The big cost of a late salary hike, promotion

Why do employees quit jobs soon after a raise or position renewal? Slow appraisal processes and lack of ample support can drive people away

- Reem Khokhar

'Organizations need to foster a growth mindset, and provide development opportunities to promote career growth'

A goal for most employees is to get a shiny new promotion or a raise, a tangible vote of appreciation from their company. Then why would someone quit their job immediately after getting the recognition?

Surabhi Yadav, who left her job of four years with a PR firm in May 2022, had various reasons, including being strung along for a while with the promise of an elevated role. The 32-year-old felt constantly overlooked when it came to getting a promotion, though, according to her, she was already handling several prominent accounts, and was sought out internally by colleagues, across levels, for her digital marketing expertise. When the promotion was promised, her manager put it on hold, citing pandemic-related delays, even though others around her had received them.

When Yadav did finally get a salary hike, she was long ready to move on, using it to leverage a new opportunity with a multinational, her current workplace. "Everyone was surprised that I was leaving, since I was about to be promoted," she says. "But I just did not care anymore at this point."

While Yadav's decision was due to a long-simmering dissatisfaction, it is not unusual for people to leave jobs shortly after getting a hike or a promotion.

RECOGNITION MATTERS

In fact, a recent US report by ADP Research Institute, which studied 1.2 million workers from 2019-22, found that 29% leave their jobs within a month of being promoted.