Now’s the time to finalize your staff compensation plans for the new year. While the labor market is cooling, it remains quite strong, and many practices are still understaffed. Here’s our recommended approach for pay and benefits to attract and retain high quality team members in 2024.

Labor Market Trends

Red hot in 2021 and 2022, the labor market has been easing recently, yet remains quite tight. The unemployment rate is extremely low (at only 3.9% as of October 31). Moreover, there are currently 9.6 million job openings, or about 1.5 for every person reported as unemployed (remember that the unemployment rate measures only those who are out of work and are looking for work). Though staff turnover is moderating, it remains high. As a result, many practices are understaffed and still struggling to fill positions and limit attrition.