Dinesh Divekar
Business Mentor, Consultant And Trainer
Management Consultancy

Hi Team, Please help me with one of my concerns. Wanted to know: Can we promote any employee with their designation without giving any hike or raise in his salary? Is it possible to give a promotion in terms of higher designation without giving any hike?
From India, Delhi
It is quite possible but it would be a misnomer to state it to be promotion without any pay raise as the two go together. In some extreme cases where the employee draws the max. of the scale and further draws stagnation increment it can result in a situation where on promotion the employee touches the max. of promoted post. In private organisations with much flexibility, the designations are changed every now and then but it is delinked with actual pay rise
From India, Mumbai
Dear Prachi,

The senior member KK! HR has given a good reply. This is in addition to his reply. A promotion without salary hike is fine, however, you have not mentioned whether the higher designation will have more perks or is it a situation of no hike no perks?

Why do the companies promote their employees. The promotion recognises the employee's capability to execute the duties of the higher-order. You wanted the employee to do the assignments of the higher level but does not want his pay to commensurate the higher level of duties! The promotion without salary hike will take away the pleasure of the promotion itself.

Take the case of one's personal life. Marriage is an advancement in one's personal life. But then imagine a situation wherein marriage is solemnised but bride continues to stay in her parent's house! The promotion without salary hike is akin to the solemnisation of the marriage of this kind.

Think of the employee promoted without a salary hike. If the news is spread in the other departments then he could become an object of fun in the staff cafe or any other place. Moreover, you could lose the trust of the other employees as your management could be leaving irrefutable evidence of their stinginess.


Dinesh Divekar

From India, Bangalore
Hi, Good Morning! I appreciate both the replies from KK HR. Understood the pros and cons too. Thanks for sharing thoughts.
From India, Delhi
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