What to do about a "Dry Promotion"

We have worked with clients in situations where they are offered a “quiet” or “dry” promotion -  meaning being offered a new role with greater responsibilities and/or a change in title, but no corresponding increase in salary or benefits.  Of course, the question is “What should I do about this?”

We recommend you weigh all the pros and cons of each particular situation, as there could be good reasons for accepting a dry promotion, for example:

-          The increase in title and authority in the new role will better position you for higher-paying, more senior-level positions elsewhere;

-          The new role gets you greater exposure to higher levels of management within the company, increasing your name recognition and future promotional opportunities;

-          The new role enables you to expand your skill set and leverage broader future job opportunities in industries/sectors beyond your current capabilities.

That said, we almost always recommend that our clients research comparable pay data for the role they are being offered, and if that data shows they will be underpaid in the new role, we work with them to develop persuasive strategies to try to increase aspects of their overall total compensation as part of the dry promotion.  Clearly the company has confidence in your ability to do the job, or you would not have been selected for the opportunity. That makes them motivated to at least listen to what you have to say about compensation and benefits moving forward.

For example, if you are effectively doing the job of two people, even though the company says it cannot pay you the full base salary for both roles,  you are certainly merited in making a case to quantify the value you have already brought to the table, and how in light of the comparable pay data within your industry, an increase in your overall compensation of XX% is justifiable in light of the benefits you will bring in the future - and the great financial deal this still is for the company.  By making the case for an increase in “overall compensation,” that gives both parties breathing room to explore options beyond just the base salary.

If the company is truly tight on money, you can negotiate for the pay increase to take place within a few months of starting the role, or upon the achievement of certain milestones.  Alternatively, if the base pay cannot be increased, we have successfully negotiated for increased bonus opportunities, (including milestone bonuses), more equity or profit sharing, more paid time off, and even for more resources to help you succeed.

In short, there are many ways to sweeten a deal even if the company initially tells you that, “there is no money.” Creative strategies can save the day!