Promotions Without Pay Hikes: Nearly 1 in 3 Professionals See Minimal or No Salary Increase

Professionals are increasingly finding that a change in job title does not always come with a corresponding increase in salary. According to findings from Indeed, nearly one in three professionals who received a title change during the past two years reported either no salary increase or a raise of less than 5%.

The findings also indicate a gap between job designations and compensation. Nearly six in 10 professionals said their current job title does not accurately reflect their pay.

Indeed's latest quarterly Hiring Tracker found that nearly 80% of professionals believe title inflation has become common across industries. Many reported seeing colleagues receive more senior-sounding designations without compensation increasing at a similar level.

Sashi Kumar, Managing Director at Indeed India, said job titles remain important because they can signal professional capability and future opportunities. However, he noted that titles are most effective when they represent genuine career progression rather than replacing it.

Higher Titles, Limited Financial Rewards

Professionals continue to place importance on their designations. Nearly 70% said their title plays an important role in future career opportunities, while almost 73% said a stronger designation can improve how potential employers perceive them.

At the same time, 57% said their designation has a significant effect on overall job satisfaction.

However, salary continues to carry greater weight when professionals consider a new opportunity. More than half, or 52%, said they would prefer a higher salary over a better designation.

Why Employers Are Using Senior Titles

The survey also points to a growing use of enhanced job titles by employers. Around 57% of professionals said their organisations use senior-sounding or upgraded designations to some or a great extent to attract or retain employees.

Titles can provide employers with a flexible way to recognise employees, attract candidates and retain high performers, particularly when salary budgets are limited. Changes in organisational structures and evolving expectations in the job market are also contributing to the use of more senior designations.

However, this approach can create a gap in expectations. Employers may consider a title change a form of recognition, while employees increasingly evaluate career growth through a combination of responsibilities, designation and compensation.

For employers, the key challenge is ensuring that a new title represents genuine career progression rather than serving as a replacement for meaningful financial recognition.