ZipRecruiter, a leading online employment marketplace, has released the Second Annual Employer Survey, providing a comprehensive look at U.S. employers’ hiring plans, employee retention strategies, and compensation trends. The survey reveals significant optimism for 2025, with 76% of employers planning to expand their workforce in the coming year. This marks a major shift from recent years of hiring declines, as macroeconomic conditions such as easing inflation and stabilizing interest rates fuel employer confidence.
Key Insights from ZipRecruiter’s 2024 Employer Survey
1. Optimism for Workforce Expansion in 2025
A promising 76% of employers plan to expand their headcount in 2025, with 53% expecting moderate growth and 23% anticipating significant hiring increases. This signals renewed optimism following two years of workforce contraction. Industries like tech, financial services, and healthcare are at the forefront, with over 80% of employers in these sectors expecting growth.
As Julia Pollak, ZipRecruiter’s Chief Economist, stated, “Easing inflation and stabilizing interest rates are fueling employer confidence, with 64% saying macroeconomic conditions will support hiring in 2025.”
2. Employee Retention: The Shift from High Turnover to Stability
Employers are finding success in retaining employees, with average turnover rates falling by 37% year-over-year. Key factors contributing to lower attrition rates include:
- Enhanced job security and stability (47%)
- Improved work-life balance (46%)
- Better benefits, pay, career development, and employee engagement (42%)
However, not all industries saw such positive outcomes. Business Support & Logistics experienced a 73% drop in turnover, while Manufacturing and Entertainment & Leisure recorded more modest declines.
Some employers still face challenges with turnover, citing issues like inadequate compensation, limited career growth opportunities, and poor work-life balance as contributing factors.
3. Remote Work Trends in 2024
The shift towards hybrid work continues to dominate in 2024. 40% of employers are supporting a blend of in-office and remote work, a stark contrast to the 21% of companies supporting full remote work in 2023. 53% of employers now require employees to work in-office at least three days per week, up from 37% in 2023.
Pay differentials are becoming more common for remote workers, with 12% of companies introducing or widening geographic pay disparities. Additionally, 22% of companies are recruiting remote workers, up from 16% the previous year.
4. Pay Trends: Raises and Salary Increases for 2025
Employers are rethinking compensation, with 41% of employers reporting increased base salaries for new hires in 2024. Many companies are also introducing new pay scales or job tiers (32%) and increasing the portion of compensation tied to performance (30%).
For 2025, 55% of employers are planning modest pay increases of 1-4%, and 24% are anticipating raises of 5% or more. This marks a sharp contrast to 2023, when nearly half of organizations lowered pay expectations due to recession fears.
Larger organizations are leading the way in pay increases: 30% of companies with 5,000+ employees are planning pay increases of 5% or more, compared to just 13% of smaller organizations with fewer than 50 employees.
Methodology and Survey Details
ZipRecruiter’s survey was conducted between September 24 and October 16, 2024, with 2,000+ hiring managers and talent acquisition professionals participating. Respondents were drawn from businesses of various sizes and industries across the U.S., providing a comprehensive view of hiring and retention trends across the labor market.
ZipRecruiter’s Second Annual Employer Survey highlights a significant shift in the U.S. labor market as employers show optimism for 2025. With plans to expand hiring, improve retention efforts, and increase compensation, businesses are positioning themselves to attract and retain top talent in the coming year. As the macroeconomic climate stabilizes, the demand for skilled workers will continue to grow, creating opportunities for both employees and employers alike.
