Feeling underpaid at work? Here's how to navigate salary frustration in 2025.

Many American workers still feel they’re not paid what they’re worth, despite modest improvements in compensation trends in 2025. According to new data from HR tech company Energage, just 69% of employees feel their pay is fair — making pay one of the least satisfying parts of the workplace experience.

What’s behind the frustration? Economic pressures like inflation and rising costs are eroding perceived gains. “Salaries aren’t keeping up with inflation,” says Sam DeMase, a career expert at ZipRecruiter. “While workers may feel like they’re earning more due to pay increases, their purchasing power remains stagnant.”

With job growth slowing and fewer open roles, KPMG notes that companies have limited room for wage hikes. Here’s what workers and employers can do to close the gap.

What employees can do when pay feels unfair

DeMase says workers can increase their odds of getting pay raises with these strategies:

Know and own your worth

“Consider all your skills, experience, software knowledge and certifications,” DeMase says. “Mapping out what you have to offer and how that compares to what a role requires can help you advocate for the pay you deserve.”

Next, access fair workplace compensation data through ZipRecruiter’s salary estimator or by comparing job descriptions for similar roles. This research will show if you’re likely to be underpaid. It also provides the salary transparency you need for effective discussions. 

“Armed with this information, negotiate with a focus on your business impact and results rather than making it personal,” advises DeMase.

Tip: To negotiate a pay raise in 2025, don’t cite cost-of-living concerns. Instead, connect your experience to employer needs. Say something like, "You mentioned a priority for this role is to hire, train and retain a team. I did this successfully in my last position, and I’m excited to bring my expertise to this role." Then make your ask: "Can we get my total compensation closer to $100,000?"

Seek out roles that value your superpowers

Beyond knowing market rates, DeMase suggests targeting positions that align with your strongest skills. “Your superpowers and your results are your unique value proposition,” she says. “If you don’t know your value proposition, potential employers don’t, either.” 

When applying and writing your cover letter, highlight how you’ll deliver on the job requirements: "I know you're looking for someone who is a builder, and that is exactly what I do best."

Tip: To clarify your value, DeMase recommends using this template: "Based on my background in X and skills in Y, I help companies/teams/clients achieve Z." Then support your claims with powerful examples and measurable results from your past work.

What employers must understand about today’s pay reality

Pay frustration isn’t just an employee issue. For companies hoping to attract and retain talent, compensation clarity and transparency are essential. Here’s what employers often miss and how to start fixing it.

Competitive pay loses impact without clear expectations

“Meeting or exceeding market rates will attract and retain the highest quality candidates,” explains DeMase.

But competitive pay alone won’t solve trust issues if managers make vague promises about future raises. For example, “if a leader says, ‘We’ll revisit your raise next quarter,’ without further explanation, the employee will be demotivated,” she warns.

To avoid this, DeMase recommends being direct about what workers need to do to earn raises. Do they need to upskill? Do they need to take on specific projects, and if so, which ones? Do they need to achieve particular business results, and what, exactly?

“Employees crave clear and honest feedback,” she emphasizes. “Keep yours in the know, and be willing to have open and honest conversations.”

Clear promotion pathways ease pay concerns

“If the promotion process is murky, your team will lose trust,” DeMase cautions. 

Great leaders provide a clear skills roadmap for each level. Outline exactly what employees need to do to move from manager to director to C-suite roles.

Beyond preventing confusion, this transparency builds loyalty. DeMase encourages promoting from within whenever possible and sharing those success stories. “Employees crave — and ultimately trust — a company that doesn’t exclusively hire externally for higher-level roles,” she explains.

What is Paste BN Top Workplaces 2025?

Do you work for a great company? Each year, Paste BN Top Workplaces, a collaboration between Energage and Paste BN, ranks organizations across the U.S. that excel at creating a positive work environment for their employees. Employee feedback determines the winners.

In 2025, over 1,500 companies earned recognition as top workplaces. Check out our overall U.S. rankings. You can also gain insights into top-ranked employers by checking out the links below.