Weekly Roundup: More Predictions of More Hiring, Engineers in Particular
In a week in which holidays
and blizzards slowed the news, the best word came from a survey conducted in
November and December by compensation consulting firm Empsight International.
It indicates optimism
about hiring among the Fortune 500 and other large multinational companies
– including in tech.
A total of 39 percent of the firms expect headcount increases from
1 to 5 percent, an improvement from 21 percent in 2009. Technology, retail, and
professional services firms made the strongest hiring forecasts. What might
slow hiring? The broader economic outlook, demand levels for products and
services, regulation, and health care costs.
Valley, a survey of local economists by the Mercury News says the local
economy will improve somewhat next year, with jobs in tech and health care
continuing to post gains. It’s the public sector that will bleed. Pay will
rise, especially in tech, where competition is heating up for certain types of talent.
competition for talent has become "a war." That’s according to Todd
McKinnon, the co-founder and chief executive of San Francisco software start-up Okta. He says
he plans to spend 80 percent of the company’s new capital on salaries, mostly
for engineers. In his view, "I go home and watch the news and the talk
about the economic condition of this country, and it’s a totally different
world when you’re trying to recruit top people in tech. Basically, we have 0 unemployment."
At least that’s what he sees in the case of talented software engineers.
McKinnon says that for every 50 resumes Okta sees, the company talks to 30
people and interviews 10 to hire one.
Companies that don’t hire
full time staff may instead bring
in contract workers. A survey of Canadian business leaders finds that nearly
50 percent see increases in IT project needs and IT hiring over the next six
months. (The U.S.
result was 41 percent.) "We are seeing a shift in that CIOs seem to be
moving toward more variable-based or flexible workforce models to get work done,"
said Charlie Hall, TEKsystems’ Montreal Solution Centre executive director. "As
we emerge from this recession, our clients are seeking the ability to ramp
projects up and down quicker than ever." Highest on their list of needs: enterprise architecture, business process engineering, business intelligence, network architecture, and database administration.
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