Business Education

How the Rise of ‘Dry Promotions’ Gives Small Business Owners Big Opportunities

Remember the iconic scene in the 1980 comedy “Caddyshack” when Bill Murray’s character – Carl Spackler – reminisces about caddying for the Dalai Lama and not getting paid for his extra effort?

“And I say, ‘Hey, Lama, how about a little something, you know, for the effort?’ And he says, ‘Oh, there won’t be any money, but when you die, on your deathbed, you will receive total consciousness. ‘ So I’ve got that going for me … which is nice.”

It’s a funny exchange and of course, the punchline is that Murray’s character isn’t monetarily rewarded for his hard work but he thinks the empty promise is more valuable.

Now, imagine this. You work for a company. You put in the hours and effort and you’re finally given a chance to be promoted. Then, your boss invites you into his office. Before you know it, he’s offering you a bump in your title, which comes with more responsibilities. But, he goes on to explain there won’t be any raise in pay or benefits. You’ll be paid the same amount and receive the same benefits. You’re just getting a new title that comes with a lot more work.

Meet the “dry promotion.” Recent findings indicate that this practice is increasingly common as businesses grapple with financial constraints. According to a survey conducted by compensation expert Pearl Meyer, the percentage of employers choosing to bestow new job titles as a form of reward, rather than monetary compensation, has risen from 8% in 2018 to 13%, as reported by The Wall Street Journal.

The Rise of the ‘Dry Promotion’

“Dry promotions” are on the rise for several reasons. One is that companies are looking to control costs and are using promotions without salary increases as a way to reward and retain employees without increasing payroll expenses. This is especially relevant in the current economic climate where businesses are facing cost pressures.

Another reason is that some employees may view a promotion, even without a raise, as an opportunity to gain new skills and responsibilities that can enhance their future earnings potential. In this sense, a dry promotion can be seen as an investment in their long-term career growth.

However, there are also potential downsides to dry promotions. They can lead to employee dissatisfaction if the additional responsibilities are not accompanied by a corresponding increase in compensation. This can result in retention issues if employees feel undervalued or underpaid.

So while dry promotions may be a cost-effective way for companies to reward and retain employees, they need to be managed carefully to ensure they do not have unintended negative consequences.

How Small Businesses Can Benefit from Dry Promotions

Think about that last point for a moment. Dry promotions require employees to take on more work without being compensated. As a result, employees might feel undervalued and resentful if they’re expected to take on more responsibility without any additional pay. If companies aren’t careful, they might end up losing talented employees who decide to take their skills elsewhere in search of a better paycheck.

So, while dry promotions might seem like a win-win situation on the surface, there’s a lot more to consider. It’s a delicate balancing act for companies to keep their employees happy and their bottom lines healthy. So, this also presents an opportunity for small businesses. Small organizations can benefit from larger companies offering dry promotions in several ways:

Access to skilled workers. Larger companies often attract top talent due to their brand recognition, resources, and career development opportunities. When these companies offer dry promotions, it means they are giving employees more responsibilities and titles without a corresponding pay increase. This can lead to dissatisfaction among the promoted employees, making them more likely to seek new opportunities elsewhere. Small businesses can then attract these skilled workers by offering competitive salaries, a better work-life balance, or a more supportive work environment.
Cost-effective hiring. Hiring new employees can be a costly process for small businesses, as they need to invest in recruitment, training, and onboarding. By attracting employees from larger companies who have received dry promotions, small businesses can reduce these costs. These employees come with experience, skills, and training, which can be a significant advantage for small businesses looking to grow.
Increased employee retention. Small businesses can use the opportunity to offer better compensation and benefits packages to the skilled workers they attract from larger companies. This can help increase employee satisfaction and retention, reducing the costs associated with employee turnover.
Enhanced company reputation. When small businesses successfully attract skilled workers from larger companies, it can enhance their reputation and attract more customers, clients, and investors. This can lead to increased revenue and growth opportunities for the small business.

In addition, small businesses can gain the advantages of improved innovation and competitiveness. Skilled workers from larger companies often bring fresh ideas, industry knowledge, and a diverse set of skills. By integrating these employees into their workforce, small businesses can improve their innovation and competitiveness in the market.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at (602) 541-1760, or, if you prefer, Waters Business Consulting Group to learn more about us and the services we offer.

Like this article?

Key Reasons Businesses Experience High Employee Turnover

November 18, 2021 No Comments

High employee turnover is practically normal in some industries. These are mostly entry-level positions, where people only stay for a short time. But, since the global pandemic outbreak and shutdowns, followed by the reopenings, more and more companies have experienced unusual amounts of employee turnover. Although it’s easy to simply blame this abnormality as the source of the problem, there are sometimes underlying issues. It’s just that these remarkably unusual sets of circumstances have finally brought those festering problems to the surface. High Employee Turnover Usually Underscores Underlying Issues High employee turnover may in fact highlight problems within the workplace and not be a reflection of the departing team members themselves. Put another way, it’s not the employees’ faults necessarily, but something in the way the business is run. This isn’t to say it’s always the corporation’s fault, as mentioned above, some industries experience high rates of employee turnover regularly. However, if you’re running a business that does not hire nearly exclusive entry-level workers, and people are quitting after short periods of time, there are probably some good reasons. Companies often thrive based on the talent provided by their employees. Yet, if a company is faced with frequent turnovers, the efficiency and effectiveness of business operations could suffer. Similarly, those companies that maintain a consistent workforce may be able to grow as a result of their employee base performing consistently. Understanding the causes and effects of turnover can help your company develop strategies and policies to increase the odds of keeping the staff members you value. —Houston Chronicle Small Business One of the most difficult things for owners and entrepreneurs alike to see and understand is where their businesses are falling short when it comes to their employees. Ensuring that employees are well taken care of is just as important as serving customers to the best of your abilities. Since employees are the very lifeblood of your business, they should not only be compensated fairly but treated as vital components of your company. 3 Key Reasons Businesses Experience High Employee Turnover Fortunately, high employee turnover usually comes as a result of at least one of three reasons. If any of these are persistent in your business, it’s probably what’s driving your employees to quit after very short tenures. Here are the most common reasons that businesses experience high employee turnover: Compensation. This is the most obvious and is definitely among the top reasons employees don’t stay with their companies. Unfortunately, this doesn’t just apply to hourly workers, but salaried personnel as well. Paying at the bottom of the industry will practically guarantee that new hires become disaffected in short amounts of time and abruptly quit. Paying at the mid to high level of the industry is one of the best ways to avoid this problem, but that might not be applicable to all situations. Businesses already paying well might also consider little perks and incentives outside of pay, such as extra time off, gifts for meeting goals, and other types of incentives. Management. There’s just about nothing worse than bad management. Even people who are compensated very well will not tolerate bad managers for very long. If management does not treat their staff with the respect and professional courtesy they deserve, individuals will simply find other places to go. Bad management not only drives people to leave but also causes them to perform poorly while they’re at the company. So, take a deep look at the management’s style and execution and make changes if necessary. Culture. Company or corporate culture is also a very important factor in employees staying put. Just like bad management, individuals will not tolerate a toxic culture for very long. Even if management treats them well and they are compensated near or at the top of the industry, toxic culture will eventually erode their loyalty and they will leave the company. Although this is one of the most difficult factors to identify, it is essential that businesses foster a positive company culture in order to get the highest level of camaraderie and productivity from employees. What other suggestions do you have for dealing with high employee turnover? Please take a moment to share your personal experiences and relevant thoughts — it could greatly benefit someone else! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Use Your Past to Build a Better Future

May 16, 2017 No Comments

Mistakes, missteps, adversity, hurt, and failure. All of these are negative experiences, at least, at first impression. We’ve all dealt with heartache and heartbreak, with disappointment and resentment. So many pessimistic experiences and impressions can easily discourage to the point of apathy. It’s choosing another path to deal with such occurrences that’s one of the single most difficult things to do in life, and in business. There’s just no avoiding the fact that mistakes will be made, perhaps even to the extent of leading to outright failure of a company, even for entities that are established and realizing a profit. No matter the size or presence of a brand, it can deteriorate and ultimately flounder to the point of no return. We’ve seen this before in the business world, particularly in giants: Blockbuster Video, Circuit City, Borders Books and Music, Radio Shack, Montgomery Wards, Steak & Ale, the list goes on and on. Use Your Past to Build a Better Future One obstacle to overcome is being creatures of habit. Sure, these definitely differ from person to person, but regardless, remain part and parcel of our day-to-day routines. It’s quite easy to let this phenomenon creep into a business environment, and sometimes, with the best of intentions. Habit (read: practice and procedure) can be a good thing. It can also be a death knell, and when you can’t pinpoint the root cause, make you susceptible to more than one failure. The more clearly you understand your strengths and how they enabled you to get to this point, the more effectively you can leverage them into a bright and fulfilling future. It’s important not to regret the past. Instead, you must appreciate all of your positive experiences and find a way to learn from the negative ones. —Business Insider Our past is part of who we are, but, it doesn’t have to define who we are or what we can become. If you think about it for a moment, your past is one of the most valuable weapons you have in your arsenal leading you into the future. This is so understood, it’s actually become a set of quintessential cliches. We see these motivating messages all the time and get a lift. That feeling subsides and it’s human nature to let the past work its negativity on us. I share with my clients that although my successes are something I appreciate, it is my failures that provided me the learning to excel and help others accelerate their success in less time and less mistakes. Failure is the precursor to success. Failure is an event so do not let it define who you are. Use your past to empower yourself and move forward with your future: Change small things, one at a time. There’s a technique in the world of psychology known as, “solution focused brief therapy.” In short, it works by putting focus on building solutions instead of problem solving. It works in a splendidly simple way: you change one small thing at a time. It could be waking-up 10 minutes earlier, exercising just a little every day, or working on this or that skill. Whatever it is, when you become better at it, you’ll feel a genuine sense of accomplishment. Take-on tasks you regularly avoid. Speaking of exercise, this is one thing many people avoid, though it certainly isn’t the only one. You might not like talking on the phone, going-over or creating certain documents, or some other task. Here again, whatever it might be, incremental change is key. Know and accept your weaknesses. You might not be good at this or that, and that’s perfectly okay. For entrepreneurs, this is a very difficult concept to accept. Being natural self-starters, optimists, and enthusiasts, not being able to excel at something is foreign and frustrating. When you do accept your weaknesses, you’re actually demonstrating your own strength, particularly if you bring-in someone else that has those exact skill sets. Look at yourself through another’s eyes. You probably get compliments from time to time, though these might not be overt. Take stock in each one by accepting them for what they are, and know it’s how the person who gave it truly feels about you. [shareaholic app=”follow_buttons” id=”26833294″]

Successful People Over Come These Big Challenges

May 16, 2017 No Comments

You’ve heard the cliches about you being your own biggest obstacle and starting with the person in the mirror to change course. Although inspirational, these leave something to be desired, and, it’s an important element called action. It’s difficult to take on challenges, especially when it’s your own business. These will be a reality, but, it’s how we act and react that ultimately dictates the outcome. The reason successful people act, or, react in certain ways is because they accept one immutable truth — avoidance does nothing but make situations worse. Oddly enough, just acting without a true purpose or plan, usually delivers the same consequence, which is why Zig Ziglar said many times over, “If you aim at nothing, you will hit it every time.” Successful people not only act and react in a deliberate way, they do so with a goal in mind. Successful People Overcome these Big Challenges The trouble for some entrepreneurs is they let other things get in the way. Let’s be clear, we all have doubts, we all are susceptible to believing the worst, and to give into negative emotions. This is why there are no self-help manuals on how to fail. Failure is something we all do naturally, success is something that’s learned. It’s a combination of experience, judgment, and attitude. When you fail, you ought step into a Thomas Edison mindset, accepting the ultimate answer might be among many failures. Many small businesses are limited in growth by the number of hours they have in the day. They can’t scale their businesses without adding more people or automating existing processes. Automating sales and marketing processes allow small businesses to gain the efficiencies of their bigger counterparts. —The Business Journals Within these examples, we see perseverance, but, even the most resolute can be negatively impacted by various influences. All sorts of pressures can put an entrepreneur under a lot of stress and stress stretches thin clear thinking. It’s how you deal with these that determines if, as a business owner, you will succeed or will fail. In other words, successful entrepreneurs don’t let these challenges hold them back — not even the following: Money. This is perhaps one of the single largest challenges (read: myths) that plague the business world. While money does provide you with resources for options, that doesn’t mean said options are worthwhile. Just ask Facebook, a company valued at about $200 billion with more than a billion users worldwide. Just two years ago, in 2013, the company put a lot of resources (read: money) behind Facebook Home. It debuted with a two-year subscription price of $99. Just two months later, it drop precipitously to a mere $0.99, after consumers put-in their two-cents worth. Having to really think about spending money wisely means having to make informed decisions. Age. The number of years you’ve lived on this planet might be relatively few or relatively long, but, it doesn’t really matter. Notice the word “relatively.” Age is only a number and it doesn’t mean that you’re naive if you’re young or wise if you’re old. Your age doesn’t give people the authority or right, to tell you what you should and should not do. Self doubt. This is a primordial trait, and, one that’s designed to make us approach the unknown with caution. Our primitive ancestors simply didn’t know if something would be harmful or helpful until it was tried. Doubt is healthy because it forces us to take pause but it doesn’t have to be an insurmountable barrier. Use it to your advantage and don’t let it take control. Toxic people. Successful people don’t allow toxic people in their lives. What’s more, they quickly identify such bad personalities and stay clear. The reason some avoid what’s otherwise obvious, is the ability to rationalize certain relationships thinking that the good will outweigh the bad — it won’t. Another big challenge is one that’s very real and direct: the competition. You are nearly assured to see others succeeding in the same industry, even in the same niche. This can certainly be a discouragement, but, doesn’t have to be one. Instead, look at them as an inspiration, if he or she did it, then why can’t you do the same? While you might have different beginnings, talents, and resources, you can use what’s at your disposal to your advantage. Set small measurable goals, achieve each one, and built up success in an incremental, sincere fashion. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

How the Rise of ‘Dry Promotions’ Gives Small Business Owners Big Opportunities

How the Rise of ‘Dry Promotions’ Gives Small Business Owners Big Opportunities

The Rise of the ‘Dry Promotion’

How Small Businesses Can Benefit from Dry Promotions

Want to Accomplish More?

Like this article?

Related Posts

Key Reasons Businesses Experience High Employee Turnover

Use Your Past to Build a Better Future

Successful People Over Come These Big Challenges

Imagine Selling Your Business…

How Would Your Life Change?

Thank you for your interest in learning what your business is worth. We will be in touch shortly.