Thursday, June 04, 2020

Money Can’t Buy Happiness, But A Promotion Can

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Money Can’t Buy Happiness, But A Promotion Can

The O’Jays had a song “For the Love of Money,” which was popularized as the theme song to the TV show “The Apprentice” and its spinoffs, and Pink Floyd sang, “Get a good job with more pay and you're OK” in their song “Money.” Yet, according to a recent survey in the article titled, “Employees prefer promotions to raises,” in Employee Benefit News, almost two-thirds of people prefer a job promotion over an increase in their salary. Wait, what?!

As difficult as it may be to believe, money isn’t as important as getting recognition. In fact, when you consider that an employee’s salary is just compensation, a promotion is just as much a compensatory action as receiving a raise. This begs the question, what makes you come to work every day? Is it that you get paid, or that you get satisfaction from a job well done and are acknowledged by your peers?

Also, while an employee might receive an annual raise, it takes a few years to earn a promotion. This makes the promotion more valuable and, therefore, more desirable. Consequently, if an employee is passed over for a promotion, he or she would be motivated to determine why that happened. Whereas, if that same employee didn’t receive an increase in their pay, they may or may not care as much.

Another benefit of a promotion over a pay raise is what you can do with it. Let’s say that an employee is making $50,000 at their job. A raise of two percent would yield an additional $1,000 before taxes take a bite out of it. That money could be spent on a new TV, a vacation, or even add to a retirement fund, but a promotion can provide much more job satisfaction in return depending on what it entails regarding responsibilities and any increases in corporate power or influence.

When all is said and done, employees need to weigh all the potential benefits of being recognized and compensated for doing their job well. Depending on their situation, both in work and home life, a promotion may be just what’s needed to make a good employee stay rather than look for elsewhere to be appreciated.

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