Houston IT Hiring Trends

Boom Bust Beyond

ISACA

2016

by James Del Monte CPC, CERS

JDA Professional Services, Inc.

Agenda

• Overview of JDA

• State of the Market

• Trends in Houston IT

• Compensation Trends

• The Hard Questions

What JDA Does. . .

JDA Professional Services, Inc. is a Houston-based IT staffing firm

specializing in the recruitment of strategic-technical to executive-level

professionals. We provide staffing solutions through full-time,

contract, and project-based placements. Since 1981, we have been

helping companies build great IT departments while helping IT

professionals find the right career opportunities.

Full-Time Staffing

Contract /

Temporary

Staffing

Special Projects

StaffingJDA

Interactive

Either Way

Value of a Professional

Organization� Leadership

� Industry/Business knowledge

� Networking Opportunities

� Friendship

“ . . . Almost 100% of a

manager’s success

comes from hiring and

retaining good people.

Good people don’t make

the difference

- they are the

difference“

-- James Del Monte James Del Monte --CERSCERS

Famous Quote

Total Houston Employment – 1990 to 2015

Significant increase in area total employment since 1990. Early (2006) oil & gas shale

boom employment around 2.4MM. Current employment around 3MM looks

vulnerable. Each past slow down has caused a dip. How deep and how long?

Job Growth Houston

The Latest News From

Greater Houston Partnership…

Houston lost 8,600 jobs in July 2016.

Unemployment Rates

8.2016

• National – 4.9%

• Texas – 4.5%

• Houston – 5.8% +1.1% from 1 year ago

• IT professionals doubled last 12 months

• IT Professionals to 4% up from 2%

• Degreed Professionals 5%

• Job growth Harris county +.3 down from1.9% 2 years ago

Employment Cycles

Supply and Demand

The demand for skilled professionals topped out 4Q13. The current cycle

indicates that we are in sharp decline. In Houston good people are still hard to

find.

Labor Surplus vs. Skill Shortage

19841995

2Q014Q04

4Q99

Demand

Peaked

Supply

Demand

1989

Demand Bottomed3Q03

Demand Bottomed

4Q07

Demand

Peaked

4Q13

Demand

peaked

3Q 09

Demand Bottomed

3Q10 4Q2015

Market Shift

The job market is shifting from an Job Seeker’s Market to a Employer Market.

Candidate

Candidate

Candidate

Position

Position

Position

Position

Candidate

2015 – 20xx 2010 – 2014

Top 25 Public Companies

1. ConocoPhillips

2. Enterprise Products Partners LP

3. Schlumberger LTD.

4. Sysco Corp.

5. Plains All American Pipeline LP

6. Halliburton Co.

7. Baker Hughes Inc.

8. Apache Corp.

9. Marathon Oil Corp.

10. National Oilwell Varco Inc.

11. Anadarko Petroleum Corp.

12. Waste Management Inc.

13. EOG Resources Inc.

14. KBR Inc.

15. Enbridge Energy Partners LP

16. CenterPoint Energy Inc.

17. Kinder Morgan Inc.

18. Kinder Morgan Energy Partners LP

19. Targa Resources Corp.

20. Targa Resources Partners LP

21. Cameron International Corp.

22. Calpine Corp.

23. Group 1 Automotive Inc.

24. Spectra Energy Corp.

25. FMC Technologies Inc.

Largest Employers • 1. Walmart 37,000 employees

• 2. Memorial Hermann Health System 24,108 employees

• 3. H-E-B 23,732 employees

• 4. The University of Texas MD Anderson Cancer Center 21,086 employees

• 5. McDonald's Corp 20,918 employees

• 6. Houston Methodist 20,000 employees

• 7. Kroger 16,000 employees

• 8. United Airlines 14,941 employees

• 9. Schlumberger 12,069 employees

• 10. Shell Oil Co. 11,507 employees

• 11. Exxon Mobil Corp. 11,000 employees

• 12. Texas Children's Hospital 10,992 employees

• 13. HCA 10,830 employees

Largest Employers

• 14. Landry's 10,800 employees

• 15. UTMB Health 9,928 employees

• 16. Harris Health System 9,174 employees

• 17. National Oilwell Varco 8, 960 employees

• 18. UT Health Science Center at Houston 8,220 employees

• 19. Chevron 8,000 employees

• 20. The Home Depot 7,880 employees

• 21. Fluor Corp. 7,705 employees

• 22. Baylor College of Medicine 7,705 employees

• 23. CHI St.Luke's Health 7,198 employees

• 24. JPMorgan Chase 6,850 employees

• 25. Whataburger 6,620 employees

Barriers to Growth

• There are roughly 23 million firms in the US

• 4% have revenue over 1M

• Of those 4%, 1 in 10 (.4% of all companies) have more than 10M in revenue

• 17,000 surpass 50M

• 2,500 firms in US are larger than 500M

• 2000 firms world wide over 1B

• 500 firms worldwide are larger than 11B

Big Versus Small

• Traditional businesses don’t create jobs or

invent products, they buy them

• Risk Averse – more committee decisions made

to limit career risk

• Job Growth vs. Job Creation

Results of 2016 JDA Hiring

and Salary Survey

68%

6%

26%

Increase

Decrease

No Change

52%

19%

29%

Projected department

spending, year by year

2016 2014

33%

33%

34%

2015

Does your company anticipate a change in

total IT staffing level?

51%

5%

44%

Increase

Decrease

No Change

47%

7%

46%

29%

16%

55%

39%

7%

54%

2016 2015

2014 2013

2016 IT Hiring Forecast

23%

14%63%

10%

33%57%

Full-Time Contract

Increase Decrease No Change

What do you consider to be the top issue facing your

company's IT department? Year by year.

0 20 40 60

Creating/maintaining a global workforce

BYOD

Utilizing mobile and pad technology

Adapting social media

Cloud technology

IT security

Disaster recovery capabilities

IT service level performance

Increased cost of doing business

Decreased IT budget

Hiring and retaining staff

2016

2015

2014

In your company, what areas are anticipated to have the

largest growth potential over the next few years?

0 10 20 30 40 50 60

Cyber security

Socal media

Business intelligence

Mobile applications

Cloud computing

Change management

Busines process

ERP

Data/database management

Applications development

Internet/intranet development

Helpdesk/end user support

Networking

Security Growth

• Infosec – compliance – user training - HIGH

• Security Engineer – technical side - fire walls,

virus protection, intrusion detection and social

engineering – moderate

• Security Operations – technical testing - pen

test – CEH – forensics – Consulting

• It audit – moderate

3rd Party

• Reviews

• Testing

• Managed services – cloud provider

Value

• Do you consider your company to have highly

valued or targeted information or critical

infrastructure?

� Brand

� Homeland security

� Client information and interaction

� Medical records

� Financial information – credit info

Does your company plan to increase base salaries for

IT staff in 2016?

59%

41%

0% 10% 20% 30% 40% 50% 60% 70%

Yes

No

By what percentage?

55%

43%

2%

<3% 3-6%

7-10%

Are bonuses included as part of your

company's compensation packages?

79%

21%

0% 20% 40% 60% 80% 100%

Yes

No

If yes, what is the average bonus percentage given

based on salary?

46%

47%

5% 2%

<10%

10-20%

21-30%

>30%

Total PackageBesides money what is important to you?

• Review and history

for increases

• Promotions and

career path

• Assignment

• Training and

certifications

• Bonuses and

incentives

• Benefit package –

cost and coverage

• Flexibility

• Location

• Telecommuting

• Access to

management

Employed Workers Looking

11%

62%

27%

• Active – 11%

• Passive – 62%

• Not at all – 27%

73% of your

success

Pearls of Wisdom

1. Keep your job

2. Don’t complain about compensation

3. Home capital preservation

4. Think outside box about career – increase

your value

--Doug Leyendecker

Skills Executives Look ForPersonal Inventory

• Business/Functional

• Project Management

• Communication -written and oral

• Presentation

• Problem Solving

• Critical Thinking

• Leadership

• Organization Skills

• Time Management

• Attention to Detail

• Learning Ability

• Flexibility

The Hard Questions

• When will the market turn around

• Meet minimum standard

• Should I get more certifications

• Cyber Insurance

Return the Favor

Speakers Fee

Speak for Food

Questions

701 North Post Oak Road

Suite 610

Houston, Texas 77024-3818

Phone: 713-548-5444

www.jdapsi.com

Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects