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Employers are gaining more leverage on pay — and they’re using it

As hiring has cooled, organizations have found themselves back in control of the job market. With that leverage, companies are leaning on potential employees when it comes to salary negotiations. 

According to a recent survey from ResumeTemplates, 22% of companies are offering lower salaries than they did last year for some positions at their companies. 

The most-affected positions are those in administrative areas (47%), customer service (44%), information technology (31%), sales (34%) and finance (27%).

Several factors are driving the lower salary offers — and the slowing of the job market. The primary reasons are an expectation of an economic downturn or market uncertainty (62%) and an inability to afford higher salaries (53%). The survey also found many employers believe prior salaries were too high and competition for talent has been reduced in the hiring market. 

Key quote: “Hiring managers are willing to provide higher compensation to candidates they believe are worth the investment. Demonstrate that you have the right skill set and confidence. While your resume needs to show your accomplishments, the interview is where you need to shine. Even if you have a referral into an organization, you still need to speak confidently about your experience and what you’ll bring to the new organization.” — Julia Toothacre, chief career strategist at ResumeTemplates

FULL STORY: Employers are gaining more leverage on pay — and they're using it

It’s not just salary: Employers also are cutting back on other benefits

Speaking of employers' regaining power ...

In addition to companies making lower salary offers, the ResumeTemplates survey of 1,000 business leaders in August found that nearly 3 in 10 companies (27%) have reduced current employees’ salaries. The research also revealed that a number of businesses are making cuts in other areas, too.

The most commonly cited targets were reductions in paid time off (23% of companies), decreased or removed stock options/equity grants (21%), and reduced or eliminated meal allowances (20%). Companies also have reduced or stopped their 401(k) matching plans (19%) and have cut back on employee-wellness programs (19%), health-care benefits (16%) and parental-leave benefits (15%). 

As we've noted, both salaries and benefits have mostly reverted back toward their pre-pandemic mean as companies gain more leverage in the employment market. That market for talent remains tight, but competition remains only a fraction of what it was in 2021 — thanks to layoffs and cutbacks in a number of formerly hot industries. 

Key quote: “If companies keep cutting salaries, reducing benefits, and denying salary increases to current employees, they are going to lose talent. They will also create a culture of mediocrity. People will go above and beyond if they’re appreciated and compensated, but if they aren’t, they will pull back on productivity. Unfortunately, when organizations inevitably lose employees, many will blame their inability to obtain and retain talent on entitlement or a talent shortage. There are a lot of talented professionals out there right now, but workers want to be compensated for the level of experience and value they bring to an organization.” — Julia Toothacre, chief career strategist at ResumeTemplates

FULL STORY: It's not just salary: Employers also are cutting back on other benefits

Ultra-high-paying jobs are seeing a hybrid-work comeback

The days of remote jobs paying more than $250,000 are seemingly over as the majority of those jobs have shifted nearly entirely back to in-office jobs. 

As The Playbook’s senior reporter Andy Medici notes, new research from Ladders.com, a career site for jobs that pay more than $100,000 annually, found that hybrid jobs advertised at $250,000 or above on the site more than doubled in the second quarter of 2024 — growing to 2.9% of all posted high-paying jobs, up from just 0.9% in the first quarter of the year.

Medici writes that the Ladders research also found there are more opportunities for remote work for jobs paying $250,000 or more in “non-tech” fields than in tech-related industries. About 6% of jobs on the platform were remote in non-tech roles, compared to 2.8% for tech roles, according to the report. 

The top jobs that pay $250,000 or more are clustered in a few fields, with medical professions such as doctors, dentists, psychiatrists and veterinarians topping the list. Other occupations include sales representatives, marketing managers and software engineers.

Key quote: “To see these opportunities claw back a full percent is significant. It looks like companies that were mostly on-site before are now adopting hybrid setups to attract and retain top talent. They are finding a sweet spot with hybrid work, which many believe offers the flexibility of remote work while preserving the collaborative and leadership benefits of being in the office.” — John Mullinix, director of growth marketing at Ladders

FULL STORY: Ultra-high-paying jobs are seeing a hybrid-work comeback

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