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Is offering a promotion without raise a major cause of workplace demotivation?

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A better job title doesn’t always come with a bigger paycheck, according to new research from staffing firm OfficeTeam. Nearly two in five HR managers 39% said it’s common for their company to offer employees promotions without salary increases. An increase of 17% compared to a similar survey conducted in 2011.

Are employees happy with this you might wonder? More than you might expect; in fact, 64% reported that they would be willing to accept an advanced title that doesn’t include a raise up from 55% in the 2011 survey.

The survey showed some other surprising results;

  • More male employees 72% are open to accepting a promotion without a salary increase than women 55%.
  • Workers ages 18 to 34 72% are most willing to take a new title that doesn’t include a raise, compared to those ages 35 to 54 61% and 55 and older 53%.
  • On average, professionals are promoted after two years and five months in a role

“One-way employers can motivate and retain their workers is by providing advancement opportunities to those who have excelled in their positions,” said Brandi Britton, a district president for OfficeTeam in a press statement. “Awarding promotions without raises isn’t ideal, but budgets are often a limiting factor. The employee’s existing salary may also be a consideration, particularly if they’re already making an above-market rate.”

Britton added, “Professionals should look at the full picture when offered a title change that doesn’t include a bump in pay. That means assessing whether they’re ready for the challenge, excited about the work and able to negotiate other perks to sweeten the deal.”

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