Issues of Locating, Attracting, Compensating, and Keeping IT Resources

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Issues of Locating, Attracting, Compensating, and
Keeping IT Resources
Presented by Jim Stephens, HR Services
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The Big Picture

• The national context
• The Marshall context
• Strategies and directions

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Jobs Go Vacant
About 346,000 Information Technology jobs are
currently vacant in the U.S.
ZDnet 01/26/98
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Where Are Vacancies?
215,000 /- in user organizations 130,000 /- at
vendors and svc providers
ZDnet 01/26/98
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Jobs Go Vacant
About 10 percent of all IT jobs are vacant on a
given day
ZDnet 01/26/98
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The Years Ahead
The U.S. will need over 137,000 new IT workers
per year through 2006
White House Office of Technology Planning, 1998
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Supply vs. Demand
U.S. needs 95,000 IT college grads per year. In
1994 only 24,500 (in Comp Sci) were graduated
U.S. Dept of Commerce Office of Technology Policy
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Fish Not Biting!
Tough Recruiting! (Same position, two years
later) 1995 - 80 Responses 1997 - 0 Responses
John Zarb, CIO, Libbey, Inc., Toledo-based
glassware company, recruiting for applications
specialist, 1997
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Rising Salaries
Software system developers salaries increased by
20 from 1995 to 1996
William M. Mercer, Inc.
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New jobs coming?
80 percent of all new jobs in the U.S. over the
next ten years will be in IT
U.S. Department of Labor
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Leading the Growth
Computer-related jobs hold the top three slots in
anticipated growth in the decade 1996-2006
Bureau of Labor Statistics, 1998-99 Occupational
Outlook Handbook
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Fastest Growing!
Change, 1996-2006 Database administrators,
computer support, and all other computer
scientists --- 118 Pct Increase --- 249,000 new
jobs
Bureau of Labor Statistics, 1998-99 Occupational
Outlook Handbook
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Coming in Second!
Computer Engineers 109 Pct Increase 235,000 new
jobs (1996-2006)
Bureau of Labor Statistics, 1998-99 Occupational
Outlook Handbook
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And in Third Place!
Systems Analysts 103 Pct Increase 520,000 new
jobs (1996-2006)
Bureau of Labor Statistics, 1998-99 Occupational
Outlook Handbook
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Systems Analysts
must increase ranks by 90 to fill a forecasted
928,000 new jobs by 2005
U.S. Department of Commerce
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Turnover
Traditionally, the IT turnover rate has varied
from 6 to 10 percent
Gartner Group, 1997
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Turnover, contd
In 1997 the IT turnover rate ranged from 12 to 20
percent
Gartner Group, 1997
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Turnover, contd
Organizations involved in client-server
technology can experience up to 30 percent
turnover rates
Gartner Group, 1997
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Wage Spiral
In a 1998 survey, IT managers expected to pay 20
more in salaries because of Y2K project pressure
Cap Gemini America, New York
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Driving Forces

• Increased specialization
• New products
• Short application life spans
• Year 2000 compliance process
• Reduced college output

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Once upon a time...
an IT specialist could support a diverse
assortment of functions
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Exploding Applications
Today there is an explosion of new applications
and products
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Exploding Applications
The capability to support broad-range
requirements through a single individual is
disappearing
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Exploding Applications
Niche specialization drives up the cost of
staffing the IT function
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Skills Needed

• Systems analysts
• Database administrators
• Digital media specialists
• Network specialists

Northwest Center for Emerging Technologies
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Skills Needed

• Software engineers
• Programmers
• Technical support reps
• Technical writers

Northwest Center for Emerging Technologies
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Why did you leave?

• 6. Organizational atrophy or disarray
• 5. Inadequate, insufficient, or inappropriate
  training
• 4. Lack of career path options

Gartner Group
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Why did you leave?

• 3. Inflexible salary administration practices
• 2. Salaries for new hires higher than salaries
  of incumbents
• 1. Lack of acknowledgment or recognition

Gartner Group
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Economic Trends
The U.S. spends more than 3 percent of its GDP on
IT products and services
Portia Isaacson
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Economic Trends
Spending for IT is growing at 2 to 3 times the
rate of the U.S. economy as a whole
Portia Isaacson
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Supply/Demand
The supply/demand cycle in Information Technology
is like every other such cycle
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Supply/Demand
It is cyclical, and it will resolve itself as
time goes on
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Supply/Demand
It is predicted the IT shortage will begin to
moderate around 2003-2004
Gartner Group
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Supply/Demand
Can organizations hang on long enough to ride out
the cycle?
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Supply/Demand
Until supply and demand balance, we are in for
difficult times
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Fact of Fiction?
Is there really a shortage, or are employers just
being picky?
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HOW DOES IT IMPACT US?
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The Marshall Context
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Meeting the Market?
The systems analysis is based on Mercer higher
education market data
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Which Market?
We have, however, lost staff to industry
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Mercers Analysis

• Minimum - 93 of market
• Midpoint - 78 of market
• Maximum - 89 of Market

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Implication?
According to Mercer, we hire in at close to the
higher education market but then cannot maintain
parity
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Set in Code
The Classified Staff salary structure is set in
State Code
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Set in Code
It is difficult to add, delete, or change what is
in State Code
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Good Start, Slow Finish
Can hire up in the range, but then the person is
trapped by the schedule in succeeding years
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Salary Adjustment
We have adjusted some IT salaries in response to
external offers
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Turnover
Marshall must deal with three issues Losses Help-
Desk Thru-Put Chronic Vacancies
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Losses
Using 28 as a base, suffered 10.7 turnover in
FY98. FY99 projected to be about 14.2
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Help Desk
Lack of continuity in Help Desk position because
of their appointment type
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Vacancies
Always carrying several vacancies that do not
respond well to recruiting
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So...
what can we do about it?
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Directions and Strategies
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What Can We Do?
What might Marshall University do to better
recruit and retain IT staff?
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Think Outside the Box
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Ideas?
Lets build a marketplace in ideas!
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Search, Anyone?
Recruit in a new way
Newspapers
Web
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Reduce Application Paper
Increase ability to receive, process, share, and
save virtual recruiting media
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Shorter Recruiting
Shorten the recruiting cycle for IT positions
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Warning Perishable
The IT job candidate is like a cantaloupe.
Perishable if not used quickly!
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Shorter Recruiting
Both HR and its customer have to do their parts
quickly.
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Share Our Future
Weave into our recruiting materials information
about what we will be working on in the future.
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Im interested!
Some people are looking for future development
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Calling Expatriates!
Build an active program to bring expatriates home
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Home Grown!
Grow-your-own. Look for persons interested in
and capable of IT work. Train and staff with
them.
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What? No Bonuses?
We have to overcome an inherent handicap. We
cannot pay sign-on or other types of bonuses.
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Resume vs. Needs
Resume
Needs
100 PCT MATCH? ALMOST NEVER!
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Resume vs. Needs
Resume
Needs
WHAT IS THE REJECT ZONE?
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Poor Match?
In many cases employers look for a 100 match
between applicants and requirements
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Give up on 100 Pct
Be willing to train for some of what may be
missing in a persons resume
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Fact or Fiction?
Is there really an IT recruiting shortage?
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Fact or Fiction?
Nationally, about 2 to 5 pct of all IT job
bidders are hired. What about the other 98 to
95?
Norman Matloff, Univ of California, Davis, 1998
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Fact or Fiction?
Some feel that employers hold out for an EXACT
match.
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Broadbands?
Work for systemic change in IT compensation.
Broadbands might be useful.
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The State?
The State is pondering a critical retention
scheme involving quadrants
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The State?
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Quick Change
Have succession kits ready for each position.
Reduce the time to ramp up for recruiting.
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Ask Around
Ask present staff why they joined MU. Point up
the reasons in recruiting.
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Who Do You Know?
Let staff aid recruiting by making referrals of
friends and former associates.
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Moneys Not Everything
Just throwing more money at the problem may not
solve it. We might try...
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Saying Thanks
Surveys have shown that feeling appreciated and
needed tends to keep IT folks.
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Not older. Better.
Can older IT workers cut the mustard? In many
cases, yes!
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Not older. Better.
Nationally, there is evidence of a skew against
older IT workers.
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Invest in Training
Supported training can be a valuable incentive to
attract and keep IT staff.
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Invest in Training
The Marshall Technology Institute was created to
facilitate IT training as a retention tool
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Invest in Training
There are policy and other constraints that make
their mission challenging to accomplish
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Share This Job?
Adopt job-sharing processes. e.g. - women in IT
may want to work part-time due to child care
responsibilities?
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Asynchronous Work
Not all IT work has to be done at the same time.
Accommodate needs for different kinds of
schedules.
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Play From Strength

• Excellent benefits
• Exciting physical environment
• Opportunity to serve community

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WHAT OTHER IDEAS COME TO MIND?