Is COVID-19 Reducing Salary Wages?

With COVID-19 hitting the entire world with a ferocity unlike anything we’ve seen before, so goes the rest of our day-to-day lives. Until we get through this, let’s be honest, things are going to probably get weirder before they get more normal. With that goes the professional sides of your life. And one thing, in particular, salary. Quick note, if you need some advice on salary negotiations during COVID, check out this link for more insights on how to snap up some more moola!

Company Perspective – I have been a comp consultant through 2 other downturns (my guess is what is still to come will make this one the worst but we shall see). Unless the company is in an industry that is doing well or was able to pivot, most companies froze pay or did temporary pay cuts. When this happens, companies generally do not give pay increases – so no raises for 2021. Sometimes a small amount is reserved for top performers but that is it.

Market Perspective – pay rates are not decreasing. They just aren’t increasing YoY. HOWEVER – if your client is being brought into a company that has done temporary pay cuts and he/she knows it, if they are being asked to accept a lower salary due to COVID, I would negotiate a lower salary until the pay levels are reinstated and then get adjusted back up with everyone else. Otherwise, they will be forever behind – and far behind.

Recruiter Perspective – it is a competitive environment. I could see where external recruiters are trying to talk people into taking lower salaries (or lower-level roles) in order to pitch a viable candidate and get the role secured – and their commission. Internal recruiters are not incentivized the same way. They should want the best candidate for the role within the salary range they are given.

Client Perspective – For your clients I think they should consider the industry and the company – the company may be doing well financially and look at the entire package (of course!).

So is there a lower expected salary trend on new jobs that you are noticing due to the Coronavirus?

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