When a hard-working employee proves he or she can take on added responsibility, many companies opt to upgrade the worker’s position without upgrading the paycheck.
While this tactic has the potential to boost employees’ morale and engagement, there’s always the chance it could backfire.
For example, if employees get the impression they’re being taken advantage of, it’s no small feat to regain their support. In addition, there’s an array of negative effects — low morale, decreased productivity, disobedience and even a blatant lack of respect for management.
If you’re thinking about promoting someone without bumping up his or her paycheck take some precautions.
Example: Don’t make it too much of a jump. If an A/P clerk suddenly finds himself managing the entire department without moving up a pay grade, eventually you’ll get hit with some backlash. And this staffer will likely jump ship whenever the first opportunity presents itself.
Also, even if you can’t increase someone’s salary, it pays to do something — whether it’s a free lunch, a small gift certificate or even a one-time bonus.
Readers, does your company promote people without giving them raises? Let us know about it in the Comments section.