U.S.SALARY&HIRINGTRENDS Is stagnation here to stay? CONTENTS INTRODUCTION As we look ahead to 2025, I am excited to present our latest USSalary Guide. The coming year will undoubtedly bring challengesin certain segments of the labor market, but we remain optimistic Impact in hiringThe missing middle recruitment challenge This past year has been characterized by what many are callingthe Great Stagnation. In the aftermath of the Great Resignation,employers found themselves grappling with a significantly moreexpensive workforce, compounded by an uncertain economicoutlook.Over the past 18 months, companies have focused on The need for upskilling and growth opportunitiesAligning skills: Bridging employee and So, what has prevented another wave of mass resignations?The answer lies in the availability of jobs.While manyemployees may wish to leave, the scarcity of new opportunities Compensation trends in 2024 Anticipated compensation adjustments for 2025 This stalemate won’t last forever. As an employer, understanding thegaps between what employees want and what they are getting willbe critical to retaining your top talent and attracting the right people Our data suggests that pay, skill, career development, and a senseof belonging are the three most critical factors in keeping your With a new president, congress, and economic agenda, is 2025the end of the Great Stagnation? Are we in store for another GreatResignation? While a dramatic shift in 2025 seems unlikely, ourdata suggests that the pent-up demand is too great for the GreatStagnation to persist.The most likely scenario is a first quarter that Our guide aims to provide you with the data and insights neededto navigate this complex labor market in the year ahead. Byunderstanding the evolving trends and strategies, you can better Methodology The US 2025 Salary Guide & Hiring Trends, based on a survey of 4,823participants conducted in September 2024, provides key insights intothe labor market. It highlights factors affecting employee satisfactionand motivation, and the evolving workplace paradigms. The guidealso notes the increasing difficulty organizations face in attracting Dave BrownChief Executive Officer Hays Americas EXPLORE THETOPTRENDSOF THE2025LABOR MARKET BOOSTING PROFITS: OVERCOMING SKILLS SHORTAGESFOR BUSINESS GROWTH The past year of layoffs and economic uncertainty has also ledto a drop in the percentage of employees willing to leave theircurrent positions, now at 52%. Although this number remainssubstantial,there is noticeable hesitancy among employees Despite persistent concerns surrounding the durability of growthand interest rate policy, the US economy remains fundamentallystrong. All available evidence suggests we’ll avoid recession,but Companies are focusing heavily on profit, which has significantimplications for the labor market. Many organizations areprioritizing financial gains, leading to stringent budget The job market is overshadowed by economic concerns and jobsecurity fears, with only a third of job seekers confident in the The job market is overshadowed by economicconcerns and job security fears, with just 28% We asked organizations their top 3 strategic goals: 1.Increase operating profit 2.Gaining market share 3.Stabilize their core business Impact on hiring FACTORS LIMITING STRATEGIC As a result of these dynamics, companies are facing significantrecruitment challenges.In 2024, only 16% of organizationsreported no skills shortages, highlighting a critical barrier 1.Limited budgets2.Skills shortages With budgets, and a shortage of skilled professionals topping theblockers for organizations reaching their strategic goals, it's no One potential solution is theincreased use of temporary andcontract workers. Many organizations overlook this flexibleworkforce, which can help address skill shortages without addingto headcount. With more people opting for temporary or contract The missing middle So what? The frozen job market underscores the urgent need for strategicadjustments in recruitment and retention practices if companieswant to outperform and meet their goals in this economicclimate. Many organizations are reporting significant skill Last year, only37% reported having trouble filling open positions,compared to 45%who are currently struggling to do so. Hiring at the intermediate and management levels is whereemployers are facing the most significant challenges.Thisdifficulty is partly due to economic uncertainty, which makes Companies need to invest in development and targeted training,consider contract workers, and focus on resilience throughenhanced retention, targeted training, and effective recruitment To address this, there is a pressing need for targeted training anddevelopment programs. By investing in the development of currentemployees, organizations can fill these gaps internally, ensuringthat intermediate and management-level staff are prepared to Interestingly, theintermediat