In modern workplaces, every day new practices or trends emerge. Some of these have a major impact on employee loyalty and happiness. A recently emerged concept that has become popular is “dry promotion.”
According to this concept, a professional gets a job promotion without any salary hike.
In this article, we will understand the difficulties around dry promotions, looking at their frequency, effects, and how employees can reduce the danger to their financial security and job happiness.
Dry Promotion: A Quick Introduction
Promoting an employee within a company without giving them a pay raise is known as a “dry promotion.” Generally, it entails a title change, an increment in workload, and new duties without a pay hike.
From a business point of view, owners and managers see infrequent promotions as an indication that they value their staff members and appreciate their efforts by giving them a new title and more responsibilities.
Several entrepreneurs use it to reward someone with a gold star or a pat on the back for a job well done.
However, when those additional duties don’t lead to a higher salary, the deal may not be so beneficial for the employees.
The Drawbacks of Dry Promotion
Initially, dry promotion can look like an effective method to cut costs and make better use of your current workforce. But it has numerous costs, like higher employee turnover and lower employee engagement.
The easiest way to increase the pay range for employees is to switch jobs. So, when a company increases an employee’s responsibilities without their salary hike, the company is giving employees an incentive to leave the company and making it easier for them to find a better-paying position elsewhere.
Circumstances When Companies Do Dry Promotion?
Let’s check some common situations when companies go for “dry promotions” and the key factors that impact an employer’s decision to implement this strategy instead of offering a standard promotion along with a pay increase.
Financial limitations
Saving money and limiting expenses are some of the major reasons companies go for this concept. Without increasing the employees’ compensation, their purpose is to have them deliver more work. The employer isn’t always responsible for this. Sometimes the business just lacks the funds to increase the employees’ salaries.
Since the organization can’t give a full promotion with higher salaries until they receive their next round of funding, start-ups, and nonprofits go for dry promotions.
There may be a verbal agreement that the employees’ salaries will be reviewed after the next funding round in conjunction with the planned promotion or more duties.
Opportunities for Professional Growth
If an individual is eager to move forward in their profession and take on more responsibility, then dry promotions may be beneficial to them. While most employers look for promotions for financial gain, some professionals in their early careers are open to taking on more responsibility to enhance their resumes and obtain more experience.
Temporary Leadership Positions
When a department head leaves and the position is not filled before the end date, this is one situation that frequently leads to dry promotions. Higher-level hiring requires many interviews, and if the selected candidate is already working, they will also likely need to give notice. This may leave the team without a manager for up to a month.
Usually, at that point, someone is said to temporarily take over or a natural leader within the team steps up to fill the void. If the business is unable to find a replacement for the position, that individual may wind up serving as an interim leader for a considerable amount of time.
Achieving the Employee’s Working Hours
Employers, especially small ones, find after hiring a worker that there aren’t nearly 40 hours of work for them to complete in their existing role. It’s normal to underestimate how many hours a certain set of responsibilities will take up each week because it can be difficult to predict how long chores will take and because workloads can fluctuate throughout the year.
To accommodate their assigned work hours in this situation, business owners think of increasing their responsibilities and perhaps changing their job titles. Since the employee would probably prefer to take on more responsibilities than reduce their hours (and therefore their weekly income), this is one situation where dry promotions can be beneficial to both parties.
How to Deal with the Dry Promotion Dilemma: Tips for Employees
Employees have to go through numerous tough situations and be presented with a difficult decision that calls for thoughtful thought and calculated action when they receive a dry promotion. Here are five concrete actions people can take to effectively solve this issue:
- Make comprehensive research: Employees should thoroughly examine industry norms, internal compensation ranges, and regional differences before reaching out to employers. Equipped with this knowledge, staff members may promote just remuneration that corresponds to their increased duties and responsibilities.
- Start a conversation with the manager. Addressing issues about dry promotions requires open communication with supervisors. Employers may have productive conversations to reach win-win solutions by clearly communicating expectations and providing proof of their contributions.
- Negotiate and speak out for yourself. Addressing issues with dry promotions requires open discussion with supervisors. Workers may have productive conversations to reach win-win solutions by clearly communicating expectations and providing proof of their contributions.
- Engage in negotiation: Employees should use their achievements and performance indicators smartly to support their worth to the company in talks with employers. Workers can successfully oppose the practice of “dry promotions” and obtain just rewards for their work by positioning themselves as valued assets worthy of fair compensation.
- Refuse to accept unfair practices: Employers should raise their voices and are advised to fight for their rights and oppose complacency, even though giving in to the demands of a lackluster promotion may seem like the easiest course of action.
- Think about leaving toxic work environments: Always be prepared to leave a work culture where employers don’t listen to workers’ concerns. By putting your health first and looking for companies that appreciate what they do, you will achieve job satisfaction and professional fulfillment.
Advice for Employers on Navigating Dry Promotions
If you run a business with ongoing issues, you can use dry promotion but provide a timeline. This concept is perfectly effective when waiting for financing or getting ready to give an employee a formal vertical promotion that comes with a boost in salary. However, this is not a long-term fix, don’t rely on it.
Inform your staff member about the exact situation and timeline. Inform them you appreciate their efforts and will increase their salary in the upcoming fiscal year if you know you’ll have extra money in the budget. If you have given an individual contributor more duties to assist them in gaining management experience and abilities before their department head leaves in a few months, be prepared to offer them a proper pay raise once they have shown themselves and are prepared to take over.
Small business owners and startup entrepreneurs are often guilty of overusing the dry promotion concept. Running your own business means you have to put in endless hours and wear a million different hats. Thus, while it might not seem like a big deal to you to take on some extra tasks to support the company’s growth, from the employee’s point of view, it does sound unfair if additional pay is not involved. Though this is your passion, remember that it’s just their job, and that’s okay. Employees cannot have the same level of commitment to your company as you do.