NEW DELHI: The emergence of Artificial Intelligence (AI), particularly in the post-pandemic years, has pushed big multinationals and startups to rejig their work structure in accordance with the evolving trends, one such step being the ever-despised layoffs.
While layoffs continue to serve as grim reminders about the flaky global job market, a new phenomenon called “dry promotion” has become a part of corporate corridor discussions.
Dry promotion means elevating an employee’s position in the company without a monetary hike. This implies a change in title, more workload, and increased responsibility without a raise in salary.
Compensation consultant Pearl Meyer‘s recent report has revealed that more than 13% of employers chose to give their employees new job titles instead of money. This number was only 8% in 2018, reported the Wall Street Journal.
Also, a recent survey conducted by Mercer, a benefits-advisory firm, involving 900 companies revealed a shift in the allocation of salary budgets for promotions in 2024 compared to the previous year.
The data indicates a decreasing trend in promotion-related hikes, signaling a potential impact on employee satisfaction.
Experts see this change as a reflection of the weakening bargaining power of the average worker. The current scenario, characterized by cost-cutting measures, has led to a rise in dry promotions, where employees are given added responsibilities without a corresponding increase in compensation.
This shift contrasts with past practices of offering raises to retain staff during labor shortages.
“A promotion with no salary increase in not a promotion. It is actually a demotion because you are being required to do more or have more responsibility without getting compensated for it. If your company is doing this, it’s time to look for another job,” wrote a user on Reddit.
In the first two months of 2024, the technology industry has grappled with a wave of layoffs as companies prioritize efficiency over growth in response to challenging market conditions.
The job cuts, which began in 2023 with over 250,000 positions eliminated, have continued into the new year. Till March the industry saw around 50,000 roles eliminated across significant tech giants, according to tracking site layoffs.
While layoffs continue to serve as grim reminders about the flaky global job market, a new phenomenon called “dry promotion” has become a part of corporate corridor discussions.
Dry promotion means elevating an employee’s position in the company without a monetary hike. This implies a change in title, more workload, and increased responsibility without a raise in salary.
Compensation consultant Pearl Meyer‘s recent report has revealed that more than 13% of employers chose to give their employees new job titles instead of money. This number was only 8% in 2018, reported the Wall Street Journal.
Also, a recent survey conducted by Mercer, a benefits-advisory firm, involving 900 companies revealed a shift in the allocation of salary budgets for promotions in 2024 compared to the previous year.
The data indicates a decreasing trend in promotion-related hikes, signaling a potential impact on employee satisfaction.
Experts see this change as a reflection of the weakening bargaining power of the average worker. The current scenario, characterized by cost-cutting measures, has led to a rise in dry promotions, where employees are given added responsibilities without a corresponding increase in compensation.
This shift contrasts with past practices of offering raises to retain staff during labor shortages.
“A promotion with no salary increase in not a promotion. It is actually a demotion because you are being required to do more or have more responsibility without getting compensated for it. If your company is doing this, it’s time to look for another job,” wrote a user on Reddit.
In the first two months of 2024, the technology industry has grappled with a wave of layoffs as companies prioritize efficiency over growth in response to challenging market conditions.
The job cuts, which began in 2023 with over 250,000 positions eliminated, have continued into the new year. Till March the industry saw around 50,000 roles eliminated across significant tech giants, according to tracking site layoffs.