Talent Budgeting for 2019
According to Society for Human Resource Management (SHRM), Salary increases for US employers are projected to grow by 3.2 percent. But will we see this grow more due to the Gig Economy and Positions in High Demand?
It is essential for 2019 budgeting that you be prepared for the change that can occur in the workforce and make sure your money is allocated correctly. It is important to consider all talent needs in different fields such as independent contractors, Freelancers, or positions in high demand. Total rewards will play a crucial part in attracting top talent without continually having to compete over rising salaries.
The Gig Economy is a contract with an independent contractor for short term engagements specially for project base. TechTarget predicts by 2020 that 40% of the workforce will be independent contractors in the gig economy. However, a couple decades ago Freelancers and Independent Contractors made up only a small percentage of the workforce. But with the Gig Economy allowing for lower overhead costs, engage multiple diverse talent pools and utilize subject matter expects as needed it will keep growing very rapidly.
In 2019 we will see evolving technologies in the Healthcare and IT industries continue to grow and be high demand. For the Healthcare Industry, it should be expected that there will a large quantity of employees available. However, for the IT industry, it will be in high demand for certain expertise. For example, if you have a Data Analyst and may be looking to hire another one, it may be difficult to find that certain skill set at that same pay rate with this competitive job market. You will need to be conscious of the market and pay rate that will continue to increase in 2019.
For the Gig Economy, if you have an IT Support Specialist and need another one. You may be surprised that the pay rate you are paying for your full-time employee will be significantly lower than what the IT Support Specialist in the Gig Economy is asking for. This is because many costs associated with an internal employee, such as paid time off (PTO), Healthcare benefits, Insurance, etc. are now being absorbed by the Independent Contractor.
Suna Solutions recruits for various industries and we’ve seen the changes and rising demand for new skill sets needed within our client companies. This is what makes us so knowledgeable in our business. We have access to all different industries and it helps relay important industry trends to our clients. We understand the market rates and trends for certain areas and are able to align clients to the best talent while helping them enhance their internal approaches to the talent market.
Kyle Anderson, Talent Acquisition Partnerships
Instructor of Talent Acquisition & Retention at CSUSM
1O years in Talent Acquisition and staffing industry with an emphasis on business development