Dry promotions at work have risen by 32%, here's what you need to know

By Kirstie McDermott

First, the good news. Promotions are on the rise in the U.S.

Now, the bad news: an increasing number of these career progressions are actually falling into what has been dubbed a "dry" promotion.

This, according to a Korn Ferry report, is a practice where people are elevated without any pay raise. Its survey found that 37% of firms handed out dry promotions last year.

That's an increase from 32% in 2021, and is "a trend that is likely to continue," according to Brian Bloom, vice president of global benefits and mobility operations at Korn Ferry.

But where companies put forward the argument that dry promotions are a way to reward and recognize employees by giving them professional development opportunities, workers tend to feel a bit differently.

According to the 2023 Crowe Bank Compensation and Benefits Survey, officer-level turnover increased for the second year in a row, up from 3.2% in 2021 to more than 6.5% in 2023.

And when asked why they were leading, 44.6% said it was due to a lack of career development, with 42% citing inadequate total compensation.

"If financial institutions could start to focus on career-development plans for their employees, maybe it would help with turnover," says Stephanie White, a financial services consulting senior manager at Crowe.

Saying no
So what can you do if a request for more money or better benefits is answered at management level by an offer of a better title and more responsibilities, but no more cold hard cash?

Firstly, do some clear-eyed research. For some short-term pain, explore if you can leverage this for the benefit of your future career. For example, will this dry promotion give you face-time with leadership, decision makers, and the C-suite?

Explore if there are any other benefits you can ask for in lieu of a salary bump. Will the company give you extra vacation days, or more flexibility to work from home?

If nothing except a heaping load of extra work is forthcoming, you can refuse a promotion, awkward as that might be. Professionally state why you don't want to accept under the current terms and explain what you'd need in order to move to that level of responsibility.

You may also decide that your position at your firm is no longer tenable, and if that's the case then you'll need to start a job hunt. The best place to begin is on the American Banker Job Board. It contains thousands of open banking roles, like the three below.

Investment Banker - Leveraged Finance, ubs, New York
Ubs is seeking a Director (VP) to work in its Leveraged Finance team in New York. This team is responsible for originating, underwriting and syndication of debt transactions for corporate and sponsor clients.

You'll play an important role in advising clients on a range of market and strategic matters, including assessment of capital structure alternatives and financing options.

Among other tasks, you will lead all phases of the deal process including due diligence, financial modeling, drafting internal credit memos, rating agency and investor presentations, and assess and analyze credit risk as the first line of defense.

A good understanding and hands-on exposure to assessing credit risk, experience working within credit risk control or leverage finance in investment banking, and a Bachelor's degree or equivalent in finance, economics, business administration, or a related field, are among the requirements needed. Apply for this position.

Compliance Risk Advisory Senior Compliance Officer, Origin Bank, United States
As the Senior Compliance Officer at Origin Bank, you'll support the Compliance Risk Management Team's Advisory Services Group, advising on the first line of defense operational and retail business units on compliance risks impacting their day to day operations.

You will monitor adherence to compliance risk tolerances, monitor third party vendor risks impacting consumer compliance and review policies and procedures to ensure compliance with regulatory expectations as well as internal compliance risk tolerances.

Responsibilities will also include performing complex regulatory research and analysis and assessing regulatory risks and adequacy of operating policies, procedures and processes.

Seven years' of compliance management experience and prior compliance experience at a large bank subject to direct CFPB oversight and supervision is preferred. See all the details here.

Private Wealth Investment Management Specialist, Bank of America, Boston
As a Private Wealth Investment Management Specialist at Bank of America, you will be responsible for supporting the overall investment management philosophy, through executing on portfolio analysis and sharing expertise in a wide range of investment product areas.

You will ensure risk profiles, goals, objectives and asset allocations are aligned and reflected properly for each client, delivering a full range of investment products and services across the enterprise ensuring alignment to client goals and strategies while leveraging specialists and applicable investment management tools where appropriate.

You'll also partner with internal specialists to deliver holistic investment solutions by identifying targeted investment strategies, and assist in the preparation of client performance review reports to measure progress to goals.

To apply, you'll need either Series 7 and 66 licenses or Series 7, 63, and 65 licenses and you must obtain all state registrations held by the financial advisors and advisor teams they support. Get the full job description now.

Find your next fulfilling job on the American Banker Job Board right now