The Wall Street Journal article The Risks Of Promoting Without Giving Raises by Paul O. Lopez explained that there are many companies that want to promote their employees even though they are experiencing hard economic times.
2 Reasons Why to Promote Without a Raise?
The companies are promoting without raises for two reasons:
- They know the employees will take on the additional responsibilities to help the company
- The promotion will boost employee morale.
The companies, however, are unable to provide raises with the promotion. There is nothing illegal or inappropriate about doing this.
Factors to Consider When Promoting Without Giving Raises
Companies promoting without giving raises should consider past employees that have been promoted to similar positions and the types of raises they received. They must take particular caution when there are promotions that could be construed as racist or discriminatory. [Read more…] about The Risks Of Promoting Without Giving Raises