Beware of Raises: CEO Reveals Risks to Career and Well-Being

A pay raise often signals professional advancement, but not all increases are beneficial. According to Jason Morris, CEO of the link-building agency Profit Engine, certain salary increases can jeopardize career growth, mental health, and long-term financial stability. Morris highlights three scenarios where accepting a raise could lead to negative repercussions.

Vague Expectations: A Red Flag for Employees

One of the most concerning forms of pay increase is one accompanied by ambiguous expectations. For instance, an employee may receive a 20% salary increase, yet the conversation includes terms like “wearing more hats” or “being flexible with duties.” This often signifies a situation where workload can expand drastically without additional support or resources. Morris emphasizes, “I’ve seen talented people burn out within months because they accepted raises without negotiating clear job descriptions.”

To avoid this pitfall, he advises employees to request a detailed breakdown of new responsibilities before accepting a raise. It’s essential to establish measurable success criteria and clear boundaries for the role. If clarity is not provided, the raise may lead to chaos instead of advancement.

The Trap of Psychological Barriers

Raises can also create psychological barriers to career mobility. While an additional £10,000 might feel empowering in the moment, it can become a hindrance if the employee is contemplating leaving their position. Companies frequently use strategic pay increases to retain talent they suspect may be considering departure. However, if these raises do not address underlying issues—such as a toxic culture, ineffective leadership, or limited growth opportunities—they merely serve as a temporary solution.

“Money can’t fix a toxic culture, incompetent management, or a role that doesn’t align with your goals,” Morris notes. Accepting a raise under these circumstances can result in staying in an unsatisfactory job longer than necessary, simply because leaving a higher-paying position feels financially irresponsible.

Instead, Morris suggests using the raise as leverage to negotiate more meaningful changes, such as professional development opportunities, flexible working arrangements, or a clear pathway to promotion. If the company is unable to provide more than just financial incentives, it may be time to consider other options.

Avoiding the Masking of Deeper Issues

In some cases, raises are offered as a way to divert attention from deeper organizational challenges. A manager may recognize that the team is overwhelmed, morale is low, and operational systems are failing. Rather than addressing these root causes, they may offer a pay increase as a means to keep employees quiet. This tactic can have serious consequences, as employees become complicit in a dysfunctional system, with their higher salaries rendering them more expensive targets during budget cuts.

Morris cautions, “Companies that use raises to avoid fixing fundamental problems are telling you exactly who they are.” They prefer to increase individual salaries rather than invest in better systems, training, or leadership, which is not a sustainable approach.

To counteract this, he recommends requesting structural improvements alongside any salary increase, such as better tools, additional team members, or management training. A company willing to invest in real solutions in addition to a raise is likely a place worth staying, while one that only offers monetary compensation is probably planning to extract more value without implementing necessary changes.

Morris emphasizes the importance of treating every raise offer as a strategic decision. “Your salary is not only compensation for current work, but a signal about your future trajectory,” he explains. Accepting the wrong raise could mean agreeing to a career path that is not aligned with personal goals.

As workplace stress remains prevalent and burnout is often linked to organizational factors, it is crucial to negotiate terms before accepting any pay increase. Morris recommends asking three key questions to clarify expectations and ensure that the offer aligns with long-term career objectives. If the responses are vague or unsatisfactory, it may be prudent to negotiate terms or consider walking away.