Congratulations — you got the promotion (or got the pleasure of giving it to a worthy employee).

The caveat: No raise.

It’s a dry promotion — promoting an employee without giving a pay raise — and it’s a growing trend in the workplace.

But dry promotions aren’t just an evil employees have to endure — or a cheap ego stroke HR pros and managers will feel like they have to hand out. They have pros to balance the cons.

Costs & Dry Promotions Rise
What’s interesting is that dry promotions aren’t new to the working world. But they’re on the rise as the cost of staying in business is up, and more companies are tightening the payroll belt.

In fact, many businesses will devote less of their 2024 salary budgets for raises tied to promotions, a Mercer survey found. In some cases, companies rely on job titles as the way to attract and retain employees.

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