The Impact of Dry Promotions on Employees

In Corporate world its appraisal season, its reflection of evaluation and reflection of both employers and employees. This year started off with mass layoffs, jobs getting automated, AI was threating livelihoods and global economy is struggling due to wars in middle east and Europe. In the middle of all this every employee had just one question will they get a good salary hike for all the hard work they have done. In a new study it is found that companies in India will be giving an average hike of 9.5% compared to last year 9.7%. This slight dip is due to shifting business sentiment. Naturally, a lot depend on your industry like engineering firm and Fintech industry will be seeing a greater pay hike compared to e-commerce and startups. While Indian startups were used to double digit raises but this year they may have to settle for less. This might be heart breaking news for some people but for some people it is still a better situation to be in. In many organizations a new controversial trend ‘Dry promotion’ in the appraisal process is emerging.

Dry promotion simply means new designation, new additional responsibilities often at a higher level but with the same salary. The new corporate trend has left many employees in frustration, affecting their job satisfaction, engagement, and overall well-being. Recently, a report by compensation consultant Pearl Meyer revealed that more than 13 per cent of employers chose to give their staff new job titles instead of a hike in salary. In 2018, this number was only 8 per cent, reported The Wall Street Journal.

One of the most significant effects of dry promotion is its impact on employee job satisfaction. When employees are given increased responsibilities or higher-level tasks without the corresponding rewards, it can lead to feelings of frustration, disillusionment, and demotivation. Employees may perceive such practices as unfair or exploitative, especially if they believe that their efforts are not being appropriately recognized or rewarded.

Employee motivation and engagement are closely tied to the perceived fairness and transparency of an organization's promotion practices. Dry promotion can erode employee motivation by creating a disconnect between effort and reward. When employees believe that their hard work and dedication are not being acknowledged through formal promotion processes, they may become disengaged and less committed to their roles.

To effectively counter the negative effects of dry promotion, organizations must ensure transparency, fairness, and effective communication in their promotion process. Clear guidelines and criteria for promotion should be established and should be communicated with the employees. Also, ensuring that employees understand the pathways for career advancement and are rewarded appropriately for their contributions. Organizations should make it a regular practice of evaluations and feedback mechanisms to ensure that employees receive constructive guidance on their development. This can help identify high-potential employees and provide them with the necessary support to progress in their careers.

Furthermore, encouraging a culture of recognition and appreciation is essential to navigate through the adverse effects of dry promotion. Organizations should highlight employees' achievements and contributions, regardless of their formal title or position. This can significantly boost morale and motivation which will ultimately lead to a positive work environment where employees feel valued and supported.

In times of global instability and conflict, organizations may face constraints on resources, budgets, and managerial capacity, leading to inability to provide proper promotions which might be appropriate with increased responsibilities. This can eventually lead to feeling of frustration and discontent among employees who are tasked with higher-level responsibilities without equal level of recognition or career advancement. By addressing the underlying causes and consequences of dry promotion, organizations can cultivate a work environment that encourages growth, fairness, and employee engagement. Ultimately, promoting transparency, fairness, and recognition in promotion practices is essential to building a motivated and high-performing workforce.