308: What is a "Dry Promotion" - and Should You Accept it?

First, a confession: When I started seeing articles and comments about “dry promotions,” I didn’t know what that was.

In case some of you are in that same boat, here’s a definition:

“A promotion without a salary increase.”

As American businesses seek innovative ways to cut costs in a tightening economy, employers may be enticed to promote employees but withhold a salary increase.

There are two primary benefits to an employee who accepts a dry promotion:

1.    An opportunity to gain new skills and take on new challenges.

2.    Added recognition and appreciation.

(Most people in the organization won’t know that you didn’t get a raise.)

What about the benefits to employers?

1.    They can advance their goals for succession planning and professional development without a hit to their wallet.

2.    Dry promotions can improve employee engagement.

What about the downsides to a dry promotion?

1.    For an employee, the downside is pretty obvious – you are doing more work – and work with more consequence – with no additional pay.

2.    A dry promotion could work against you if you look for work elsewhere – the future employer may have concerns about the disparity between your job title and your compensation.

3.    Conversely, an employer may find that it has positioned the dry employee for a new job at a new organization, with commensurate pay.

4.    An employer with a dry promotion practice may find a decrease in overall productivity, since extra effort is not rewarded.

5.    An employer may find they aren’t attracting the best talent.

What options do you, as an employee, have for negotiating a dry promotion?

1.    Get in writing that a raise will happen – or at least be discussed – at a specific later date, possibly with some retroactive pay.

2.    Ask for an increase in variable compensation, such as bonus targets.

3.    Ask for an increase in other fringe benefits like PTO or flexibility.

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