Amid a busy week and routine emails, have you ever been ecstatic to find a promotion letter? But, as you read through, you realise the monetary hike that comes with the added responsibilities is next to negligible. Total buzzkill, isn’t it?
Suppose you haven't encountered this situation before. In that case, chances are some of your senior colleagues can attest to having experienced it, or you might face a similar scenario in the future. As this phenomenon regains prominence in the slack job market, the trend has a new name — dry promotion.
Dry promotion is a practice of rewarding employees with a job promotion, i.e. higher designation, but with no or little increase in salary. Your title changes, your workload grows, and your responsibilities increase, but the monetary compensation, not so much.
The compensation planning advisory firm Pearl Meyer says that data suggests dry promotions are becoming more common as companies manage their talent with tighter budgets.
Also Read: Three pro tips to ace your appraisal interview and three absolute no-nos
“Of employers recently polled by compensation and leadership consultancy Pearl Meyer, 13% said they are relying on new job titles to reward employees when money for raises was limited, up from 8% in 2018,” a Wall Street Journal report points out.
It says no-raise promotions should be considered a sign of workers’ ebbing leverage now that labour shortages have eased and companies are cutting costs where they can.
According to executives and pay consultants cited by Pearl Meyer, dry promotions tend to climb in times of economic uncertainty. “Companies doled out hefty raises just to keep hold of workers when labour was in shorter supply. Now, some managers are shifting the duties of laid-off workers to remaining staff without a commensurate bump in pay,” it noted.
Also Read: Waiting for appraisals? Here’s how much salary hike to expect and what if you switch jobs
Also Read: Indian workers with AI skills could see salary hikes of over 54%, finds survey — Should you enroll?
Suppose you haven't encountered this situation before. In that case, chances are some of your senior colleagues can attest to having experienced it, or you might face a similar scenario in the future. As this phenomenon regains prominence in the slack job market, the trend has a new name — dry promotion.
Dry promotion is a practice of rewarding employees with a job promotion, i.e. higher designation, but with no or little increase in salary. Your title changes, your workload grows, and your responsibilities increase, but the monetary compensation, not so much.
The compensation planning advisory firm Pearl Meyer says that data suggests dry promotions are becoming more common as companies manage their talent with tighter budgets.
Also Read: Three pro tips to ace your appraisal interview and three absolute no-nos
“Of employers recently polled by compensation and leadership consultancy Pearl Meyer, 13% said they are relying on new job titles to reward employees when money for raises was limited, up from 8% in 2018,” a Wall Street Journal report points out.
It says no-raise promotions should be considered a sign of workers’ ebbing leverage now that labour shortages have eased and companies are cutting costs where they can.
According to executives and pay consultants cited by Pearl Meyer, dry promotions tend to climb in times of economic uncertainty. “Companies doled out hefty raises just to keep hold of workers when labour was in shorter supply. Now, some managers are shifting the duties of laid-off workers to remaining staff without a commensurate bump in pay,” it noted.
Also Read: Waiting for appraisals? Here’s how much salary hike to expect and what if you switch jobs
Also Read: Indian workers with AI skills could see salary hikes of over 54%, finds survey — Should you enroll?
First Published: Apr 18, 2024 12:33 PM IST
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