A worker received a promotion title to vice president without pay increase, paperwork, announcement, or formal job description, and absorbed two additional teams amid restructuring. The promotion lacked new authority and tangible recognition, revealing a ghost promotion. Companies increasingly use title changes to placate employees when compensation budgets shrink. Research shows declines in annual compensation budgets and slowing promotion rates across industries, especially tech. Businesses may change titles without other changes to retain ambitious staff. Indicators of a ghost promotion include no organizational announcement, no new paperwork or job description, no pay increase, and unchanged responsibilities.
Becoming a VP was a huge, highly coveted step at the company. But in the days to follow, my excitement vanished. There was no new paperwork to sign; there was no announcement to the team or broader organization; there was no pay increase. Just a fancy new title and lots and lots more work to do. It finally became clear that I was the victim of a fake promotion-also known as a ghost promotion.
Ghost promotions aren't a new phenomenon, but certainly more prevalent when companies are cautious about spending more money. According to a recent Mercer study, there's an ongoing decline in annual compensation budgets given heightened economic uncertainty. Gusto research also shows that promotion rates have slowed steadily across all industries over the last three years, with tech seeing the biggest impact. If you can't pay people more to recognize and reward them, ghost promotions may be a creative solution leaders find themselves offering.
"Congrats," my former manager had exclaimed as he sat me down. "We're going to make you a vice president. You now get to oversee these two other teams as well. It's going to be amazing for your career here." I was ecstatic that day when I walked out of his office. Becoming a VP was a huge, highly coveted step at the company.
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