ROBERT HALF TECHNOLOGY’S WORKPLACE PULSE RESEARCH ON TODAY’S TECHNOLOGY EMPLOYMENT TRENDS TABLE OF CONTENTS Introduction p. 1 The People Challenge p. 2 Most Difficult Positions to Fill p. 2 Technical Support Ratios p. 3 Length of Time to Hire IT Staff p. 4 Retention Improvement Programs p. 5 Workplace Trends p. 6 Performance Reviews p. 6 Commute Times and Telecommuting p. 8 Most Appreciated Benefits p. 10 Emerging Issues p. 11 Where IT Trends Rank p. 11 Use of Project-Based Professionals p. 12 Offshore IT Outsourcing Rates p. 13 Conclusion p. 15 About Robert Half Technology p. 15 All referenced trademarks are the property of their respective owners. © 2008 Robert Half Technology. An Equal Opportunity Employer. RHT-0308 INTRODUCTION If you’re like most information technology (IT) managers, you want to know about the issues and concerns your team faces, so you can give them the tools, information and knowledge they need to succeed. Because you don’t have time to study all these trends on your own, we’ve compiled findings from our most recent surveys of Chief Information Officers (CIOs), IT managers and IT professionals into this handy guide – Robert Half Technology’s Workplace Pulse 2008. We hope the data, opinions and priorities in this report can help position you to manage your IT staff most effectively. Given the fast-paced nature of IT, hiring, managing and retaining staff will never be easy. But being armed with the right resources can help you better understand the issues affecting IT workers today – and make your job a bit easier. ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. The People Challenge Recruiting and hiring talented IT professionals has never been easy. But just how difficult is it to find skilled IT workers these days? And what are companies doing to attract and keep them? When asked which types of roles are most challenging to fill, the top three responses from hiring managers were sales, customer service and IT positions. Top 10 Most Difficult Positions to Fill 1. Sales 6. Engineering 2. Customer service 7. Accounting 3. Information technology 8. Professional services 4. Skilled labor/trades 9. Education 5. Administrative/clerical 10. Research Source: Robert Half International and CareerBuilder.com™ survey of 1,035 hiring managers in the United States Most Difficult Positions to Fill ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. The People Challenge Whether caused by tight budgets or a shortage of skilled IT professionals, many crucial IT support positions are going unfilled. Tech Support Function Understaffed CIOs polled said their companies’ technical support teams are, on average, 46 percent smaller than the optimal size. The mean response: CIOs were asked, “What is the ratio of internal end-users to technical support employees at your company?” CIOs were asked, “What would be the ideal ratio of internal end-users to technical support employees at your company?” 136:1 actual 74:1 ideal Source: Robert Half Technology survey of 1,693 CIOs from companies with more than 100 employees in the United States and Canada Tip To ensure flexibility of personnel resources, many companies are turning to a practice called strategic staffing. When project-based professionals are used as part of a strategic staffing plan, managers are able to seamlessly staff up or down as workloads warrant, trimming labor costs, avoiding overhiring and preventing burnout. Technical Support Ratios ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. The People Challenge In the current IT hiring market, filling open positions can be a challenge. Just how long does it take to bring an IT professional on board? Time to Hire A survey of CIOs underscores the difficulties employers have finding IT workers. CIOs polled said it takes an average of: 100 days 60 days 86 days to fill a manager-level IT position 40 days 20 days 86 days 55 days to fill a staff-level IT position 55 days 80 days 0 Source: Robert Half Technology survey of 1,698 CIOs in companies with more than 100 employees in the United States and Canada Tip top Today’s IT professionals – even those currently employed – often receive multiple job offers, and organizations that don’t act quickly risk losing these candidates to other opportunities. While hiring carefully is crucial, taking too long to make a hiring decision has its own pitfalls. Length of Time to Hire IT Staff ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. The People Challenge To stay competitive, companies in need of IT professionals are examining their retention programs. Tip “Which of the following is the primary measure your firm has taken to improve staff retention rates in the last 12 months?” (Top responses shown) Providing bonuses Offering salary increases 23% 16% 16% Improving the office environment 15% Providing a more defined career path 10% Offering more generous benefits packages 15% 8% Allowing flexible work schedules 7% Funding additional training/certification 7% Source: Robert Half International and CareerBuilder.com survey of 1,035 hiring managers in the United States Tip Compensation is an effective retention method. Regularly benchmark your company’s IT staff compensation to ensure it meets – or better, exceeds – market rates. If your employees feel underpaid, they’ll be more likely to jump ship for a better offer. Companies that cannot afford to give raises or bonuses should consider alternatives such as offering training or flexible schedules. Retention Improvement Programs ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. Workplace Trends Firms that better understand employees’ needs and abilities are in the best position to keep them satisfied and motivated at work. As a result, companies are doing all they can to improve the working environment and better communicate with staff members. Performance evaluations are a great opportunity for employers and staff to improve workflow and articulate goals. Managers Checking in More Frequently Executives were asked, “How often, if ever, do you conduct formal performance appraisals of your staff?” Their responses: 8% Quarterly 2007 10% (5-year comparison) 31% Twice a year 19% 58% Once a year As necessary Never/don’t conduct formal appraisals 2002 66% 1% 2% 2% 3% Source: Robert Half survey of 150 senior executives at the 1,000 largest companies in the United States Performance Reviews ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. Workplace Trends Getting the Most Out of Performance Reviews Tip • Create a schedule for conducting the review and adhere to it. Consider holding more frequent meetings for new or less experienced employees. • Ask the employee to prepare a list of accomplishments, obstacles and goals that can be discussed in the review. • Critique your employees’ performance with care. Always provide criticism constructively. • Do it all in writing so the employee can refer to the appraisal later in the year. Give specific examples of good or poor performance, and offer suggestions for improvement. • To be most effective, reviews should be conducted at least once per year. • Work with your human resources department to develop the process, as they may have guidelines or materials to help you plan the meeting. ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. Workplace Trends How many of us drive to work these days, and how long does it take? Mobile Matters WORKERS WERE ASKED: “On average, how long is your daily commute to work?” “Do you drive to work?” No 11% Average: 21 minutes Yes 89% “…and what is the maximum amount of time you’d be willing to commute to work on a regular basis?” “Have higher gasoline prices affected how you are commuting to work or your work arrangements?” Yes 30% Average: 38 minutes No 70% Source: Robert Half survey of 532 full- or part-time workers 18 years of age or older and employed in office environments in the United States Commute Times and Telecommuting ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. Workplace Trends Nearly half (45 percent) of CIOs surveyed said their companies’ IT workforce is telecommuting at a rate that is the same or higher than five years ago; 4 percent said IT staff work remotely less frequently today than five years ago. Does a higher or lower proportion of your IT staff telecommute today compared to five years ago? More telecommute now 21% 24% Same proportion Fewer telecommute now 4% 50% Telecommuting not offered Don’t know 1% Source: Robert Half Technology survey of 1,693 CIOs from companies with more than 100 employees in the United States and Canada Tips • A lternative work arrangements are most suitable for individuals whose jobs can be performed with relative autonomy. • Consider a telecommuting trial period, in which staff work from home once per week, to gauge the effect on productivity. • K eep a schedule of workers’ on-site availability, and where and how they can be reached when off-site, to keep work flowing smoothly when employees are out of the office. Most Appreciated Benefits ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. Workplace Trends In addition to offering competitive compensation, businesses may be able to level the recruiting playing field by offering perks that help workers juggle personal and professional obligations. DO perks MAKE the difference? Employees were asked, “Which of the following benefits might help you choose one job over another job?” (Top responses shown) Flexible work arrangements 65% Telecommuting 33% Employee stock purchase plan 33% Fitness facility 31% On-site cafeteria 21% Employee assistance plan On-site childcare 20% 11% Source: Robert Half International and CareerBuilder.com survey of 903 workers in the United States Most Appreciated Benefits ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. 10 Emerging Issues In the fast-paced world of IT, organizations that proactively seek out change and adapt will be most successful. Cultivating a well-prepared IT staff means staying in front of the issues and trends that will affect the workforce. Top Trends Managers were asked, “Which of the following trends do you think will most significantly alter the workforce in the next decade?” Baby boomer retirements 52% Global business interactions Outsourcing 25% 10% Remote work arrangements Skilled labor shortage Employee retention Other/Don’t know 6% 3% 1% 3% Source: Robert Half International survey of 250 human resources and other managers at companies in the United States and Canada Where IT Trends Rank ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. 11 Emerging Issues Many companies are augmenting full-time staff with highly skilled project professionals to keep on track. Executives were asked, “Are you incorporating the use of temporary employees into your overall staffing budget?” Their responses: No 26% Yes 73% Don’t know 1% Source: Robert Half International survey of 250 human resources and other managers in the United States and Canada TIP • It’s important to think long term when budgeting for interim staff. Many companies include the use of project professionals as a line item in their budget. • Conduct an annual workload analysis to identify future staffing needs. Ask questions like: - Are there workload patterns from year to year? - Are there large projects that will take place next year? - Are there times in the year when your staff is particularly overworked? - Can essential duties be split among the rest of the staff with a minimal amount of disruption, bringing project-based professionals in to handle the more routine tasks? • Work with a firm that specializes in placing project professionals in the IT field. Such firms are better able to understand your unique requirements. Use of Project-Based Professionals ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. 12 Emerging Issues rates of offshore it outsourcing While the outsourcing of technology jobs overseas has been a topic of ongoing discussion within the IT profession, our research indicates that the majority of companies in North America are not engaged in the practice. CIOs were asked, “Does your company currently outsource technology jobs outside of the United States/Canada; that is, do you engage in offshore outsourcing?” No 93% Don’t know 2% Yes 5% Source: Robert Half Technology survey of 1,699 CIOs from companies with more than 100 employees in the United States and Canada Offshore IT Outsourcing Rates ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. 13 Emerging Issues CIOs also were asked, “In the next two years, how will your company’s level of offshore outsourcing change?” Increase 7% No change 86% Decrease 4% Don’t know 3% Source: Robert Half Technology survey of 1,699 CIOs from companies with more than 100 employees in the United States and Canada TIP For firms contemplating offshore outsourcing, here are some elements to consider: • Vendor stability. Choose a vendor that has a track record of measuring staff turnover and retaining employees. • Setup time and costs. New jobs or even departments may need to be created to handle vendor selection, manage contracts, train workers and oversee remote work teams. • Security and privacy concerns. Intellectual property risks, such as the enforcement of patents, copyrights and trade secrets, may require additional oversight and resources. Benchmark other companies’ best practices in these areas. ROBERT HALF TECHNOLOGY’S Workplace pulse rht.com P. 14 Conclusion Because business and employee priorities change frequently, effective management requires flexibility. Understanding how the workplace is evolving and the ways in which firms react to new circumstances can give your company the edge. We hope this report has been helpful and invite you to contact your nearest Robert Half Technology representative for additional information, including any of the following complimentary guides: • Robert Half Technology 2008 Salary Guide • Glossary of Job Descriptions for Information Technology • Hiring Smart • Keeping Your Best People • A to Z Business Etiquette Guide for IT Professionals About Robert Half Technology Robert Half Technology is a leading provider of IT professionals on a project and fulltime basis, for initiatives ranging from web development and multiplatform systems integration to network security and technical support. Our clients and job candidates rely on us as a resource for a range of hiring, employment and career management issues. We have more than 100 locations in North America, South America, Europe and the Asia-Pacific region. Please call 1.800.793.5533 for the office nearest you or visit us online at www.rht.com. 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