An increase in designation only means a change in the employee’s job title, but there is no change in the salary & other benefits. For example, changing designation from manager to Sr Manager without a salary increase.
It is similar to redesignation but does not offer any salary increase and additional benefits. Redesignation without additional benefits and a salary increase is also called dry promotion.
Why Companies Only Increase Designation but Not the Salary
- For some employees designation is more important than the salary, in that case, they can request the employer to increase their designation even without any increase in other benefits.
It helps the employees to apply for new jobs for higher positions when compared to their current job role. - Sometimes companies promise the employees at the joining time that they will change designation after a certain period of time, in that case also companies can change designation without any salary increase.
- Even when companies can’t afford budgets for salary increments then also they will just increase the designation but not the salaries. Because at least a higher destination will motivate some employees.
- Finally, some employees themselves request the employer to change the designation after getting some experience, in that case also the companies can change the designation without salary raise.
Is Redesignation and promotion are Same?
No, both are different. Redesignation means just changing the job title, it may be to a higher grade (or) lower grade. Whereas promotion means getting a better job role with a higher salary than the current position.
What If My Company Only Increase My Designation but Not My Salary
If you are not happy with your current job, then start applying for new jobs with your new job title. Update your new job title in all your job portal profiles.
Make sure your new job title is printed on your salary slips, experience letters, and relieving letters.
Use your new designation as a weapon to get a better job with higher benefits.