The percentage of employees receiving promotions increased to 9% in 2014, up from 7% in 2010 according to a new “Promotional Guidelines” survey released by the total rewards nonprofit WorldatWork.
“The steady upward trend of employee promotions mirroring the economic recovery is further evidence that organizations are relaxing their budget purse strings,” said Kerry Chou, WorldatWork senior practice leader. “While the gradual trend is good news, the data also suggests that employee vacancies are helping employers foot the bill for these promotions,” Chou added.
The organization conducted similar surveys in 2012, 2010 and 2006.
WorldatWork found little change in the average amount of pay increases employees can expect when they are promoted. Nonexempt, hourly employees received pay raises averaging 7.6% of base pay. Exempt, salaried employees’ pay bumps averaged 8.8%, while officers and executives were allotted 10.1% average increases.
When determining pay increases, employers continue to consider the promoted employee’s position in a set salary band, as well as the pay levels of similarly situated employees.
Less than half (42%) of employers said they maintain separate pay budgets to provide raises for promoted employees.
When asked how their organizations pay for promotion-related raises, 29% of respondents said they rely on money saved from vacant positions.
Another issue organizations continue to struggle with is communication. Data from the survey shows that 46% of organizations don’t proactively share promotional guidelines or policies with employees unless asked. Additionally, 21% indicate they do not share promotional guidelines or policies with employees under any circumstances.
Sixty-three percent of respondents said their organization does not market promotional opportunities as a keywhen attempting to attract new employees.