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No-raise promotions: A handy tool, but beware risks of ‘title fluffing’

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in Compensation and Benefits,Human Resources

While salary budgets are up this year—merit raises are running near 3.0% compared with 2.7% in 2010—some still-skittish employers are more likely to dole out title raises rather than extra cash. The danger: Organizations may give gratuitous no-pay promotions instead of using the practice as a selective ­reward and retention strategy.

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