After months of waiting, the Senate finally approved five nominees for the Treasury Department. While the five top positions that oversee tax policy, finance regulations, and international banking might not have a huge impact on the labor market, the appointment of people to these jobs now means that the Treasury Department can proceed to fill hundreds of other vacancies.For companies with a high concentration of work in the finance sector, this means that there are about to be a lot of changes to contend with.
Why is there an increase in staff?
The Treasury Department , like all government agencies, was put under a hiring freeze almost immediately after President Trump took office. As that hiring freeze is set to expire, this department is looking to fill a backlog of vacant positions. While an exact number of jobs has not been made public, many government analysts expect hundreds of open positions to soon become available.
These employees will be needed not only to contend with a backlog of work, but also to deal with proposed changes in the tax code and corporate regulations. The Republican-majority Congress along with President Trump has made tax reform and corporate regulation key planks of their party platform, and many government watch groups have stated that they will need to pass meaningful legislation in order to retain their majority in upcoming elections. That likely means a flurry of new laws making sweeping changes to the tax code for both individuals and businesses.
What will the new staff do?
So far, members of Congress and the President have released very few details regarding their proposed changes. While the campaigns of many of these statesmen promised lower tax brackets and less complicated tax codes, it may be difficult to deliver on these promises in a time with big budget deficits. This means that any bill that is passed will most likely make the tax code more complicated.
For companies and organizations that rely on outside help during tax season, these changes may mean that it’s time to consider bringing on new staff who are capable of researching and making recommendations on their own. While there will likely be several tax breaks for multiple types of businesses, it is very likely that determining how to use and implement these breaks will require a team of tax professionals.
Beyond the tax code, there are also a raft of changes proposed for financial regulations. While many banks, mortgage lenders, and international financiers have lobbied Congress for their particular wants and needs, the exact laws that will be produced have yet to be seen. Furthermore, because this type of complicated regulation rarely gets much press coverage, it will most likely be up to individual companies and non-profits to determine how the changes in these laws will effect them. Again, this will likely lead to an increased demand for talent among these organizations.
How will this effect my company?
While it’s not likely that an individual company outside of Washington D.C. will see any immediate differences in the labor market from the Treasury Department’s hiring spree, there will definitely be some consequences of these new rounds of proposals. Companies near the capital will likely see an immediate increase in the salary and benefits being offered to top talent. While competing with government salaries is rarely an issue, the chance to work in the top levels of the Treasury Department will be a great opportunity for many people who have a lot of experience with government regulation. Lower and mid-range employees might be in slightly higher demand, but competition for people in these positions will not be as high.
Outside of this limited market, however, companies and non-profits need to prepare themselves for the upcoming changes to regulations and the tax code. Government analysts can be brought in on a temporary basis to assess the needs of an organization and how a particular piece of legislation will effect an industry, company, and its competitors. Organizations may also want to consider increasing their finance, accounting, and tax preparation staff.
If your company or non-profit needs help determining how these upcoming changes will effect its labor pool, then talk to one of our staffing professionals at ICS. They’ll be able to help you determine the best way to prepare your organization for the uncertainty ahead.