Australia Eve's excitement about being promoted to team leader quickly faded when she realized the workload was increasing but her salary remained the same.
"Many junior employees earn the same or even more than me because they can do many things at the same time. Meanwhile, I can only work for one company at most because I have to juggle many tasks," said the 32-year-old communications employee in Sydney, Australia.
Eve is not alone. A 2023 survey by employer review site Job Sage found that 78% of workers had experienced something similar.
“Employers are doing everything they can to increase productivity and reduce costs,” said Giri Sivaraman, a lawyer at Maurice Blackburn in Brisbane, Australia. “One of the most effective ways is to promote to recognize merit without increasing pay.”
Women are less likely to receive raises and are more likely to receive these types of "promotions."
Glassdoor’s 2023 survey also found that women at all levels of education earn 20% less than their male counterparts for similar work. Two-thirds of female professionals say they are underpaid for the work they do, according to data from the Pew Research Center.
Not only in Australia, a recent survey by the US benefits consulting firm Mercer showed that 900 companies and businesses are spending less salary in 2024 on salary increases linked to promotions compared to last year.
A survey by compensation consultants Pearl Meyer (USA) also showed that the number of employers offering employees new job titles instead of commensurate salary increases increased by 5% from 2018 to 13% in 2024.
“Title is free, money is not,” Tom McMullen, senior client partner at global institutional consulting firm Global Consulting, told the Wall Street Journal .
Many workers are experiencing promotions without pay increases due to economic uncertainty. Photo illustration: Adobe Stock
Asked whether it is acceptable to accept a promotion without a pay rise, Greg Jericho, policy director of the Australian Centre for Future Work, said it is acceptable in the short term.
"Taking a job that requires great responsibility but no salary increase can leave workers exhausted and frustrated, but it is worth a try. If you do well, at a certain point your salary and bonus will increase when you prove your ability to the employer," said Mr. Greg Jericho.
Helen Holan, a Perth-based career and leadership coach, also says promotions without a pay rise can also be acceptable to some employees, depending on their environment and career aspirations.
“For some workers, a promotion means increased responsibility and is a great opportunity to learn and demonstrate new skills. This is essential for workers to reach the next step in their career,” Helen said. She also advised workers to consider short-term promotions without a pay increase during times of financial uncertainty for the company.
In case this situation persists, employees can negotiate with management to find a solution or seek intervention from the union and related units.
Minh Phuong (According to ABC, CBS News )
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