HDI "The Next Labor Crisis..D

1
HDI"The Next Labor Crisis..Déjà vu to the
1990s All Over Again" 2.14.07James Del
Monte CPCJDA Professional Services, Inc.
2
1 Success Factor of Executives

• Hire Good People

3
Hard Questions Part 1

• Who are you and what does JDA stand for?
• What is going on in the employment market?
• Why is it taking so long to find a position I
  want if unemployment is so low?
• Why dont recruiters return my calls?
• What does the future employment outlook look
  like?

4
Hard Questions Part 2

• What positions are moving off shore and how does
  this impact me?
• Are help desk positions going more contract or
  Full-Time?
• Why is it that when I am hiring someone the
  recruiter's wont stop calling?
• What is the future of the support center?

5
Hard Questions Part 3

1. Where are the people we need to hire going to
   come from?
2. How do I position myself for a senior management
   position?
3. How much difference does education or
   certification make?
4. What suggestions do you have to keep my staff?
5. Are you done yet?

6
What JDA Does. . .
JDA provides clients with a full complement of
information technology professionals. Our
services are designed to meet the unique and
changing requirements of our clients.
Full-Time Staffing
Contract / Temporary Staffing
Special Projects Staffing
JDA
7
Sooo, Tell Me About Your Career.
8
Law of Supply and Demand
4Q99 Demand Peaked
Demand
2Q01
1984
1995
4Q04
1989
3Q03
Supply
Demand Bottomed
Demand Bottomed
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
9
Most Requested Informationon JDA web site

• How to write a resignation letter article
• High cost of turnover article

10
Labor Surplus vs. Skill Shortage

Job Creation 1 million new IT positions from 2004
2014 thats a 30 increase (BLS)
11
Market Shift

The job market has shifted from an Employers
Market to a Job Seekers Market - to a
Combination Market.
12
Candidate Population

• 25 A Players
• 50 B Players
• 25 C Players

13
National Economic Stats for 2006

• National unemployment rate is at a 6 year low
  of 4.6
• National average hourly wage increased 3.85
  from 16.10 to 16.72 in 2006, the greatest
  increase since 2000
• National average annual expenditure for 2005
  was 46, 409, a 6.9 increase from 2004, and the
  highest increase since 1989
• Stock market prices have been on the rise since
  early 2003 and they are currently at their
  highest point since early 2001

14
Houstons Economic Stats for 2006

• Houstons unemployment rate averaged 5.1 for
  2006, our lowest since 2001 when it was just 4.7
• Houstons average hourly wage was at 19.57 in
  December 2005, more than 3 above the national
  average at that same time
• Consumers in Houston spent an average of 52,998
  per household in 2005, 10.3 higher than in 2004
  , an increase which is unmatched in at least the
  past 20 years

15
National vs. Local Economies
STATISTIC NATIONAL HOUSTON HOW WE COMPARE
Unemployment Rate (Avg. for 2006) 4.6 5.1(p) .5
Average Hourly Wage (Dec 2005) 16.35 19.57 19.7
Average Consumer Spending Per Household (2005) 46,409 52,998 14
16
80 of Job Growth

• 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

17
Big VS Small

• Traditional business dont create jobs or invent
  products they buy them
• Job Growth vs Job Creation
• Risk Aversive more committee decision make to
  limit career risk

18
2007 Houston IT Hiring
19
2006 CIO Survey Results
QUESTIONS INCREASE DECREASE STAY THE SAME
Company Growth in 2007 77.10 2.90 20
Department Budget in 2007 74.30 8.60 17.10
Staffing Level in 2007 44.40 0 55.60
Base Salaries in 2007 89.30 10.70 0
20
Employee Churning
21
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
22
Talent Pool


Skills Yrs. Exp. 60
Mgmt./Conslt. 8 Yrs. 30 Sr.
Tech/ 4 8 Yrs 1st Line
Mgmt 10 Staff/Tech 0 5 Yrs
23


Position Demand . . .
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 Yrs 10
0 4 Yrs
Talent Pool . . .
24
Future IT Employees
25
Disconnect
IT employment levels exceeds pre recession or
pre-bust levels. New college enrollment for MIS,
CIS, and CS students from 99 to fall 00
increased 13.8 from 28,018 to 31,881 and
remained at record highs through 2002. New
enrollment numbers plummeted 17.9 from 02 to 03
and another 26.8 to 18,046, the lowest number on
record.
26
Where Do All of the People Come 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

27
How Work Gets Done
Off-shoring
Out-sourcing
28
Services used for Help Desk/Call Center
29
Customer Satisfaction Comparison
Service Level Off-Shore Out-Source
Better 25 50
Same 0 14.3
Not as Good 75 35.7
30
Top Reasons People Work Contract

• It will lead to permanent employment
• Flexibility of schedule
• To obtain experience/training
• Diversity in jobs/challenge
• Only work available
• Money is better
• Family or personal obligations
• Changing careers and need more experience
• Source American Staffing Association Workforce
  Metrics
• Choosing Temporary Work

31

Your Company
The Market

• Sets the Price Yes No
• Annual Increases 5-15 3-6

32
Positions of Tomorrow
Current globalization creates a market for PM,
BA, and Functional Analysts who are needed to
manage 3rd party resources.
33
70 of CIOs Use Help Desk as a Point of Entry

• Where do Help Desk team members usually come
  from?
• External candidates with experience and
  certifications
• New technical school graduates
• Internally promoted employees

34
Top 3 Retention ProgramsOnly 16 of CIOs
currently have special retention programs in
place for their Help Desk employees.

• 1 Training 57
• 2 Career Mobility 29
• 3 Bonus Program 14

35
Skills CIOs Look For Leadership Positions

• Business/Functional
• Project Management
• Communication - written and oral
• Presentation
• Problem Solving
• Critical Thinking
• Leadership
• Organization Skills
• Time Management
• Attention to Detail
• Learning Ability
• Flexibility

36
Experience vs Degrees for Management
37
Value of Education

• 71 of CIOs prefer an advanced degree before
  promoting to a leadership role.

38
A faithful employee is as refreshing as a cool
day in the hot summertime. Proverbs 2613
39
Whos Looking

• Active 32
• Passive 47
• Not at all 21

40
Why People Leave

• Bad management
• Lack of recognition or reward
• Too much travel
• Bad work environment
• Lack of job security
• Lack of training
• Long commute
• Pay/benefits
• Uncertainty about future
• Lack of career advancement

41
Why People Stay

• Like the people they work with mostly their
  manager
• Control and independence over work
• Flexible work schedules
• Decision making
• Increased levels of responsibility
• Reward and recognition
• A sense of belonging
• Fun

42
10 Ways to Keep Them!

1. Hire the right type of person A or B
2. Have people grow into the position vs. out of the
   position
3. Rotate responsibilities and cross-train, offering
   a variety of functions and responsibilities
4. Pay above-market cash or bonuses
5. Use non-cash rewards and recognition for results/
   efforts

43
10 Ways to Keep Them!

1. Create a team environment / team building
2. Use temps or contractors for more routine work
3. Encourage communication with manager
4. Make proactive counteroffers when you have
   someone you want to keep
5. Set clear expectations and give feedback on how
   they are doing

44
Bad Seeds

• Get rid of bad seeds and people who dont want to
  be there the dominant attitude will proliferate
  through the group and pollute the team.

45
How All This Impacts You

• Employer
• Higher Turn Over
• Higher Employee Cost
• Positions Open Longer
• Higher Hiring Cost
• Add Fees to Budget

• Employee
• More Career Options
• Training
• Bonuses
• Increase Base Salary

46
Solutions for JDA Clients

• Review and Revise Retention Plans
• Make Salary Adjustments Based on Market Rates
  (see JDA Houston Salary Survey)
• Spend Time Money Training Developing Staff
  (includes cross training)
• Hire Interns /or Part-Time Students
• Encourage Entrance into the Field by Getting
  Involved with Local High Schools
• Adopt a Proactive Recruiting Model CALL JDA!!!

47
JDA ResourcesWWW.JDAPSI.COM

• Salary Survey
• Hiring Trends
• Cost of Turn Over
• Counter offers
• Hi-Tech Calendar
• Hot Jobs
• Interviewing Tips

48
701 North Post Oak Road Suite 610 Houston, Texas
77024-3818 Phone [phone] www.jdapsi.com
Contract and Full-time Staffing Information
Technology Staffing Specialists Consulting and
Special Projects