New data from ZipRecruiter’s Q4 New Hires Survey suggests that the labor market gained momentum as 2024 came to a close. Employees are securing higher wages, negotiating offers more aggressively, and receiving better perks—but uncertainty remains. For employers, this means adapting to shifting compensation expectations to attract and retain top talent.
Higher Pay & More Negotiation Power
One of the biggest takeaways from the survey is that job-switchers are seeing bigger pay increases. A staggering 73% of workers who changed jobs saw a pay boost, up from 57% in Q3. This signals growing confidence among workers, who feel emboldened to demand better compensation.
Employees are also negotiating more than ever—49% of new hires reported negotiating their offers, nearly double the rate of previous quarters. This suggests that job seekers recognize their leverage in an improving job market and are using it to secure better deals.
Bonuses & Counteroffers on the Rise
To compete for talent, employers are offering more signing bonuses—43% of new hires received one, up significantly from just 12% in Q3. Additionally, 31% of job switchers reported receiving a counter offer from their previous employer, nearly double the previous rate. This highlights the increasing lengths companies are going to retain their best employees.
What This Means for Employers
The data underscores a key reality: employee expectations around pay and benefits are rising. Companies that fail to adjust may struggle with attracting and retaining talent. To stay competitive, employers should:
- Be prepared for salary negotiations—job seekers expect it.
- Offer meaningful perks like signing bonuses and career growth opportunities.
- Prioritize retention efforts to prevent talent loss to competitors.
Despite what looks like an extremely beneficial playing field for employees hoping to boost their pay, lingering economic uncertainty remains. For instance, the share of new hires who had an offer rescinded jumped to 31%, according to this research, reflecting ongoing volatility.
In this environment, it’s important for employers to remain agile in workforce planning while still offering competitive pay. With employees feeling more empowered than ever, companies that adapt to these shifting expectations will have an edge in today’s labor market.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.
The post New Labor Market Data Shows Employees Making Compensation Gains appeared first on HR Daily Advisor.