12-18-2024
Many employers assign workers more responsibility, sometimes offering a new title, but they do not increase worker pay. These so-called “dry promotions” are on the rise, according to a USA Today report.
A USC professor cited in the USA Today article attributes the rise in dry promotions to employers getting “more creative and strategic in how they reward or incentivize employees.” This strategy is especially useful for financially constrained employers. Inflation, high interest rates, and sliding sales contribute to the current financial constraints. According to data from the Bureau of Labor Statistics, job openings and hiring are down 35% from the height of the pandemic. Companies are trying to produce the same amount of output with fewer employees to do it. A 2023 survey revealed that 13% of surveyed employers admitted to using new job titles to reward employees when they could not give them raises. That number is up from 8% in 2018. Gen Z is the most impacted. Thirty-three percent of Gen Z employees and 18% of millennials received offers without promotions in the last year compared to 7% of Gen X workers and even fewer baby boomers (Robert Half Inc.). Some research also shows that women may be at greater risk of receiving these dry promotions.
Not surprisingly, there are consequences to employees getting assigned more work. Many workers say they are overwhelmed, exhausted, or need more support. In addition, fewer US workers are satisfied with their income because it does not keep up with the cost of living, and it is too low for the quality of work and the amount of work they do. While many of these employees seek other opportunities outside their current organizations, experts suggest they may want to negotiate for raises down the line. Workers willing to stay should try to get commitments in writing for future increased compensation.