Navigating Your Job Search: Retraction of Benefits, Layoffs, and Market Shifts

The job market in 2025 is shaping up to be a continuation of 2024’s challenges, with hiring trends still uncertain and companies making significant adjustments to their workforce and compensation strategies. If you’re in the midst of a job search, understanding these market shifts can help you make informed decisions about your next career move.

1. Retraction of Benefits and Compensation Decline

One of the most noticeable trends is the decline in compensation and benefits. With more talent on the job market due to layoffs, companies have greater leverage in salary negotiations. In 2024, we saw a slight dip in the salary ranges for our retained searches, with an average of 5-10% lower base and slightly lower bonus percentages. This trend is expected to continue into 2025. Additionally, some benefits packages are being scaled back, most notably in paid time off benefits, with some companies reducing their PTO by as much as 5 days per annum.

2. Shift in Remote Work Policies

The work-from-home model that many enjoyed during the pandemic is being phased out in favor of hybrid or fully in-office policies. Companies that once allowed for remote work, would often fly teams in for occasional meetings. Currently, all of our retained searches require 4-5 days/week in office. The stated reason is a belief in stronger collaboration through in-person work, faster decision-making, and a strengthening of work culture.

3. Hiring Slowdown and Increased Competition

Compared to 2023, 2024 saw fewer hiring opportunities, and 2025 remains unpredictable. Many companies are being cautious with new hires, and the combination of layoffs and fewer open positions has led to an oversupply of talent. This makes the job market more competitive, necessitating candidates pay closer attention to how they present their experience on a resume and how they prepare for interviews in order to truly stand out.

Final Thoughts

As 2025 unfolds, job seekers must navigate a job market that is still in flux. Companies are becoming more selective, compensation is adjusting downward, and work arrangements are shifting away from full remote or even hybrid flexibility. Understanding these trends and positioning yourself strategically will be key to landing your next great opportunity.