Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
Employees increasingly value career paths and promotions more than pay but still expect the money to follow soon after.
It’s part of a continuing trend of employees seeking purpose and recognition on the job, according to several HR consultants.
“People want to feel that they are contributing to something bigger than themselves; they want to see that their work has an impact” and a promotion is proof of that, Dennis Baltzley, Korn Ferry senior partner and the firm’s global head of leadership development, told Bloomberg BNA Jan. 4.
A Korn Ferry study, released Jan. 3, found that 63 percent of 1,200 professionals from around the world said they would prefer to get a promotion with no salary increase than a salary increase with no promotion.
Promotions are important to employees because “a raise alone is not demonstrating that I am valued; it isn’t the same kind of recognition,” Baltzley said.
The Korn Ferry study also found that many organizations may not provide enough opportunities for advancement for their employees: 56 percent of respondents who weren’t promoted within the past year said it was due to a “bottleneck, nowhere to go” at their company.
For employees who were passed over for a promotion, 84 percent said they would identify the reason and work to improve while only 6 percent indicated they would immediately look for a new job.
Employees stay or leave an organization for several reasons, including promotion opportunities, but salaries will always matter, according to Evren Esen, director of workforce analytics at the Society for Human Resource Management.
“Career advancement is important to employees, to get the skills they want and need for the future of their organization,” Esen told Bloomberg BNA Jan. 5. However, research from SHRM has typically found that for employees, job satisfaction hinges the most on pay, followed by benefits, with career advancement in third, Esen said.
Still, millennials place greater importance on job training and development, although it is questionable if that is more valuable to them than compensation, Esen said.
In practical terms, the majority of employees who receive a promotion will also get an increase in pay—or at least, expect to get a raise, Kerry Chou, senior practice leader at WorldatWork, told Bloomberg BNA Jan. 6.
An organization may promote employees so they can develop new skills, even as the employer lacks the money to provide an immediate raise; this can allow the employees to add more to their resume and give them a sense of personal accomplishment, Chou said.
“Some employees will relish the opportunity, but if the money doesn’t follow, it wears out their welcome very quickly,” he said.
To contact the reporter on this story: Laime Vaitkus in Wilton, Conn., at LVaitkus@bna.com
To contact the editor responsible for this story: Tony Harris at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)