With the ever-evolving corporate world, people have already dealt with terms like mass layoffs, moonlighting, quiet quitting, mass resignations, and many more. Some of these are effective for employee engagement and company productivity, and others go against them. In 2024, a new term is buzzing around social media: ‘Dry Promotion’.
Some say companies resort to dry promotions by introducing cost-cutting techniques to keep their profits intact. In contrast, others think employees are taking advantage of dry promotions to get better opportunities and a sound salary hike in the future.
Now, the question is, what exactly is a Dry Promotion? Is it a boon or bane for both employees and employers? The uncertainty surrounding this concept is what makes it so intriguing. Let’s delve into it!
Highlighting Dry Promotion
Dry Promotions, or non-raise promotions is a job practice where an organization offers employees a better designation with more work responsibilities while not receiving monetary compensation. In other words, with a dry Promotion, you get promoted, your responsibility is enhanced, and your workload grows, but you receive the same money as earlier.
According to the compensation and leadership consultancy Pearl Meyer, the number of people who get a promotion without a salary hike has grown from 8% in 2018 to 13% at the end of 2023.
Why Dry Promotion?
The report by compensation consultant Pearl Meyer also said that due to global economic uncertainty and the poor job market situation, many corporate sectors have grappled with new trends, such as employee layoffs, staff reduction, or dry promotions, to prioritize growth over efficiency.
Some companies believe that dry promotions can be a better option for dealing with economic hazards and job satisfaction simultaneously, as employees might experience the Promotion for their excellent work here rather than the sudden ice-breaking layoff news.
Though it might be effective for employers, as they can reallocate the duties of laid-off employees without raising the salary, employees are taking advantage of the new title to seek better opportunities with a good hike elsewhere.
Advantages and Disadvantages of Dry Promotions
In general, dry promotion is effective enough from the employees’ view as it is cost-effective; yet, from the employee, it can be quite depressing as they get underpaid despite their designation improvement. It can lead to decreased employee morale and job satisfaction, affecting productivity and employee retention in the long run.
Let’s discuss some advantages and disadvantages of introducing a Dry Promotion within the workplace below.
Advantages of Dry Promotion
1. Minimized Employee Layoff
Due to global uncertainty and post-pandemic hazards, many companies follow trends such as employee layoffs and staff reductions. These practices damage employee morale, erode trust in the employee-employer relationship, and diminish productivity. They also result in employee financial instability, emotional distress, and lack of job satisfaction.
Dry Promotion is one of the cost-effective ways to praise an employee’s hard work. This process helps employers avoid severe cost-cutting measures like layoffs and enhancing retention.
2. Skill Development
Despite being promoted, employees’ salaries remain the same in dry Promotions. Though this is quite disturbing, employees get opportunities to gain new skills and experience, which enhances their professional growth and helps them achieve career success in the future.
3. Resume Building
The designation upgrade through a dry promotion enhances an employee’s resume, employees opening doors to external career opportunities. It adds valuable experience and related achievements to the employees’ resumes and remarkable future job opportunities.
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4. Career Progression
Due to financial instability, companies often introduce dry promotions, which offer employees an opportunity for career progression without any salary hike. The Promotion signals to employees that the organization recognizes their hard work, dedication, and contribution.
Moreover, it is effective for the employees’ careers as they can apply for a higher position with a sound salary hike.
5. Recognition
A dry promotion validates and recognizes employees‘ skills, employees’ and contributions. During the phase of global uncertainty, instead of experiencing termination or forced resignation, employees can enjoy acknowledgement of their hard work through the dry promotion process.
Disadvantages of Dry Promotion
In our capitalist society, employees work the most for the money they get within a specific interval. They expect a sound hike after getting promoted, which is quite normal. Employees hate the promotion process, where they will get the same salary even after being promoted. They feel frustrated and undervalued while working in a better position. As a result, they just quit and move to better opportunities.
Dry Promotions also become challenging for employers because, during the Promotion, employers face sudden mass employee turnover, less productivity, and business loss.
In Summarized, With Dry Promotion,
- Employees lose hope of making money,
- Employees feel undervalued,
- Employees take advantage and move forward,
- Employers lose employees and brand reputation,
- Employers may experience massive business losses.
Should An Employee Accept a Dry Promotion?
Though the definition of dry Promotion is clear, we often wonder whether an employee should accept it or whether a company should promote it in the workplace. The answer depends on the circumstances.
No one joins a workplace to do handwork passionately; everyone works hard to gain a reputation and make money. A promotion is a satisfactory term in the work market, where a person receives recognition and more responsibility. A sudden promotion without a money hike is baseless, except if there are no financial, social, or economic hazards like a COVID pandemic.
Employees may accept dry promotions if they feel it is within their scope to gain the money they owe; otherwise, dry Promotions are bars without alcohol.
