A new report shows how workers feel about raises and benefits, or the lack thereof, when it comes to their workplace behavior, career decisions and priorities.
The Pay on Pause Report, commissioned by Zety, a resume templates service, showed that 41% of workers haven’t received a meaningful raise in more than two years, and the majority (61%) are willing to accept a smaller or no raise due to concerns about layoffs and job security.
The data illustrates a workforce adjusting to limited raises and navigating trade-offs around pay, effort, and job security.
Other Key Findings
- Half of employees are just glad to have a job in this economy; 36% report feeling underpaid, but stuck.
- Most employees (45%) believe they deserve a 4-6% raise this year, yet 66% avoided asking because of tariffs or other external pressures.
- 64% are very likely to search for a new job in the next six months.
- Health insurance (73%), including mental health support, and additional PTO (66%) are the most important non-salary benefits.
Raises Still Lag Behind Expectations
Many employees haven’t seen a meaningful raise in years: 41% say it’s been more than 2 years since they’ve received a raise at their current job, and nearly 3 in 10 say their last raise was smaller than usual.
Given their performance, inflation and other economic factors, employees say the following raises would be fair this year:
- 1–3% (7%)
- 4–6% (45%)
- 7–10% (35%)
- More than 10% (13%)
Pay and Workload Compromises on the Rise
Despite what they feel they deserve, many employees avoided asking for a raise this year due to:
- The belief that their company can’t afford it (71%)
- Tariffs or other external pressures (66%)
- Fear of layoffs or instability (49%)
In fact, 61% say they’re more willing to accept no raise or a smaller one this year, while others are putting in extra effort or hours due to staffing shortages (34%) and job security worries (27%).
These trade-offs often reflect recent company actions, including:
- Decreased budget for raises or bonuses (89%)
- Layoffs or restructuring (70%)
- Office closures or consolidations (59%)
- Hiring freezes (50%)
Evolving Career Mindset
How workers respond to pay and staffing pressures reflects their evolving career goals and outlook. When asked to describe their current mindset, employees report the following:
- I’m just glad to have a job (50%)
- I feel underpaid but stuck (36%)
- I’m actively planning my next career move (10%)
- I feel valued and compensated fairly (4%)
Highlighting their mix of caution and ambition, 64% say they are very likely to search for a new job in the next six months.
Non-Salary Benefits That Matter
As employees weigh their career satisfaction and potential job changes, many are placing greater importance on benefits beyond salary.
When asked which non-salary benefits are most important, employees ranked the following:
- Health insurance, including mental health support (73%)
- Additional paid time off (66%)
- Remote or flexible work options (57%)
- Career development or training (42%)
- Equity or bonuses (19%)
- Company-sponsored retirement contributions (4%)
“When raises fail to keep pace with performance and economic pressures, employees often reassess their role and future with a company,” said Jasmine Escalera, career expert for Zety. “This mindset shift can influence not only engagement and productivity but also the decisions they make about career growth and workplace priorities.”
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