Personal Finance

Promoted Without a Paycheck? The Rise of the "Dry Promotion" and What to Do About It

If a promotion at work doesn't include a pay increase, is it still considered a promotion? The short answer is no, but it doesn't stop an increasing number of American firms from providing their employees with what is referred to as a "dry promotion."

If a promotion at work doesn't include a pay increase, is it still considered a promotion? The short answer is no, but it doesn't stop an increasing number of American firms from providing their employees with what is referred to as a "dry promotion.”
(Photo : Cytonn Photography)

What Is a Dry Promotion?

A "dry promotion," often called a "no-raise promotion," occurs when an employee receives an improved title and more duties without receiving a pay increase. According to a recent Wall Street Journal report, the percentage of businesses granting individuals new job titles in lieu of corresponding raises has grown 5% from 2018 to 13% in 2024. The pattern is not new, but it tends to reappear when the economy falters.

According to Ray Smith, the Wall Street Journal reporter who discussed the topic with CBS News, employees facing requests to take on additional responsibilities without a corresponding salary increase should respond by engaging in negotiation.

Smith emphasizes the importance of initiating and persisting in negotiations, suggesting that employees express their willingness to accept the new role while also seeking to discuss the possibility of a salary raise. Additionally, employees can propose revisiting the issue of a salary increase in the future if immediate action is not feasible.

The insights provided by job coaches are that women often face more pressure than men to accept dry promotions, as they may hesitate to address the issue with their managers. Smith, highlighted this trend, pointing out that women may feel compelled to agree to such promotions due to concerns about missing out on future opportunities or lacking the confidence to negotiate for fair compensation. Smith emphasized the importance of recognizing one's worth and advocating for fair treatment in situations where additional responsibilities are being assigned without corresponding adjustments in compensation.

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Gender Pay Disparity and Employee Perceptions

According to a recent Glassdoor poll, which also found that women at all educational levels make 20% less than males for performing equivalent work, two thirds of female professionals believe their pay is unfair.

According to insights provided by job coaches, women often face more pressure than men to accept dry promotions, as they may hesitate to address the issue with their managers. Smith, the highlighted this trend, pointing out that women may feel compelled to agree to such promotions due to concerns about missing out on future opportunities or lacking the confidence to negotiate for fair compensation. Smith emphasized the importance of recognizing one's worth and advocating for fair treatment in situations where additional responsibilities are being assigned without corresponding adjustments in compensation.

Employees can at least leave with a higher-level title and maybe a larger breadth of experience, which could open doors with another company, even if it doesn't result in any of those outcomes.

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