Employers warned that relying on dry promotions can lead to resentment
Nearly four in 10 employees in Australia have witnessed or experienced "dry promotion" in the workplace, according to new data.
Dry promotion refers to a situation where an employee receives a new title or gets additional responsibilities without seeing a pay increase.
A recent survey from people2people Recruitment, as reported by news.com.au, found that 23% of employees witnessed a colleague receive a dry promotion over the past year.
Another 16% said they experienced this personally, with 40% of them attributing the decision to skill development.
Erin Devlin, managing director of people2people Recruitment, said employees may be accepting dry promotions because they "feel cornered" by rising costs and job security.
"In the current economic climate, where financial concerns remain a key stressor for many employees, job security can become a driving factor for accepting dry promotions," Devlin said as quoted by news.com.au.
But she also warned employers that handing out dry promotions may lead to resentment and demotivation in the workforce.
"Employers must tread carefully, as repeated reliance on dry promotions can erode trust and lead to higher turnover," Devlin said.
According to Devlin, employers planning to hand out dry promotions should provide staff with a clear timeline on when the financial gains would come.
Offering alternative benefits may also be helpful. A report from Robert Half last year revealed that 59% of employees would accept a promotion if it came with a bonus or revenue sharing.
Another 59% also said they would accept a promotion if this meant getting more flexibility when it comes to working hours. Other alternative benefits that they preferred aside from higher salary include:
Nicole Gorton, director at Robert Half, said employers unable to offer a financial incentive during promotion should openly communicate it.
"By engaging in transparent discussions about alternative rewards, employers can demonstrate their commitment to employees' long-term success and job satisfaction, reducing the risk of losing talented individuals over compensation concerns," Gorton said in a previous statement.
