The employment market for IT professionals

Advice 2010-03-03 20:26

James Parsons, MD of technology recruiter Arrows Group says employers need think carefully about both their attraction

It has finally been announced that the UK is officially out of recession - business confidence is returning and budgets are rising. This means that not only are more organisations increasing headcounts, but more IT professionals are considering a move after putting job hunting on hold during the uncertain times we have faced over the last 18 months. As conditions improve what is happening in the IT employment market and what should employers be aware of?

We are already experiencing salaries stabilising as the IT sector steadily grows and more technology professional are willing to move jobs as more opportunities become available. But what we are also forecasting is problems for those organisations that used the recession to employ people, particularly software developers, ‘on the cheap’.
Although many companies in the tech space have always realised that they need to make the investment if they want the best people, there were still those who believed that the increased number of job seekers brought about by the recession meant that they could employ people easily, and cheaply. This was true in some cases but it isn’t a cost-effective move in the long term. The chances are that candidates accepting these offers either won’t have the desired skill set or will be back on the jobs market looking for a better deal now that conditions are improving.
However even employers who aren’t guilty of this hiring practice need to think about retention strategies as their staff may begin to consider taking advantage of new opportunities. Committing to training, keeping to salary reviews and investing in cutting-edge technology will make staff feel valued, and keeping people happy and engaged will be key to retention and overall business success this year.
Another consequence of the downturn was the loss of many experienced IT professionals to the contracting market. Not only did contracting work offer more money than permanent positions during the recession, many of these were vulnerable and as headcounts and budgets were slashed, more staff were taken on when needed on a short-term basis, boosting the jobs market for contractors. As the economy improves, we are seeing more contractors being offered permanent positions by companies requiring their high level of expertise. Some will return to more secure, permanent roles but many organisations will struggle to lure contractors back as opportunities are still rife and pay remains very competitive.