"At Ageas We Believe In Employee First Strategy," Kapil Udaiwal

In today's era, employees are receiving a promotion in title and responsibility without a corresponding increase in salary or benefits. It has become a notable trend in many organisations and hence Kapil Udaiwal, CHRO, Ageas Federal Life Insurance is here to candidly speak with BW People publication, elucidating in depth about this viral trend within the organisational realm.

1.    What exactly defines a "dry promotion," and how does it differ from a promotion that fosters motivation and engagement?
A "dry promotion" occurs when an individual gains additional duty and a new job title without receiving any bonuses or cash compensation. This scenario has grown since the pandemic. Even while it might seem like a small way to show appreciation, doing so actually diminishes motivation and makes employees feel less appreciated. Dry promotions signify the acknowledgment of a worker's potential and a response to organisational limits such as financial restrictions or unstable operations. Dry promotions demonstrate an employer's faith in the worker's ability to contribute to the company in ways other than just paying the bills. 
In contrast, traditional promotions offer employees with remuneration commensurate with their hard work and dedication, which boosts morale and encourages them to continue delivering good work. Increased autonomy and professional growth lead to a more motivated staff. While accomplishing more with less, such as dry promotions, at a higher level may save expenses and demonstrate that the company values the work done, it will only end in dissatisfaction and demotivation, if the additional labour is not compensated. Businesses must communicate effectively and give alternate incentives to keep their teams motivated and engaged.

2.    How prevalent is the issue of dry promotions in today's workplaces, and what are the potential consequences for both employees and organisations? Also, how would you deal with such an experience within your organisational realm?
Dry promotions are becoming increasingly common in today's businesses due to cost-cutting efforts. This propensity has serious implications for both individuals and corporations. This typically results in employees feeling undervalued and demotivated, lowering job satisfaction. Financially, not being recognised for additional labour can be tough and even lead to burnout, resulting in high turnover rates as staff depart for other opportunities.
However, the potentially more serious long-term ramifications for institutions that simply disseminate their ideals are enormous. The negative implications of high turnover and low employee engagement can exceed the financial benefits. Toxic work conditions can also have an adverse effect on overall organisational success. To effectively explain such experiences to employers, transparent communication is required. Also, make employees believe that whenever business conditions improve, the organisation would make every effort to match their wage expectations. This manner, the disadvantages to consider may be avoided, or measures to mitigate them, such as compensating for pay reduction with greater benefits and sharing professional development opportunities.
To keep employees motivated and engaged, companies must prioritise growth and cultivate a strong culture of performance recognition. At Ageas Federal Life Insurance, we take the 'Employee First' strategy, which includes opportunities for learning, flexibility, and open communication throughout the business. Transparent communication about promotions and awards helps employees feel valued and driven. We also provide a comprehensive range of health and wellness programmes, significant benefits and incentives for financial security, and performance-based incentives to assist our employees in maintaining good health, well-being and job happiness. In these and other activities, we are attempting to offset the negative effects of a promotional sector gone dry, ensuring that we continue to field a team that is highly motivated and totally involved in the task at hand.

3.    What are some common reasons why dry promotions occurring within organizations? Are there specific organizational structures, cultures, or practices that contribute to this phenomenon?
Dry promotions can occur in organisations for a variety of reasons, many of which are related to the organization's structure, culture, or procedures. Here's a summary of some of them:
· Cost-saving measures: Organisations in cost-conscious contexts tend to provide greater responsibilities to their employees without raising their salaries. This enables organisations to keep costs down while retaining employee productivity.
· Lack of open communication: Organisations that do not speak transparently about their promotion rules and requirements for advancement may raise their employees' burden without paying them with higher wages. This lack of communication may cause employees to feel unappreciated and unmotivated.
· Hierarchy/bureaucracy. Dry promotions are more common in organizations based on hierarchy and seniority rather than merit. After all, promotions for many employees are a function of seniority - how long they've been with the firm, rather than how good a job they do.
To avoid the negative consequences of this circumstance, companies should guarantee that promotions are awarded fairly and transparently, based on merit, performance record, and future potential of the candidate, rather than bias or favouritism. This necessitates the use of effective performance indicators, as well as a focus on diversity and inclusion within personnel management initiatives.

4.    What strategies can organisations implement to prevent or mitigate the occurrence of dry promotions? How can they ensure that promotions are meaningful and aligned with employees' career aspirations and development goals?
Several strategies can be adopted by the organizations as per their vision and business practices to stop or minimize the chances of dry promotions. Also, organisation need to assure that these promotions have substance and are aligned with employee’s value in terms of career development and growth.
Transparent Communication: The organisation must communicate the promotion criteria, methodologies, and expectations in a transparent manner. Employees must be well informed about the relationship between performance, career advancement, and remuneration.
Merit-Based Promotion: Promote based on merit, ability, and accomplishments, rather than time spent or subjective criteria. To evaluate employee objectives, the organisation must also create a performance appraisal framework.
Regular Feedback: Organisations need to provide feedback and guidance on a daily basis to employees in terms of their strengths and areas for improvement for a better outcome and a better future.
Fair Comp Practices: Ensure that promotions come with fair, competitive pay adjustments. Perform frequent market analysis to compare salaries with the marketplace and pay employees fairly for performance.
Promotion Planning and Succession Management: Create a defined promotion planning programme that identifies high-potential employees, evaluates their preparedness for advancement, and links promotions to the organization’s succession plans.
Recognition Culture: Create and maintain a recognition culture in which employees' accomplishments are properly valued and recognised. Promotions should be viewed as significant life events and recognised as corporate achievements.
Using these strategies, businesses can avoid or reduce dry promotions in favour of promotions that make sense, are fair, and align with their employees' career goals and success. This will increase employee satisfaction and supervisory support.

5.    What are some examples of successful initiatives or practices that organizations have implemented to combat the issue of dry promotions and promote a more engaging and motivating work environment?
Organisations can use a variety of unconventional tactics to make promotions more meaningful, match promotions more closely to what people want out of their careers and increase the likelihood of promotion success. At Ageas Federal Life Insurance, we have implemented several creative initiatives to combat dry promotions and make the workplace more engaging and motivating.
Financial Well- being Measures: Ageas Federal Life Insurance has improved its financial well-being metrics by boosting Mediclaim and group life insurance coverage, eliminating co-payment charges for medical expenses, and offering Mediclaim coverage for infertility treatment for its employees. This reduces financial stress and gives employees a sense of security.
Health and Wellness Programmes: Ageas Federal Life Insurance has launched an online health and wellness solution for its employees and their families, providing expert guidance and resources to improve physical and emotional health.
Performance Recognition and Awards: Ageas Federal Life Insurance's performance and awards are transparent and in line with the organization's goals. This transparency, along with human-nature reward and promotion models, allows employees to know what is required to gain a promotion or any other reward that keeps them motivated, as well as who is required to earn it. The Galaxy Awards, which take place every year, recognise the best, fostering an environment of excellence.
Talent Development and Succession Planning: We also developed a structured approach for reviewing and planning talent succession, which is captured and managed through the Organisation Talent Review (OTR) process. Knowing the Super Critical roles, rating the performance and potential of the employees and developing the capabilities offer the pipeline of ready candidate to the key positions for Ageas Federal Life Insurance, enabling career progression and development.
Industry recognition and trust: Ageas Federal Life Insurance's success originates from its ability to build worker trust.
By combining all of these strategies, we may overcome the obstacles of dry promotions and foster a helpful and productive workplace atmosphere.

6.    How can HR departments and leadership teams collaborate to design and implement promotion processes that prioritize employee motivation, engagement, and career development?
HR departments and leadership teams need to work collaboratively which must align on the strategic objectives of the organization. They can develop promotion processes that focus on employee motivation, employee engagement and career development as a team. It began by setting clear criteria to measure performance, skills and potential for promotions and making advancement opportunities fair and equitable. HR then collaborates with leadership to build defined career paths, providing employees with precise plans for advancement and opportunities. Open communication and feedback mechanisms should be in place between HR, leadership, and employee, to gather individual aspirations, developmental requirements etc.
Moreover, its initiatives in leadership development programs enable employees to be better entrants to potential leadership roles in the organization, making space for an internal talent pipeline. Fostering a culture of continuous feedback and recognition.