by Jameelah Mullen
December 13, 2024
In lieu of a pay increase ,employers compensate workers with new job titles.
A dry promotion is when an employee receives an upgraded title and takes on additional job responsibilities without a pay increase. This trend has become more common as companies react to inflation and stagnant profit growth.
According to a study by Pearl Meyer, 13% of companies reported giving employees new job titles without an increase in pay in 2023.
“We have all heard and experienced so much turmoil in the job market over the last few years, and much of the emphasis has been on a combination of compensation and flexibility in this war for talent,” said Rebecca Toman, vice president of the survey business unit at Pearl Meyer.
Toman says companies increasingly depend on job titles to attract and retain employees. According to the data, 54% of companies surveyed leverage job titles to attract prospective employees— a 35% increase from 2018.
Additionally, studies suggest that women are more likely to be affected by this phenomenon. Mercer’s 2024 Women In The Workplace Report showed that women are more likely to remain at jobs without raises, while men are likelier to leave for higher-paying jobs. This often leads to women taking on more job responsibilities without compensation.
Eric Anicich, associate professor of management and organization at the University of Southern California’s Marshall School of Business, says that companies are becoming more strategic in incentivizing employees, but he suggests that dry promotions are not sustainable.
“These types of things can be motivating to certain types of employees, but over time, organizations run the risk of burning out their employees,” Anichich told USA Today.
Anichich advises workers who accept a dry promotion to request a commitment from their employer to revisit compensation in three to six months. Employees should also negotiate perks such as time off and flexible work hours. Anichich also suggests that elevated titles can make an employee more marketable in the job market. He recommends that employees leverage their titles to seek new employment with more favorable compensation.
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