you?
Request a follow-up. Ask for a compensation review in three to six months, once you’ve proven your abilities and value in the new role.
Check on other incentives. Aside from pay, you may be able to negotiate a flexible schedule, added vacation time, a larger bonus, professional development opportunities or stock options.
Decline gracefully. If you decide to turn down a promotion, thank your employer for the recognition, and diplomatically explain how staying in your current role is better for you and for the company.
Wondering how much you should be making? Here is a look at the average Canadian salaries by region and industry.
Want a little more? These are Canada’s highest paying jobs.
If you want to land one of those top paying roles, this is the one skill that matters most in your resume.