Dry promotions. The pros and cons.

Getting promoted is generally an exciting time. It’s a recognition that hard work, talent and commitment are paying off. However, an element of that excitement probably comes from the increase in pay that comes with the promotion. Now though, an increasing number of employers are offering ‘dry promotions’, a job advancement or change in position that doesn't come with a salary increase or a significant change in substantive benefits.

A recent report by compensation consultant Pearl Meyer showed that 13% of employers chose to give their employees new job titles instead of a raise, an increase from 8% in 2018. Another survey of 900 companies from benefits-advisory firm Mercer discovered that more employers are allocating less of their 2024 salary budgets to promotion-related increases than in 2023. 

Dry promotions can happen for various reasons, such as organisational restructuring, a reduced budget for pay increases, or as a temporary measure to recognise someone's potential or contribution while awaiting more substantial changes. They of course come with pros and cons which vary depending on specific circumstances and individual perspectives.

From an employee perspective it’s a recognition of their skills, accomplishments, and potential for growth within an organisation and something that may enhance their long-term career prospects by offering opportunities for skill development, networking, and exposure to new challenges and responsibilities. The most obvious downside is the lack of immediate financial reward. Without a salary increase, an employee may feel undervalued or frustrated, especially if they were expecting a raise with the promotion. There may also be perception issues with peers and subordinates, who perceive a dry promotion as hollow or lacking in substance.

Employers benefit by retaining talented employees by demonstrating that the organisation values their contribution and is willing to invest in their career growth which can assist in raising morale and motivation. A dry promotion may also be part of a strategic plan to position an employee for future advancement or to fill a critical role in the organisation once resources become available. However, if an employee's expectations for a promotion includes a salary increase or other benefits, a dry promotion may lead to disappointment and demotivation and, if they continue to feel undervalued or see no prospect of advancement in the future, they may ultimately choose to leave the organisation.

Overall, while dry promotions can offer some benefits in terms of recognition and career development, they also come with potential drawbacks related to financial considerations and employee morale. It's essential that organisations carefully consider the impact of such promotions and communicate effectively with employees to manage expectations and maintain engagement.

Why your organisation needs a mentoring programme.

In today’s competitive work environment attracting and retaining staff is hugely important. One of the strategies that is being increasingly used in recruitment and retention packages are mentorship programmes that can offer a wide range of benefits for both mentors and mentees.

In the past mentoring was often seen as a great way to help new employees integrate into the workforce but a strong mentorship programme can do so much more

• Knowledge Transfer - Mentors provide valuable insights and practical knowledge gained from their own experiences which can help helping mentees navigate challenges more effectively. Mentors can also have industry-specific knowledge and a background in best practices that may not be available through formalised study.

• Career Development - As well as providing guidance on setting and achieving career goals, identifying strengths and weaknesses, and developing the skills needed for success, mentors can introduce mentees to their professional networks, expanding their opportunities for career advancement and collaboration.

• Personal Development - Mentors help mentees identify and work on areas for skill improvement and personal and professional development. Their encouragement and constructive feedback helps mentees gain in confidence and self-assurance.

• Feedback and Support - Mentors offer constructive feedback and guidance which helps mentees recognise areas for improvement and how to enhance their performance. Mentors also serve as a source of encouragement during challenging times, offering a listening ear and advice to navigate both professional and personal issues.

• Increased Productivity - Mentors assist mentees in aligning their goals with the broader objectives of the organisation, contributing to overall productivity and success. Learning from a mentor's experiences can also help mentees avoid common pitfalls and achieve their goals more efficiently.

• Diversity and Inclusion - Mentorship can contribute to diversity and inclusion by connecting individuals from different backgrounds and fostering a culture of support and understanding.

• Succession Planning - Organisations benefit by developing a pipeline of talented individuals who are groomed for leadership roles through mentorship programmes. Mentorship also helps to pass on institutional knowledge and expertise from experienced employees to newer generations, ensuring continuity within the organisation.

• Mutual Learning - While mentors share their knowledge, mentees can bring fresh perspectives and ideas, creating a dynamic exchange of knowledge and fostering a culture of continuous learning.

By connecting experienced individuals with individuals who are eager to learn, mentorship programmes can play a crucial role in professional and personal growth as well as in creating a supportive environment that enhances skills, builds relationships, and contributes to individual and organisational success.