Why are salaries increasing? Salaries are controlled by the economic principle of supply and demand. Over the past 18 years, unemployment has decreased significantly, stooping to a nationwide low of 3.8 percent as of May 2018, and even lower among states with a higher concentration of healthcare/medical device companies, such as: Minnesota (3.2 percent) and Massachusetts (3.5 percent). However, health technology continues to grow and the need for top talent has yet to cease.
As the unemployment rate continues to drop, business leaders continue to strategize to stay competitive. One notable trend is an increase in salary. According to Health eCareers’ Healthcare Recruiting Trends Report, 62 percent of existing staff ask for more money now than they did six months prior, and 7.6 percent of those existing staff reported that they pushed for a significantly higher salary when compared to six months prior.
According to the U.S. Bureau of Labor Statistics , Minneapolis is the third highest ranking in terms of the increase in wages/salaries as of March, 2018, trailing closely behind to Phoenix (2nd) and San Jose (1st). Companies are responding to this law of supply and demand by increasing their salaries.
According to SHRM, it is typical for companies to adjust the overall salary structure between three and five years; however, some HR executives find analyzing the compensation structure every 18 and 24 months to be more effective.
As a leader:
- Stay involved in salary structure issues.
- Be knowledgeable about the market.
- Strategize with your hiring managers/HR to develop a compensation strategy that best suits your needs.
While salaries are not the sole answer to solving the talent crisis, compensation serves as a significant tool to attract and retain talent. If your company has not revisited their compensation strategy this year, it may be time to do so.
For more information regarding this trend, download our complimentary research report in one click, 2018 Health Technology Market Projections.
Written by: Isaac Pirk, Talencio intern and student at North Central University, Minneapolis, MN.
About Talencio: We help the Health Technology community make progress by putting the right people in the right place to solve problems and identify opportunities to move healthcare forward. To learn more about career opportunities in health technology, or to hear how other companies have partnered with Talencio to tap into our skilled professional talent pool, contact us at 612.703.4236 or email. Talencio has been the preferred provider of vetted, accomplished professionals to the Health Technology Community for over 10 years.
Sources:
SHRM
Health eCareers 2017 Recruiting Trends Report
Health eCareers 2018 Recruiting Trends Report
U.S. Bureau of Labor Statistics
SHRM Global Compensation