Job Seekers Losing Leverage, Pay, Flexibility As Job Market Flips

A Payscale survey suggests employers are gaining greater leverage in job negotiations — as revealed by diminishing salary increases, fewer remote work opportunities, and hesitancy on pay transparency.

Employers are taking back the upper hand in negotiations over salaries, remote work arrangements, and pay transparency, according to a recent survey from Payscale.

One of the most notable trends is the reported decline in organizations planning to offer salary increases this year — dropping to 79% from 86% in 2023.

In 2024, the average increase in base pay rise is expected to be around 4.5%, only slightly above the current inflation rate of 3.2%. This marks a departure from the previous year when increases in base pay were at the highest level in two decades, averaging a 4.8% increase.

According to an analysis of the data published by Yahoo!finance, the number of fully remote work opportunities is also decreasing, with only 11% of companies offering fully remote positions. Meanwhile, mandatory in-person work has increased from 27% last year to 31% this year. This increase occurred despite the fact that organizations with traditional workplaces tend to experience higher levels of voluntary turnover compared to those offering hybrid or remote working arrangements.

The survey finds that pay transparency also remains a contentious issue this year. It’s reported that many employers lack formal pay structures and 40% actively discourage salary discussions among employees. However, 60% of organizations in the survey said they now publish salary ranges in job listings — up 15% over the previous year.

The solid pay transparency resistance persists into 2024, even as more states enact pay transparency laws targeting gender and racial wage gaps. Over one quarter of employers are seemingly ignoring disparities with 27% only addressing pay equity concerns when prompted by staff or management.

The data suggests that employees are 50% more likely to leave if they believe they are underpaid. However, employees are also encountering major difficulties in negotiating competitive salaries and flexible work conditions. The survey suggests the need for workers to hold strong for fair compensation and equitable treatment in the face of these changing labor markets.