In 2009, most of the country experienced layoffs and a depressed job market. Fortunately for those of us in Texas, and in particular the IT job market, we were one of the least affected nationwide.
In the winter of 2009, the economy started showing signs of recovery and, as a DFW IT recruiting company, our hopes were high that 2010 was going to be a much better year. Several of our clients told us in annual client reviews that they expected to begin hiring again and restart project plans that were put on hold, but the vast majority told us they were still concerned about the economy and were in a “wait and see” mode. We expected an anemic recovery with slow growth, but we were cautiously optimistic for 2010.
What have we seen this year?
The Federal Reserve’s June 9th Beige Book report for the Eleventh District (Dallas) stated, “Business conditions continued to improve,” and, “Employment levels held steady (with) reports of hiring activity.” Reports from staffing industry contacts indicate, “…demand remains strong and widespread across sectors. Orders are mostly for contract work but assignments are becoming longer in length and temp-to-hire placements continue to pick up pace.”
What we have experienced in the first half of 2010, as a staffing agency, is in line with this report. We have had a significant increase in activity with more open job requests than during the same time frame in 2009. Job offers to our candidates have gone up, several of our candidates are receiving multiple offers, and job offers are coming more quickly. In one case, a software developer was hired sight unseen and without an interview by one of our clients. He was only on the market for 3 hours!
What does this tell us?
The IT job market in North Texas is definitely becoming more active as regional economic activity improves. Companies are gradually spending and hiring again, indicating an optimistic outlook. Competition for candidates is increasing, making securing top candidates more challenging.
What does this mean to our clients?
Despite a 9.7% unemployment rate, securing the “A+” candidates still requires companies to do all the right things to streamline the hiring process and make their open positions as attractive as possible. Smart hiring managers shouldn’t hesitate in reviewing resumes, scheduling interviews, and making hiring decisions. Besides a competitive salary, hiring managers need to ensure their companies offer stimulating jobs and positive work environments. They also need to have a formidable benefits package that includes health care and a 401K. With business improving, companies can’t afford to keep critical projects on hold and expect to remain competitive.
Brett Schaefer & Mark Stevenson
Sales Managers
The InSource Group
http://www.insourcegroup.com/
Tuesday, June 29, 2010
Tuesday, June 22, 2010
Common Hiring Mistakes
As an IT staffing agency, we see a lot of the “best” and “worst” hiring practices in the industry. Below are some mistakes we have seen that can be easily avoided:
Overlooking the Over Qualified
Employers shy away from over qualified candidates for fear that they will be gone as soon as another, higher-paying position comes along. Though this does happen, it doesn’t happen as frequently as one might expect. In this job market, there is a lot to be said for non-monetary benefits a company has to offer. If an employee feels valued in a secure position, or if they have a positive work environment that offers room for professional growth, they are not as likely to leave just because they can earn a little more money elsewhere. With the amount of cutbacks companies are doing, there is an unprecedented glut of talent in the market. Hiring managers should not filter out candidates just because they seem to be over-qualified for the position.
Having Human Resources Do the Recruiting
Even the most talented human resources representative is not going to have the depth of knowledge required to fill a job in a technical department. He or she can read a job description without fully understanding what is needed in the job. A lack of ability on the part of HR is only part of the problem. Forcing a technical candidate to walk through bureaucracy might deter them from pursuing the position further.
Letting Crisis Control the Job Description
Managers often face a hiring situation as the result of a project crisis. They need to get someone with a specific skill set to help them immediately. These circumstances tend to generate very specific job descriptions that are harder to fill. Often, someone with strong fundamental problem solving abilities can learn the needed skill and be a better long term employee. By hiring purely based on a specific skill set, managers can end up with a candidate that doesn’t have the broader capabilities that would allow them to adapt to future project needs.
Relying Too Much on “Gut” Feel
One of the worst mistakes is writing off a candidate too quickly. Managers will make up their mind about a candidate in the first part of the interview, and then spend the rest of the interview looking for something to support their feelings. Most people think they are pretty good at conducting interviews, but by and large, they have not had the proper training or experience in selecting the right people. Relying on this “gut” feel short changes the company and the candidate, when it is not backed by solid interviewing skills and techniques.
(From Dallas IT recruiters at the InSource Group.)
Overlooking the Over Qualified
Employers shy away from over qualified candidates for fear that they will be gone as soon as another, higher-paying position comes along. Though this does happen, it doesn’t happen as frequently as one might expect. In this job market, there is a lot to be said for non-monetary benefits a company has to offer. If an employee feels valued in a secure position, or if they have a positive work environment that offers room for professional growth, they are not as likely to leave just because they can earn a little more money elsewhere. With the amount of cutbacks companies are doing, there is an unprecedented glut of talent in the market. Hiring managers should not filter out candidates just because they seem to be over-qualified for the position.
Having Human Resources Do the Recruiting
Even the most talented human resources representative is not going to have the depth of knowledge required to fill a job in a technical department. He or she can read a job description without fully understanding what is needed in the job. A lack of ability on the part of HR is only part of the problem. Forcing a technical candidate to walk through bureaucracy might deter them from pursuing the position further.
Letting Crisis Control the Job Description
Managers often face a hiring situation as the result of a project crisis. They need to get someone with a specific skill set to help them immediately. These circumstances tend to generate very specific job descriptions that are harder to fill. Often, someone with strong fundamental problem solving abilities can learn the needed skill and be a better long term employee. By hiring purely based on a specific skill set, managers can end up with a candidate that doesn’t have the broader capabilities that would allow them to adapt to future project needs.
Relying Too Much on “Gut” Feel
One of the worst mistakes is writing off a candidate too quickly. Managers will make up their mind about a candidate in the first part of the interview, and then spend the rest of the interview looking for something to support their feelings. Most people think they are pretty good at conducting interviews, but by and large, they have not had the proper training or experience in selecting the right people. Relying on this “gut” feel short changes the company and the candidate, when it is not backed by solid interviewing skills and techniques.
(From Dallas IT recruiters at the InSource Group.)
Wednesday, June 9, 2010
The Brain Drain From Texas
On the surface, it might sound contradictory. Almost everyone agrees Texas
was the place to be during the recent financial market turmoil. Businesses in
Texas fared much better than almost every other state. There are many reasons
for this, most of which were established years if not decades ago. But will
that favored status continue to last?
Dr. David Daniel, President of UTD gave an interesting and important presentation
to the Metroplex Technology Business Council luncheon on June 4th. Dr. Daniel
emphasized why it is critically important several Texas Universities achieve
Tier One Research University status.
From my viewpoint, I think you should really call it the "brain drain
from Texas". The positive economic impact great research universities have
on local economies can be staggering. Without it, Texas and DFW will struggle
in this highly competitive race for talent.
Consider the following as detailed by Dr. Daniel:
• DFW is the only one of the top 10 most economically productive cities
in the U.S. without a major academic research university.
• Texas exports a net total of 7,800+ top high school students per year
to doctorial granting universities. We give our best and brightest up to universities
in other states. In 2010, of the three valedictorians from the Plano high schools,
two are going to Harvard the other to MIT. The valedictorian from Pierce High
School is going to Stanford.
• Texas has 8% of the U.S. population, yet we receive only 5% Federal R&D
funds (about $3 billion / year), and about 5% of U.S. based venture capital
investments. If we just received our population based share, that would increase
by another $3.7 billion / year. By the way, V.C. started companies generate
over 18% of all U.S. business revenues.
• Consider MIT's economic impact. In 1994, Bank Boston estimated MIT alumni
founded more than 4,000 companies that employed 1.1 million people and had annual
gross revenues of $232 billion. In 2005, the entire DFW Metroplex (which produces
one-third of the state's economic output) had a gross domestic product of $285
billion. Stated differently, one world class university can have an economic
impact equal to one of America's largest cities.
• I could keep going.
So what's a state to do? Texas is making some progress.
We passed Proposition Four in 2009. That provided $500 million of matching
state funds to be used by 7 Texas Universities towards R&D activities. But
more must be done at the local community and private donation level.
Below are two links with information presented to the State of Texas by Dr.
David Daniel, President of UTD regarding pursuit of tier one research university
status. I encourage you to read these. Both written in 2008, they are a great
blueprint for the focus and progress being made.
http://www.utdallas.edu/president/documents/executive-summary.pdf
Posted by Wayne Rampey, Vice President, The InSource Group
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