Just after Kay transitioned to a new position at an online retail company in the autumn of 2023, she quickly found herself overwhelmed with new tasks.

Kay, who requested anonymity to protect her job security, was initially informed that her role would involve managing customer service representatives as a team lead. However, due to rapid advancements in AI like ChatGPT, her responsibilities evolved into a demanding role focused on automating customer support processes.

She mentioned that her new tasks impact the company significantly, and the pressure has escalated. The one constant? Her salary remains unchanged.

While Kay did receive a bonus this year, her base salary has not increased. She has started looking at job listings with similar responsibilities, discovering positions that offer two to three times her current pay.

“I certainly feel burnt out,” she shared with YSL News. “I’m actively seeking and applying for different roles.”

As the post-pandemic job market begins to stabilize, there are indications that more employees are facing increased responsibilities or receiving new titles without a corresponding salary increase—referred to as “dry promotions” or “quiet promotions.”

“Companies are becoming more innovative in how they motivate and reward their employees, especially those facing budget constraints,” observed Eric Anicich, an associate professor of management at USC’s Marshall School of Business. “While this can be inspiring for some employees, companies risk exhausting their staff over time.”

Understanding the Dry Promotion Trend

Factors like inflation, rising interest rates, and stagnant sales have prompted many businesses to find ways to reduce labor costs, as reported by YSL News.

According to the Bureau of Labor Statistics, job postings and hiring activity have plummeted about 35% from their peak during the pandemic. As a result, some companies are asking existing employees to take on additional tasks left by departing colleagues, often without any salary increase as indicated by various surveys.

In a 2023 survey conducted by compensation consulting firm Pearl Meyer, 13% of companies stated they were implementing new job titles to acknowledge or reward employees when budget limitations prevented salary increases. This is an increase from 8% in 2018, highlighting a trend where new titles may not always come with additional work.

Rebecca Toman, a vice president at Pearl Meyer, noted, “Titles can serve multiple purposes—attracting talent, retaining staff, and boosting job satisfaction. It’s fascinating to see how titles are replacing pay raises.”

Young professionals are reportedly experiencing this trend more acutely, with 33% of Gen Z employees and 18% of millennials reporting they received a promotion without a salary increase in the past year, compared to only 7% of Gen X and just 3% of baby boomers, according to a March survey by staffing and recruiting firm Robert Half Inc.

“For a long time, many employees were handling multiple roles. Since COVID, the pressures have significantly increased,” said Janis Petrini, who owns an Express Employment Professionals franchise in Grand Rapids, Michigan, which connects candidates with potential employers. “There’s been a lot of talk about feeling overwhelmed, exhausted, or needing additional support.”

A spring Harris Poll for Express Employment Professionals found that financial constraints have led to more limited hiring plans, with 68% of hiring managers saying they would address a smaller workforce by upskilling employees for their current or future roles, as detailed by YSL News.

While dry promotions might save companies money, they pose a risk for employee retention. According to a 2023 report from ADP, 29% of employees left their jobs within a month of receiving their first promotion. Some of this can be attributed to those receiving dry promotions leveraging their new titles to seek higher-paying opportunities elsewhere.

“When you offer these promotions, you’re enhancing employees’ marketability,” noted Lauren Mason, U.S. career workforce solutions leader at consulting firm Mercer. “They gain a new title and potentially new responsibilities, making it easier for them to negotiate a pay increase externally.”

Responding to a Dry Promotion

Only 30% of American workers report being very satisfied with their pay, a drop from 34% the previous year, based on an October survey from Pew Research Center involving over 5,000 employed adults.

Workers who are dissatisfied often cite that their compensation doesn’t keep pace with living costs (80%) or that their salary is inadequate for the quality (71%) or volume (70%) of work they perform. Furthermore, 54% state they don’t earn enough to cover their bills, according to Pew Research Center.

Anicich from USC’s Marshall School of Business stated it is “reasonable” for employees to decline additional responsibilities if there is no salary increase. However, discussing a dry promotion with a manager could be beneficial, especially if there is an indication that this might lead to a future pay increase.

Consider securing a commitment, preferably documented, to review your compensation in three or six months, based on what is fitting. Additionally, it’s essential to understand the organization’s viewpoint on why this promotion is termed a “quiet promotion” rather than a standard promotion,” suggested Anicich.

If a salary increase or benefits such as flexible working hours aren’t available, he noted that the updated job title might serve as a valuable addition to your resume, aiding you in seeking higher-paying job opportunities.