As the red-hot, post-pandemic labor market begins to cool, some data suggests the number of workers taking on more responsibilities or a new title for the same pay—sometimes referred to as “dry promotions” or “quiet promotions”—is on the rise.
Inflation, high interest rates and flat or sliding sales have more businesses looking to cut labor costs, as previously reported by USA TODAY.
Job openings and hirings have dropped roughly 35% from their pandemic-era peaks, according to the Bureau of Labor Statistics, leaving some companies to turn to existing staff to manage tasks after an employee leaves—sometimes without a pay bump, according to surveys.
Thirteen percent of surveyed companies said they were using new job titles to recognize or reward employees when funds for raises were limited, up from 8% in 2018, according to a 2023 survey from compensation consulting firm Pearl Meyer. Rebecca Toman, vice president of the firm's survey business unit, said those new titles may or may not come with more duties.
"Titles are a way to do many things—attract employees, retain them, provide job satisfaction. And it’s really interesting to see that titles are being used in lieu of pay increases," Toman said.