Transcript Slide 1

PMI – Houston
"The Next Labor Crisis..Déjà vu to the
1990’s All Over Again"
2007
James Del Monte CPC
JDA Professional Services, Inc.
Success
“ . . . Almost 100% of a managers
success comes from hiring
and retaining good people.
Good people don’t make the
difference
- they are the difference“

- James Del Monte
Value of a Professional
Organization

Leadership

Industry/Business knowledge

Networking Opportunities

Friendship
Hard Questions Part 1
1.
2.
3.
4.
5.
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 don’t recruiters return my calls?
What does the future employment
outlook look like?
Hard Questions Part 2
1.
2.
3.
4.
What positions are moving off shore and
how does this impact me?
Are P/M positions going more contract or
Full-Time?
Why is it that when I am hiring someone
the recruiter's won’t stop calling?
Where are the people we need to hire
going to come from?
Hard Questions Part 3
1.
2.
3.
4.
5.
6.
What is the future of PMO’s?
I’m a PMP why don’t I get respect?
How much difference does a PMP make?
How do I position myself for a senior
management position?
What suggestions do you have to keep
my staff?
Are you done yet?
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
JDA
Special Projects
Staffing
Sooo, Tell Me About Your Career.
Law of Supply and Demand
4Q99
Demand
Demand
Peaked
2Q01
1984
1995
Supply
1989
Demand Bottomed
4Q04
3Q03
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
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
•
Houston’s Economic Stats for 2006
•
•
•
Houston’s unemployment rate averaged
5.1% for 2006, our lowest since 2001
when it was just 4.7%
Houston’s 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
National vs. Local
Economies
STATISTIC
NATIONAL
HOUSTON
HOW WE
COMPARE
Unemployment
Rate (Avg. for
2006)
4.6%
5.1%
+.5%
Average Hourly
Wage (Dec 2005)
$16.35
$19.57
+19.7%
Average Consumer
Spending Per
Household (2005)
$46,409
$52,998
+14%
Most Requested Information
on JDA web site


How to write a
resignation letter
article
High cost of
turnover article
Labor Surplus vs. Skill Shortage
Job Creation
1 million new IT
positions from 2004
– 2014 that’s a 30%
increase
(BLS)
Candidate Population

25% A Players

50% B Players

25% C Players
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
Houston Companies
by Number of Employees
60,000
50,000
40,000
30,000
20,000
10,000
0
1 to 5
6 to 9
10 to 19
20 to 59
60 to 99
100 to 249
250+
Big VS Small



Traditional business don’t create jobs or
invent products they buy them
Job Growth vs Job Creation
Risk Aversive – more committee decision
make to limit career risk
2007 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
75%
3%
22%
Base Salaries in
2007
89.30%
10.70%
0%
2007 IT Hiring Percentages
Remain the
Same, 22%
Decrease
Staff, 3%
Increase
Staff, 75%
Who’s Looking


21%
47%
32%

Active – 32
Passive – 47
Not at all – 21
Employee Churning
Comp
A
Comp
C
Comp
B
Position Demand . . .
%
Skills
Yrs. Exp.
10
Mgmt./Conslt.
8+ Yrs.
30
Sr. Tech/
1st Line Mgmt
4 – 8 Yrs
60
Staff/Tech
0 – 5 Yrs
Talent Pool
%
Skills
Yrs. Exp.
60
Mgmt./Conslt.
8+ Yrs.
30
Sr. Tech/
1st Line Mgmt
4 – 8 Yrs
10
Staff/Tech
0 – 5 Yrs
Position Demand . . .
%
Skills
Yrs. Exp.
10
60
Mgmt./Conslt.
8+ Yrs.
8+ Yrs
30
30
Sr. Tech/
1st Line Mgmt
4 – 8 Yrs
4 – 8 Yrs
60
10
Staff/Tech
0 – 4 Yrs
0 – 4 Yrs
Talent Pool . . .
Disconnect
Employment of workers in IT Occupations
40000
3,700,000
35000
30000
25000
20000
31881
28018
33583 33848
3,650,000
3,600,000
27794
3,550,000
24640
3,500,000
3,450,000
18046
3,400,000
3,350,000
15000
3,300,000
3,250,000
10000
3,200,000
5000
Fall 99 Fall 00 Fall 01 Fall 02 Fall 03 Fall 04 Fall 05
2
4
3
2
1
4
3
2
1
4
3
2
1
20
06
Q
20
06
Q
20
05
Q
20
05
Q
20
05
Q
20
05
Q
20
04
Q
20
04
Q
20
04
Q
20
04
Q
20
03
Q
20
03
Q
0
20
03
Q
20
03
Q
1
3,150,000
Source: National Association of Computer Consultant Businesses (www.naccb.org)
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.
Market Shift
2000 - 2003
2004 - 2010
Candidate
Candidate
Candidate
Position
Position
Candidate
Position
Position
The job market has shifted from an Employer’s Market to a Job Seeker’s Market to a Combination Market.
Where Do All of the People Come
From?

Internal Full-Time
Staff


Software Providers
Low Cost Providers

Voice Data Providers

Network Integrators


Hardware Support
Providers

Software
Developers/Support


Contract or Temp
Labor
Training Companies
Management
Consultants
Global Competition
How Work Gets Done
Off-shoring
Out-sourcing
Positions of Tomorrow
Current globalization creates a market for PM, BA, and Functional Analysts who are
needed to manage 3rd party resources.
What are we best at?
Giving people what they need not what
they ask for.
Innovation and creativity
Top Reasons to Work Contract

It will lead to permanent employment
Flexibility of schedule
To obtain experience/training
Diversity in jobs/challenge
This was the only type of work I could find
The money is better
Family or personal obligations
Changing careers and need more experience

Source: American Staffing Association Workforce Metrics
Choosing Temporary Work







Sets the Price
Annual Increases
Yes
5-15 %
No
3-6 %
Today’s Menu
Business Analyst
Project/Team Leader Large Company
Data Center Manager
Data/Voice Comm Spec.
. NET
$50K - $ 80K
$65K - $110K
$75K - $105K
$55K - $ 95K
Market Value
Skills CIO’s Look For
Personal Inventory












Business/Functional
Project Management
Communication - written and oral
Presentation
Problem Solving
Critical Thinking
Leadership
Organization Skills
Time Management
Attention to Detail
Learning Ability
Flexibility
PMO Penetration
80
70
60
50
yes
no
40
30
20
10
0
PMO
Part of IT
Outside Projects
The PMO
70%
69%
60%
67%
59%
50%
40%
30%
41%
33%
31%
20%
10%
0%
PMO
PMO part of
Business
Planning?
Strategic or Yes
Do you measure
your PMO?
Tactical or No
Business Strategy
Vision
Mission Statement
Long Term Objectives (Branding)
Help Companies build great IT Departments.
Help our Candidates have the career they want.
Company of choice for our industry.
Clients
Candidates
Internal
Strategies
Strategies
Strategies
Project Portfolio
Project Portfolio
Project Portfolio
What You Can’t Measure, You
Can’t Manage


With no measurable criteria for a PMO,
Businesses are not going to see the added
value and budgetary increases will cease.
Show your worth, give measurable results
to show progress and proof of value.
Hiring a Project Manager
70.0%
60.0%
65.5%
50.0%
40.0%
30.0%
34.5%
20.0%
10.0%
0.0%
0.0%
PMP Certification
Required
Preferred
No Preference
Formal Education vs. Certifications



50% of Companies questioned, claimed no
better results with a PMP certified Project
Manager than with one who has qualified
experience but no certification.
More than half of the Companies preferred
a formal degree and;
71% prefer an advanced degree before
promoting to a leadership role.
Experience vs Degrees for
Management
80.0%
70.0%
71.9%
60.0%
50.0%
40.0%
30.0%
20.0%
28.1%
10.0%
0.0%
Advanced Degree
Experience
Degree
Both
#1 Success Factor of
Executives
•
Hire Good People
A faithful employee is as refreshing as
a cool day in the hot summertime.
Proverbs 26:13
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
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
10 Ways to Keep Them!
1.
2.
3.
4.
5.
Hire the right type of person: A or B
Have people grow into the position vs. out of
the position
Rotate responsibilities and cross-train, offering
a variety of functions and responsibilities
Pay above-market cash or bonuses
Use non-cash rewards and recognition for
results/ efforts
10 Ways to Keep Them!
6.
7.
8.
9.
Create a team environment / team building
Use temps or contractors for more routine
work
Encourage communication with manager
Make proactive counteroffers when you have
someone you want to keep
10. Set
clear expectations and give feedback on
how they are doing
Bad Seeds
Get rid of bad seeds and people who don’t
want to be there – the dominant attitude
will proliferate through the group and
pollute the team.
How 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
Solutions for JDA Clients

Review and Revise Retention Plans

Make Salary Adjustments Based on Market Rates




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!!!
JDA Resources







Salary Survey
Hiring Trends
Cost of Turn Over
Counter offers
Hi-Tech Calendar
Hot Jobs
Interviewing Tips
701 North Post Oak Road
Suite 610
Houston, Texas 77024-3818
Phone: 713/548-5400
www.jdapsi.com
Contract and Full-time Staffing Information
Technology Staffing Specialists Consulting and Special Projects