"Promotion w/o Raise"

I have an employee who I would like to promote to Manager. Because there is no pay raise associated with this promotion, my employee has respectfully declined. The reason we do not offer a raise, is because of the economy AND because in the history of our company, there is no raise until one is promoted to a senior manager. Should I question their dedication? Should they be fired? (Note: everyone is aware of our compensation packages when hired)

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My perspective is that a real promotion has rewards associated with it and typically that means compensation. I definitely don't think they should be fired for declining. It seems you are asking someone to take on additional responsibilities without reward. My first recommendation is to review your practice. This is not a typical pay practice. Yes, economic times are hard, but consider the cost of having to hire or train someone else. Perhaps even a small increase would show some appreciation for taking on additional responsibilities. If I were the employee, i would consider leaving the company. Remember, the employment relationship is a MUTUAL agreement. You obviously value this employee and offered them a "promotion" and now you potentially may loose them...and you are asking if you should question THEIR dedication or if they should be fired??? Just because you communicated the compensation package when you hired them doesn't make it a good one. That is not a promotion. Your pay practice is creating an environment where employees won't want to do you any favors. If you want that to change, then change your pay practice. Increases don't have to be HUGE to send the right message.

Posted anonymously on Sep 21, 2010 - 0 Votes - Flag this post

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Posted on Sep 20, 2010

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