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Houston IT Hiring Trends
Boom Bust Beyond
ISACA
2016
by James Del Monte CPC, CERS
JDA Professional Services, Inc.
Agenda
• Overview of JDA
• State of the Market
• Trends in Houston IT
• Compensation Trends
• The Hard Questions
What JDA Does. . .
JDA Professional Services, Inc. is a Houston-based IT staffing firm
specializing in the recruitment of strategic-technical to executive-level
professionals. We provide staffing solutions through full-time,
contract, and project-based placements. Since 1981, we have been
helping companies build great IT departments while helping IT
professionals find the right career opportunities.
Full-Time Staffing
Contract /
Temporary
Staffing
Special Projects
StaffingJDA
Interactive
Either Way
Value of a Professional
Organization� Leadership
� Industry/Business knowledge
� Networking Opportunities
� Friendship
“ . . . Almost 100% of a
manager’s success
comes from hiring and
retaining good people.
Good people don’t make
the difference
- they are the
difference“
-- James Del Monte James Del Monte --CERSCERS
Famous Quote
Total Houston Employment – 1990 to 2015
Significant increase in area total employment since 1990. Early (2006) oil & gas shale
boom employment around 2.4MM. Current employment around 3MM looks
vulnerable. Each past slow down has caused a dip. How deep and how long?
Job Growth Houston
The Latest News From
Greater Houston Partnership…
Houston lost 8,600 jobs in July 2016.
Unemployment Rates
8.2016
• National – 4.9%
• Texas – 4.5%
• Houston – 5.8% +1.1% from 1 year ago
• IT professionals doubled last 12 months
• IT Professionals to 4% up from 2%
• Degreed Professionals 5%
• Job growth Harris county +.3 down from1.9% 2 years ago
Employment Cycles
Supply and Demand
The demand for skilled professionals topped out 4Q13. The current cycle
indicates that we are in sharp decline. In Houston good people are still hard to
find.
Labor Surplus vs. Skill Shortage
19841995
2Q014Q04
4Q99
Demand
Peaked
Supply
Demand
1989
Demand Bottomed3Q03
Demand Bottomed
4Q07
Demand
Peaked
4Q13
Demand
peaked
3Q 09
Demand Bottomed
3Q10 4Q2015
Market Shift
The job market is shifting from an Job Seeker’s Market to a Employer Market.
Candidate
Candidate
Candidate
Position
Position
Position
Position
Candidate
2015 – 20xx 2010 – 2014
Top 25 Public Companies
1. ConocoPhillips
2. Enterprise Products Partners LP
3. Schlumberger LTD.
4. Sysco Corp.
5. Plains All American Pipeline LP
6. Halliburton Co.
7. Baker Hughes Inc.
8. Apache Corp.
9. Marathon Oil Corp.
10. National Oilwell Varco Inc.
11. Anadarko Petroleum Corp.
12. Waste Management Inc.
13. EOG Resources Inc.
14. KBR Inc.
15. Enbridge Energy Partners LP
16. CenterPoint Energy Inc.
17. Kinder Morgan Inc.
18. Kinder Morgan Energy Partners LP
19. Targa Resources Corp.
20. Targa Resources Partners LP
21. Cameron International Corp.
22. Calpine Corp.
23. Group 1 Automotive Inc.
24. Spectra Energy Corp.
25. FMC Technologies Inc.
Largest Employers • 1. Walmart 37,000 employees
• 2. Memorial Hermann Health System 24,108 employees
• 3. H-E-B 23,732 employees
• 4. The University of Texas MD Anderson Cancer Center 21,086 employees
• 5. McDonald's Corp 20,918 employees
• 6. Houston Methodist 20,000 employees
• 7. Kroger 16,000 employees
• 8. United Airlines 14,941 employees
• 9. Schlumberger 12,069 employees
• 10. Shell Oil Co. 11,507 employees
• 11. Exxon Mobil Corp. 11,000 employees
• 12. Texas Children's Hospital 10,992 employees
• 13. HCA 10,830 employees
Largest Employers
• 14. Landry's 10,800 employees
• 15. UTMB Health 9,928 employees
• 16. Harris Health System 9,174 employees
• 17. National Oilwell Varco 8, 960 employees
• 18. UT Health Science Center at Houston 8,220 employees
• 19. Chevron 8,000 employees
• 20. The Home Depot 7,880 employees
• 21. Fluor Corp. 7,705 employees
• 22. Baylor College of Medicine 7,705 employees
• 23. CHI St.Luke's Health 7,198 employees
• 24. JPMorgan Chase 6,850 employees
• 25. Whataburger 6,620 employees
Barriers to Growth
• There are roughly 23 million firms in the US
• 4% have revenue over 1M
• Of those 4%, 1 in 10 (.4% of all companies) have more than 10M in revenue
• 17,000 surpass 50M
• 2,500 firms in US are larger than 500M
• 2000 firms world wide over 1B
• 500 firms worldwide are larger than 11B
Big Versus Small
• Traditional businesses don’t create jobs or
invent products, they buy them
• Risk Averse – more committee decisions made
to limit career risk
• Job Growth vs. Job Creation
Results of 2016 JDA Hiring
and Salary Survey
68%
6%
26%
Increase
Decrease
No Change
52%
19%
29%
Projected department
spending, year by year
2016 2014
33%
33%
34%
2015
Does your company anticipate a change in
total IT staffing level?
51%
5%
44%
Increase
Decrease
No Change
47%
7%
46%
29%
16%
55%
39%
7%
54%
2016 2015
2014 2013
2016 IT Hiring Forecast
23%
14%63%
10%
33%57%
Full-Time Contract
Increase Decrease No Change
What do you consider to be the top issue facing your
company's IT department? Year by year.
0 20 40 60
Creating/maintaining a global workforce
BYOD
Utilizing mobile and pad technology
Adapting social media
Cloud technology
IT security
Disaster recovery capabilities
IT service level performance
Increased cost of doing business
Decreased IT budget
Hiring and retaining staff
2016
2015
2014
In your company, what areas are anticipated to have the
largest growth potential over the next few years?
0 10 20 30 40 50 60
Cyber security
Socal media
Business intelligence
Mobile applications
Cloud computing
Change management
Busines process
ERP
Data/database management
Applications development
Internet/intranet development
Helpdesk/end user support
Networking
Security Growth
• Infosec – compliance – user training - HIGH
• Security Engineer – technical side - fire walls,
virus protection, intrusion detection and social
engineering – moderate
• Security Operations – technical testing - pen
test – CEH – forensics – Consulting
• It audit – moderate
3rd Party
• Reviews
• Testing
• Managed services – cloud provider
Value
• Do you consider your company to have highly
valued or targeted information or critical
infrastructure?
� Brand
� Homeland security
� Client information and interaction
� Medical records
� Financial information – credit info
Does your company plan to increase base salaries for
IT staff in 2016?
59%
41%
0% 10% 20% 30% 40% 50% 60% 70%
Yes
No
By what percentage?
55%
43%
2%
<3% 3-6%
7-10%
Are bonuses included as part of your
company's compensation packages?
79%
21%
0% 20% 40% 60% 80% 100%
Yes
No
If yes, what is the average bonus percentage given
based on salary?
46%
47%
5% 2%
<10%
10-20%
21-30%
>30%
Total PackageBesides money what is important to you?
• Review and history
for increases
• Promotions and
career path
• Assignment
• Training and
certifications
• Bonuses and
incentives
• Benefit package –
cost and coverage
• Flexibility
• Location
• Telecommuting
• Access to
management
Employed Workers Looking
11%
62%
27%
• Active – 11%
• Passive – 62%
• Not at all – 27%
73% of your
success
Pearls of Wisdom
1. Keep your job
2. Don’t complain about compensation
3. Home capital preservation
4. Think outside box about career – increase
your value
--Doug Leyendecker
Skills Executives Look ForPersonal Inventory
• Business/Functional
• Project Management
• Communication -written and oral
• Presentation
• Problem Solving
• Critical Thinking
• Leadership
• Organization Skills
• Time Management
• Attention to Detail
• Learning Ability
• Flexibility
The Hard Questions
• When will the market turn around
• Meet minimum standard
• Should I get more certifications
• Cyber Insurance
Return the Favor
Speakers Fee
Speak for Food
Questions
701 North Post Oak Road
Suite 610
Houston, Texas 77024-3818
Phone: 713-548-5444
www.jdapsi.com
Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects