Are Dry Promotions a Blessing or a Burden?

Have you ever been offered a new role with added challenges and responsibilities, only to discover that your salary doesn’t align with your expanded duties?

CREDIT: This is an edited version of an article that originally appeared on Monday 8am

This situation is often referred to as a “dry promotion.” Though dry promotions have existed for years, they have become more common in today’s corporate landscape due to budget constraints and economic uncertainty.

Naturally, employers and employees view this trend in different lights. Employers may see a dry promotion as a practical solution, while employees often feel they’re being shortchanged. The underlying message for many is that they’re valued enough to take on extra workload and stress but not enough to receive proper compensation. So, can dry promotions ever be justified?

A dry promotion is designed to help with employee retention by reinforcing their value and solidifying their role within the organisation, especially during times of financial strain. When approached positively, it can signal the company’s commitment to the employee’s long-term career development. The key lies in how the promotion is presented and communicated.

Think Career Needs

When assigning additional responsibilities, avoid simply choosing someone because the tasks need to be done. Take the time to consider the employee’s career aspirations and how the new role can benefit their professional growth. When offering the new position, make sure to express your gratitude for their contributions and emphasise that their promotion is a result of their exceptional performance. Instead of overloading one individual, think about how tasks can be delegated or whether the employee’s existing responsibilities need to be reassigned to ensure a manageable workload.

Talk Openly

Be honest about why a salary increase isn’t possible now. Provide context, such as the company’s current financial situation or how cost savings are being allocated to other priorities, like hiring additional staff for administrative support. If a pay raise is a possibility in the future, explain the likelihood of it happening and, if possible, offer a realistic timeline for when compensation terms can be revisited. Transparency is key, so avoid making promises that may not be achievable.

Add Value

If a salary increase isn’t feasible, consider offering alternative benefits that can add value. Perks such as flexible hours, extra leave, mentorship opportunities, public recognition and access to training programs can go a long way. Tailor these solutions to align with the employee’s personal priorities. For example, funding for courses or certifications that are externally recognised can also be a valuable way to invest in their professional development.

When offering employees new roles with additional responsibilities, it’s important to remember that this should never be a tactic to offload extra work without fair compensation. While dry promotions may seem like a cost-effective solution for companies facing budget constraints, they should not be used as an excuse to undervalue employees.

Ideally, proper compensation should always align with the increased workload and responsibilities. However, when salary adjustments aren’t possible, there are thoughtful ways to approach the situation and ensure employees feel appreciated and supported.