The dynamic job market has gone through numerous trends over the last few years globally. The recent addition is dry promotion!
Ever thought of a situation when you got promoted without any rise in salary? That's pathetic, right? Exactly, that's what happening worldwide. Basically, one person is getting a new recognition, more workload, associated with bigger responsibilities, yet the paycheck remains the same as before.
As per report by compensation consultant Pearl Meyer: “Over 13% of employers are giving out new titles without the usual bump in pay, compared to just 8% in 2018.”
Consequently, the employees are feeling undervalued while overworking with increased responsibilities. Many companies are seeing this as a way to motivate employees. Obviously, this trend is not well-received by them. Meanwhile, this is not a national scenario, it's happening globally.
In this article, we will discuss about some shocking trends that are shaping the job market.
Numerous factors control global economy. After devastating pandemic in 2020 caused by Covid 19, all those factors are in unstable state. Just like the butterfly effect, a minor change in one factor is capable enough to deteriorate the whole system. As per new World Bank report: “Global economic growth is estimated to fall to its lowest rate in three decades by 2030 amid the ongoing economic and geopolitical shocks.”
Regarding global economic slowdown, the Future of Growth Report 2024 by World Economic Forum (WEF) mentioned: “This downturn is exacerbating a range of interconnected global challenges, including the climate crisis and a weakening social contract, which are collectively reversing progress in global development.”
The compound impact of slower growth, increased real interest rates, accompanied by rising debt levels made economy of many countries vulnerable.
The WEF report mentioned: “most countries continue to grow in ways that are neither sustainable nor inclusive and are limited in their ability to absorb or generate innovation and minimise their contribution and susceptibility to global shocks.”
Technological advancements is taking away many jobs, it's not a new thing. With the rise of robotics and artificial intelligence, companies are looking for cost-effective measures. Automation is replacing manual labor and few jobs are becoming obsolete. Few companies are threatening employees to accept dry promotion. Over the last years, nearly 250,000 employees lost jobs. With artificial intelligence (AI), many people are expected to lose jobs. As per predictions, people in administrative, coding, customer support, and human resource domain will face downsizing.
Increasing rate of climate change is going to deteriorate situation more as natural resources are depleting. With rising temperatures, water crisis is increasing globally, which is impacts agriculture and worldwide economy. Moreover, the risks of natural disasters like wildfire, cyclones, drought, are increasing rapidly. This will reduce economic growth.
Since last couple of year, geopolitical tension rising leading to uncertainty in investment as well as economic growth. It also reduces global supply capacity. Continued crisis will lead to an increased oil price. “This could stoke global inflation and reduce global growth by 0.2 percentage point,” as per WEF report.
The survey by Pearl Meyer also revealed: “A growing number of employers are allocating a smaller portion of their 2024 salary budgets for promotion-driven salary increases compared to the previous year, 2023.”
Under such unstable scenario, the World Economic Forum introduced a two-year ‘Future of Growth’ initiative for a new narrative for economic growth.
