According to a Mercer survey, businesses are devoting less of their 2024 budgets to raises and promotions than last year. But some still want to award their employees in other ways. The question is: should you go along with it?
Your boss offers you a promotion but not an increase in pay. What do you do?
So-called “dry” promotions are becoming more common in an uncertain economy. They offer employees more responsibilities and a better title, but without an increase in pay. There might be both pros and cons of accepting the offer.
If you do accept, you might be given new tasks that will help you develop important skills and propel your career.
You might also get to supervise or manage others -- and perks like a bigger office or invites to special events might also be on the table.
But a promotion with no increase in pay could result in more responsibilities with less reward. And you might become resentful.
So be sure to ask for more flexibility, visibility and authority. And you might want to try to negotiate a salary increase for a later date. Propose a timeline for when you can expect a raise.
And it’s a good idea to get it all in writing.
According to a Pearl Meyer Consultants survey, 13% of employers said they are relying on new job titles to reward their employees when money for raises is limited.