The Art Of Pay Negotiation May Be Changing As Job Market Shifts Power Back To Employers

Conversations surrounding pay increases have stopped at the door in this stricter job market.

Pay negotiation used to be a core element of the job application process, but now that conversation may be changing.

In previous job markets, one would take part in an exchange to come up with an offer they truly want from an employer. The dance of applying to new jobs would often come with the promise of higher pay. But in today’s economy of mass layoffs, pay negotiation has stopped at the door.

While job-hopping still comes with pay raises from one’s current position, getting even more than what is initially advertised on the role listing may get harder. However, many entry- and mid-level employees expect to test the waters of new employment opportunities soon. A study from SideHustles.com, detailed in The Hill, confirmed that 27% of Gen-Z employees expect to find new jobs in 2026.

However, reports suggest that shifting gigs in hopes of more money may become less realistic. Research from Korn Ferry has shown that employers are shutting down talks of pay increases at the beginning of the interview process.

More offers are coming with “non-negotiable” pay offers. Especially as federal and tech-industry layoffs continue to plague the American workforce, many are left with no choice but to comply as the the job market gets more desperate.

“There are people who feel like they’re in the Sahara desert when it comes to job opportunities,” explained Dave Brazel of the Korn Ferry consultancy firm to the news outlet. “They’re happy just to get a job.”

Now, as the power shifts back to employers, they are able to get more bang for their own buck as qualified applicants seek any chance at a job. This vastly differs from the pandemic-era job hunt, where tech companies and other diverse industries needed workers to keep up with demand.

However, this shift may bite companies in the long-term. Employer resentment could fester if they know they are getting underpaid, and thus feeling undervalued, for their work.

This may also disproportionately impact Black and Black women workers, as the racial wage gap still persists across industries. How Black women approach pay negotiations may vastly differ, especially as racial biases can play a role in the employer’s willingness to accept counter-offers, as detailed in a Harvard Law School blog for its Program on Negotiation. Job-seeking while Black, especially for Black women, must consider the systemic factors at play as well.

Despite the shift, job seekers can still navigate a transitioning job market by focusing less on the salary but more on the benefits. If one works on a hybrid work schedule, asking for days in the office that work best for your schedule can save time and money, while also preventing burnout from the commute. Additionally, asking for a sign-on bonus or a stipend for professional development can help strengthen one’s skillset in case another job hop is in the future.