Only 1% of CFOs give salary increase when promoting an employee.
In a study released by Robert Half, it was revealed that only 1% of Hong Kong CFOs say they always give a salary increase when promoting an employee.
This came as six in 10 Hong Kong finance leaders say the primary reason for promoting without attributing a corresponding salary increase is because they want to assess an employee’s performance first before remuneration is increased. Meanwhile, just under a third of respondents feel their business lacks the financial resources to increase salaries, followed by 7% who say they urgently needed to fill the role.
Robert Half managing director Adam Johnston said a promotion is not always a clear sign of confidence in an employee, but without corresponding salary increase, it has the potential to negatively impact an employee’s motivation and ultimately influence their decision to look for another job.
"Hong Kong’s tight labour market and low unemployment rate make it essential for companies to reward top performers through career advancement opportunities. However, a competitive salary package is a very effective retention tool, and many employees are prepared to work hard if they are confident of being rewarded by a higher salary or bonus.," he said.
He furthered, “In circumstances where a promotion doesn’t go hand in hand with a pay rise, it is vital to explain the reasons why, as well as discussing exactly what an employee needs to do to make that salary increase happen.”
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