Recently, a colleague at work shared the news of their promotion. They were excited that their title changed from 'Manager' to 'Senior Manager,' and I congratulated them, but their paycheck showed no changes at all.

In the industry, this situation is referred to as a 'dry promotion.' The title and responsibilities increase, but there is no accompanying salary raise; it is literally a promotion in name only.

This trend aligns with the 'quiet hiring' strategy identified by the research firm Gartner as a major HR trend in 2023. Instead of hiring new people, companies are reallocating existing employees' roles and responsibilities to fill necessary skills, and dry promotions are one of the easiest cards to play in executing this strategy.

According to a survey by the global consulting firm Korn Ferry, as of 2023, 37 percent of companies have implemented such dry promotions. This is a steady increase from 32 percent in the early 2020s.

Similar findings were reported by the compensation consulting firm Pearl Meyer. The percentage of companies that responded that they compensate employees with titles instead of salary when funds are tight rose from 8 percent in 2018 to 13 percent in 2023.

The same survey also revealed differences based on company size. For companies with revenues between $300 million and $1 billion, the percentage using titles as a compensation method increased sharply from 14 percent in 2018 to 40 percent in 2023, while for companies with revenues under $300 million, it rose from 10 percent to 35 percent.

There is a significant generational gap as well. In the same survey, the percentage of Gen Z employees who experienced a dry promotion in the past year was 33 percent, while it was 18 percent for Millennials, 7 percent for Gen X, and only 3 percent for Baby Boomers.

This suggests that younger employees, who are just starting to build their careers, are more frequently exposed to this tactic. They may be more excited about the word 'promotion' itself, making them easier to negotiate with from the company's perspective.

In reality, such promotions often only expand the scope of responsibilities. The number of team members managed may double, or they may take on an entire new project, but the budget or additional personnel to accomplish that work remains unchanged.

It is also important to hear the employer's side. A survey conducted by the hiring platform Resume Templates in October 2025 among 1,000 corporate managers found that 23 percent admitted to changing the titles of some promoted employees without a salary increase.

With the economy not as hot as before and job changes being less frequent, companies have less incentive to spend more money to retain employees. With tight budgets and a cooling job market, it is understandable that they would first pull out the cheap card of titles.

Employees' perceptions are much more realistic. A survey by the resume writing service My Perfect Resume in August 2025 found that 92 percent of American workers believe companies create the illusion of growth through titles, and 91 percent see those titles as a means to effectively avoid salary increases.

In the same survey, 39 percent reported having received a higher title without an actual salary increase. Fifteen percent said they accepted a lower salary in exchange for a more appealing title, indicating that using titles as a negotiation tool is not uncommon.

Of course, titles are not entirely useless. Having a higher title on a LinkedIn profile or resume can make one stand out to recruiters at other companies and can serve as a basis for negotiating a higher salary in future job searches.

There is no federal regulation in U.S. labor law that requires a salary increase upon promotion. Unless there is a separate contract or union agreement with the company, the amount of any increase when changing titles is entirely at the company's discretion.

Therefore, when receiving a promotion offer that only involves a title change, it is more appropriate to ask questions than to simply express gratitude. Requesting a written confirmation of when and how much the salary will be adjusted is not an unreasonable request.

Experts commonly recommend a phrase like, 'I would like to take on this role, but can we also discuss the salary increase?' This approach allows for a natural conversation about compensation without outright rejecting the promotion offer.

If the response is that a salary increase is truly difficult, it may be worth exploring other conditions. Asking for a few more paid vacation days, increasing remote work days, or requesting the company cover costs for training or certification programs are all reasonable items to bring to the negotiation table.

If you hear that a salary adjustment is not possible at the moment, it is wise to at least set a timeline for reconsideration. Whether it's three months later or the next budget season, confirming a specific date provides a basis for revisiting the conversation at that time.

Simply trusting vague promises of 'we'll do better next time' may leave the gap between title and salary unchanged for years. In fact, the newly acquired title may be useful on a resume, so if negotiations stall, it might be worth reassessing your market value outside.

Personally, I find the term dry promotion quite ironic. It's like changing the frame beautifully while leaving the picture inside unchanged; demanding to fill that frame is not a shameful act but a rightful claim.