low productivity and a dip in office morale. If things get really bad,
people leave.
A high turnover rate directly affects your bottom line, as hiring
new staff and onboarding is expensive and time consuming. Your
company also loses organizational knowledge. Meanwhile, the
remaining employees have to pick up the slack – leading to stress,
disgruntlement and a general feeling of being underappreciated.
And the cycle starts again.
REWARDING STAFF WHEN RAISES
AREN’T POSSIBLE
When there’s simply no room in the budget to hand out a promo-tion
with a commensurate salary increase, do the next best thing:
give out promotions without a raise. A new title isn’t a panacea,
but it can help because it gives the employee a vote of (your) con-fidence,
which is sometimes more meaningful than more money.
An enhanced job title also looks good on their business card
and LinkedIn profile. The OfficeTeam study found that among
the managers surveyed, a worker is promoted after three years, on
average, in the same role.
In addition to a shiny new job title, a company with salary bud-get
constraints can still reward workers – and keep staff engaged
and satisfied – with perks and upgrades including:
■■ A one-time bonus, even though it’s cash, may be easier for your
budget to handle than the recurring expense of a salary increase
■■ Time off, such as additional vacation days per year or a sabbatical
period, can allow staff to pursue personal interests
■■ The option to telecommute is a strong incentive, whether part-time
or full-time; so is the option for flexible scheduling
■■ Mentorship with a senior manager, who can hone a junior or
mid-level employee’s leadership skills and guide them on their
career path
■■ Continuing education support could include exam fees for
certifications or tuition reimbursement for another degree
HOW TO TALK TO EMPLOYEES ABOUT
PROMOTIONS WITHOUT A SALARY BUMP
Ready to reward your high performers without giving them a raise?
Here are some suggestions for approaching this conversation:
■■ Offer the promotion as part of their performance
evaluation. This is the ideal time to review their work,
thank them for their contributions and then upgrade their
job title. If it’s possible, explain that while the company is
unable to increase salaries at this time, you’re happy to give
them additional perks, such as a $1,000 merit bonus and five
additional vacation days.
■■ Give them greater job scope. A promotion should come with
additional areas of responsibility and employees understand
this. Work with them to solidify what the expanded role might
look like.
■■ Listen to their concerns. Not everyone is happy with a
promotion without a raise. This is understandable, especially
if their paycheque has remained the same for several years. Be
prepared for this. Be open to negotiations on bonuses, remote
work options and other non-salary items. Keep a few extra
perks up your sleeve to further sweeten the deal if necessary.
There are many ways to retain your best staff short of a mone-tary
raise. Presenting them with added responsibilities and more
trust in making decisions will give them a sense of ownership
and autonomy that a bump in salary can’t. n
Koula Vasilopoulos is a district president for OfficeTeam and
Robert Half.
training & development
WHY WOULD A
COMPANY EVEN
WANT OR NEED
TO PROMOTE A
WORKER WHEN
THERE ISN’T AN
EMPTY SLOT
HIGHER UP ON
THE HIERARCHY?
THE ANSWER
IN ONE WORD:
APPRECIATION.
mangostar / 123RF Stock Photo
38 ❚ AUGUST 2018 ❚ HR PROFESSIONAL
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