'Dry Promotion': New Workplace Trend Worrying Employees
Amidst the constant evolution of workplace dynamics, a new phenomenon known as "dry promotion" has quietly emerged, causing concern among employees. Unlike traditional promotions, where employees receive a salary increase along with a change in job title, dry promotion entails elevating an individual's position without a corresponding boost in pay. Essentially, while the employee's responsibilities and workload escalate, their compensation remains stagnant.
Recent findings from compensation consultant Pearl Meyer shed light on the prevalence of dry promotions, with over 13 per cent of employers opting for this approach instead of providing monetary rewards. This marks a significant uptick from just 8 per cent reported in 2018, as highlighted by The Wall Street Journal. Furthermore, a survey conducted by benefits-advisory firm Mercer, involving 900 companies, revealed a shift in employer behavior, with fewer organisations allocating salary budgets for promotion-related raises in 2024 compared to previous years.
This trend reflects the waning bargaining power of the average worker, particularly during periods of economic uncertainty, where companies prioritise cost-cutting measures over employee compensation. In the past, labor shortages often compelled firms to offer substantial raises to retain staff. However, the emergence of dry promotions coincides with a trend where some employers redistribute the responsibilities of laid-off workers to existing staff members without adjusting their pay accordingly.
