Shhhh: Here Are the Pros and Cons of ‘Quiet Promotions’

“Quiet promotions” are generating plenty of noise these days. 

Some HR and total rewards (TR) professionals define the practice as adding responsibilities for workers without an accompanying pay raise or title change. But the experts interviewed for this article warned it could lead to higher organizational costs such as diminished employee engagement, increased turnover and employer brand damage.

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A survey by career platform JobSage found that 78% of workers have experienced a quiet promotion, with 67% taking on a departed colleague’s workload without more pay. Given the recent news of economic uncertainty, hiring freezes and layoffs, that number has likely increased.

Quiet promotions may be seen as a necessity for some employers when they eliminate people for one or more reasons but don’t eliminate the work, said Tom McMullen, a senior client partner for consulting firm Korn Ferry.

“Such ‘promotions’ can offer a practical, short-term solution, with the emphasis on short-term, especially when the workflows surge and the budgets are tight,” he explained. “But there’s a real risk if this becomes part of the playbook.”

Quiet But Visible

Despite its name, a quiet promotion can be “very visible” to other team members, McMullen said, adding that it could lead to workplace imbalances.

“If some workers have been ‘quietly’ promoted while others have been [actually] promoted, then you could have a real problem with someone saying, ‘You’re not treating me fairly and consistently with others,’” he said.

McMullen added a quiet promotion also can undermine the psychological contract between the employee and employer. “If you’re asking a worker to increase their effort, I would expect the employer to increase their rewards and recognition, and it definitely weakens employee morale if employers don’t follow through,” he said.

Rising alongside quiet promotions is the concept of “job huggers,” or the silent segment of workers who tolerate taking on more without getting the related pay bump or title for fear of employer repercussions (demotion, layoff, etc.).

While some workers may hope for an eventual reward for all their hard work, others are simply showing loyalty out of that fear, said Ana Goehner, a career coach and HR professional.

To that end, many workers are learning on their own and applying what they learn without anyone asking, Goehner noted. “They want to be perceived as indispensable team players, not as someone easily replaceable,” she said.

Associated Risks

According to Rebecca Toman, the vice president of the survey business unit at compensation consulting firm Pearl Meyer, utilizing quiet promotions could become a “nightmare scenario” if these practices get out of hand.

For example, if an individual’s actual role doesn’t match the compensation survey benchmark for that role, that could affect other pay decisions throughout the organization, she said.

“If you have someone doing higher-level work but they’re paid on the lower end of the pay range, there could be issues around internal equity and pay compression,” Toman noted.

Karin Buchbinder, a manager for Salary.com’s compensation consulting unit, stated quiet promotions can go beyond a job architecture problem.

“If someone is doing [more] work but their job description isn’t updated and they’re not being moved through the architecture accordingly, that’s poor management, not a structural flaw,” she said.

Quiet promotions also can have numerous negative effects on an individual employee’s career progression, Goehner said.

“It creates overlap between different roles and lacks transparency and clarity regarding expected responsibilities and compensation within a particular position,” she said.

Communicating Rewards

Taking on more work without additional pay is understandably not ideal for employees, but experts at consulting firm Mercer shared the following considerations when it may be necessary:

• Commit to a possible pay adjustment in the future, which may somewhat lessen the impact, but be clear that it’s not guaranteed.
• Address any changes to incentives or benefits that also come with the promotion.
• Consider whether other elements in the total rewards portfolio (e.g., recognition and one-time awards) can be used to sweeten the pot in lieu of traditional promotional increases.
• Consider whether other total rewards elements (e.g., benefits) can be tweaked to free-up funds to allow for traditional promotional increases.
• Explain the organization’s situation in the current economic condition and offer the employee the choice of accepting the quiet promotion. In many situations, if the promotion does not come with considerable additional burden/duties, employees may accept the offer. Positioning it as a choice can potentially dilute the negative sentiment.

John Bremen, a managing director and the chief innovation and acceleration officer at consulting firm WTW, said there is a long list of rewards for organizations to consider in lieu of a title change or pay increase, including:

• Formal opportunities to develop skills
• Exposure to key stakeholders
• More meaningful or high-impact work
• Inclusion in certain corporate events
• Non-cash recognition

“These elements do not require a formal promotion to be provided,” Bremen said. “They can have a huge potential positive impact on engagement, productivity, retention and employee experience.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Compensation
• Employee Recognition
• Total Rewards
• Workforce Engagement