How do you handle promotion delays for high performers due to budget constraints?
I have a team member who has been acting as a lead for over a year, training juniors, and delivering exceptional results. But because of a fixed customer contract, we can't increase their billing rate even slightly, so leadership is blocking the promotion and raise. Meanwhile, a lower performer in another department got promoted ahead of them. I know this is demotivating and unfair, but I don't control the contract terms. How do other managers navigate this situation? Do you have honest conversations about the financial reality, or try to find creative non-monetary ways to recognize them? And at what point do you tell a high performer that they need to leave to get what they deserve?