With pay for new hires shrinking by as much as 30% in some roles, it’s time for job seekers and employers to adapt. Discover how these changes are impacting wages and what it means for you.
As of August 2023, the job market is experiencing significant shifts, and it’s crucial for both job seekers and employers to stay informed. Understanding the changing dynamics and salary trends can make all the difference in making informed decisions.
A Reversal in Pay Trends
- In 2022, compensation for three-quarters of advertised job titles saw an increase from the previous year.
- However, a July survey of about 2,000 employers conducted by ZipRecruiter revealed that nearly half of them had reduced pay for recent job openings.
The Impact on New Hires
- Data from Gusto.com shows that pay rates for new hires are currently 5% lower than they were for the same roles at this time last year.
- The decline isn’t limited to a specific industry; even professional service roles have been affected, with pay rates for engineers and developers dropping by 18% in the past year.
Industries Facing the Stiffest Changes
- Some of the most substantial salary drops have occurred in the technology and transportation sectors.
- Technology workers have seen advertised salaries decrease by approximately $10,000 from those offered a year ago.
- The real estate industry has also seen pay reductions, with some roles experiencing drops of up to 30%.
The Implications for Job Seekers
- Job seekers need to recalibrate their expectations when considering salary offers in 2023.
- It’s essential to research salary ranges for specific roles and industries to ensure you’re being offered a competitive package.
The Employer Perspective
- Businesses are adjusting their hiring strategies as they face less pressure to offer inflated salaries.
- To control costs without deterring applicants, some companies are increasing performance incentives while reducing base salaries for certain positions.
Tread Carefully: Long-Term View Matters
- While employers have more leverage in setting pay rates, it’s crucial to strike a balance.
- Going too low may result in a higher turnover rate, impacting overall productivity.
The Role of Supply and Demand
- During the pandemic, the job market faced significant imbalances.
- A highly competitive environment led to inflated salaries, but now, as the market normalizes, companies are more cautious.
As YER USA’s Principal, Ivana Lodovici, says in her most recent article:
“Be careful not to interpret this data as a return to the past. It is important to always compensate employees fairly for the work they do and offer strong benefits. Happy employees are loyal employees who won’t leave you the next time the job market shifts in their favor.”
Elevate Your Journey with YER USA
As the job landscape evolves in 2023, both job seekers and employers are facing new scenarios. Salary dynamics are changing, emphasizing the need to stay well-informed, adaptable, and decisive.
With its rich background in professional and executive search, YER USA stands ready to be your strategic partner. Whether you’re an ambitious job seeker or a forward-thinking employer, we possess the expertise to offer support in your search for the perfect job opportunity or the ideal talent. Connect with us today!