Hoping this isn’t a silly question - I am honestly unfamiliar with how it works:

If a client indicates their budgets are not increasing for next year, how does that affect promotions/raises typically for those working on that account?

I assume I would get a cost of living raise but in terms of potential promotions should I not get my hopes up? Does the agency itself contribute to a promotion if client budgets don’t?

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It would depend on how this affects the bottom line of the account and the agency - if your account is 90% of revenue, the impact will be much higher than if it is 10%. Then, there are can be things the agency can make to find efficiencies outside of not giving people raises (finding more profitable new business that makes up for lack of budget increase there, cutting down on some of costs - reducing business travel for example, automatising part of scope etc). It can play out a million different ways - my client has had increasing budgets due to scale growth, but our rate cards stayed the same since 2019.

If you want to be proactive (and increase your chances of a raise), try being proactive - have a chat with your manager on what you can do to adjust to this situation: can you engage in some new business? is there some other part of clients business you can pitch towards with entirely different scope? what can you do to optimize your own work to be able to pick up some additional work for a more profitable client? This would most likely play in your favor, is unlikely to make things worse, and worst case scenario - you’ll learn something new.

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Keep this up! If my team member came to me to discuss this, I’d actually really appreciate this: it shows long-term thinking, business awareness (even if you don’t know how this works exactly, you understand there is some level of impact and want to learn more), dedication and motivation. Fingers crossed you work this out 🤞🏻

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My cost of living raise each year is 1.5% which gives me around $25 extra a paycheck 🙄. It depends on the company I believe. My company is awful at promotions and raises though so it may not be helpful. ICF if the company.

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