Moneycontrol News May 2, 2024
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Corporates around the world have now found a new way to retain talents, and also their salary budgets. The phenomenon, known as “dry promotion”, has emerged, which cuts the bargaining power of employees, said experts.
In dry promotion, companies give promotion and additional responsibilities to their employees but the salary remains the same.
According to a new report by compensation consultant Pearl Meyer, there has been a surge in such cases with around 13 percent of the employees getting promotions without any increase in salary.
A rising number of employers are allocating smaller part of their 2024 salary budgets for promotion-related salary hikes compared to what it was in 2023, showed a survey of 900 companies by benefits-advisory firm Mercer.
Unsurprisingly, this has not been well received the employees. Experts say that firms believe this will help motivate the employees, which will secure talents.
But, employees can feel undervalued and overworked and start looking for another jobs experts say.