11
Attracting, Developing and Attracting, Developing and Retaining IT ProfessionalsRetaining IT Professionals
Presented by:Presented by:
Eve DaysEve Days Henry DanielsHenry Daniels
John Mayes John Mayes Kelly RichterKelly Richter
22
Will Cover:Will Cover:
Current trends of employment for Current trends of employment for Information Technology professionals in Information Technology professionals in the U.S.the U.S.Attracting IT professionals to your Attracting IT professionals to your organizationorganizationDeveloping the skills and expertise of IT Developing the skills and expertise of IT professionals within your organizationprofessionals within your organizationSuggestions for retaining IT professionals Suggestions for retaining IT professionals with your organizationwith your organization
33
Main ThoughtsMain Thoughts
Common senseCommon sense pay well, interesting work, current knowledgepay well, interesting work, current knowledge
AwarenessAwareness Goals of organization and individualsGoals of organization and individuals CompetitionCompetition
44
Background on InterviewsBackground on Interviews
Robert Bence, CIORobert Bence, CIO
St. Louis County Gov’tSt. Louis County Gov’t
Public organizationPublic organization
25 employees, plus 25 employees, plus 25-50 outsourced25-50 outsourced
Michael Garcia, CPOMichael Garcia, CPO
Nexstar Financial Corp.Nexstar Financial Corp.
Private organizationPrivate organization
25 in St. Louis, 65 in 25 in St. Louis, 65 in ColoradoColorado
55
Current SituationCurrent Situation
As of 2000, there was a shortage of As of 2000, there was a shortage of 400,000 IT professionals in the US 400,000 IT professionals in the US alone alone (1)(1)
The US Department of Commerce The US Department of Commerce estimates that the US will require estimates that the US will require more than 1.3 million new and highly more than 1.3 million new and highly skilled IT workers through 2007 skilled IT workers through 2007 (2)(2)
66
Perception and QualificationsPerception and Qualifications
Nerds or Not? Nerds or Not? (4)(4)
Spectrum of skills—what can Spectrum of skills—what can you do for us? you do for us? (5)(5)
Programming languages, database skills, Programming languages, database skills, operating systems, networking skillsoperating systems, networking skills
77
Beginning the Attainment ProcessBeginning the Attainment ProcessTradition is not working any more Tradition is not working any more (6)(6)
Recruitment from all angles Recruitment from all angles (7)(7)
Recruiting Methods (survey of 150 executives from 1000 largest Recruiting Methods (survey of 150 executives from 1000 largest US firms) US firms) (3)(3)
Staffing/Recruiting Staffing/Recruiting 70% 70%
Posting Job on Company Website Posting Job on Company Website 57% 57%
Classified Advertising Classified Advertising 35% 35%
Job Fairs Job Fairs 32% 32%
Electronic Matching Services Electronic Matching Services 29% 29%
ReferralsReferrals 21%21%
InternshipsInternships 2%2%
88
What Organizations Are Looking ForWhat Organizations Are Looking Forand How They Hope to Get Itand How They Hope to Get It
Characteristics of the individualCharacteristics of the individual (6)(6) Agreeableness, extroversion, conscientiousness, Agreeableness, extroversion, conscientiousness,
emotional stability, openness to experienceemotional stability, openness to experience
Stealing from the competition—Greener pasturesStealing from the competition—Greener pastures (8) (8)
““IT professionals with the most valued competencies are IT professionals with the most valued competencies are heavily recruited by organizations offering employment heavily recruited by organizations offering employment contracts with better salaries, along with signing contracts with better salaries, along with signing bonuses, stock options and work culture inducements, bonuses, stock options and work culture inducements, including enhanced work arrangements and lifestyle including enhanced work arrangements and lifestyle accommodations.”accommodations.”
Government problemsGovernment problems –salary, image, and advancement –salary, image, and advancement (9)(9)
99
What Organizations Are Looking ForWhat Organizations Are Looking Forand How They Hope to Get Itand How They Hope to Get It
Human Resources as a partner Human Resources as a partner (10)(10) Managing legal risks, skills Managing legal risks, skills
assessments, skills tracking, assessments, skills tracking, awareness of current trendsawareness of current trends
Moving toward a business Moving toward a business orientation orientation (11)(11)
Blending technology and businessBlending technology and business
1010
Attainment: RecruitingAttainment: Recruiting
R. Bence (gov’t)R. Bence (gov’t)
All positions open to All positions open to public (required)public (required)
General requirementsGeneral requirements
M. Garcia (private)M. Garcia (private)
In-house servicesIn-house services
Specific requirementsSpecific requirements
1111
What IT Professionals Need To BeWhat IT Professionals Need To Be
Big PictureBig PictureSkills Skills (12)(12)
Interpersonal, technical, businessInterpersonal, technical, businessActivities Activities (13)(13)
““identifying promising application targets, deciding identifying promising application targets, deciding the systems processes and modes of use, and the systems processes and modes of use, and assessing the systems risks and potential financial assessing the systems risks and potential financial losses”losses”
Aspects Aspects (11)(11) Diplomacy; political, interpersonal and business Diplomacy; political, interpersonal and business
skills; reconsideration of traditional avenues of skills; reconsideration of traditional avenues of career developmentcareer development
1212
Salary and EducationSalary and EducationComputer Systems Analysts and Scientists in 2004 (mean Computer Systems Analysts and Scientists in 2004 (mean average) average) (14)(14)
Annual earnings: $63,694 average; $70,744 privateAnnual earnings: $63,694 average; $70,744 private Hours worked: 2,079 average; 2,083 privateHours worked: 2,079 average; 2,083 private Hourly wage: $30.67Hourly wage: $30.67
Education, 1999-2002 graduates in U.S. Education, 1999-2002 graduates in U.S. (15)(15)
IT IT BachelorBachelor
Bus. Bus. BachelorBachelor
IT MasterIT Master Bus. Bus. MasterMaster
IT IT DoctoratDoctorat
ee
Bus. Bus. DoctorateDoctorate
1999-1999-0000
36,19536,195
<3%<3%
257,709257,709
21%21%
14,26414,264
3%3%
112,258112,258
24.5%24.5%
777777
<2%<2%
1,1961,196
<3%<3%
2000-2000-0101
41,95441,954
>3%>3%
265,746265,746
21%21%
16,03816,038
3%3%
116,475116,475
25%25%
768768
<2%<2%
1,1801,180
<3%<3%
2001-2001-0202
47,29947,299
<4%<4%
281,330281,330
22%22%
16,11316,113
3%3%
120,785120,785
25%25%
750750
<2%<2%
1,1581,158
<3%<3%
1313
Developing Through Developing Through TrainingTraining
Training is a consistently crucial factor Training is a consistently crucial factor in the field of IT. Due to:in the field of IT. Due to: Constant changes in societyConstant changes in society The ability to keeps costs low The ability to keeps costs low
and stay competitiveand stay competitive
““Organizations have found increases in Organizations have found increases in employees job satisfaction, productivity employees job satisfaction, productivity and profitability” and profitability” (16)(16)
1414
To Train or Not to TrainTo Train or Not to Train
Benefits of Training Benefits of Training Gives employees a sense of value and Gives employees a sense of value and
motivationmotivation Understanding how their role effects the Understanding how their role effects the
organization organization Transfer learning to applicationTransfer learning to application Employee attitudes: “An individual might Employee attitudes: “An individual might
believe that acquiring object-oriented skills believe that acquiring object-oriented skills would likely provide a reward of being more would likely provide a reward of being more marketable or earning a higher salary.” marketable or earning a higher salary.” (16)(16)
1515
Costs of TrainingCosts of Training
Keeping up to date in respect to technology Keeping up to date in respect to technology can be very expensivecan be very expensive (16)(16)
Explicit costs – Explicit costs – additional funding for off-site training additional funding for off-site training and on-site training and on-site training
In 1995, the average cost of retraining a programmer In 1995, the average cost of retraining a programmer that earns $50,000 a year to be approximately that earns $50,000 a year to be approximately
$18,000 $18,000 (17)(17) Implicit costs – Implicit costs – Lost hours of projected productivityLost hours of projected productivity Potential for the training not to “pay off”, referred to as Potential for the training not to “pay off”, referred to as
transfer learningtransfer learning Employee AttitudeEmployee Attitude – the individual might also believe – the individual might also believe
that acquiring the object-oriented skills would be overly that acquiring the object-oriented skills would be overly time consuming, requiring a significant amount of after time consuming, requiring a significant amount of after hours study.hours study.
1616
Transfer LearningTransfer Learning
Motivation to transfer involves the drive or inspiration of Motivation to transfer involves the drive or inspiration of an individual to reassign knowledge gained from formal an individual to reassign knowledge gained from formal or informal learning to job-specific contextor informal learning to job-specific contextTraining is most effective when the employee feels that Training is most effective when the employee feels that the employer will expect them to use that information in the employer will expect them to use that information in the near futurethe near futureThe organization has a learning cultureThe organization has a learning cultureTrainees reported stronger transfer intentions when Trainees reported stronger transfer intentions when engaged in learning activities in which follow-up from engaged in learning activities in which follow-up from their manager was anticipated or when employees were their manager was anticipated or when employees were involved in training that was mandatory involved in training that was mandatory Other factors: Environmental, the utility of that which was Other factors: Environmental, the utility of that which was learned, peer support, supervisor sanction and support learned, peer support, supervisor sanction and support (16)(16)
1717
Learning Organization Learning Organization Oticon: “Spaghetti Organization”Oticon: “Spaghetti Organization”
Overall objective: Increase Overall objective: Increase productivity by 30%productivity by 30%
The organization only supported three The organization only supported three roles:roles:
Project managers – with overall Project managers – with overall responsibility for projectsresponsibility for projects
Senior Specialists – providing Senior Specialists – providing professional expertise in functional professional expertise in functional areas areas
Coaches/Mentors – mentoring and Coaches/Mentors – mentoring and other HR-related rolesother HR-related roles
IT professionals learned through IT professionals learned through experience experience diplomacy, political, interpersonal, diplomacy, political, interpersonal, business business (19)(19)
1818
Developing Through EvaluationDeveloping Through Evaluation
Benefits:Benefits: Evaluations are a very effective way to Evaluations are a very effective way to develop your employees. To get them off the develop your employees. To get them off the wrong path and onto the right one.wrong path and onto the right one.
Cost:Cost: Evaluations, when done correctly, are time Evaluations, when done correctly, are time consuming.consuming.
Focus on a game plan for the future, instead of the Focus on a game plan for the future, instead of the past.past.
When possible, get feedback from employeesWhen possible, get feedback from employees
1919
Developing Through EvaluationsDeveloping Through Evaluations
Be Be “S.M.A.R.T.”“S.M.A.R.T.”
SSpecificpecific
MMeasurable easurable
AAttainable ttainable
RReflectiveeflective
TTime boundime bound
2020
Developing Careers: PathDeveloping Careers: Path
R. Bence (gov’t)R. Bence (gov’t)
Primarily technicalPrimarily technical
Silos…for nowSilos…for now
Career and phaseCareer and phase
M. Garcia (private)M. Garcia (private)
Management vs. Management vs. technicaltechnical
TeamsTeams
2121
Developing Careers: TrainingDeveloping Careers: Training
R. Bence (gov’t)R. Bence (gov’t)
Budget issuesBudget issues
Status quoStatus quo
Direct reportsDirect reports
M. Garcia (private)M. Garcia (private)
SpecificSpecific
Tuition Tuition reimbursementreimbursement
2222
Developing Careers: Developing Careers: Performance AssessmentsPerformance Assessments
R. Bence (gov’t)R. Bence (gov’t)
AnnualAnnual
FormalFormal
Future of Future of assessmentsassessments
M. Garcia (private)M. Garcia (private)
Every 6 monthsEvery 6 months
FormalFormal
Coverage Coverage
2323
Tommorow’s JobsTommorow’s Jobs
Between 2002 and 2012 total U. S. employment Between 2002 and 2012 total U. S. employment expected to increase by 14.8 percentexpected to increase by 14.8 percent
Equates to 21 million more jobsEquates to 21 million more jobs
Growth in professional, scientific, and technical Growth in professional, scientific, and technical services by 27.8 percent/1.9 million new jobs by services by 27.8 percent/1.9 million new jobs by 20122012
(21)(21)
2424
Tomorrow’s JobsTomorrow’s Jobs
Projections are that computer systems design Projections are that computer systems design and related services employment will increase and related services employment will increase 54.6 percent. This increase amounts to more 54.6 percent. This increase amounts to more than a third of all new jobs in the professional, than a third of all new jobs in the professional, scientific, and technical services job category. scientific, and technical services job category.
632,000 new jobs are expected in the 632,000 new jobs are expected in the information supersector by 2012. This job sector information supersector by 2012. This job sector includes software publishers, internet publishers, includes software publishers, internet publishers, data processing services and internet service data processing services and internet service providers.providers.
(21)(21)
2525
What This May Mean To What This May Mean To Organizations With IT Organizations With IT
ProfessionalsProfessionals
Continued high turnover rates for IT Continued high turnover rates for IT professionals professionals (22)(22)
Turnover rates of 25% - 33% in 1997-2001 periodTurnover rates of 25% - 33% in 1997-2001 periodAverage tenure in IT went down from 18 months in 1998 to Average tenure in IT went down from 18 months in 1998 to 13 months13 months
Increased Competitiveness to fill IT positions Increased Competitiveness to fill IT positions (3)(3)
Poaching or brain snatchingPoaching or brain snatchingHeadhuntersHeadhunters
Negative effects on innovation, productivity and Negative effects on innovation, productivity and competitiveness in world markets competitiveness in world markets (27)(27)
2626
Turnover Percentages In Turnover Percentages In ComparisonComparison(By Industry)(By Industry)
Information technologyInformation technology 25-33%25-33%ServicesServices 13.513.5Health careHealth care 12.812.8Banking and financeBanking and finance 13.213.2InsuranceInsurance 7.6 7.6
(23)(23)
2727
Turnover Percentages At the Best Turnover Percentages At the Best Companies To Work ForCompanies To Work For
(24)(24)
RankRank LocationLocation PercentagePercentage
11 Wegman’s Food MarketsWegman’s Food Markets 66
22 StarbucksStarbucks 1212
33 Valero EnergyValero Energy 2929
44 Cisco SystemsCisco Systems 33
55 Whole Food MarketWhole Food Market 3232
1313 A. G. EdwardsA. G. Edwards 99
1414 MicrosoftMicrosoft 55
2828
Managing IT ProfessionalsManaging IT Professionals
Are IT professionals substantially different from Are IT professionals substantially different from other employees firms seek?other employees firms seek?
Best practices for others good enoughBest practices for others good enough Differences IT vs. othersDifferences IT vs. others
IT skills and business skillsIT skills and business skillsDemand/supply constantly in fluxDemand/supply constantly in fluxHalf-life of specific skills is short resulting in constant need Half-life of specific skills is short resulting in constant need for skill renewal and developmentfor skill renewal and development
(7)(7)
2929
What Successful IT Organizations What Successful IT Organizations DoDo
Study of 32 organizations to determine Study of 32 organizations to determine what successful organizations do to what successful organizations do to recruit, develop and retain IT professionalsrecruit, develop and retain IT professionalsSuccessful organizations being those Successful organizations being those successful in IT use, business successful in IT use, business performance or managing IT human performance or managing IT human resources resources (7)(7)
3030
Sample Demographics Sample Demographics (7)(7)
Staff of Companies Included in Case Study:Staff of Companies Included in Case Study:
Number of IT EmployeesNumber of IT Employees Percentage of Percentage of CompaniesCompanies
100-1,000100-1,000 50%50%
<100<100 25%25%
>1,000>1,000 25%25%
3131
Recruiting Practices Recruiting Practices (7)(7)
Practice CategoryPractice Category FrequencyFrequency
SourcingSourcing 7272
Skills SoughtSkills Sought 88
Competitive Competitive Differentiation ElementsDifferentiation Elements
3636
One-Time InducementsOne-Time Inducements 66
3232
Common Themes in IT Human Common Themes in IT Human Resource TrendsResource Trends
Dedicated person or staff supporting IT Human Dedicated person or staff supporting IT Human Resource ActivitiesResource Activities
Existence of diverse organizational cultures with Existence of diverse organizational cultures with two distinct dimensions being nurtured to some two distinct dimensions being nurtured to some degreedegree Productivity concerns dimensionProductivity concerns dimension Interpersonal DimensionInterpersonal Dimension
(7)(7)
3333
Retention PracticesRetention Practices
Increased frequency of performance appraisals with Increased frequency of performance appraisals with financial incentivesfinancial incentivesWork arrangements with interesting and challenging Work arrangements with interesting and challenging projectsprojectsWork arrangements that allowed rotation across jobs Work arrangements that allowed rotation across jobs and projectsand projectsUse of cross-functional teams and modifying work Use of cross-functional teams and modifying work spaces to accommodate team workspaces to accommodate team workProcesses for identifying training and development Processes for identifying training and development needs and addressing those needsneeds and addressing those needs
(7)(7)
3434
Retention PracticesRetention Practices
Providing persistent and accurate Providing persistent and accurate counseling and feedbackcounseling and feedback
Flexible work arrangementsFlexible work arrangements
Providing recognition and tangiable Providing recognition and tangiable awards all through the performance periodawards all through the performance period Birthday cardsBirthday cards Welcome basketsWelcome baskets Lunch or dinner outLunch or dinner out
3535
Detailed IT Retention Practices Detailed IT Retention Practices (7)(7)
Practice CategoryPractice Category Frequency (totaling 230)Frequency (totaling 230)Performance MeasurementPerformance Measurement 19 instances19 instances
Compensation and Benefits Compensation and Benefits SystemsSystems
4444
Work ArrangementsWork Arrangements 2727
Employability Training and Dev.Employability Training and Dev. 3333
Longer-Term Career DevelopmentLonger-Term Career Development 99
Opportunities for AdvancementOpportunities for Advancement 1414
Opportunities for RecognitionOpportunities for Recognition 1515
Quality of LeadershipQuality of Leadership 2121
Sense of CommunitySense of Community 3232
Lifestyle AccommodationsLifestyle Accommodations 1313
Org. Stability and Employment Org. Stability and Employment SecuritySecurity
33
3636
Using The Recruitment and Using The Recruitment and Retention Practice CategoriesRetention Practice Categories
Examine current practices – benchmarking Examine current practices – benchmarking current practices against exemplary firmscurrent practices against exemplary firms Helps to identify gaps in existing practiceHelps to identify gaps in existing practice
Use practice categories to determine set of Use practice categories to determine set of practices to expend resources on to recruit practices to expend resources on to recruit and retain IT professionalsand retain IT professionals
(7)(7)
3737
RetainingRetaining
R. Bence (gov’t)R. Bence (gov’t)
AutonomyAutonomy
TurnoverTurnover
Complaints Complaints
M. Garcia (private)M. Garcia (private)
AutonomyAutonomy
TurnoverTurnover
ComplaintsComplaints
3838
Retaining: AttractionsRetaining: Attractions
R. Bence (gov’t)R. Bence (gov’t)
SecuritySecurity
CommitmentCommitment
Visibility Visibility
M. Garcia (private)M. Garcia (private)
VarietyVariety
TeamTeam
IncentivesIncentives
3939
The “Strategic Star” The “Strategic Star” (7)(7)
4040
Closing ThoughtsClosing Thoughts
Common senseCommon sense pay well, interesting work, current knowledgepay well, interesting work, current knowledge
AwarenessAwareness Goals of organization and individualsGoals of organization and individuals CompetitionCompetition
4141
ReferencesReferences
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4444
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