Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

Salary Negotiation Statistics 2024 — 20 key Figures

Key take-aways

  • Typical reasons job seekers, particularly millennials, avoid salary negotiations are fear, ignorance, and concerns about the repercussions.
  • A common trend among businesses looking to manage labor costs and access diverse talent pools is the pursuit of a global workforce.
  • Businesses face a critical challenge with the lack of talent and competition for qualified candidates.

Salary negotiation can be daunting as sometimes you feel that you are not in a position to negotiate your salary. However, many recruiters today have positive remarks about potential employees who do this. 

In this article, we will show you the latest figures in salary negotiation. Additionally, we will check the factors that may affect your chances of being hired for a job. Thus, affecting your salary and how you can negotiate it too. 

Once you are done reading this article, you will know the latest statistics on negotiating salary. Thus, allowing you to have in-depth knowledge of the number of people who use this. Additionally, it will enable you to position yourself better when negotiating your salary. 

Salary Negotiation Statistical Figures in 2024 That You Should Know

The following are the salary negotiation statistics for 2024:

1. 67% of Procurement Professionals Successfully Negotiated Their Salary

The increasing trend of salary negotiation is mainly due to the reduced stigma around negotiations. People are no longer concerned that their employers will perceive them as greedy or difficult.

In today’s dynamic and competitive job market, employers anticipate negotiations and view them as a sign of confidence and assertiveness.

2. 73% Of Employers Anticipate Salary Negotiation From Job Applicants

Negotiating salary is an important part of the hiring process, and according to Career Builder, 73% of employers in the United States expect candidates to negotiate salary on an initial job offer.

However, more than half (55%) of job candidates do not try to negotiate their salary. This is even though 73% of job candidates feel that salary is the most important factor when considering a job offer.

3. Some Employers Only Publish Ranges Between 25 And 75% Of What They Pay For A Given Position

According to a recent report by CNN, some employers only publish a range between 25 and 75% of what they pay for a given position.

This means that the range advertised may not give an accurate picture of what a candidate might be paid for the actual role they are applying for.

However, employers are legally allowed to pay more to the right candidate, even if they publish the full range for a job.

Therefore, job seekers need to do their research, ask questions, and negotiate to avoid shortchanging themselves.

4. Recruiters Report 75% Increase in Candidates Initiating Salary Negotiations

Salary negotiation has become increasingly common among job candidates, with 75% of recruiters reporting an increase in such negotiations.

This trend is driven by a booming economy, low unemployment rates, and an abundance of employment opportunities. 

Candidates today are more informed about salary data and more vocal about what they want. In fact, 73% of job candidates consider salary to be the most important factor when considering a job offer.

This underscores the importance of being prepared to negotiate salary during the hiring process. By familiarizing yourself with salary laws and keeping the conversation going throughout the recruiting process, you can pre-close a candidate on their salary expectations.

5. The Standard Annual Salary Increase for Employees Averages 3%

Employees expect to receive a raise annually, and the average percentage of the raise is an important factor to consider.

According to recent sources, the average raise percentage that employees should be receiving is 3%. This is the national average, and some employers may offer a nominal increase of 2% to some workers while others may receive a jump of 5% or more.

Companies typically offer employees a 3-5% pay increase on average. However, some industries and demographics may receive higher or lower raises.

For example, those between 16-24 receive the highest pay raises, at 14.5% on average, while those between 55-85 receive the lowest pay raises, at only 5.1% on average.

Overall, the average raise percentage that employees should be receiving is 3%, but it may vary depending on the industry, demographics, and employer.

6. Myth Busted: Women (60%) Negotiate Almost as Much as Men (68%)

While 68% of men are stepping up to negotiate, a pretty close 60% of women are doing the same. So, why does the myth that women don’t negotiate their salaries persist when the actual numbers are quite close?

The small gap between men (68%) and women (60%) negotiating might seem marginal, but it’s often blown out of proportion due to long-standing stereotypes.

Historically, societal norms have painted women as less assertive or confrontational, which can color perceptions and expectations in the professional world.

Additionally, when women do negotiate, they might face different outcomes or reactions compared to men, which can discourage others from trying.

Moreover, while the gap is narrow, even a small percentage difference represents thousands of women potentially missing out on higher earnings, which amplifies the issue in discussions about gender equality in the workplace.

By understanding these nuances, we can better appreciate why this myth persists and work towards a more balanced negotiation culture that encourages everyone to advocate for themselves effectively.

7. Approximately 66% of U.S. Employees Who Tried to Negotiate Initial Salaries Report Success

According to a recent survey by the Pew Research Center, approximately 66% of U.S. workers who made attempts to negotiate starting salaries said they got what they were asking for. This suggests that negotiating starting salaries can be an effective way to increase one’s pay. 

However, the survey also found that most U.S. workers say they did not ask for higher pay the last time they were hired for a job. This may be due to a variety of factors, including discomfort with negotiating or a lack of knowledge about how to negotiate effectively. 

Nonetheless, it is important for job seekers to be aware of the potential benefits of negotiating their starting salaries and to be prepared to do so if the opportunity arises.

8. Respondents who chose to negotiate saw an 18.83% salary increase on average. Within this group, 76% are men and only 24% are women

If you are still unsure whether or not to negotiate an offer, it’s time for you to do so. Based on the survey results, respondents who negotiated the salary get an average of 18.83% more from their current offers.

The lowest increase that was mentioned is 5%, while the highest could even secure a 100% increase! This could also depend on several factors, for example, the labor market in your country, whether or not you’ve been paid a below-market salary and other things.

If the companies have stricter budgets and they cannot give you “hard cash”, it is also possible to negotiate secondary benefits such as health insurance premiums, transportation allowances, or paid time off because companies are more willing to be flexible in those areas.

It is also noteworthy that while more women are becoming open to discussing their salaries, the data indicates that only a minority of them actually receive significant pay increases.

This disparity underscores the existence of gender-based differences in negotiation outcomes, emphasizing the critical need to address issues of pay equity and gender biases within employment practices.

9. Only 10% percent of the respondents gained less than 10% to none in their salary

One of the main factors that contribute to this is the budget constraints of employers. Companies have set salary budgets, which might be further reduced due to the increasing prevalence of AI. However, it is still important to negotiate your salary as it can lead to better outcomes.

10. Unequal Outcomes: Men Get 19.66% Raises in Negotiations, Women 15%

Although women (60%) are negotiating almost as often as men (68%),  — they’re not scoring as big as their male counterparts. On average, women are walking away with a 15% raise, while men are pocketing a cool 19.66%.

What gives? It seems even when women bring their A-game to pay talks, there’s still a gap to bridge.

This gap not only highlights the ongoing challenges women face in the workplace but also calls for a deeper analysis of the negotiation dynamics and potential systemic biases that may influence these outcomes.

It also becomes imperative to explore the strategies employed by each gender and the broader societal and organizational contexts that shape these negotiations to find strategies that work.

11. Only 10% percent of the respondents gained less than 10% to none in their salary

One of the main factors that contribute to this is the budget constraints of employers. Companies have set salary budgets, which might be further reduced due to the increasing prevalence of AI. However, it is still important to negotiate your salary as it can lead to better outcomes.

12. Procurement Still Male-Dominated: 70% of Roles Held by Men

Of the 462 people completing this survey, 323 are men. There is a long-standing notion that women are still underrepresented in the procurement sector, as most purchasing positions are still held by men.

However, according to Gartner, we are starting to see more and more women working in this field. We could also see more initiatives being carried out to promote inclusivity and diversity in this field.

13. Young Professionals Step Up: 60% of Under-30s Negotiate Salaries, Just Behind 66% of Over-40s

In this survey, we see that younger people (less than 30 years old) are starting to know their worth and are willing to negotiate their salary, despite the notion that it is usually people with more experience who are more likely to negotiate their salary. We can see here that the difference between the two age groups is not significant.

14. People from Europe are the most likely to negotiate their salary (70%). With the least coming from Africa where only 36% decided to negotiate their salary

People in developed countries seem to be much more proactive about negotiating their salaries than those in developing ones. Why such a stark difference? Well, economic stability and cultural norms play huge roles. 

In developed regions, robust job markets and high employment standards often empower individuals to demand what they’re worth. Meanwhile, in many developing areas, economic constraints and fewer job opportunities might make people more cautious about rocking the boat. It’s not just about asking for more money; it’s about the broader context that either fuels or douses that negotiating fire.

15. The biggest reason for people not to negotiate is due to poor labor market conditions. This is more prevalent in African countries, but the same reasons were also recorded from people in North America, Central America, Europe, and the Middle East

Ever wonder why some folks hold back from negotiating their salaries? It turns out, that poor labor market conditions are the big bad wolf here, and this issue isn’t just lurking in one part of the world.

While it’s particularly noticeable in African countries, the same chilly job market breeze is blowing across North America, Central America, Europe, and the Middle East. What’s causing this widespread hesitation?

Economic uncertainty can make job seekers feel less secure in pushing for better pay, fearing they might lose the offer in hand. Plus, in regions where jobs are scarce, the power dynamics tilt heavily towards employers.

16. From the group who decided not to negotiate their salary, 31.11% stated this was because of company policies

Some companies have strict policies against salary negotiation to maintain consistency and streamline the hiring process. Many companies establish salary ranges for specific positions, limiting negotiation flexibility.

Furthermore, certain organizations, like some government agencies, have predetermined salaries based on qualifications and experience, leaving little room for individual negotiation.

17. Confidence remains a challenge, with 15% of the respondents avoiding salary negotiations due to self-doubts

Despite these confidence barriers being more prevalent in younger groups of people less than 30 years old, these barriers were also the concern for not negotiating in higher age groups.

However, there is a more nuanced take on the higher age groups, usually the ones over 50 years old with limited job opportunities and the ones who have just reintegrated into the workforce.

18. Only 8.67% believed the initial offer was fair and didn’t see the need to negotiate

Many people are satisfied with the initial offer for two main reasons. First, the applicant may be new and lack the capacity to negotiate. Second, the applicant may be a senior employee with a lot to offer, which should warrant an immediate competitive salary offer from the company.

19. Only 5% of the respondents say they didn’t negotiate because it was their first job and they weren’t aware they could negotiate

Some employees may not feel they have enough leverage or experience to negotiate a higher salary. As a result, they might choose not to negotiate even if their employers could increase their salary or offer more benefits.

The stigma surrounding salary negotiations still exists, but younger generations are more comfortable with asking for higher pay as they are aware of the value they bring to the company.

20. 10% of respondents plan to negotiate salary in their next job opportunity

Procurement professionals will negotiate their salary in their next job to secure higher pay due to the rising cost of goods. Additionally, many countries are now urging companies to be transparent about the salary that they are offering to employees.

An example of this is the European Union urging those companies that have over 100 employees to disclose salary ranges for open positions. This aims to close the gender pay gap and empower workers during negotiations.

Are you curious about more trends in salary negotiations within procurement? Click here to access our comprehensive report on negotiation salary statistics for 2024.

The Rise of Hybrid Work

After a year of remote work due to the COVID-19 pandemic, employees are now able to return to their offices. However, most of them do not want to. As the pandemic proved that companies can have their entire staff working remotely, they are having a hard time convincing their employees to work full-time at the office. 

This gave birth to the new term “hybrid work” as though everyone is working “hybrid” at the moment. In a hybrid environment, communication between employees cannot suffer. Many companies from various parts of the world were forced to find new procedures that will fit the new environment of work. 

Looking at the new job requirements for the past couple of months where there is an increased number of people who work remotely, we can say that remote work is here to stay. Thus, companies need to implement new technologies in their work to achieve good results in the transition. 

Integration of AI in the Workplace

Nowadays, Giant techs like Google and OpenAI are in the race for AI supremacy. However, many experts are worrying about the rapid advancements in AI. 

According to a report by the International Monetary Fund (IMF), Nearly 40% of global jobs are at risk due to AI. Unlike past automation, which mainly affected routine tasks, AI threatens high-skilled jobs, putting advanced economies at greater risk but also offering more benefits.

With this, Governments must consider taking action for people to be safeguarded from its impact on the job market. 

Recently, major tech firms have united to make a formal pledge focused on ensuring the safety of AI development. Leaders from different countries have made positive remarks regarding this initiative. 

Furthermore, the pledge by these tech firms should be closely monitored to ensure that AI does not replace human jobs.

Conclusion

To succeed in today’s job market, it’s important to understand the changing landscape of employment and recruitment.

This includes being aware of salary negotiation dynamics, adapting to new remote and hybrid work models, and positioning oneself strategically in the competitive job market, even with the rise of AI.

As businesses continue to seek a global workforce, individuals who know industry trends, effective negotiation skills, and an understanding of the evolving job market dynamics will be better equipped for success in their careers.

Frequentlyasked questions

What are salary negotiation statistics?

Salary negotiation statistics show you the situation of employees in a particular year when they are negotiating their salaries.

How to negotiate salary?

To negotiate your salary, you must be prepared and confident.

What does hybrid work mean?

This is a kind of setup for employees to have more flexibility to get their work done anytime and anywhere they are most productive.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics