Nearly two-thirds of job seekers (63%) believe salaries are not keeping pace with inflation, according to data from Employ. While more candidates are negotiating their pay than in years past, many still feel their earnings fall short of rising costs, pointing to a growing tension between compensation progress and economic reality.  

This report reveals that 37% of job seekers negotiated their salary in the past year, up from 29% in 2017. Of those workers who negotiated higher pay, 80% reported receiving raises of between 5% and 10%. This increase in negotiations was driven by concerns about inflation, as well as increased pay transparency in the marketplace, with 48% of respondents noticing higher salaries in job postings similar to their current role. These findings suggest that a decrease in stigma surrounding access to pay information may be contributing to the normalization of salary discussions across the job market.  

“Workers are becoming more proactive in advocating for themselves, but the perception that pay is falling behind real-world costs hasn’t gone away, despite the fact that the majority of respondents acknowledge receiving offers at or above expectations,” says Stephanie Manzelli, people officer at Employ. “Companies need to think more holistically about compensation. It’s not just about the offer, it’s also about communicating value, providing competitive benefits and creating transparency in the process.” 

Employ’s data further reinforces this, with 58% of respondents listing healthcare benefits as a very important compensation factor and 49% ranking a 401(k) program or matching contribution as very important.