With employee retention a stubborn problem for companies and budgets tight, many employers are turning to a cost-free way to keep younger employees. It is called the dry promotion.
“To put it plainly, a dry promotion is a bigger, better title with more responsibility and without a pay increase,” said Joe Gonzales, regional director at staffing firm Robert Half in the Washington-Baltimore region.
Younger employees are most likely to be offered promotions without raises, though older employees are more likely to accept.
A recent Robert Half survey found that 33% of Gen Z workers were offered a dry promotion in the last 12 months. That compares to 18% of millennials, 7% of Gen X workers and just 3% of baby boomers. But 83% of boomers who were offered a promotion without a raise accepted it, compared to just 76% of Gen Z workers.
There are reasons for workers, particularly younger ones, to take an employer up on a promotion with no pay increase, even if it means more responsibility and work. It may mean more clout with coworkers or look good on the employee’s resume.
Before taking a dry promotion, Gonzales says make sure you know what those extra responsibilities will be, and leave the door open for a raise down the road.
“First and foremost, I recommend getting the details. Discuss the role’s responsibilities and expectations with your boss. If you move forward, request a follow-up as an opportunity ask for a compensation review within a three or six month window,” he said.
Even if more money is not on the table, an offer of a dry promotion is an opportunity to see what else the company has to offer.
“You may be able to negotiate other things, like a more flexible schedule, extra vacation time or a bigger bonus,” Gonzales said.