iiba "the next labor crisis..déjà vu to the 1990’s all over again" 2007 james del...
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IIBAIIBA"The Next Labor "The Next Labor Crisis..DéjàCrisis..Déjà
vu to the 1990’s All Over Again" vu to the 1990’s All Over Again"
20072007
James Del Monte CPCJames Del Monte CPC
JDA Professional Services, Inc.JDA Professional Services, Inc.
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Sooo, Tell Me About Your Career.Sooo, Tell Me About Your Career.
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Hard Questions Part 1Hard Questions Part 1
1.1. Who are you and what does JDA stand Who are you and what does JDA stand for?for?
2.2. What is going on in the employment What is going on in the employment market?market?
3.3. Why is it taking so long to find a position Why is it taking so long to find a position I want if unemployment is so low?I want if unemployment is so low?
4.4. Why don’t recruiters return my calls?Why don’t recruiters return my calls?
5.5. What does the future employment What does the future employment outlook look like?outlook look like?
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Hard Questions Part 2 Hard Questions Part 2
1.1. What positions are moving off shore What positions are moving off shore and how does this impact me?and how does this impact me?
2.2. Are B/A positions going more Are B/A positions going more contract or Full-Time?contract or Full-Time?
3.3. What can I do to position better What can I do to position better myself for growth?myself for growth?
4.4. How much difference does How much difference does education or certification make?education or certification make?
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Hard Questions Part 3Hard Questions Part 3
1.1. Are you done yet?Are you done yet?
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What JDA Does. . .What JDA Does. . .
JDA provides clients with a full full complement complement of information of information technology professionals.technology professionals.Our services are designed to meet Our services are designed to meet the unique and changing the unique and changing requirements of our clients.requirements of our clients. Full-Time Staffing
Contract /Temporary Staffing
Special Projects Staffing
JDA
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Law of Supply and DemandLaw of Supply and Demand
The demand for skilled professionals peaked 4Q99 and has decreased, bottoming out 3Q03. The current cycle indicates that
once again there are more positions than skilled professionals, and this is projected to continue past 2010.
Labor Surplus vs. Skill Shortage
1984
1995
2Q01
4Q04
Demand Bottomed
4Q99
Demand Peaked
Demand Bottomed Supply
Demand
1989 3Q03
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Most Requested InformationMost Requested Information
How to write a How to write a resignation letter resignation letter articlearticle
High cost of High cost of turnover article turnover article
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Job Creation
10 million more positions than people in the USA by 2010
Labor Surplus vs. Skill ShortageLabor Surplus vs. Skill Shortage
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EmploymentEmployment Index Index
Employment of workers in IT Occupations
3,100,000
3,200,000
3,300,000
3,400,000
3,500,000
3,600,000
3,700,000
3,800,000
Source: National Association of Computer Consultant Businesses (www.naccb.org)
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IT professionals in high demandIT professionals in high demand
OccupationOccupation 2Q2006 2Q2006 Unemployment rateUnemployment rate
Computer hardware engineersComputer hardware engineers 2.12.1
Computer and information systems managersComputer and information systems managers 2.92.9
Computer programmersComputer programmers 2.12.1
Computer scientists and systems analystsComputer scientists and systems analysts 2.22.2
Computer software engineersComputer software engineers 2.62.6
Computer support specialistsComputer support specialists 2.72.7
Network and computer systems administratorsNetwork and computer systems administrators 4.04.0
Network systems and data communications analystsNetwork systems and data communications analysts 3.43.4
Source: unpublished tabulations of Current Population Survey data furnished by the U.S. Bureau of Labor Statistics.Source: unpublished tabulations of Current Population Survey data furnished by the U.S. Bureau of Labor Statistics.
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The job market has shifted from an Employer’s MarketEmployer’s Market to a Job Seeker’s MarketJob Seeker’s Market - to a Combination MarketCombination Market.
Candidate
Candidate
Candidate
Position
Position
Position
Position
Candidate
2000 - 20032000 - 20032000 - 20032000 - 2003 2004 - 20102004 - 20102004 - 20102004 - 2010
Market ShiftMarket Shift
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Sets the Price Yes NoAnnual Increases 5-15 % 3-6 %
Today’s MenuBusiness Analyst $50K - $ 80KProject/Team Leader - $65K - $110K Large CompanyData Center Manager $75K - $105KData/Voice Comm Spec. $55K - $ 95K. NET Market Value
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Candidate PopulationCandidate Population
25% A Players25% A Players
50% B Players50% B Players
25% C Players25% C Players
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Position Demand . . .Position Demand . . .
% Skills Yrs. Exp.
10 Mgmt./Conslt. 8+ Yrs.
30 Sr. Tech/ 4 – 8 Yrs 1st Line Mgmt
60 Staff/Tech 0 – 5 Yrs
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Talent PoolTalent Pool
% Skills Yrs. Exp.
60 Mgmt./Conslt. 8+ Yrs.
30 Sr. Tech/ 4 – 8 Yrs 1st Line Mgmt
10 Staff/Tech 0 – 5 Yrs
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Position Demand . . . Position Demand . . .
Talent Pool . . . Talent Pool . . .
% Skills Yrs. Exp.
10 Mgmt./Conslt. 8+ Yrs. 60 8+ Yrs
30 Sr. Tech/ 4 – 8 Yrs 30 1st Line Mgmt 4 – 8 Yrs
60 Staff/Tech 0 – 4 Yrs10 0 – 4 Yrs
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Future IT EmployeesFuture IT Employees
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• Will come from companies with less than 100 employees
• In Houston there are less than 4,000 companies with over 100 employees
• These companies need the same services as large companies - just not all the time
80% of Job Growth80% of Job Growth
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Big VS Small Big VS Small
Traditional business don’t create jobs Traditional business don’t create jobs or invent products they buy them or invent products they buy them
Job Growth vs Job CreationJob Growth vs Job Creation Risk Aversive – more committee Risk Aversive – more committee
decision make to limit career riskdecision make to limit career risk
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Increase Staff, 75%
Remain the Same, 22%
Decrease Staff, 3%
2007 Houston IT Hiring2007 Houston IT Hiring
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Who’s LookingWho’s Looking
21%
32%
47%
Active – 47Active – 47 Passive – 32Passive – 32 Not at all – 21Not at all – 21
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Employee ChurningEmployee Churning
CompA
CompB
CompC
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Where Do All of the People Come Where Do All of the People Come From?From?
Internal Full-Time Staff
Low Cost Providers
Network Integrators
Hardware Support Providers
Software Developers/Support
Software Providers
Voice Data Providers
Contract or Temp Labor
Training Companies
Management Consultants
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How Work Gets DoneHow Work Gets DoneOff-shoring
Out-sourcing
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Positions of TomorrowPositions of Tomorrow
Current globalization creates a market for PM, BA, and Functional Analysts who areneeded to manage 3rd party resources.
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Skills CIO’s Look For Personal 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
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What You Can’t Measure, You What You Can’t Measure, You Can’t ManageCan’t Manage
With no measurable criteria for With no measurable criteria for results, Businesses are not going to results, Businesses are not going to see the added value and budgetary see the added value and budgetary increases will cease.increases will cease.
Show your worth, give measurable Show your worth, give measurable results to show progress and proof of results to show progress and proof of value.value.
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Formal Education vs. CertificationsFormal Education vs. Certifications
50% of Companies questioned, claimed 50% of Companies questioned, claimed no better results with a PMP certified no better results with a PMP certified Project Manager than with one who has Project Manager than with one who has qualified experience but no certification.qualified experience but no certification.
More than half of the Companies More than half of the Companies preferred a formal degree and;preferred a formal degree and;
71% prefer an advanced degree before 71% prefer an advanced degree before promoting to a leadership role.promoting to a leadership role.
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Experience Vs Degrees for Experience Vs Degrees for Management Management
71.9%
28.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Advanced Degree
Experience
Degree
Both
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A faithful employee is as refreshing as a cool day in the
hot summertime. Proverbs 26:13
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How This Impacts YouHow This Impacts You
EmployerEmployer Higher Turn OverHigher Turn Over Higher Employee Higher Employee
Cost Cost Positions Open Positions Open
LongerLonger Higher Hiring CostHigher Hiring Cost Add Fees to BudgetAdd Fees to Budget
EmployeeEmployee More Career More Career
OptionsOptions Training Training Bonuses Bonuses Increase Base Increase Base
SalarySalary
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#1 Success Factor of Executives
• Hire Good People
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JDA ResourcesJDA Resources
Salary SurveySalary Survey Hiring TrendsHiring Trends Cost of Turn OverCost of Turn Over Counter offersCounter offers Hi-Tech CalendarHi-Tech Calendar Hot JobsHot Jobs Interviewing Tips Interviewing Tips
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701 North Post Oak RoadSuite 610
Houston, Texas 77024-3818
Phone: 713/548-5400www.jdapsi.com
Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects
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