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Salary Negotiation Statistics 2024 — 20 key Figures
Fear, lack of knowledge, and concerns about consequences are common reasons for job seekers, especially millennials, to avoid negotiating salaries.
- The search for a global workforce is a prominent trend, driven by companies aiming to manage labor costs and tap into diverse talent pools.
- The talent shortage is a critical challenge for businesses, and competition for qualified candidates is intensifying.
Salary negotiation can be daunting as sometimes you can feel that you are not in a position to negotiate your salary. However, today, many recruiters 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 allow you to better position yourself when negotiating your salary.
Salary Negotiation Statistical Figures in 2024 That You Should Know
The following are the salary negotiation statistics for 2023:
1. About 58% Of Millennials Are Not Negotiating Salaries
According to various surveys conducted by Mint Life, the percentage of Millennials who do not negotiate their salary ranges from 58% to 59%.
Despite the growing trend of pay transparency and the willingness of younger generations to discuss their salaries, many Millennials still find it difficult to ask for a raise. This could be due to a lack of confidence or fear of negative consequences, such as being perceived as greedy or losing their job. However, it is important for Millennials to negotiate their salaries to ensure they are being paid fairly and to help close the gender pay gap.
2. 1 Out Of 4 Applicants Has Not Negotiated Their Salary Because They Do Not Know How
Out of those who did not negotiate, 1 out of 4 applicants did not do so because they did not know how to negotiate their salary based on the same survey conducted by Mint Life.
This statistic highlights the importance of educating Millennials on how to negotiate their salaries. Many young workers may not be aware of the negotiation process or may not know how to effectively communicate their worth to their employers. It is crucial for employers and career advisors to provide resources and guidance to help Millennials negotiate their salaries and ensure they are being paid fairly.
3. 1 Out Of 10 Who Applied For A Job Did Not Negotiate Their Salary Because They Were Scared Of The Consequences
In the same survey made by Mint Life, it was also found that 1 out of 10 applicants are afraid to negotiate their salary because they are scared of the consequences. This fear is often fueled by worries that attempting to negotiate will cause an employer to view them negatively or cancel the offer altogether. However, not negotiating can have significant financial consequences, potentially costing employees hundreds of thousands of dollars over the course of their careers.
Despite this, nearly one-fifth of workers never negotiate after they’re offered a job. It is important for job seekers to overcome their fears and negotiate their salary to ensure they are being paid fairly for their work.
4. 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 despite the fact that 73% of job candidates feel that salary is the most important factor when considering a job offer.
5. 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, it is important for job seekers to do their own research, ask questions, and negotiate to avoid shortchanging themselves.
6. 8 States Have Salary Transparency Laws On The Books As Of June 2023
Pay transparency laws are becoming more common in the US, with eight states having salary transparency laws as of June 2023. These states are California, Colorado, Connecticut, Maryland, New York, Nevada, Rhode Island, and Washington. Additionally, several cities and counties have their own pay transparency requirements.
The specific requirements of these laws vary by jurisdiction, but they may require employers to disclose salary ranges to applicants at a specified point during the hiring process, disclose salary ranges to employees upon request, or disclose salary ranges in job postings. The trend toward pay transparency is driven by a recognition of the importance of transparency in bolstering wage equality overall.
The number of U.S. job postings that include salary information more than doubled between February 2020 and February 2023, from 18.4% to 43.7%. Therefore, it is important for employers to stay informed about pay transparency laws and to consider voluntarily disclosing salary ranges to attract and retain top talent.
7. 68% Of Organizations Plan Salary Increases For All Workers In 2023
According to a survey conducted by the International Foundation of Employee Benefit Plans, 68% of US organizations plan to offer salary increases for all workers in 2023. This is good news for employees who have been impacted by the economic downturn caused by the COVID-19 pandemic.
The survey also found that employee needs are driving the decision to increase salaries, with employers recognizing the importance of retaining top talent. The specific percentage of salary increases varies by organization and industry, but the trend is positive overall. It is important for employees to negotiate their salaries and benefits to ensure they are being fairly compensated for their work.
8. 55% Of Employees Choose Not to Seek Salary Raises
As cost of living raises tend to be an exception and securing bigger paychecks does not necessarily help workers avoid inflation, it is important for workers to negotiate their salaries.
However, based on a survey of 3,000 employees in the UK revealed that 55% of people are unwilling to ask for a raise, with reasons including not knowing what to say, worries about appearing greedy, or simply being afraid.
9. Salaries In Saudi Arabia Are Expected To Rise By An Average Of 3% In 2023
According to a recent report by Cooper Fitch, salaries in Saudi Arabia are expected to rise by an average of 3% in 2023. This increase is driven by a surge in new jobs created by mega-projects such as Neom and organizations setting up operations in the country.
The expected increase in salaries in Saudi Arabia in 2023 is a positive sign for job seekers and employees in the country.
10. 74% Of Employers Expect Salaries Or Rates Of Pay Within Their Organizations To Change This 2023
This 2023, 74% of employers expect salaries or rates of pay within their organizations to change. According to a study conducted in 2022, employers in the United States plan to boost salaries an average of 4.6% this 2023, up from 4.2% last year. However, insufficient pay raises are driving employee turnover. The job market could look different months from now, but the current shortage of workers is a challenge for companies, with 75% of survey respondents struggling to attract and retain talent.
11. 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
12. Salary Increase Budgets In The U.S. Are Projected To Grow By 4.6% For 2023
According to a recent report by Willis Towers Watson, employers in the U.S. are planning to increase their salary budgets by 4.6% in 2023, the highest expected annual jump in 15 years. This is up from the previous projection of 4%. The report also states that often what companies expect to pay more for a given year and what they end up paying differs based on market conditions.
The labor market, inflation, and hiring and retention pressures are key decision drivers in setting pay budgets for 2023, along with concerns over economic pressures. The projected increase in salary increase budgets in the U.S. for 2023 is a positive sign for employees in the country.
13. 58% Of Job Seekers Are Unhappy With Their Basic Salary
A good salary is important for attracting and retaining talent, increasing motivation and productivity, and improving the overall employee experience. However, according to the 2023 Salary Survey conducted by Adam.com, 58% of job seekers are unhappy with their basic salary.
14. 45% of B2B Brands Are More Likely To Increase Their Hiring In 2023 Compared To Just 29% of B2C Companies
According to the B2B Benchmark Report by LinkedIn, B2B brands are more likely to increase their hiring in 2023 compared to B2C companies. The report found that 45% of B2B marketers plan to hire more staff this 2023, compared to just 29% of B2C marketers.
It was also found that B2B marketers are investing in new technologies, such as AI and automation, to improve their marketing strategies and drive growth for their businesses. Whereas, B2C marketers are more focused on improving their brand awareness and customer engagement.
Additionally, another report by LinkedIn found that the increased B2B marketing budgets have produced a rise in hiring, with leading B2B brands growing their share of marketing job postings by 10%.
15. 34% Of Japanese Firms Planned To Increase Wages This 2023
Based on Japan’s largest trade union group, Japanese firms have offered the biggest pay hikes in 30 years at this year’s negotiations with workers. The final survey showed the biggest increase since 3.9% in 1993, with an average pay hike of 3.58% or 10,560 yen per month. Additionally, 34% of Japanese firms said they planned wage increases of at least 3%. This is a significant increase from the previous year’s increase of 2.27% or ¥7,430. The labor unions have secured the largest wage increase in 30 years, with manufacturers agreeing to pay increases of 3.88%.
16. 40% Of Applicants Never Negotiate Their Salary Because Of Fear
Many job seekers are hesitant to negotiate their salary, and fear of seeming demanding or “coming on too strong” is the largest reason why 40% of applicants never negotiate their salary. Women, in particular, may be more hesitant to negotiate their salary offers due to societal gender norms that pressure women to be less assertive. However, it is important to remember that not negotiating can cost you over $1 million over the course of your career.
Researching your market value online or with industry peers based on your job title, experience, skills, geography, and other qualifications can help you prepare for salary negotiations. It is important to have a clear understanding of your value and worth to the company and to focus on the value of the entire deal, not just the salary.
17. 60-80% Of Women Do Not Negotiate Their Salary When Starting A New Job
According to multiple sources, including Pew Research, and CNBC, 60-80% of women do not negotiate their salary when starting a new job. This can lead to women changing jobs more frequently, as 72% say they’ll leave an employer to get a salary bump somewhere else. Women are more likely than men to make a lateral move to improve their salary, and just over half of women are already considering leaving their jobs because they feel underpaid
It is important for women to negotiate their salaries to ensure they are being paid fairly.
18. Women Are Increasingly Urged To Negotiate For Higher Pay As A Way To Close The Gender Wage Gap
Contrary to popular belief, women negotiate their salaries as often as men. However, women are more likely to be turned down when they negotiate. In 2022, women earned an average of 82% of what men earned, based on the new analysis of median hourly earnings of full- and part-time workers conducted by the Pew Research Center. The gender pay gap has narrowed in recent years, but disparities remain. Despite attempts to narrow the gap, women in 2022 still earned 17% less than men on average.
Ambiguity about the possibility of wage negotiations may discourage women from applying to some positions and contribute to gender wage gaps. However, when employers clearly state that salaries are negotiable, the gender gap in job applications and negotiation closes by approximately 45%.
Therefore, it is important to continue efforts to close the gender wage gap by encouraging women to negotiate for higher pay and providing them with the necessary tools and resources to do so effectively.
19. 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.
20. The Standard Annual Salary Increase for Employees Averages at 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.
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.
Being The Right Fit For The Job
Today, the talent shortage is identified as the number one hiring challenge. A study has found that 87% of HR professionals reported that there are few to no qualified applicants for the position they want to fill.
This problem will only get worse as a study showed that companies in Europe and North America will need 16 to 18 million more educated employees that are going to be available. Thus, many have no choice but to enter the war for talent and compete with other companies.
According to a survey conducted by CR magazine, 92% of professionals interviewed will consider changing their jobs if offered a role by other companies with an excellent employer brand. Thus, the competition will be about which company will stand out the most for the applicant.
The Search For Global Workforce
The increasing number of businesses worldwide that are searching for a global workforce has been trending in the past year. As the workforce becomes more globalized, the only question is how capable the applicant is.
Furthermore, recruiters are increasingly in search of hard-to-reach talents from different parts of the world. Many businesses do this due to one reason — labor costs.
Recruiters know that successfully finding talents in other countries online is difficult without prior knowledge of the scene. Thus, being familiar with the recruitment industry, the possibilities of different job boards, and digital marketing will be on the rise this year and in the years to come.
Additionally, the integration of salary tools has become more important for businesses to benchmark and offer competitive compensation, thereby enhancing their chances of attracting top talent globally.
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. As businesses continue to seek a global workforce, individuals who have knowledge about industry trends, effective negotiation skills, and an understanding of the evolving job market dynamics will be better equipped for success in their careers.
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.