Dry Promotions Becoming Popular

Congratulations! 🎉You finally got that promotion you’ve been looking for. A great chance to take on more responsibilities and flex new muscles. Hang on a sec. There’s just one thing. Due to significant increases in salaries and business costs over the last 3 years, this one will be what’s called a “dry promotion”. 😳A promotion with no increase in compensation.

Recent data from the Wall Street Journal and SHRM reveal that dry promotions are becoming more common. For example, 38% of HR professionals reported that their organizations have given employees a promotion without a raise in the past year. This trend is particularly pronounced in industries like technology and finance, where competition for talent is fierce and salaries have seen significant recent increases.📈

While dry promotions can be seen as a way for companies to retain talent without increasing costs, they can also have negative consequences for employees. Not handled properly, dry promotions can lead to decreased job satisfaction, increased stress, and even higher turnover rates. In fact, research by the University of Florida found that employees who received a dry promotion were 15% more likely to leave their job within a year.

So, what can professionals do when faced with a dry promotion? Here are a few strategies to consider:

💡 Communicate openly with your employer: Discuss your concerns and ask for a clear timeline for future salary increases. Is there a written MBO where your performance (and comp) can be reviewed on an agreed timeline?

💡 Evaluate the opportunity: Consider the long-term benefits of the promotion, such as increased visibility, new skills, and potential future opportunities. Can you leverage that new title in the next 12-18 months if that comp doesn’t increase?

💡 Explore external options: If your employer is unwilling to provide a salary increase or any sort of track to comp increase, consider looking for a new job that offers both a promotion and a raise. Confidentially – of course.

Someone believes in your ability to step up to a bigger challenge – or you would not have had this “opportunity”. Is the comp increase a “No” or a “Not Yet”? Make certain to consider all factors over the last 12-18 months plus the plan going forward before taking action.

What are your thoughts on dry promotions? Have you experienced one yourself, or know someone who did and if so, how did was it handled?

#careercoach #cpacareers #promotions #drypromotions