What Is 'Dry Promotion'? All About This Silent Threat To Employee Satisfaction & Loyalty
Dry Promotion:?The rise of new trends has become a regular occurrence in today's workplace landscape. From extended work weeks to mass resignations, and even employees juggling multiple jobs simultaneously, various phenomena are emerging. One trend quietly gaining prominence is the phenomenon known as "dry promotion," causing concern among employees.
What is Dry Promotion?
While layoffs continue to serve as grim reminders about the flaky global job market, a new phenomenon called "dry promotion" has become a part of corporate corridor discussions.
Dry promotion refers to elevating an employee's position within a company without providing a corresponding salary increase. This typically involves a change in job title, increased workload, and additional responsibilities without a raise in pay.
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What Data Suggest?
According to a recent report by compensation consultant Pearl Meyer, more than 13 per cent of employers have opted to give their employees new job titles instead of monetary rewards, compared to only 8 per cent in 2018, as reported by the Wall Street Journal. Additionally, a survey conducted by Mercer, a benefits-advisory firm, involving 900 companies revealed a shift in the allocation of salary budgets for promotions in 2024 compared to the previous year.
This data suggests a decreasing trend in promotion-related salary hikes, which could potentially impact employee satisfaction. Experts view this change as indicative of the diminishing bargaining power of the average worker. In the current landscape characterized by cost-cutting measures, there has been a rise in dry promotions, where employees are assigned greater responsibilities without a corresponding increase in compensation.
This shift contrasts with past practices of offering raises to retain staff during labor shortages. Some individuals have expressed dissatisfaction with this approach, viewing it as a demotion rather than a promotion, as it requires them to take on more responsibilities without adequate compensation.
In the technology industry, the first two months of 2024 have seen a wave of layoffs as companies prioritize efficiency over growth in response to challenging market conditions. Job cuts, which began in 2023 with over 250,000 positions eliminated, have continued into the new year, with around 50,000 roles eliminated across major tech giants by March, according to tracking site layoffs.
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