In a strong US economy, unemployment continues to trend down. Anyone in technology knows that unemployment is at record lows for technology resources. Finding, recruiting and hiring tech staff burdens many organization’s ability to develop and evolve their core systems and to take advantage of new opportunities like Big Data, mobility, and security improvements.
We are here to help! Given this challenged marketplace, there are strategies to help improve your chances of finding and keeping excellent staff.
The Market Challenges
Fundamentally, the growing US economy along with thriving tech sector are putting a great deal of pressure on organizations with technology hiring needs.
Challenge #1: A Strong U.S Economy
The U.S unemployment rate fell from 6.1% in August 2014 to 5.1% in August 2015. According to the U.S Department of Labor it hasn’t been this low since 2008. The number of jobs are increasing as companies to continue their growth, providing job seekers with more opportunities.
It’s predicted that by the end of 2015, the U.S. temporary staffing industry will grow 7% and expand another 6% in 2016. Staffing Industry Analysts predict the industry will reach a record size of $123 billion in 2016. This growth indicates the positive outlook on job requirements by employers – they need staff.
Challenge #2: Technology Unemployment Is At A Record Low
In Q2 of 2015, IT unemployment is at 2%. The number of IT related jobs are increasing rapidly, nearing 5 million jobs in August 2015. Further exacerbating the problem, 22% of CIO’s are planning to increase their IT budget during the second half of 2015.
Challenge #3: The Supply Demand Challenge
Hot technologies like mobile, cloud, data analytics and security are fueling technology growth and creating more positions for job seekers. With the addition of jobs in 2016, starting salaries for IT professionals are estimated to increase by 5.3% in 2016.
Many companies are already feeling the pressure of the demand and supply challenge. They are finding it difficult to find the right talent for their teams since it’s a very competitive market. There is a shortage of skilled IT consultants. They are forced to pay increasingly more in salaries and contractor rates to get what resources they can find.
6 Tips to Overcome Hiring Challenges
Organizations that understand and embrace these challenges can strive to work through these issues to land excellent resources to fill their needs for technology growth and adoption. Here are 6 tips to overcome the IT supply and demand challenge:
1. Don’t lose because of timing
Since the market is competitive it’s important to shorten the hiring time. Many candidates have multiple offers. Don’t lose them to the competition by reacting too slow.
2. Know your market and competition
Companies are competing for hard to find talent in the various growing fields of big data, compliance, and mobile applications development. Check the latest salary and hiring trends to make your offer more attractive and improve retention efforts.
3. Attract talent
With limited candidate pool and increasing opportunities, a company’s brand image has never been more important. Communicating this positive image is critical. And social media is the fastest, most pervasive tool. Businesses are now filling more than 10% of their positions through social media.
4. Recognize the new employee
Increasing numbers of millennial workers are entering the job market and soon will make up the largest percentage of the workforce. These workers align first with the social presence of an organization, then with the more normative practices of web site, market research, etc.
Innovative employers are quickly learning that these workers have different expectations about work life and thus require a different approach to the hiring process.
5. Be proactive
One of the biggest ways to train and develop the best workers these days is to hire interns. Companies are able to train them the right way from the beginning and continue to develop and grow their skills. The effort spent on development programs is commonly offset with lower starting wages for workers and greater loyalty from their investment in the staff.
6. Hire better
Companies need to think about hiring candidates that are the right fit technically and culturally. Use personality tests, ask probing questions, and avoid hiring based on desperation.
The market is only going to continue to grow – make sure you have a plan on how to attract and retain the right candidates!