Moving to hire ground: Dice's Tom Silver on the improving tech employment environment

Interview conducted and edited by Suzanne Deffree -- EDN, June 24, 2010

The May Dice Report estimated a little more than 69,000 open high-tech positions. Has hiring returned for high-tech and EE positions?

A: We have 69,000 jobs on the site. That’s up significantly from a year ago. It’s up over 40%, which is great news. We think that’s a pretty good indication that employer confidence is picking up, and we are seeing that as it relates to job counts.

In aggregate, the fact that employers are hiring suggests that their confidence in their business is improving. Certain positions, as they relate to technology, may have been put off for a while, and [employers] are now jumping back in. Projects are getting green-lighted, and we are seeing that evidenced by the fact that the job count is up.

Dice recently ran its first survey looking at employee retention. The responses showed that many tech employees intend to change jobs in 2010 and could be persuaded to leave their current positions. Is talent poaching occurring?

A: Not yet, but I think it will. The survey suggests not so much that poaching is happening, but it is really an indication of tech workers’ willingness to jump. If you look at the data, 30% [of respondents] are saying they are getting more headhunter calls than they did at this time last year. That’s an indication of the fact that activity is up. What’s more interesting is that more than half of the people who responded say that they intend to move sometime in 2010. That’s a scary number. Whether it’s because of poaching, whether it’s because of money, or whether it’s for a change of scenery, overall, I think there is going to be a lot of turnover in the market.

Almost half of the survey respondents said that a 10% or less increase in compensation would deter them from leaving a position. Was that surprising, given that employers cut many salaries by more than that during the downturn?

A: It’s surprising but not shocking. We run a salary survey every year. For the last several years, the expectation among tech workers was a 3 to 5% salary in-crease, and we saw the survey reflect that [increase]. This year, salaries were flat. To me, that [fact] suggests that people are coming to realize that salary increases are harder to find, that economic conditions are still pretty tough, and that 10%, for example, may not have had much traction in previous times, but today sounds pretty good.

Do you believe employers are aware of employee frustrations?

A: Many employees would like to believe that, if they do a good job, they will be recognized, they will move ahead in their careers, and they will make more money. That doesn’t always happen. As a matter of fact, that probably happens a lot less than anyone would like. But not everybody wants to complain about it for any one of a number of reasons. What you find is a growing frustration among employees, particularly tech pros, that they are doing this great job and not being recognized. What makes it even worse is that, if you go back a year or so ago when the economy was tanking, techpro unemployment remained low compared to the overall average. Tech unemployment ranged about half of what overall employment was for all industries.

The tech market was tight. Companies were asking tech pros to do more and more with fewer and fewer people. Companies were not investing what they needed to in tech hires, and the frustrations among tech employees grew.

If half of the respondents said they planned to change positions in the year and the tech market is already tight, where is this new talent going to come from?

A: That’s a good question, but that’s a question employers need to worry about. They may or may not be aware of growing dissatisfaction. [Employers need to] be aware of retention, be aware of the growing movement afoot [for employees] to perhaps show their dissatisfaction by leaving, and focus on some of the financial or nonfinancial things that are going to have an impact on employee satisfaction and retention.

Anything else on the survey or job market?

A: We are happy ... that the job count is up 40% from where it was a year ago. ... The job count on Dice has been up over 100,000 at some points. The fact that there are [more than 69,000 jobs] out there today is better than it was, but we still think there is room to grow.

Dice Retention Survey - 2010
About how long have you worked in a tech-related position?
		Response Percent
Less than 1 year		2.1%
1-2 years		1.7%
3-5 years		5.6%
6-10 years		12.6%
11-14 years		18.2%
More than 15 years		59.8%
Thinking about the company you currently work for, which of the following best describes the industry the company is in?
		Response Percent
Agriculture		0.1%
Computer Hardware		6.0%
Consulting		10.9%
Defense		4.6%
Distribution		1.7%
Entertainment		1.7%
Finance/Banking		9.6%
Gaming		0.2%
Government		7.1%
Internet Services		3.0%
Medical/Pharmaceutical		7.8%
Retail		2.7%
Software		12.7%
Transportation		2.5%
Telecomm		6.2%
Utilities		1.7%
Non-Profit		1.7%
Other (please specify)		19.8%
To the best of your knowledge, how many people are employed where you currently work?
		Response Percent
Less than 50 employees		16.7%
50-99 employees		6.5%
100-499 employees		17.3%
500-999 employees		9.0%
1,000-4,999 employees		18.4%
5,000 or more employees		32.1%
Which of the following best describes your current specialty or focus?
		Response Percent
Application Interface Design		0.4%
Business Analyst		4.9%
Data Architect		1.3%
Database Administrator		2.7%
Developer:  Applications		6.0%
Developer:  Client/Server		2.1%
Developer:  Database		1.5%
Developer:  Systems		2.1%
Environmental Program Manager		0.2%
Geothermal Program Manager		0.0%
Graphic Designer		0.1%
Help Desk		1.7%
Hydro Program Manager		0.0%
Information Architecture		1.8%
Information Technology Technical Training		1.7%
IT Auditor/Compliance		0.7%
IT Management CEO,CIO,CTO,VP,Dir.		5.4%
IT Management - Strategist or Architect		3.9%
Mainframe Systems Analyst		0.5%
Mainframe Systems Programmer		0.7%
MIS Manager		1.2%
Multimedia Designer		0.1%
Multimedia Manager		0.3%
Network Design		0.1%
Network Engineer		3.0%
Network Management		1.5%
PC Technician		2.3%
Programmer/Analyst		4.5%
Project Manager		10.1%
Quality Assurance Tester (QA)		2.4%
Renewable Program Manager		0.0%
Security Analyst		0.6%
Security Architect		0.2%
Security Engineer		0.3%
Software Engineer		6.3%
Solar Program Manager		0.0%
Systems Administrator		5.7%
Technical Support		5.2%
Technical Writer		2.2%
WAN Specialist		0.1%
Web Administrator		0.2%
Web Designer		0.4%
Web Developer/Programmer		2.2%
Other		13.5%
Do you intend to move to a new employer in 2010?
		Response Percent
Yes		51.3%
No		48.7%
Which of the following, if any, are influencing your decision to move? (multiple answers accepted)
		Rank
Better career opportunities elsewhere		1
Working on new or emerging technologies		4
Current employer is underperforming the industry		6
Frustrated with lack of recognition for accomplishments		3
Increased compensation		2
Desire to move to a start-up		8
Desire to move to a more established company		7
Fear that my job may be outsourced		5
How many calls have you received from headhunters/recruiters since the start of this year?
		Response Percent
None		31.5%
1-5		35.3%
6-10		14.8%
11-15		5.1%
16 or more		13.3%
How does this compare to the same period in 2009?
		Response Percent
Substantially higher		12.0%
Moderately higher		21.0%
No Change		45.1%
Moderately lower		12.5%
Substantially lower		9.5%
What incentives have you been offered to consider switching employers? (multiple answers acceptable)
		Rank
Better job title		5
Better non-monetary benefits		4
Increased salary		1
Sign-on Bonus		6
Bonus-eligibility or Higher Bonus		7
Stock Options		8
Working on new or emerging technologies		3
Reimbursable education or technical training programs		9
Better career opportunities		2
Opportunity to work overseas		10
How easy do you anticipate it would be to find a favorable new position in your area of specialty in 2010?
		Response Percent
Very easy		3.7%
Fairly easy		23.7%
Fairly hard		37.0%
Very hard		22.6%
I don't know		13.1%
Has your department or area of specialty experienced a change in voluntary departures in 2010?
		Response Percent
It's substantially higher than last year		10.2%
It's slightly higher than last year		21.4%
No change		59.3%
It's slightly lower than last year		5.6%
It's substantially lower than last year		3.5%
In 2010, have you become more vocal to your boss about your career frustrations?
		Response Percent
Yes		46.6%
No		53.4%
This year, has your employer offered you any or more positive incentives to deter you from moving to another company?
		Response Percent
Yes		15.1%
No		84.9%
What incentives did your employer offer to you to deter your leaving? (multiple answers acceptable)
		Rank
More interesting or challenging assignments		2
Increased salary		1
Higher bonus or bonus eligibility		3
Increased stock options		10
Reimbursable education or technical training programs		8
Promotion or new title		4
High-level recognition		6
Opportunity to work overseas		11
Flexible work hours		5
Increased staff to help reduce your workload		9
Other (please specify)		7
If you find an appropriate new opportunity, could anything deter you from moving on in 2010?
		Response Percent
Yes		28.8%
No		57.4%
Not applicable, I'm staying with my current employer		13.8%
If yes, which of the following would most persuade you to stay?
		Response Percent
More interesting or challenging assignments		12.5%
Increased salary		42.2%
Higher bonus or bonus eligibility		2.2%
Increased stock options or stock option eligibility		1.9%
Reimbursable education or training programs		1.9%
Promotion or new title		11.3%
High-level recognition		2.8%
Opportunity to work overseas		0.6%
Flexible work hours		7.5%
Increased staff to help reduce your workload		4.1%
Other (please specify)		13.1%
How much of an increase in compensation would deter you from leaving?
		Response Percent
1%		1.6%
2%		1.3%
3%		2.2%
4%		2.2%
5%		10.9%
6-10%		29.4%
11-15%		22.2%
16-20%		13.1%
20%+		17.2%

 
Source: Dice, May 2010