Several patterns have emerged in the ever-changing global work market during the last few decades. From working from home to sharing a workspace, the possibilities are unlimited. Now, we have a new phenomenon that is gradually gaining popularity: “dry promotion.”
What is dry promotion?
Dry promotion is the practice of promoting employees without increasing their salaries. In other words, while your title changes, your workload grows, and your duties expand, you receive no monetary compensation for these additional responsibilities created by the promotion.
According to a recent survey by compensation consultant Pearl Meyer, more than 13% of employers preferred to give their employees new job titles instead of compensating them. The number was merely 8% in 2018, according to the Wall Street Journal.
Furthermore, according to a poll of 900 organizations conducted by benefits-advisory firm Mercer, more employers are assigning less of their 2024 salary budgets for promotion-related raises than in 2023.
Dry promotions become increasingly common during times of economic uncertainty
While most employees may not be pleased with this trend, analysts believe it reflects the average worker’s declining bargaining strength. These promotions become increasingly common during times of economic uncertainty, when businesses focus on cost-cutting initiatives.
Previously, companies dealing with labor shortages were frequently forced to offer significant salaries to retain staff. However, the practice of dry promotion has emerged at a time when some firms are transferring laid-off workers’ tasks to current employees without increasing their pay.
Several employees have shared their experiences with such offers on social media, demonstrating the trend. For example, in a Reddit thread shared last year, a user stated that their manager told them that because they work more than a junior, management had “decided to get rid of the junior in my title.” According to the user, “However, when I asked how that impacts my salary, they said not at all, it stays exactly the same for this year.”
Offering advice, one user said: “The only thing a better title will do with no additional money is help you find a better job somewhere else.”
Another user said: “The company is low on resources, and rather than actually hiring for open positions, they just spread the outstanding responsibilities among existing employees and/or move employees around the organization to meet their needs without increasing headcount or expense. Leverage this new title bump to make a lateral move at another company. Run away as fast as you can.”
If you are unable to look for a new job, experts suggest that employees request flexible working schedules, extra paid time off, or additional benefits to compensate for the lack of a raise.