As a professional Recruiting firm and a business partner, many of our clients come to us for H.R and organizational matters.
One of the questions that come up is “how much the raise should be for a vertical promotion within the organization, i.e.: If I give my supervisor a promotion to become the Production Manager.”
The answer will depend on many factors. If you have a pay scale structure in place, you can refer to that to make the decision. The lower amount of the pay scale is a good place to start, but it is your discretion if you prefer to start higher to show appreciation for the talent. Keep in mind, there must be consistency in your policy.
If the promoted position is new, you can always consult your professional recruiting agency and check out the compensation data on various sites like Salary.com and Glassdoor. Job boards also have tools to help you get pay ranges for a position. A common practice is about a ten to fifteen percent pay increase for vertical promotion with more responsibilities.
Keep in mind that the supply and demand for the position in the area will play a big factor in the level of compensation. All these are baselines for references, but you hold the key to make that call. The bottom line is creating a positive experience for your team member to feel appreciated as they step into the new role.