Promotion but no salary increase.

Australia: Eve's initial excitement about her promotion to team leader quickly faded when she realized the workload was increasing while her salary remained the same.

"Many of my subordinates earn the same or even more than me because they can multitask. Meanwhile, I can only work for a maximum of one company because I have to handle multiple responsibilities," said a 32-year-old communications employee in Sydney, Australia.

Eve is not alone. A 2023 survey by the employer review website Job Sage found that as many as 78% of workers had experienced something similar.

Giri Sivaraman, a lawyer at Maurice Blackburn in Brisbane, Australia, said: "Employers are doing everything they can to increase productivity and reduce costs. One of the most effective measures is to promote employees to recognize their efforts without increasing their salaries."

Women are less likely to receive salary increases and often get these kinds of "bonuses."

A 2023 Glassdoor survey also found that women at all levels of education earn 20% less than their male counterparts doing the same amount of work. Two-thirds of female professionals admitted that their pay was not commensurate with the work they did, according to data from the Pew Research Center.

Not only in Australia, a recent survey by the US welfare consulting firm Mercer shows that 900 companies and businesses are allocating less salary spending in 2024 for salary increases linked to promotions compared to last year.

A survey by compensation consultants Pearl Meyer (USA) also indicated that the number of employers offering employees new job titles instead of commensurate salary increases has risen by 5% from 2018 to 13% in 2024.

Tom McMullen, a senior client partner at global organizational consulting firms, told the Wall Street Journal : "Giving titles is free, but money isn't."

Many workers are experiencing promotions without salary increases due to economic instability. (Illustration: Adobe Stock) — Many workers are experiencing promotions without salary increases due to economic instability. (Illustration: *Adobe Stock)*

In response to the question, "Is it acceptable to accept a promotion without a pay raise?", Greg Jericho, policy director at the Centre for the Future of Work Australia, suggested it might be acceptable in the short term.

"Taking on a job with high responsibility but no pay increase can be exhausting and frustrating for employees, but it's worth a try. If you do well, at a certain point your salary and bonuses will increase as you prove your capabilities to the employer," said Greg Jericho.

Helen Holan, a Perth-based career and leadership coach, also says that promotions without salary increases may be acceptable to some employees, depending on their environment and career aspirations.

"For some workers, a promotion means expanded responsibilities, a great opportunity to learn and demonstrate new skills. This is essential for employees to reach the next stage in their careers," Helen said. The expert also advised workers to consider short-term promotions without a salary increase, especially during times when the company is experiencing financial instability.

If this situation persists, employees can negotiate with management to find a solution or seek intervention from the trade union and relevant organizations.

Minh Phuong (According to ABC, CBS News )

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