Canadian HRDs offering promotion without pay rise

You’d think that a promotion went hand-in-hand with a raise. Not so.

Canadian HRDs offering promotion without pay rise

You’d think that a promotion went hand-in-hand with a raise. Not so, according to new reports from Robert Half.

47% of Canadian employers award promotions without salary increases – showing a rise up from 25% in 2011.

And, despite not being compensated for more work, 55% of employers would accept a higher title. Almost half of Canadian HR professionals said it’s common for their organization to give out promotions without giving out rises.

14% of those asked cited the process as being ‘very common’ whilst 33% said they’d never give a promotion without a pay rise.

“While providing advancement opportunities can be a valuable way for companies to motivate employees and reward success, many professionals expect a promotion to come with a raise,” added Koula Vasilopoulos, a district director with OfficeTeam.

“If limited resources make that difficult, employers should be prepared to deliver alternate perks like more vacation time or enhanced benefits to keep staff satisfied.” 

More male employees than female would take an un-salaried promotion, with younger worker more likely to do so than their older colleagues.

“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,” added Vasilopoulos.

The way to have open conversations such as this between employer and employee calls for a culture of transparency. We spoke to Eric Termuende, acclaimed author, speaker and founder of Now Innovations Canada, who explained how HR leaders can optimize their culture.

“A universal best culture does not exist, which is why I’m intentional about using the word optimize,” he prefaced.

“The best culture for one organization might be a toxic culture for another.  The more we understand the environment we’ve created for people and how they engage in it, the more optimized it can be. And so, if we look at the top places to work around the world; number one might be Google, but number four may be a grocery chain.

“Best culture for Google will be vastly different from best culture for the grocery chain. And it’s important to differentiate based on the qualities each company have, so they can not only attract but retain the right people as well.”


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