As a hospitality manager, implementing “dry” promotions – a promotion that does not include a pay raise – can be risky. On the one hand, it can help employees quickly grow their skill sets and gain a better understanding of the business. On the other hand, employees often view it as an empty gesture by employees looking to squeeze some extra work out of them. If your employee truly is ready for more responsibilities and is willing to learn and grow with your company, a dry promotion could be a helpful learning tool in their professional growth.
Here is how employers can utilize dry promotions the right way:
Do Implement with Transparency
Your employee should not wonder what these extra responsibilities or titles mean in the long term. Communicate how you see this step fitting into their long-term career. Make sure you can provide a good reason why they are not receiving a raise at that moment. Let them know when the next opportunity for a pay raise will be, and how much they should anticipate.
Don’t Overuse it
While a dry promotion can be a valuable way to help your employees hone their skills, it can be viewed by employees as predatory if overused. If extra duties are frequently tossed to employees ad hoc or fancy new job descriptions are created instead of a deserved pay raise, then employee trust will deteriorate.
Do Seek Employee Feedback
While one extra responsibility may seem like a minor blip in someone’s workday, it may be the straw that breaks the camel’s back for your employee. Current workloads should be adjusted so new responsibilities are not simply piled onto their plates. To this end, employers must be in tune with their worker’s goals and aspirations and frequently check in.
Don’t Ignore Your Culture
When employees already feel supported and management genuinely cares about their futures, the occasional flex in responsibilities feels more natural. By focusing on a culture that supports hospitality employees and a common company goal, staff are more receptive to dry promotions.
Do Your Research
Before handing out a dry promotion, research what your competitors pay for similar roles. If you ask employees to perform work that other companies pay significantly more for, you should reconsider your decision. Otherwise, you will simply end up helping your employees pad their resumes while they search for a job somewhere else.
Don’t Forgot other forms of compensations
For smaller hospitality companies, sometimes a pay raise is just not in the current budget. However, there are other ways to reward your employees’ hard work and willingness to grow. Can you extend any bonus programs to them? Perhaps you could give them more vacation days or give them scheduling benefits. Horizon Hospitality provides an excellent resource for hospitality compensation and benefits trends here.
Do Hire Hospitality Managers with Experience
The hospitality industry is a dynamic and exciting place to work. However, your teams need leaders with the right experience to guide them. Horizon Hospitality’s recruiters have a vast network of experienced hospitality leaders. Contact our recruiters to learn more.