Can HR deny me a promotion and a raise?

Can HR deny me a promotion and a raise?

I am an IT manager and have worked for the same company for over 20 years. During Covid we went 100% remote and have stayed that way, although all other departments have changed to hybrid. During this time I moved to another state. I was told that HR tried to block it, but my VP approved it and ultimately “won”. Now almost a year later, my annual merit increase was 2.5%, when everyone else is getting 6%. Additionally I was the only one in the department with who got Exceeds on my annual review when everyone else got Meets. I was told that HR rejected 6% because I moved out of state. I asked what I need to do to be promoted to Sr Manager, I was told by my boss that he tried to promote me, also approved by my VP, and again rejected by HR. If what my boss says is true, can HR do this? I feel they are being punitive and do not care how much value I bring to the organization.

I’m torn between looking for a new job or sticking it out since I plan to leave in 2-4 years anyway.

Any thoughts please? I am angry and have always felt valued and appreciated until now.

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28 Comments

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  1. Anonymous

    Unfortunately, nowadays a raise is not obligatory

  2. Anonymous

    I'm not in HR so can't comment on that part. What I do know is that if an employee works in a different state from where the company is located, it can add a lot of issues/work for HR, as the company may not be set up as an employer in that state and has to get into compliance. Again, not in HR, someone else can more eloquently explain this. Your VP is probably unaware of these issues and approved your move based solely on the direct reporting you do. It's possible your raise is less due to the additional administrative tasks and expenses to the company based on your residence. I'm not giving an opinion on right or wrong, just a possible explanation. Someone who knows more here, please jump in!

  3. Anonymous

    The company does have a legal entity in my new state. The argument is the lower COL vs my position is an industry standard with a standard salary range. There could be other issues or complications that I’m not aware of. Still disheartening. Thanks for your thoughts.

  4. Anonymous

    If HR has that authority then yes, unfair they can and will block you every step.

  5. Anonymous

    I can assure you the decision is not being made in HR -they are the messenger, the decision it is being made in finance-budget, leadership-alignment and the compensation- policing alignment committee.
    Internal equity during this remote work world is skewed by hyperlocal data and chances are the locality you are in has a much lower cost of living and that is causing the compensation compression you are speaking about. You cannot shift that because if they pay you what folks in higher COLA areas it tips the balance out of whack. IMHO if the job is good and they give you freedom to work remotely and your manager is fair, stick it out. When making a move look for something where this may not be an issue which would be a smaller entity where alignment internally matters less.

  6. Anonymous

    Unfortunately, moving to a state with a lower COLA generally means companies feel that they should be the ones enjoying the benefit, not you. So unfortunately it is all too common for them to pay less for the same work. IMHO, in a remote only company, it shouldn’t matter where you work - if you are doing the same job as someone else, you should get paid the same. If you are living in an area with a lower COLA, then you should be the one benefiting, not the company, since you are the one making the trade offs.

  7. Anonymous

    So those in higher COLA should also be paid (effectively) less?

  8. Anonymous

    I don't see it as being paid less. If there is a remote role budgeted with a salary of $100K, shouldn't the person hired for that role get paid $100K? I could understand a COLA adjustment if it was required by the company that you live in a particular area (for a hybrid or onsite position, for example), but if someone's location doesn't impact the company at all, then they shouldn't be paid differently depending on where they are located. The beauty of remote work is that it allows freedom to move around. As a remote worker, my value to the company (in terms of my skill, experience, education, etc.) isn't going to change if I change zip codes. And, as someone who lives in an area with a high COL, I don't agree with you that people who live in low COLAs should be penalized with lower wages solely due to their zip codes. If their dollar goes farther than mine, good for them! If I want to join them, maybe I'll move!

  9. Anonymous

    If you have a plan to leave anyway, I’d just stick it out. Do you make enough money? Are you treated well? Maybe stop over achieving since it’s not getting you the raise or promotion you desire. Give less. Make it match your pay. Start a side business and focus on that.

  10. Sarah Borders

    Your boss is giving you the wrong message. The company makes the rules, not HR. If the company moves from remote only to hybrid and decides that anyone who remains remote is ineligible for raises or promotions, HR is just enforcing that directive. Personally, I think it says something negative about the culture, and I wouldn’t want to stay, but if sticking it out 2-4 years means retirement, then it may be worth it.

  11. Anonymous

    Yes, it is true, especially if you moved to a lower COL area. HR doesn't care how much you bring to the organization, they care about their organizational models and policies. If they are trying to keep people in the office in specific geographic areas, then they will set you up as an example to discourage others from moving away and staying FT remote as you did. So sorry you're going through this.

  12. GirlBossanova934974

    Frankly, I don't think anyone is being straight with you and I don't think this has anything to do with remote vs. non remote. It is all about total amount of dollars to be allocated to annual raises for the organization. I worked in Finance for a number of years. The truth be told is that you with your 20 years of work experience with this one company are probably commanding a good sized salary. 6% of that base salary is probably worth half a dozen other employee's annual 6% raises. So rather than take raises from some, the company has decided to trim back on annual raise %s to the higher income earners. The annual raise budget only has so many dollars in it and you can bet that Department Chiefs and VPs are fighting like cats and dogs to maintain their share or take a bigger share! You can accept that or move on to another organization.

  13. Anonymous

    Interesting I would be thrilled at 2.5% where I got .5% this year

  14. Anonymous

    Speaking as a manager, HR can influence how much of an out of normal increase you’d be eligible for.
    If you’ve capped out in your current role, which I’m guessing you have, 1.5-2% annual raises are the usual but that should have been communicated once you’d reached that point. I would ask what exactly you aren’t doing that would get you to that next step because if you’ve been in the role 20 years, you’ve likely got the experience but reiterating that you are seeking career development and not stagnation would be key to have documented. If your manager continues to tell you it’s just HR, then that’s a bad manager, you’re in partnership on this together, you should be able to provide the details for your manager to then successfully build the case. Have you given any indication of wanting to retire or stop working in the next few years?

  15. Anonymous

    And again, make sure to document the requirements for promotion over email, and always follow up after in person meetings with an email outlining what was discussed so that you have a paper trail. It’s easy for leadership to blame HR but it’s most likely their own budget and financial planning. They may consider you tenured and in a lower cost of living situation and want to supplement another’s raise who’s local that they see as a rising talent.

    Sucks but I’m sending you all the good vibes.

  16. Ruth Robbins

    Excellent advice

  17. Anonymous

    I feel like you aren’t being told the entire story.

    If HR truly was the ones who denied it. It would likely be because you moved to a lower cost area or you’re capped or at the high end of your current pay range.

    If neither of those two are true, then your boss is the one who didn’t approve a higher raise for you.

  18. Anonymous

    Hate to say this, but your boss and the powers that be in the compensation decision chain, probably know you’ve topped out for your position in terms of salary and surmise you re probably in retirement mode soon anyway. Perhaps hang out in your remote position for the next two to three years as you plan to . Greener pastures may exist and by all means put out feelers, but I wouldn’t bank on a new company giving you the entire better package you want at this stage.

  19. Anonymous

    you keep referencing "your VP" - i assume this is VP of IT? If so, it sounds like they do have your back, but there may be a company initiative (above their head) that is limiting the pay/promotion eligibility for remote workers. This is being played out across multiple organizations and even mentioned in the news. Although your remote status is technically approved it may be holding you back professionally at this organization.

    You said you plan on moving in 2-4 yrs anyway, I would recommend you get these types of details in writing and grasp a full understanding of how your new organization handles opportunities for remote workers.

    Since you were already employed when this change went into affect you were not allowed the opportunity to negotiate these terms the same as a new hire at your organization would have.

    Take this as a learning lesson.

  20. surfnwrite

    Unless it's in a contract, promotions and raises are discretionary. They are not entitlements.

  21. Anonymous

    There could have been a directive that was put in place by those at the executive level that HR is following limiting both the raises and promotability of those employees who are wanting to remain remote, especially if there’s been a hard push by the company for employees to return back into the office post Covid.
    It isn’t fair but it’s the trend that many companies are following these days,. Your manager was probably only able to green light your remote status at the time because you were seen as a valuable contributor. You say you plan to leave in 2 to 4 years. If that means retirement, perhaps hanging out until you leave the work force for good. might be an option. Otherwise, be on the lookout for other opportunities that you qualify for. All the best to you.

  22. Kris Wolfram

    When companies started coming back in the office, one company gave the remote workers less of an increase because they were working from home. Depending on where your company is located, you may be in a lower cost of living city.

  23. Anonymous

    Salaries, promotions, and raises are set by the budgeting process (i.e., finance in conjunction with the senior executives) and not HR. HR only provides input and checks compliance with the budgeting process. I am sure that in some companies, HR can push back or even block certain salary adjustments, depending on how much they politically align with the finance department. VPs can provide influence but are still required to stay within their budgets. Not a single person/department can make these decisions, and there are likely negotiations of other budgetary adjustments that have to be made to push someone over the budget allowed.

    Since you are remote and out of state, your salary range was likely adjusted because of the cost-of-living difference between where you live now and before. Unfortunately, catching up could take some time when this happens, as most companies do not decrease a salary when people move. Instead, they limit later increases.

  24. Anonymous

    Seek out an employment lawyer.This sounds very targeted to you specifically

  25. Explorer825351

    Ridiculous. Raises are discretionary. S/he moved out of state when the company did not support it. This is a consequence.

  26. Anonymous

    As I understand, there are rules related to compensation and taxes, etc depending on your residence and if your company operates in that state. Understanding the frustration over the raise/promotion not meeting your expectations, you did choose to move and possibly did not understand any ramifications. I would have an open discussion with HR about the state where you live. For example, if you were in NYC and then move to a place with lower cost of living, your raise would not be same as everyone else living in NYC. I'd have a discussion to understand the HR perspective. Plus if you chose to get an employment lawyer, I think you would want this information anyway. Good luck.

  27. Anonymous

    So if a company has a down year, they are expected to give pay raises because they did in the past? I'm not buying this logic.

  28. Vivian Hwa

    Even in union shops, that's not always true. It should be the same if the job is the same and the quality is the same, i.e. fair and equitable, but it is weird to demand the same pay when not everyone does the same thing at the same level ... This is not to say that wage discrimination and the wage gap isn't real.

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