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Real Connections

Pragmatic Solutions for IT Staffing

October 2007

By Gene Holtzman

Overview

The competition for human capital is fierce and strategies are changing, particularly in the Technology sector. This paper emphasizes how and why it is critical for companies of all sizes to build innovative recruiting techniques and implement progressive retention programs in order to compete effectively fot the top talent in today's IT marketplace.

"The financial impact of employee turnover is so significant, the now, more than ever, companies must focus on recruiting and retaining talented IT employees. High quality people are the key to a business' success."

Background

Historically, supply and demand for Infomation Technology professionals is cyclical. Looking back to around the time of the dot-com crash, damand began to decrease and many IT workers remained with their current companies. Over the last couple of years, however, demand has increased significantly. In fact, according to US Bureau of Labor Statistics, technology unemployment is at its lowest level since 2000 and it is estimated that for every two people leaving IT over the next 10 years, there will be one college graduate to take their places.

IT is once again a hot sector. Companies are beginning to realize that a talented IT staff is the key to growth. Fundamentally, this is great for the industry. However realistically; it poses a significant challenge for businesses. Conditions vary by region and skill set, but a common set of deep-rooted trends is changing the landscape and creating a difficult staffing environment.

Reports project that 25 million workers will leave the labor force between 1998 and 2010. Of those 25 million, 88% will retire. Compounding the exodus of baby boomers is a shortage of newly educated technology professionals. The dot-com bust, outsourcing and off shoring have all influenced students to abandon technology career paths. Globalization is also affecting the state of IT staffing. IT services don't have to originate from the same place (country) they are received, making competition a global concern. However, by implementing pragmatic people-related solutions, companies can lessen the impact of these problems.

 

Recruiting IT Employees

Key Issues
  • By 2010 more the 21 million new IT jobs will be created in the U.S., but only 17 million new employees will enter the workforce, causing a shortage of skilled workers.
  • An aging workforce will retire over the next decade.
  • Fewer students are majoring in Computer Sciences at colleges and universities.
  • The use of outsourcing firms (including offshore) is growing.
  • Misconceptions still exist from the technology downturn - i.e., Because of past layoffs and outsourcing, IT donesn't have the appeal it once did.
  • Young employees tend to have lofty expectations and need to be managed differently.
  • Potential employees are afraid of dead-end careers.
  • Overly-ambitious job descriptions are barriers to finding the right candidates.
  • inflated resumes can result in poor hires.
  • Using the internet for staffing is on the rise. While it is a inexpensive source it is not always a good one. The process can be very time consuming and often provides a large quantity of applicants but not necessarily quality. Online skill certification can be difficult.
Solutions
  • Create a strong brand and market yourself like crazy.
    • Define, in writing, what your company stands for
    • Strive to become a "best place to work"
    • Utilize your website effectively
    • Secure media exposure to reinforce your message
  • Make the time to engage in people planning - anticipate your needs and create accurate job descriptions, but be careful not to turn potential talent away.
  • Use the best resources available: create an employee referral program, recruit earlier and to a wider range of colleges and universities, partner with a recruiting firm.
  • Take your time to hire and do it right. Getting rid of a bad employee is difficult and costly.
  • Put measurements in place so you know what's working and what's not.
  • Re-evaluate screening techniques: Use more human screening and less prefiltering by generic criteria. Offer job questionnaires or mini tests online.
  • Develop talent. Look to interns and entry-level workers - train them yourself.
  • Offer competitive packages: salary, benefits, bonuses, tuition reimbursement, professional training. Understand and keep up-to-date on your competitors' policoes.
  • Create an attractive culture: offer flexible work schedules and family friendly attitude.
  • Anticipate turnover, learn to manage expectations and be prepared.

 

Retaining IT Employees

Key Issues
  • The business impact (expense and lost productivity) of employee turnover can be huge.
  • The young workforce is unpredictable and generally lacks company loyalty.
  • Poaching is common practice in today's freewheeling marketplace.
  • Disengaged employees will leave organizations over time.
  • Employees tend to get bored and restless with monotonous work.
  • Feeling dead-ended in a company forces employees to look outside.
  • Some employees must simply be viewed as "short-timers".
Solutions
  • Understand retention rates amd trends and quantify turnover costs.
  • Provide competitive compensation/benefits packages.
  • Help advancement by providing career development opportunities.
  • Provide good mentors and good bosses. Help employees build strong relationships with other employees.
  • Support flexible schedules and/or telecommuting.
  • Understand what it's really like to work at the company.
  • Empower the workforc: provide employee blogsand open lines of communication.
  • Get employees on board quickly - engage them in work from the minute they walk through the door.
  • Education - companies must support and/or provide continued training and certification.
  • Measure performance and provide goals, incentives and bonuses.
  • The quality and promise of work helps employees commit to a company.
  • Provide access to new technologies.
  • Connect people to people: meaningful interactions create meaningful results. The caliber of peers is important, the balance of work/life is important.

 

Conclusion

In this competitive and global environment, forward thinking is crucial. Companies must understand the market conditions and be fully prepared to meet the ever-changing demands of the technology industry. They will have to seriously rethink their approach to talent acquisition, while realizing that along with a talent shortage, there is an overwhelming shift in employees' needs. High quality employees are the key to a company's success.