Should you take a promotion without a raise in the current economy?

Q: In this down economy, your employer has put all salary increases on hold. But the company is still giving promotions, though without pay increases. Should you push for a promotion without the pay increase, or should you wait until the company returns to its normal policy so you can get both a promotion and a raise?

Nick's reply: This is a choice you must make for yourself, but I don't see any reason to either decline or avoid pursuing a promotion during a downturn.

If your concern is that you might have to work harder without more pay, consider who is most likely to be rewarded when business goes up again.

But your hesitation is understandable. I know it's discouraging to miss out on a promotion over things you can't control, to take a pay cut, to take on more work or to lose a bonus. Business is not good right now. There just isn't as much money to go around. But remember that compensation is more than money. Assuming your company wants to keep you in these hard times, you have an opportunity to get paid in other ways.

Why take on more responsibility without getting paid for it? Pay comes in different forms -- and at different times. A higher title is a form of compensation because it can translate into more money when you change employers. This is also a good time to ask for a new assignment you've always wanted. New responsibilities usually entail more education, whether it's formal or on-the-job. A promotion can result in the development of new skills. There's stored value in all of that. While it's not clear when you'll be able to trade on that newfound value, it's certain that you'll be more valuable for taking on new challenges.

A good company will promote good workers even when it can't pay them more money, and it will make it up to them when business gets better. If the cash payoff doesn't ultimately come, aren't you better off with a higher-level title and new skills when you go looking for a better company?

Your employer is telling you one of two things. It's taking advantage of the bad economy to get you to work harder without paying you what you deserve. Or it's maintaining its integrity and yours by paying you the one way it can: by recognizing your value with a promotion until it can give you more cash.

You could just quit and go to another company, but remember that all companies face this economy.

I think the two questions you need to ask are: "Do I trust the people who run this company?" and "How much can I increase my value by taking on a new challenge, even if I don't get paid for it right now?"

Copyright 2009. Distributed by Universal Press Syndicate

Nick Corcodilos is author of "Ask The Headhunter: Reinventing the Interview to Win the Job" and the host of www.asktheheadhunter.com. He can be reached by e-mail at seattle@asktheheadhunter.com or at North Bridge Group, P.O. Box 600, Lebanon, NJ 08833. Sorry, no personal replies.