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.

Upskilling. The answer to imposter syndrome?

A new survey from Reed has shown that 40% of respondents suffered from self-doubt or ‘imposter syndrome’ at some point in their career with 38% having had feelings of being out of their depth or of being inferior to their colleagues. The survey of over 2,000 UK workers and 250 UK employers also identified that imposter syndrome was more common among women (45%) and young people (53%), compared to 33% of men.

It also suggested that one of the ways to deal with importer syndrome was the use of upskilling to address personal barriers and enhance career progression. 67% of respondents expressed a willingness to consider this at some point, with 87% of 18-24, keen to explore this avenue. There were however potential obstacles with 30% of respondents citing cost as a barrier, a figure that rose to 36% percent among young people and 25% feeling finding dedicated time for upskilling would be problematical.

Impostor Syndrome is often deeply rooted in an individual’s mindset and self-perception. It often strikes at moments of success – a new job, promotion, or additional responsibilities - and can lead to people experiencing feelings of doubt about their skills, talents, or achievements.  They can also feel that they don’t deserve their success, that what they’ve achieved is down to luck, good timing or just being in the right place at the right time and that they'll be exposed as a fraud.

Upskilling can help with imposter syndrome by boosting confidence and self-esteem and building the expertise and competence that can combat the feelings of inadequacy often associated with imposter syndrome. It can also provide evidence of personal and professional growth with the recognition gained from peers and managers reinforcing a sense of belonging and legitimacy.

However, whilst bolstering competence, confidence, and recognition can be a valuable tool in overcoming imposter syndrome, it’s also essential for an individual to address their external achievements and underlying beliefs. Self-acceptance, a recognition of their potential and the ability to take ownership of their achievements are all essential in overcoming imposter syndrome.