More than six in 10 (61%) senior HR executives report that their organisations regularly award promotions to top performers without giving commensurate salary rises, finds new research. The most common reason given is that organisations have a salary rise freeze in place (40%) but companies and their employees also recognise that promotions can act as positive incentives in the absence of available funds.
- 61% of UK companies regularly award promotions without salary increases
- 40% cite salary freezes currently in place as primary reason
- Deferred bonuses, flexible hours and holidays awarded in place of pay rise
The survey queried 200 senior human resources executives about their hiring and remuneration plans for the first half of 2012 and was commissioned by OfficeTeam.
When asked why they give promotions without salary rises, HR directors said that they would instead offer flexible working (39%),additional leave (28%), performance bonus (25%) and/or a deferred salary increase once the person had proven themselves in their new role (20%).
The proportion of companies citing salary freezes as their main reason for awarding promotions without rises was much higher in the UK (40%) than in Continental Europe (22%), helping to explain why promotions without rises are more common in the UK (61%) than Europe (47%).