I read the Wall Street Journal article The Risks Of Promoting Without Giving Raises by Paul O. Lopez. This article explained that there are many companies that want to promote their employees even though they are experiencing hard economic times. The companies give the promotion for two reasons: they know the employees will take on the additional responsibilities to help the company and 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. If a company decides to take this approach, they must consider past employees that have been promoted to similar positions and what types of raises they received. They must take particular caution when there are promotions that could be construed as racist or discriminatory. If you decide to promote without a raise, you must be sure to keep good documentation of all your actions. You must also keep financial documentation proving that you are in a situation that merits not giving a raise. When you choose not to give a raise, you should also explain to the employee why you are not giving the raise and that you will review the financial outlook and possibly give a raise in 3, 6, 9, or 12 months.
If you are a leader facing the situation where your company is struggling to survive, my heart goes Read More…
The Aware Leader
Brandon W. Jones 