Unpaid Promotions during The Current Economic Climate

LSweatyBalls on 24/06/2020 - 21:32
Last edited 24/06/2020 - 22:03

Hey Ozbargainers!

Need some advice.

I've been with my current employer (a large commercial builder)for approximately 5.5 years now. I love the work I do, find it very rewarding and see long term prospects at the company given there is significant personal growth potential. The nature of the work generally requires long days 10-12hrs and Saturdays all without additional compensation (fixed salary). I don't have an issue with the hours as I understand they are fairly typical and am generally willing to put in the additional effort given the potential opportunities. Prior to the pandemic I was advised that I was on the path to receiving a promotion (naturally attracting a high salary +20%) as I was often performing at a level equivalent to my higher paid colleagues. Since the pandemic however the company has had to lay-off a number of staff go as a result the slowing economy and fewer secured jobs. Recently my employer has acknowledged my performance, and has advised they would like to see me promoted but are unable to offer additional compensation.

Given the long term prospects I see at the company and the current climate I would naturally be inclined to accept the promotion without pay. Is this the right thing to do? How should I set the expectations in the current environment about when to expect a salary review.
Are unpaid promotions going to be a tool in the current climate to get more out of their employees?
I'm not naturally one to ask for promotions and generally would feel uncomfortable (particularly in the current climate) talking compensation (rightly or wrongly I go on the basis that may pay will reflect my performance through recognition).

Regardless of the above I acknowledge that in the current environment I'm fortunate remain in any form of employment. Any wise words from you career gurus out there would be much appreciated!!

Edit:
Saturday workload is approximately every 2nd - 3rd weekend with shifts between 4-5 hours.
Current Salary: approximately 95k + super.
Age - Mid 20's
Job title: Project engineer/coordinator

Poll Options

  • 1
    Accept the promotion without additional compensation (No further talk about future compensation)
  • 2
    Accept the promotion only if I can secure the additional compensation immediately.
  • 5
    Kindly decline the promotion until a time it is offered with the corresponding compensation
  • 38
    Accept the promotion without additional compensation (Talk about future compensation expectations)
Education & Work

Comments

  • brendanm on 24/06/2020 - 21:48
    +2

    How much are you getting paid to do 12 hour days and Saturdays? Will you be expected to work even longer hours? Are they just getting rid of people and using you to save themselves even more money, by getting you to do the job of people who have been let go, but at a lower pay rate?

    • SweatyBalls on 24/06/2020 - 21:57

      Compensation is currently approximately 95k + super. Saturdays vary dependant on workload however is typically every 2nd - 3rd weekend and shifts would be for 4-5 hours.

      • TheBilly on 24/06/2020 - 22:02

        What field - commercial, residential, fit out, industrial? The 95k + super kind of changes my response below as that is quite low.

        • SweatyBalls on 24/06/2020 - 22:04

          Commercial Builder - Project Engineer/Coordinator

          • Caped Baldy on 24/06/2020 - 23:56
            +2

            @SweatyBalls: Should I be shocked a builder/developer is pulling this shit?

            Accept the offer. But I'm predicting it will be a while before they play ball. Give them a deadline but work on your CV.

  • Trying2SaveABuck on 24/06/2020 - 21:56
    +1

    i ticked the last options because it sounds like the most right answer for you based on what ive read

    WITH THAT SAID

    For me personally it would really depend the current salary i am on is - you are doing a lot of hours i would expect that you should be on at least 150k+ in which case i would also do option 4 however if your salary is less then that sort of level i would probably say no unless a increase in salary was put in write (if not now once COVID19 clears)

    • TheBilly on 24/06/2020 - 22:04

      i would expect that you should be on at least 150k+

      That's what I was expecting when I wrote the below response, but the 95k mentioned above is a really difficult decision.

      • Trying2SaveABuck on 24/06/2020 - 22:14
        +1

        WOW i would not work a job like unless it came with a free 1st class all expenses paid trip to Europe annually for me and my family

  • TheBilly on 24/06/2020 - 22:01
    +1

    I took a promotion like yourself into a PM role for a very big builder 4-5 years ago with not a lot of compensation. It depends on what your motivations are - as I always wanted to start my own business it was about exposure for me, not about the money. My life was flipped upside down - sleepless nights, 14 hour days week in week out, insane pressure and I'd even go as far as to say I had some health issues after. While I was easily earning half the salary of older colleagues.

    However I got valuable experience from this and a lot of confidence in my field, that I would never get in a position below mine. I learnt to hold my own in a room full of people significantly older and more experienced than me, negotiate, resolve, sell, deliver, advise etc. Senior colleagues and clients listened to and did what I advised which is reflective of the exposure I had. However it was never about the money for me, which made the difficult conditions manageable.

    Overall

    Was it worth it, definitely yes.

    Will I do it forever on a low wage, no.

    Maximum 3 years.

    Edit: I did this at $120k most people were earning $180k to $240k

    • SweatyBalls on 24/06/2020 - 22:16

      Thank you for the advice. I am still very early in my career with much to learn (much of my 6 years was as an undergraduate/graduate) but have been told my performance will see a fairly quick career progression (time will tell I guess). I'm all for the journey and putting in the hard yards to gain the experience which will pay off in the long run. I just hope its of mutual benefit!

      • Kangal on 24/06/2020 - 22:55
        +1

        My advice is that you flip the script with your employers.
        Let them know that a "great employee" is a well-sought after and of high value. Then tell them that you are not a great employee. Tell them you want to become one, but it will require experience. Then say, it is your motivation, why you get up in the cold morning and put your pants on those SweatyBalls. So, if they share this vision, then you have no problems taking on more work, more responsibility, at the same wage. And if they're serious, they would not mind discussing the length of such conditions (1 year?) and putting it all on paper.

        Of course, you know these people better than any of us do, so you can say something like this but in a better language catered to them. I was in a similar situation, and had to learn the hard way that Verbal Agreements mean diddly squat in the eyes of Fair Work and Performance Reviews.

  • garetz on 24/06/2020 - 22:22
    +3

    An unpaid promotion is not really a promotion, its basically a way to squeeze more out of their employee that does not benefit you at all.
    Seems like they are putting a long carrot in front of you hoping you will work harder and harder over time, with additional carrots that will never eventuate.

    If i was you i would tell them i am happy for a promotion when you are able to afford to pay me the higher salary. If they value you, then as soon as they promote you they will give you the additional 20% pay.

    sounds like you are basically living to work at over 60 hours a week, and not working to live. You might want to reevaluate your life goals.

    • dcep on 25/06/2020 - 00:06

      sounds like you are basically living to work at over 60 hours a week, and not working to live. You might want to reevaluate your life goals.

      he enjoys it , not many do

    • Icecold5000 on 04/07/2020 - 18:57

      Yeah it is a way to squeeze out more but it cuts both ways. When the markets better he can go out and get a better job with higher pay. All in the game.

  • miwahni on 24/06/2020 - 22:23
    +1

    Can you accept promotion and ask, as a condition, that your salary be reviewed within six months? You say you love the work you do, and while some could see this as the company taking advantage of you, I see it as an opportunity to show how committed you are to the company.

    Of course if the review in six months isn't forthcoming, or there's no rise at that time, then you're free to look elsewhere for employment, and you'll have had six months' history of working at the higher level, which should add to your resume.

    • SweatyBalls on 24/06/2020 - 23:13

      Thank you for the advice. I think that's the way i'm leaning, an opportunity to prove my capabilities and see if they share the same mutual interests at the end of the day.

  • BuyoTheCat on 24/06/2020 - 22:36

    I would accept it with a future review. And i would also ask for days in lieu for the overtime.

    • SweatyBalls on 24/06/2020 - 23:15

      I think I'll go with the future review. Unfortunately time in lieu is basically unheard of in my line of work (the long ours are worked by most and not just myself!)

  • trustnoone on 25/06/2020 - 02:29

    Is there going to be a big difference in work load? A lot of times I see people not take promotions or not go for promotions, but they end up doing the same amount of work either way. So you at least get a title for it.

  • netjock on 25/06/2020 - 09:25

    Noted people have been let go. Unless your employers are going gang busters or you have access to the books you could be facing the same situation as these people

    In summary Melbourne Uni is facing a revenue shortfall. They gave staff a proposal which included a pay rise freeze, they voted against it. Therefore people will have to be let go.

    If there was only $1m to go around whether you want to have 10 people working at $100k or give 1 person a pay rise and let one go.

  • [Deactivated] on 25/06/2020 - 09:52

    If you want to be tagged as the 'works for free' guy, sure

  • Euphemistic on 07/07/2020 - 12:38

    If you do accept make sure your employer knows that you expect a review at 6 and 12 months and that if business continues as normal the 12 month review should have you at the full higher rate of pay. Get it in the new contract.

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