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Surveys Say Tech Hiring Is Accelerating

by
John Zappe
Jun 11, 2012, 11:05 am ET

A raft of new surveys from as varied a group as Dice, CFO magazine, and Silicon Valley Bank all say the same thing: Tech hiring is accelerating. To put that another way, if you think it’s hard hiring IT professionals now, just wait a few months.

From startups to mature firms, companies say they’ll be adding tech workers now and into next year at a faster pace than they have been. Even CFOs, who say they expect their overall company hiring to increase by 2.5 percent, predict they’ll be hiring tech workers at twice that rate.

Among startups, 83 percent told Silicon Valley Bank they’ll add IT staff in the next year. The survey found 90 percent of startup software companies will be hiring, with smaller, but still high numbers of hardware, and life sciences startups also planning to add tech staff. Most of their recruiting will be local to their home state, reports the bank. But over the next two to three years, software startups in particular expect they’ll have to look beyond the local geography, even going internationally for talent.

“This may reflect their more robust growth expectations, greater flexibility in accommodating workers spread across locations, and/or the level of competition for skilled software engineers, which may be forcing startups to cast their hiring nets wider to attract workers with the skills they need,” says the report.

With tech professionals already at a premium, the hiring plans will put upward pressure on salaries, as companies compete for the ever-shrinking pool of talent. Dice, which found 73 percent of the tech recruiters and hiring managers it surveyed expecting to hire in the next six months, said 58 percent report salaries will increase.

Other hiring inducements haven’t changed all that much since last year, but where they have, the most commonly mentioned were bonuses of all types. Other benes being offered are more vacation time and telecommuting.

Despite the growing competition for tech talent, getting professionals to jump ship isn’t easy. Only 37 percent of the surveyed managers say their voluntary departures have increased this year.

“Our customers tell us it’s hard to entice tech professionals out of their current positions,” said Tom Silver, SVP North America of Dice. “There is just not enough confidence for professionals to leave what they know behind and take a chance with their careers.”

This article is provided for informational purposes only and is not intended to offer specific legal advice. You should consult your legal counsel regarding any threatened or pending litigation.

  1. Tom Gimbel

    John, I’m not surprised regarding this data. At my staffing firm, LaSalle Network, we’ve seen a big upswing in IT hiring, specifically on the temporary side. Our client companies are much more open to bringing people in on a temporary or contract basis and seeing how things play out versus committing to people and then having to downsize. But regardless if a firm is looking to hire full-time or project staff, good IT people will always be in demand. I actually covered this on my blog last year: http://pastfive.typepad.com/pastfive/2011/02/the-future-of-staffing-it.html

  2. Reena Gupta

    John, appreciate this article so much since many of our newest clients are Global IT and Healthcare IT staffing firms. It is also important to note that sourcing, tracking, managing and communicating with these candidates will be critical and hopefully, staffing companies are prepared with automated recruiting solutions to assist.

    Reena

  3. Aimee Carmichael

    John, this is a great article and I am not surprised that you are reporting of this. At Morgan McKinley we have seen an influx in the number of IT roles coming in for our FS clients. As the nature of business continues to change with emerging technologies within banks the financial sector is continuing to hire top I.T professionals to drive innovation. You can read more about what one of our consultants reported here: http://bit.ly/ITHiring

    Being in a social media/online professional myself I have also seen a significant increase in demand for these skills during the last 18 months.

  4. How can this be?!… Yes the War for Talent is back! | The ecom4 blog

    [...] Surveys Say Tech Hiring Is Accelerating – A raft of new surveys from as varied a group as Dice, CFO magazine, and Silicon Valley Bank all say the same thing: Tech hiring is accelerating. To put that another way, if you think it’s hard hiring IT professionals now, just wait a few months. [...]

  5. How Can this Be!!… Yes a War for Some Talent is Back | The ecom4 blog

    [...] Surveys Say Tech Hiring Is Accelerating – A raft of new surveys from as varied a group as Dice, CFO magazine, and Silicon Valley Bank all say the same thing: Tech hiring is accelerating. To put that another way, if you think it’s hard hiring IT professionals now, just wait a few months. [...]

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