There’s a trend that’s taking hold across all industries at the moment – new job titles. Not only are job titles changing, but younger employees are eager to upgrade their titles without necessarily being given a raise.
For example, having the words “content manager” on your CV sounds more senior than “copywriter”. Businesses are all too willing to give their employees better-sounding titles to keep them happy, without having to dig into their pockets and provide a raise with it.
Employees like the recognition a new job title brings
This trend of offering more senior job titles without the accompanying pay rise may sound counterintuitive, but many employees are happy to receive the recognition and accept the offer. According to recent studies, about 40% of companies offer their workers title promotions without a pay increase.
What’s more, 64% of employees said they’d be happy to accept a better title even without more pay. The reason behind this trend is that employees are more likely to change jobs and work for different companies than in the past.
Employees value career progression more than money
In the 20th century, workers would stay at a company for decades, working their way up the internal hierarchy. Nowadays, employees often stay at a company for a few years before moving on. The better job title means that they can interview for a new job with a more senior position when they decide to leave.
This often results in a better salary at the new company. Money is important but asking for more at a current job is tricky and can be awkward. Accepting a title boost makes it easier to demand a better salary from a new company when the employee moves on to greener pastures.
These employees prioritise their development and career progression over money. They want to be able to tell their friends and family that they hold more senior positions within a company, and if their salary stays the same, so be it.
Companies on a tight budget can still motivate employees
There may be a few reasons why businesses offer their employees promotions without salary increases. One such reason is that a title change can motivate the employee without necessarily giving them more responsibility. Their good work will improve as they feel appreciated.
Another common reason is to trial the position before making it a permanent offer. Improving someone’s job title can be a way to see how they adapt to the new position for a few months before deciding to make it more official with a salary increase.
In certain cases, companies have strict pay increase cycles. Under these circumstances, the business will offer the employee a better job title as they are unable to offer a pay increase until a few months later. They keep the employee motivated and invested while they wait for the end of the financial year and the possibility of a pay rise.
Whatever the reason, giving employees better titles is an easy way to show appreciation of the employee on a tight budget. Companies are aware of the possible offense caused to employees but more often than not, employees will accept a job title promotion regardless.
Making a title promotion a more strategic move
Employees are quite unlikely to turn down a job title change without a salary increase too – it’s human nature to want to progress and the offer is a step in the right direction. That’s not to say that it’s a thoughtless move.
Employees can accept the offer and attach their own conditions to the agreement. For example, a worker can accept the title promotion but ask that a salary increase follows after a six-month trial run, or after an upcoming performance review. It’s a way to guarantee a salary increase in the near future if that’s not part of the immediate offer.
They can even take the opportunity to negotiate more leave days, flexi-hours or the opportunity to work remotely for a few days per month. These extra perks are more likely to be given to an employee by a company that cannot afford a salary increase as part of the promotion.
It’s an opportunity for employees to refine their career more; take more control over their work and hours. Businesses will want to reward their hard-working employees with pay rises, but when this is not possible they know that employees could look for jobs elsewhere.
The risk of losing valuable employees could end up being more costly to companies in the long run, so they will offer salary hikes when they are able and the employee is absolutely deserving.
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