- By Aditya Pratap Singh
- Wed, 17 Apr 2024 12:49 PM (IST)
- Source:JND
Dry Promotion at Work: A raise in salary, at the time of promotion, has been a common and well-known practice. However, as companies focus on cost-cutting measures all across the globe, a new trend, ‘dry promotion’ is emerging in the appraisal process. This new corporate trend is creating new trouble for employees. ‘Dry promotion’ is referred to as a practice where an employee gets a promotion in the job but does not get a salary increase.
In simpler terms, it can be explained as in ‘dry promotion’ an employee’s designation changes and workload increases, but the monetary compensation remains the same.
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No salary hike promotion
Recently, a report by compensation consultant Pearl Meyer revealed that more than 13 percent of employers chose to give their staff new job titles instead of a raise in salary. In 2018, this number was only 8 percent, reported The Wall Street Journal. Another report from benefits consulting firm Mercer claimed that a survey of 900 companies showed that more employers are allocating less of their salary budgets for promotion-related raises in 2024 than in 2023.
Some employees see an opportunity for dry promotion
Some employers also see "dry promotion" as an opportunity to redistribute the responsibilities of laid-off workers among their existing employees without increasing their cost-to-company (CTC) package. As per the report, many companies are increasingly relying on job titles in their strategy for retaining talent.
The growing trend of “dry promotion” can also be attributed to the increasing adoption of Artificial Intelligence (AI), which is influencing organizational structure, and changing management, and employee roles as well.
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