What Is a 'Dry Promotion' — and Has It Happened to You? Employees in This Specific Group May Be the Most Likely Victims. The phenomenon is becoming more prevalent as companies grapple with tighter budgets.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Workers might not have the upper hand they did just a few years ago.
- "Dry promotions" appear to be on the rise — and there are consequences for employees and employers alike.
Most employees who receive a promotion likely expect a salary bump to match. But in a professional era where workers might not have the upper hand they did just a few years ago, gaining a new title and responsibilities doesn't always come with a larger paycheck.
Meet the "dry promotion." Research suggests the phenomenon is becoming more prevalent as companies navigate tighter budgets. A recent poll from compensation consultants Pearl Meyer revealed that 13% of employers are rewarding employees with new job titles instead of money, up from 8% in 2018, The Wall Street Journal reported.
Related: This Workplace Expert's 'Brainwashing'-Esque Technique Will Help You Get the Raise You Deserve
What's more, women, who earned on average 82% of what men earned in 2022, might be the most likely recipients. Anecdotally, career coaches say they hear from more women who landed dry promotions than men, per the WSJ, and Alexandra Carter, director of the Mediation Clinic at Columbia Law School and author of Ask for More: 10 Questions to Negotiate Anything, told the outlet that women feel pressure not to negotiate.
New data from the HR platform HiBob also suggests that women are more likely to receive a promotion without a compensation adjustment: In 2023, more men (38%) received promotions with pay increases than women (23%). Men were also twice as likely as women to see an increase in benefits (17% compared to 8%), according to the research.
Employees aren't the only ones who face potential consequences when promotions come without financial incentives: Employers that pile on responsibilities without more pay risk talent burnout and retention issues.
Related: Your Employee Wants A Raise. Here Are 7 Ways You Can Afford It.
"When companies offer employees no-raise promotions, they must be willing to accept that they run the risk of losing that individual if they don't feel like they are being fairly compensated for their work," Annie Rosencrans, SHRM-SCP, director of people and culture U.S. at HiBob, told The Society for Human Resource Management.
