Why it might not be the time to take up that job promotion

You have worked hard for months, and it looks like your hard work is finally paying off with that long-awaited promotion.

With your new fancy title comes new challenges from the additional responsibilities that you will be taking on and you will be duly compensated… with the same paycheck you have been receiving from your previous role.

‘Dry promotions’, or job promotions that are not accompanied by a salary raise, are on the rise. According to research from ADP, dry promotions make up 13% of all promotions in 2024, compared to 5% in 2018.

Justifiable or not, organisations are citing reasons for engaging in the practice of dry promoting. These include wanting to recognise high-performing employees for their contributions, while not having the budget to offer a salary raise.

Organisations may also be paving the way for future leadership roles for these employees by offering opportunities to learn new skills and raise their profiles.

Having said that, it is disputable how receptive employees truly are to receiving dry promotions, when in essence, this equates to a functional decrease in salary. Most importantly, how long can organisations retain their best talent when these employees’ efforts continue to be overlooked when it comes to monetary compensation?

For The Ritz-Carlton, Millenia Singapore, dry promotions are a non-starter. “While there could be reasons why some organisations are practicing this, it is not something we advocate or recommend,” Audrey Lim, Director of Human Resources, The Ritz-Carlton, Millenia Singapore, told HRM Asia.

“However, in situations where employees receive a dry promotion, it would be advisable for them to find out the rationale behind it and the possible challenges that their organisation is facing.”

For Lim and her team at The Ritz-Carlton, Millenia Singapore, a mid- to long-term approach is preferred when it comes to career or human capital planning. “This constitutes understanding the career goals of our Ladies and Gentlemen, as well as their strengths to further leverage and find development areas to focus on,” she shared.

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Development plans that build and grow on-the-job and leadership skills are then devised to help employees achieve their career goals. “This keeps our Ladies and Gentlemen engaged, knowing that they are learning and growing while in their current role and are being prepared for their next role.”

So, the next time employees are offered a dry promotion, they could do worse than speak to their managers to understand the rationale behind the move, and carefully consider the pros and cons of a dry promotion, and the potential impact it could have on their careers.