Have you ever been asked to do higher-level work to “prove you can do it” before you get the promotion?

Often employers will ask employees to perform a higher-level job as an “acting manager” or as an “interim executive” before they get the official promotion.

It feels like they are just getting more work out of you without paying for it. Yes, that is what they are doing. Of course, you are doing your regular job in addition to this acting role.

So, ask for an acting allowance. That is a reasonable request.

How much should it be? One approach is to ask what they have done for other employees in a similar situation. The employer should treat you in a similar way. So, if the employer’s policy is to provide a 10% acting allowance, then they should pay you that amount.

Another is to negotiate for what is reasonable.

Alternative 1: If the acting higher-level job is eligible for a bonus of 20% per year and you are going to do the acting assignment for 3 months, then 20% divided by 12 months is 1.67% per month x 3 months is 5%. So, 5% x your base salary could be the acting allowance.

Alternative 2: Calculate the difference between your current base salary and the base salary they would pay you in the acting role. Example: $83,000 minus $75,000 = $8,000 / 12 months = $666.67/month x 3 months = $2,000 for the acting allowance.

Alternative 3: Or you could do this same calculation based on the total comp (base plus bonus) for the current and new roles. $95,450 minus $82,500 = $12,950/12 months = $1,079/month x 3 months = $3,237 for the acting allowance.

Employers: Do you pay acting allowances? If you do, how do you calculate it?

#actingallowance #promotion #compensation #hr #humanresources #rewards #pay #allowances #pay #payequity #paytransparency #fairpay