The Dry Promotion: What is It? Should Leaders Offer It? And Should Employees Accept It?

“Congratulations, we’re giving you a promotion. Unfortunately, we’re not able to give you a raise to go along with it.”

Talk about mixing good news with the not-so-good. If your manager says this, you’ve just been offered a dry promotion: A new title, role and responsibilities to take on without a corresponding bump in compensation.

Organizations may be eager to recognize top performers so they acknowledge their work with a new job title. Financial or timing reasons may prevent them from offering a corresponding raise: Perhaps sales have been slow but several new clients are expected to sign shortly, for instance.

Is this an ideal situation? Not really. Offering a promotion is great but the new title often comes with bigger responsibilities, a larger team to lead or some difficult problems to solve. Your team member is likely to question why this isn’t worthy of a raise. In some cases, the newly promoted individual may check the open market to see what type of compensation other organizations offer for this role. As a result, your dry promotion could result in a resignation.

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Clear, two-way communication is critical to present this dry promotion news in the best light. Your words plus your non-verbal cues are important, as is your ability to listen to the employee’s questions and address them.

If you’re an employer offering a dry promotion, it’s critical to answer three questions:

Why am I offering this promotion without a raise?

When will I be able to give the raise? And, will it be retroactive?

What's in it for the promoted employee (e.g., why accept the promotion if there's nothing in it for them)? Can you offer other perks like a one-time bonus, extra vacation time, more training or conference travel? Also, think about giving the person more visibility or mentorship with senior leaders. Be as specific as possible.

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Figuring out if you should accept a dry promotion will depend on your specific situation: Are you happy at the organization? Do you have a good relationship with your manager? Do you see solid prospects ahead for your career and the firm’s growth? The good news is the organization believes in you and wants to recognize you.

Be sure to ask about the three Ws listed above. If your manager doesn’t offer an interim benefit to you or cannot offer a financial one, ask for more vacation or flexibility. And be sure to get the details of your conversation in writing, including the point of whether the raise will be offered retroactively to the official date of promotion.

Dry promotions are not easy to navigate, but open communication can improve the likelihood of a positive outcome for both the employee and manager. Know that recognizing top talent is essential to building morale and retention, and your best team members understand budget constraints. At the same time, no one wants to take on more work without a concrete plan and timeline for how they’ll be compensated for it.

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