The hiring freeze is showing signs of thawing, with CIOs expecting to add staff positions in the third quarter of this year, according to a new report.
A Robert Half Technology telephone survey of more than 1,400 CIOs found 10 percent plan to expand their IT departments, while 4 percent are expecting job cutbacks for a net of 6 percent. In addition, 81 percent of CIOs surveyed said they are confident in their companies' growth prospects in the third quarter. The report marks the third consecutive quarter CIOs have told the job-search company of plans to add staff.
"Many technology executives are feeling optimistic enough about business conditions to add personnel," says Robert Half executive director Dave Willmer. "Companies that cut staff levels or implemented hiring freezes during the downturn are realizing they need employees now to help upgrade IT systems and prepare their firms for potential growth."
Other takeaways from the survey reveal that the mid-Atlantic and West South Central (Texas, Louisiana, Arkansas) regions anticipate the most active IT hiring. And of course, networking skills remain in high demand among employers.
This optimism is already being recorded by the US Bureau of Labor Statistics. The agency's May 2010 Employment Situation report showed last month's "total unemployment" declined to 16.6 percent while the traditionally reported unemployment rate declined to 9.7 percent.
Graphic: Bureau of Labor Statistics
Apparently under-staffing your projects is no longer in vogue. In a separate Robert Half survey, 64 percent of CIOs polled said that under-staffing in their company's IT department interferes at least somewhat with their ability to implement innovative or emerging technologies.
Of course all this potential hiring has some downsides. Thirty-four percent of technology executives surveyed said they are concerned about losing top performers to other companies in the next year. That number is up from 31 percent last quarter. Forty-three percent also reported how challenging it is to find skilled IT professionals today.
"When asked which technical skill set is most in demand within their IT departments, CIOs ranked network administration first (58 percent)," the survey revealed, noting that respondents were allowed to vote for more than one skill. "Desktop support came in second with 55 percent of executives citing this skill as in demand, followed by Windows administration (Server 2000/2003/2008) at 51 percent."
So where are the hot verticals? Business services is one of two sectors with the most optimistic hiring plans for the third quarter, according to Robert Half. Nineteen percent of CIOs in this industry expect to add IT staff and 3 percent project personnel reductions, for a net 16 percent increase in hiring. Help desk and technical support professionals seemed most in demand technology executives noted.
The construction industry is also looking to hire. Survey respondents with hard hats also forecast a net 16 percent increase in hiring. Sixteen percent of executives plan to expand their IT departments and none foresee staff cutbacks. Construction firms are actively recruiting software developers, including individuals with solid database skills.
Other industries with hiring expectations above the US average include the wholesale sector. Fifteen percent of CIOs told researchers they expect to add staff and 3 percent anticipate personnel reductions, for a net increase of 12 percent. Retail and healthcare followed with nets of 8 percent each.
So if the Half report is even fractionally accurate, CIOs are expected to rebuild at a faster rate in the next three months than they have all year. That's good news for a tech sector that's been doing everything with nothing for some time now.
— Michael Singer, Senior Editor at Internet Evolution, is focused on executive (Executive Clan) and midmarket (Midmarket Clan) issues.
Oh definitely! And yes, you make a really good point that 6 percent is not an earth shattering number. But probably enough to grease the wheels.
Since I had an experience at a former job- I've always been really cautious about research data of this type. In a nutshell, an executive at a major Network I used to work for commissioned an outside company to study aspects of the business which were functioning properly and those which were not, mainly concerning user experience. Essentially, what any producer could have told them for no more than the cost of their salary. And we had to sit through 3 sessions- 5 hours long each, of hokey, obvious data, most of which was calculated with questionable research methods, to say the least. Poking and prodding the subjects. Influencing them to do exactly what they wanted them to do with cash incentives. And I was absolutely amazed at the amount of money this firm was paid to do this! We're talking BIG BUCKS!
In acknowledging that, I've made the decision to not discount the RH research right off the bat without any real justification for doing so. In fact, I'm going to give them the benefit of the doubt and not let one firm ruin my perception of this data.
I concur with your suggestion that the source is a bit optimistic. But remember that the net gain is only 6 percent. Hardly enough to make all boats float.
But I'm sure you've seen in your own company a need to push things in a new direction and that to do that sometimes means getting more people to carry the load.
Either way, other economic indicators are also hinting at slow but certain job growth.
This is indeed good news! It's refreshing to see some + data regarding the job front. Though, i always have to wonder about the source. Being that the findings are being presented by Robert Half staff or associate companies paid by RH to come about these findings, it might be wise to take it with a grain of salt, if not a few shakes worth. Even though some of the data you discussed was recorded by the US Bureau of Labor Statistics, you also mentioned the separate Robert Half survey- thats the one in particular that I'd be cautious of.
It also does feel a bit like a self fulfilling prophecy- RH presents such optmistic news to their clients and eventually their fears of growing are quelled. "Everyone else is hiring so we can too." Since these days, it seems everyone has gotten cautious with their spending from companies to individuals, even if they have the capital to do so. Though, at the end of the day, if it means more people are being put to work, then a little inflated / partial reportings now and then may not be so bad after all. And as you mentioned, even if the RH report is even "fractionally accurate" then thats pretty significant. I second that!
To answer your question - Business services would include a broad range of categories such as B2B, software, hosting, outsourcing, data services, and support.
Companies in this category would include IBM, Oracle, SAP, EDS, CA, etc.
This is heartening news on several fronts, Michael. Good to see IT restocking on the human resources front and getting more prominent in a number of fields.
One thing: Can you break out what the business services sector includes?
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