Big Opportunities in KC HCIT - Ashley Prahler

Agenda Understanding the Labor Landscape Attracting IT Talent Exploring the Priorities of IT Professionals Approaches to Success

Understanding the Labor Landscape

Scope of the Labor Market Labor Force While the condition of the labor market nationally has wavered, the IT industry continues to thrive. 1 4.3 million employed IT workers TEMPORARY WORKERS 10% 60 1 of the current total workforce million employed workers 20 million hybrid business/ IT professionals who do not fit into a traditional IT category (e.g., project manager, business analyst) 20% While the condition of the labor market nationally has wavered, the IT industry has thrived. There are 160 million employed workers overall, including 5 million employed in IT. Temporary workers account for 10 percent of the current total workforce and 20 percent of the IT workforce. The unemployment rate is approximately 5 percent of all workers, whereas in IT this figure is about 2.5 percent of IT workers. In addition to the 5 million employed IT workers, there are as many as 20 million hybrid business/IT professionals who do not fit into a traditional IT category. Sources: Bureau of Labor Statistics, Foote Partners LLC Last updated: Q2 2017   of the IT workforce UNEMPLOYMENT RATE Approximately 4.5% of all workers About 2.3% of all IT workers Overall Workforce IT Workforce

Annual Unemployment Trends Over the last decade the IT unemployment rate has been at roughly half the overall unemployment rate in the U.S. and since 2009, the IT talent market has continued to tighten, making IT talent more and more difficult to find. Source: Bureau of Labor Statistics Last updated: Q2 2017 Annual Overall Unemployment Rate Annual IT Unemployment Rate

U.S. Labor Market Overview Labor force 160 million IT labor force 4.3 million Unemployed IT workers 110,000 Available IT talent Virtually 0 Sources: Bureau of Labor Statistics, CareerBuilder, Glassdoor Last updated: Q2 2017

IT Labor Force IT Labor Force Number of Workers Unemployment Rate (Q1 2017) Computer and Information Systems Managers 318,880 1.80% Computer Network Architects 134,170 2.60% Computer Network Support Specialists 167,050 3.60% Computer Occupations, All Other (QA, BI, Project Managers, etc.) 206,320 3.30% Computer Operators 42,760 2.50% Computer Programmers 267,040 1.20% Computer Systems Analysts 524,310 1.70% Computer User Support Specialists 541,550 Computer, Automated Teller, and Office Machine Repairers 94,090 4.50% Database Administrators 104,830 1.60% Information Security Analysts 79,600 Network and Computer Systems Administrators 343,950 2.20% Software Developers, Applications 718,010 2.30% Software Developers, Systems Software 363,400 Technical Writers 43,660 10.50% Telecommunications Equipment Installers and Repairers, Except Line Installers 187,730 5.40% Telecommunications Line Installers and Repairers 71,410 4.60% Web Developers 117,050 3.40% Grand Total/Average 4,325,810 2.5% Sources: Bureau of Labor Statistics, BLS Table 3. Employed and experienced unemployed persons by detailed occupation and class of worker, 1st Quarter 2017 averages (Source: Current Population Survey) Last updated: Q2 2017

U.S. Computer Science Graduates by year Table 322.10. Bachelor's degrees conferred by postsecondary institutions, by field of study: Selected years, 1970-71 through 2014-15 Field of study 2000-01 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 1 8 9 10 11 12 13 14 15 16 17 18 19 Total ..................................................................................... 1,244,171 1,439,264 1,485,242 1,524,092 1,563,069 1,601,399 1,649,919 1,716,053 1,792,163 1,840,381 1,870,150 1,894,934   Communication, journalism, and related programs .............................................. 58,013 72,715 73,955 74,783 76,382 77,984 81,280 83,231 83,771 84,818 87,612 90,650 Communications technologies .......................... 1,178 2,523 2,981 3,637 4,666 5,100 4,782 4,858 4,983 4,987 4,991 5,135 Computer and information sciences ........................... 44,142 54,111 47,480 42,170 38,476 37,992 39,593 43,066 47,406 50,961 55,271 59,581 Education ............................................... 105,458 105,451 107,238 105,641 102,582 101,716 101,287 104,008 105,656 104,698 98,838 91,623 Engineering ........................................... 58,209 64,707 66,841 66,874 68,431 68,911 72,657 76,356 81,371 85,987 92,169 97,858 Sources: Bureau of Labor Statistics, CareerBuilder, Glassdoor Last updated: Q2 2017

U.S. Demand for IT Talent Company Name Company Name U.S. companies have posted over 3.5 million IT jobs in the last 12 months. Firms are competing for a variety of IT talent across multiple industry segments. Company Name # of IT Job Postings (last 12 months) Oracle 180,430 Amazon 110,836 Dish Network 52,956 Deloitte 40,328 General Dynamics 31,487 Leidos Holdings 28,735 Northrup Grumman 28,219 Booz Allen Hamilton 27,113 Lockheed Martin 26,153 Raytheon 21,502 Company Name # of IT Job Postings (last 12 months) Wells Fargo 20,671 AT&T 19,520 UnitedHealth Group 18,700 Bae Systems 18,060 Microsoft 16,216 Anthem 15,503 General Electric 14,447 Citigroup 26,153 IBM 12,294 Dell 12,080 Source: CareerBuilder Last updated: Q2 2017

TOP Health Care employers in Greater KC Cerner Corp. – 12,890 HCA Midwest Health System – 9,900 The University of Kansas Hospital – 9,500 Saint Luke’s Health System – 8,200 Children’s Mercy – 6,970 Prime Healthcare – 3,060 Olathe Health Inc. – 2,500 Shawnee Mission Health – 2,360 Bayer – 1,300 Cigna HealthCare – 1,300 Liberty Hospital – 1,213 GEHA – 1,167 Blue Cross & Blue Shield of KC – 1,027

CIO Priorities Priority 2015 2016 2017 % 1 3 4 2 6 5 7 8 9 10 BI / Analytics 1 37% Cloud 3 4 2 28% Information Security 6 24% Infrastructure and Data Center 21% Enterprise Resource Planning 5 Networking, Voice and Data Communications 7 8 16% Digitalization / Digital Marketing 11% Mobility 10% Industry-specific Applications 9 Customer Relationship Management 10 8% Q: Please indicate the top three technology areas where your organization will be spending the highest amount of new/discretionary funding. (Data indicates technology areas that were mentioned within top three most often) Source: Gartner (2017 CIO Agenda: A U.S. Perspective; 2016 CIO Agenda: A U.S. Perspective; 2015 CIO Agenda: A U.S. Perspective) Last updated: Q1 2017

Emerging Job Titles Skill Set Demand Chief Data Officer (CDO) While new IT job titles continue to emerge with the evolution of technology needs, more traditional titles remain high in-demand. Chief Data Officer (CDO) Chief Marketing Technologist (CMT) Data Architect AI / Machine Learning Architect Cloud Services Engineer Platform Consultant (e.g., Salesforce Consultant) Dataviz / Data Visualizers IoT Architect Source: CareerBuilder, CompTIA IT Industry Outlook 2017 Last updated: Q2 2017

Top Jobs in Demand Skill Set Demand Software Developer/Engineer Java Developer Network Engineer Systems Engineer Web Developer .NET Developer DevOps Engineer Business Analyst Database Administrator Security Analyst Source: CareerBuilder, CompTIA IT Industry Outlook 2017 Last updated: Q2 2017

Attracting IT Talent

Success Starts with People Top Recruitment Challenges Attracting the right-fit talent is critical to the success of your business goals, yet employers rank Attracting quality talent as their top recruitment challenge Attracting quality talent Time to fill open positions Retaining quality talent Source: Talent Advisory Survey 2017 Last Updated: Q2 2017

83% 55 days 50 days $50,000 The Cost of Hiring of executives believe attracting and retaining talent is an issue for their company 83% The average time to fill full-time positions 55 days Sources: Talent Advisory Survey 2016, Fast Company Last Updated: Q2 2017 $50,000 The average time before a new hire is productive 50 days Estimated cost of just one bad hire to a company

The Power of Job Descriptions Clearly defined job duties Clearly defined compensation Opportunities for advancement Candidates say the most impactful elements of a job description are: Taking the time to craft clear, accurate and timely job descriptions with impactful content can help organizations find high-quality candidates faster Source: Talent Advisory Survey 2016 Last Updated: Q2 2017 81% of candidates believe accurate job descriptions are one of the most important recruiting activities

Exploring the Priorities of IT Professionals

Employee Value Proposition An employee value proposition (EVP) offers compelling reasons why the opportunity is desirable and sets it apart from the high-volume of open IT positions. A strong EVP has the potential to draw candidates to one company over another. The Employee Value Proposition Work Opportunity Organization People Reward Culture Attraction Engagement Increases the size of the available talent pool Improves employee effort and output Improves retention Last Updated: Q2 2017

Optimizing an EVP for IT Professionals What factors are most important to IT professionals considering a new position? Addressing the top EVP drivers will enable organizations to attract and retain IT talent over time. EVP Drivers Rank (% of IT professionals ranking driver in top 5) Compensation 1 (87%) Job security / company health 2 (56%) Benefits (e.g., health insurance, vacation/personal time) 3 (55%) Career opportunity/advancement 4 (51%) Immediate manager/supervisor quality 5 (43%) Work site location / length of commute 6 (38%) Relationships/camaraderie with coworkers 7 (36%) Flexible or alternative schedule / telecommuting 8 (36%) Trust and confidence in senior leadership 9 (32%) Level of impact / ability to make a difference 10 (29%) Level of autonomy / empowerment 11 (27%) Company brand/perception/reputation 12 (26%) Company’s adoption of new technologies/innovation 13 (25%) Training/education opportunities 14 (25%) Ability to travel for work 15 (19%) Diversity and inclusion programs 16 (18%) Social responsibility 17 (18%) Source: TEKsystems Retention and Engagement Last Updated: Q2 2017 Q: Which of the following most impact your decision to stay with or leave your current employer?

34 Cut Through the Noise recruiter solicitations per week IT professionals are in high demand across skill sets The average IT professional receives 34 recruiter solicitations per week To capture their attention and make your opportunity stand out from all the other noise, the initial message must be detailed and compelling. What do IT professionals want to know? Make your opportunity stand out from all the other noise Source: TEKsystems, IT Job Search Trends Last Updated: Q2 2017

Approaches to Success

Search and Screen for Success Making time investments upfront on developing effective job descriptions and interacting with recruiting partners can lead to successful job and candidate matches, while also saving time and money over the long-term. Provide a clear and detailed job description Ensure that your recruiting partners understand and use your EVP in their marketing efforts Source: Talent Advisory Survey 2016 Last Updated: Q2 2017 Best-in-class employers not only believe accurate job descriptions are the most important factor in attracting and hiring top talent, they also spend three-times longer creating them.

A talent retention strategy has never been more important. Recommendations A talent retention strategy has never been more important. Be involved in your search for talent, invest time up front in developing job descriptions and making sure the marketing of your opportunity will stand out Ensure SLAs amongst HR, Procurement and VMOs are aligned to attracting the top IT talent Understand that employees value career growth, have a plan for developing them and assist in their long term goals Embrace the fact that technology is always changing and make sure your employees have time/budget to train