What Will You Do When You Get Promoted Without a Pay Raise?

You are excited because your boss tells you that you are being promoted, and then you feel let down when you find out that your salary will stay the same. Does it make sense to do more work without receiving more money?

Accepting a promotion without a raise can be a smart career move, and a growing number of employees are doing it. Studies show that almost 40% of companies frequently award promotions without pay increases, and over 60% of workers are willing to accept them.

What will you do if your boss offers you a new title without adjusting your paycheck? Prepare yourself by studying this quick guide.

Weigh the Consequences:

1. Gain experience. Moving into a more senior role enables you to pick up new skills, knowledge, and contacts. You may have a greater voice in company decisions, and you may be able to focus more on the tasks you find fulfilling.
2. Broaden your options. These new experiences will add to your qualifications when it comes time to look for your next position. You may keep rising in your current company or find yourself being courted by recruiters for openings elsewhere.
3. Earn recognition. Any promotion is usually a sign that you are performing well, and your boss appreciates your efforts. You may value positive feedback just as much as financial compensation.
4. Consider related costs. It is easy to see the benefits of a promotion, but there can be challenges too. You might have extra expenses if you need a more formal wardrobe or eat out more frequently. Think about your life balance as well, especially if you will be working longer hours.
5. Avoid dead ends. While it is usually wise to accept a promotion, there are some exceptions. Talk with your colleagues and investigate the position’s background to ensure it is indeed a good move up for you.

Negotiate the Offer:

1. Understand the context. Find out why the promotion lacks a salary bump. Maybe it is company policy to adjust salaries at year-end only, or maybe there are legitimate issues about fair compensation (i.e., internal equity or established pay grades).
2. Know your worth. Research average salary ranges for comparable positions in your industry. You can negotiate more effectively if you know what it would cost your company to hire an outside candidate for the same job.
3. Ask for a raise. You may want to take the initiative to ask for more money yourself. It is reasonable to expect your boss to be willing to discuss the possibility under most conditions. On the other hand, you could look like you are out of touch if you ask for a raise when you know the company is having financial difficulties.
4. Seek other benefits. Keep in mind that compensation can include much more than salary. You may be able to gain other valuable perks like flex time, training/certifications, or more paid time off.
5. Schedule a review. If you are still seeking a salary increase soon, talk with your boss about creating a timeline. Maybe you can agree on a plan for you to reach a few specific milestones within six months to qualify for a 5% raise. Put the review meeting on the calendar now.
6. Decline gracefully. If you do need to turn down your promotion, try to be diplomatic. Let your boss know that you remain committed to being a valuable employee.

A promotion without a raise can still be an opportunity to advance your career. Keep your long-term interests in mind as you consider the impact on your personal and professional life and negotiate a win-win for you and your employer.

At Deep End Talent Strategies, we offer free consultations and coaching to help individuals consider career moves and learn how to ask for what they deserve.