Imagine working hard to prove you can do higher-level work so you can be promoted. You cover for your manager when they are on vacation. You write the guidelines and processes that the team uses to ensure consistency and effectiveness. You are the “go to” person for challenging issues and you train the new hires that join the department.
You have received “above expectations” performance ratings for the last three years.
Your manager leaves the company, and you apply for their job. After interviewing and waiting for weeks you learn you are promoted. (Yes!) But you learn that the promotion does not come with a base pay increase. (You realize this is a dry promotion.)
Your current base salary is within the pay range of the new job. HR tells you that your pay isn’t going to be increased to match the additional responsibilities you will be performing. You will receive a 3% increase to your bonus target. It is going from 12% to 15%. They try to make you feel great about that change while not focusing on how your base pay stays the same.
What do you do?
1. You say yes to the promotion. You get the higher job title, and you immediately update your resume and LinkedIn profile. You know you are more valuable to other employers now because your current employer is taking advantage of you. You start looking for a new job.
2. You say no to the promotion. You continue to do your current job, but you stop doing extra work or trying to go above expectations. You know now that the additional productivity, projects, and results you delivered aren’t going to lead to more money. You start looking for a new job.
3. You question HR when they say that there is no increase in your base pay. You make them uncomfortable. They fumble and can’t adequately explain why you’re getting a dry promotion. You talk to the leader you would have reported to in the manager level job and ask them why you are getting a dry promotion. They are obviously uncomfortable and can’t justify the decision. You tell them you are disappointed. HR and the leader talk about the situation and decide to give you a small increase of 2% to your base salary. They tell you this and are pleased that they were able to get you this exceptional increase. You say thank you. But you also know you are being taken advantage of. You start looking for a new job.
If you are a leader, in HR or compensation and doing dry promotions, stop. It’s ridiculous. Your employees will never forget the conversation. You are encouraging great employees to look for a new job.
Employers: This doesn’t enhance your Employer Value Proposition. Employees who get a dry promotion will tell others what you did and how it made them feel. Your ability to attract and retain the talent you need will be hurt.
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