New Worldatwork Research Shows Increase in Employee Promotional Activity
WorldatWork released new research revealing 9.3 percent of employees received a promotion in the past year, a small increase from 9 percent in 2014, but a significant increase from 7 percent in 2010. The report, Promotional Guidelines Survey, focused on various practices and policies surrounding promotions.
“The upward trend in both the number of promotions as well as the size of promotional pay increases is a positive sign that organizations are feeling more comfortable with allowing pay levels to increase,” commented Kerry Chou, CCP, senior practice leader at WorldatWork. “Whether this optimism spills over to employers raising their overall annual pay increase budgets to levels closer to pre-recession levels remains to be seen.”
The report also showed a dramatic decrease in the use of a separate budget for promotional increases from years past, with only 33 percent funding promotions through this method, versus 44 percent in 2010. Promotions are increasingly being funded through vacancy savings, merit budgets and salary savings.
“It also caught my attention that marketing promotional opportunities as an attraction tool is an area that is not being taken advantage of,” Chou continued. “The results in this survey show that a full 64 percent of organizations do not market promotional opportunities as a key benefit when recruiting for new talent.”
Other notable findings include:
- There has been a dramatic increase of promotional increases that is not limited by organizational policy (47 percent in 2016 versus 35 percent in 2014).
- There is no limit as to how many grades, bands or levels an employee is permitted to move in a single promotion for a majority of the respondents (77 percent with no limit, 13 percent with a limit and 11 percent state that it depends on the employee’s classification).
Reposted with permission from Wolters Kluwer.
Access CCHAnswersNow for more articles. (MEA Members Only)