As workplace dynamics shift, so too does the approach to employee recognition and promotions. Recent polls by people2people Recruitment highlight the growing concern of “dry promotions”—promotions that come with added responsibilities but no corresponding salary increase. With significant percentages of employees and their colleagues experiencing this, employers may be unknowingly exposing themselves to high risks.
Key findings from the survey reveal:
- 23% of respondents reported seeing a colleague promoted without a salary increase in the last 12 months
- 16% of respondents disclosed that they had personally experienced such a promotion
These figures highlight a notable trend of “dry promotions” occurring in workplaces, where individuals take on greater responsibilities without receiving corresponding financial compensation.
There’s no doubt that money is important, especially during a cost of living crisis. However, as people2people recruitment Managing Director Erin Devlin highlights, providing additional flexibility or benefits in place of a significant salary increase can greatly help reduce employee dissatisfaction.
“Career progression, training, and development are crucial to employees, yet many employers have been slow to acknowledge this,” Devlin explains.
While employers may argue that budget constraints (13%) or the promise of future pay rises (27%) justify promotions without immediate financial reward, employees have a different perspective. 40% of those surveyed felt skill development was the primary rationale for accepting a promotion without a pay increase, while 21% saw it as recognition of new duties.
Among the respondents, the main negative outcomes were:
- Resentment (31%)
- Demotivation (29%)
- Higher turnover risk (25%)
- Reduced productivity (15%)
Erin Devlin’s key takeaways for employers include:
1. Offer non-monetary benefits: If a salary increase isn’t possible, consider offering additional benefits such as increased flexibility, more vacation time, or professional development opportunities. These can help ease employee dissatisfaction and demonstrate a commitment to their well-being.
2. Set clear pathways for future compensation: Communicate a transparent timeline for when a salary adjustment might occur, tied to specific performance metrics or budget improvements. This helps manage expectations and reassures employees that their efforts will eventually be rewarded.
3. Enhance recognition and support: Acknowledge the extra responsibilities with visible recognition, such as formal title changes or leadership opportunities. Providing mentorship, training, and development resources can make employees feel valued and supported, even in the absence of immediate financial rewards.
