At the end of every financial year, employees await a reward for the endless slogging they’ve done throughout this period. But wait, what if one gets a promotion without a pay hike? No, we aren’t mistaken.
This trend called ‘dry promotion’ is taking over workplaces, and, as the name suggests, it comes with no salary bump although a fancy title is offered to the employee.
While the term may be new, the practice is not. And it is doing the rounds again.
“Companies have started doing this again to maintain costs and budgets in slow economies, and also as a means to pass on the workload of laid-off employees to existing ones,” says Bhakti Talati, an independent work-life balance coach based in Mumbai.
A global survey conducted in 2024 by global staffing and recruiting firm Robert Half Inc revealed that 33% of Gen Z workers were offered a dry promotion last year, compared to 18% of millennials, 7% of Gen X employees, and 3% of baby boomers.
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Is the prestige associated with a fancy title enough for employees? Could it lead to frustration in the long run?
YS Life digs deep.
A learning opportunity
While it may not seem beneficial from a monetary point of view, a dry promotion can help employees who want to learn new skills. It also boosts the career graph of those scouting for new jobs, says Swati Dhir, Associate Professor – Organisational Behaviour and HR, International Management Institute, New Delhi.
“In the dynamic world of business today, a dry promotion serves as a formal way of enhancing skills with more positional power. Thus, employees should look at it through a positive lens. There’s no denying that there will be additional responsibilities but it will also provide new challenges and offer exposure to test the nuances of the role,” she adds.
Elina D’Souza*, who works in a Mumbai-based advertising agency, seems to think so. The 26-year-old is thrilled about rising the ranks from a junior content executive to a senior content strategist, minus a pay hike.
“I don’t think I could have asked for more. I handle a team of three people, which will eventually help me develop leadership capabilities. While there’s been no raise in income, it hardly matters because this promotion will help me with better opportunities in the future,” she says.
The rise in position could also play a significant role in enhancing the employees’ intrinsic motivation and is perceived as a reward for all their efforts in the previous year.
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“Not everyone works for money. If given a dry promotion, employees also stand the opportunity to enrich their experience. However, this practice may not apply to everyone. Hence, organisations must ensure a sense of equity to avoid dissatisfaction and conflicts among employees,” advises Dhir.
Talati believes that, for someone experiencing monotony in their work, a dry promotion might bring new opportunities to learn and explore.
“It could also bring in more decision-making power, increased involvement in strategic projects, and enhanced leadership capability and technical skills,” she adds.
While a dry promotion can help employees gain increased visibility in a tough job market, whether it actually helps with career advancements depends on numerous factors such as personal career goals and financial incentives in the long run.
The flip side
On the flip side, there could be situations wherein employees might be forced to accept a promotion without a hike when they have familial responsibilities and don’t have an option to quit, which can lead to lowered productivity.
In Anshika Motwani’s* case, she lost the will to work after she was given a dry promotion.
As a senior associate at an event management company, she worked hard and helped her owners generate significant revenue last year. But it didn’t translate into earnings for her, leaving her disappointed.
“I don’t believe in climbing up the ladder without seeing a growth in my earnings. What’s the point of a designation if it doesn’t show up in my bank account? I would have quit my job if I didn’t have caregiving responsibilities. I don’t have the time to look for another opportunity, which is why I am staying on,” says the 41-year-old from Delhi.
While a dry promotion is a way to recognise good work, Talati believes extra responsibilities without extra compensation is unfair to employees.
“The management may think of it as a reward but the employee will feel the exact opposite, especially if they have no say in it,” she says.
To ensure an employee doesn’t feel like a victim, employers must have an open dialogue with the individual to explain the reason behind their decision.
“They should discuss it and highlight the potential they see in the employee and how it could lead to future growth with a substantial hike. The option to accept or reject should lie in the hands of the employee,” she reiterates.
An open channel of communication also assures employees that their future prospects won’t be affected if they turn down the dry promotion.
Factors to consider
Before saying ‘yes’ or ‘no’ to the dry promotion, it is recommended that employees consider a few things. To begin with, does the promotion align with their professional goals?
“If you’re accepting additional responsibilities without any interest or desire to grow, you will soon start complaining about it. However, if the role is in line with your career aspirations, and if you see yourself growing in this direction, it will be easier to fulfil your commitments,” says Talati.
Another important factor to consider is: will the additional responsibilities offer adequate growth opportunities within the organisation?
Even if an employee takes up the role for higher visibility amongst the top management, it will have limited impact if there’s no desire within them to contribute towards organisational growth.
Also, will the promotion impact the employee’s work-life balance? It’s quite likely that the new role requires frequent travel or even relocation. If the demands of the position are more than one can commit themselves to or are incompatible with their current health situation, employees should rethink.
Lastly, it’s important to know if the additional responsibilities will be compensated for sooner rather than later.
“If it has already happened to you in the past–where you were promised a hike and not given one–it is wise to reject the offer,” concludes Talati.
What is your opinion on dry promotion? Would you take it or leave it? Let us know.
(*Name changed to protect identity.)
