Many of you are in the hunt for a job these days. It’s still tough out there but there seems to be hope. My company, KoreOne, is on the frontline of the job market. We see trends before they hit the stat sheets. Most of the information we have is from continually talking to clients and candidates, but we also look at overall trends at both a national and regional level. Here are the top five trends that we are seeing with our clients:
1. People are hiring! Make no mistake, companies are definitely hiring. In IT alone the year over year increase in the number of IT jobs is 69% (Source: Indeed.com). This is the highest increase in job postings for Information Technology this year. Its not just IT either, sectors such as real estate and financial services are seeing a 40 to 50% spike in job openings. Compare that to the Healthcare sector which has been consistently strong and had just a 16% increase in jobs in October.
2. Don’t look now but your team is gone – We’re seeing clients rebuilding their technology teams from scratch, hiring 5, 10, 15 team members at once. Some have planned for this with new product development budgets or rebuilding teams that have been reduced to “support level” capacity. Others have been forced to rebuild due to mass attrition. This kind of demand can shake up your organization overnight. According to SI Review (www.staffingindustry.com) 52% of employees and 56% of manager employees have reported being approached by companies discussing new job opportunities. Don’t be surprised if you IT Manager bolts and takes the entire team.
3. Companies are more selective – Companies are always looking for talent but now, they are more selective than ever. Many people believe that high unemployment means a proliferation of talent. That is not always the case. Over the last year, candidates with experience with virtualization, cloud computing, and mobile application development were in high demand. Even skills that are in ample supply are being scrutinized more closely. We see more companies testing candidates with online evaluations, skills testing and development exercises. In addition to evaluation exercises, we are seeing clients looking for depth of expertise. For example, developers who have experience with many languages are being overlooked. Clients want to see several years of experience in a single technology.
4. Bidding wars, really? Yes, its coming sooner than we thought. Our candidates are getting multiple offers and creating bidding wars. As I write this, a talented .net developer candidate we have, is evaluating two offers of over $100,000. Considering the average posted salary for .net developers in Orange County is $71,000 (Source: Indeed.com). If you think you can low ball talent and still close the deal, you may want to rethink your strategy.
5. Local demand meets National Supply – Like the real estate market, hiring trends vary from city to city. Rochester, Los Angeles, Detroit, Miami and New Orleans continue to struggle with the fewest job postings per capita (20 to 25 postings per 1,000 people). Compare that to Washington DC and San Jose which have some of the hottest hiring markets (129 to 132 postings per 1,000 people). Companies who struggle to find talent in their area are looking outside “the 50 mile radius” to cities with struggling economies. KoreOne has recently placed 3 candidates who relocated from cities like Detroit, New Orleans, and Las Vegas. Add to that all the candidates that are looking to move closer to home and you have a very large candidate pool. If you are only looking in your backyard you may be missing talent.