‘Dry promotions’: Warning as employees report rise in sneaky work trend

We are just a few days into the New Year, and already employees are being warned to watch out for a sneaky work trend that has been on the rise.

As many Australians begin to head back to work after the Christmas and New Year break, a warning has been issued about a sneaky work trend that has been on the rise in recent months.

Throughout 2024 we saw a big shift in workplace dynamics.

The post-pandemic period that saw employees retain a lot of bargaining power came to an end, prompted by the worsening cost-of-living crisis a and a growing fear of job cuts.

This saw the power shift in favour of employers.

One of the major ways we saw this change in dynamic play out was the growing push to get workers back into the office.

But Aussie workers have also noticed another consequence of this change, and it’s a trend that’s likely to continue popping up in 2025.

Aussies have been warned about a sneaky new work trend that has been on the rise in recent months. Picture: iStock

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Recent polls conducted by Australian company people2people Recruitment have highlighted the growing concern around “dry promotions”, which is where employees are given increased responsibilities but no corresponding salary increase.

Of those surveyed, 23 per cent reported seeing a colleague promoted without a salary increase in the past 12 months, a further 16 per cent revealed they had personally experienced such a “promotion”.

Of the respondents, the majority were unimpressed with this trend.

“More responsibility means more money. Simple, really,” one worker said.

Another claimed that if they accepted a promotion without a pay rise, they’d leave for a better-paying company within six months.

Speaking to news.com.au, Erin Devlin, people2people Recruitment Managing Director, said it is possible people may feel pressured to accept these dry promotions due to the current economic climate.

“In the current economic climate, where financial concerns remain a key stressor for many employees, job security can become a driving factor for accepting dry promotions,” she said.

According to the survey, 40 per cent of employees viewed skill development as a primary reason for accepting such promotions.

However, Ms Devlin also noted that staff may “feel cornered” into taking on these roles due to rising living costs and a perceived lack of alternative options in the market.

While she believes there are some cases where dry promotions might be “acceptable”, she warned there are significant risks associated with going down this path.

Resentment and demotivation were reported as common outcomes from employees who accepted these types of offered, which can severely impact productivity and employee retention.

Budget constraints is often the main excuse given by employers when asking a worker to take on extra responsibility without monetary compensation.

If this is the case, Ms Delvin said employers should provide a “clear and mutually agreed upon timeline” for when financial recognition or other benefits will follow.

There are risks associated with offering employees dry promotions. Picture: iStock

People2people Recruitment’s survey indicated that promises of future pay rises were commonly associated with dry promotion offers, but employers have been warned that these promises must be kept if they want to maintain trust with their staff.

Ms Devlin noted employers could also offer significant alternative benefits to make up for the lack of salary increase, such as flexible working arrangements or professional development opportunities.

“For employees early in their career, the chance to gain experience in a higher role can be seen as a stepping stone. However, this should always come with a commitment to future compensation or promotion,” she said.

“Employers must tread carefully, as repeated reliance on dry promotions can erode trust and lead to higher turnover.”