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2017 HIRING AND COMPENSATION TRENDS [Presenter Name] [presenter title]
Hello. I’m [NAME/POSITION] from Robert Half Technology. It’s great to be here with you today. Robert Half Technology places highly skilled IT professionals on both a project and a full-time basis for initiatives ranging from web development and systems integration to network security and technical support. We have more than 115 offices worldwide. We offer a full spectrum of services — from project, contract-to-hire and full-time IT staffing services to managed services and solution consulting. Our extensive research on workplace-related topics makes us a frequently cited career expert in business and trade publications worldwide. [Presenter Name] [presenter title]
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Today’s Discussion IT hiring outlook for the U.S.
Compensation trends for 2017 Skills and certifications in demand Hot positions and fastest-growing industries Tips for becoming a tech talent magnet Benefits of hiring IT project consultants Reasons companies use specialized staffing firms Today, we will discuss the current IT hiring environment and compensation trends we expect to see for technology roles in the United States next year. We’ll also cover: Skills and certifications in demand Hot positions and fastest-growing industries in the United States Tips to help your organization become a tech talent magnet The reasons employers hire project consultants for tech initiatives, and the benefits these arrangements can provide The top reasons companies choose to work with specialized staffing firms
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The 2017 Salary Guide Starting salary ranges for technology positions in the United States and Canada Instructions for how to calculate local variances IT hiring trends Positions, skills and certifications in demand Strategies for recruiting and retaining IT talent Much of our company’s IT hiring and compensation trend research appears in our annual Salary Guide. I want to tell you a little bit about the guide and how it’s put together each year, as I’ll be referencing it often throughout the presentation. Then, we’ll take a closer look at the compensation data and trend analysis it provides. The 2017 Salary Guide includes: [READ FROM SLIDE]
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Data Sources The thousands of interim and full-time placements Robert Half Technology makes each year Insights from our staffing and recruiting specialists Exclusive workplace research we conduct among CIOs and IT professionals Our own detailed analysis of current and future hiring trends Our data and analysis are based on the thousands of interim and full-time placements Robert Half Technology makes each year. We also gather insights from our experienced staffing and recruiting professionals throughout our branch network. They interact with hiring managers and job seekers every day. We conduct research on workplace trends that could impact salaries, and we survey chief information officers (CIOs) and IT workers. The information in the guide is also based on our own detailed analysis of current and future hiring trends. Our data is so well regarded that our Salary Guide is widely used by private and public firms, media outlets, educational institutions, and government agencies. The U.S. Department of Labor’s Bureau of Labor Statistics has used our Salary Guide data when compiling its Occupational Outlook Handbook.
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IT Hiring Trends: Employers Get More Strategic
A shortage of skilled tech talent persists in North America Network security and big data initiatives driving demand for IT professionals Top candidates snapped up quickly — and receiving generous offers Employers moving fast to hire, but remain selective Midlevel tech pros with solid soft skills in high demand More firms using a mix of full-time and contract hiring Let’s talk about the hiring environment for tech talent. It’s extremely competitive, of course. That’s been the trend for several years now. There is a persistent shortage of skilled technology talent available for hire in both the United States and Canada. We’re seeing many employers struggle to fill key roles on their IT teams. This is not just because there’s a shallow pool of available skilled tech talent. It’s more the case that in-demand candidates don’t have to look very far to find choice job opportunities. Some professionals may even receive multiple offers. Employers need to move very fast in this market or risk missing out on an opportunity to make a great hire. They need to be prepared to offer above-market pay and other attractive financial incentives and perks if they want to hire top talent. We’ll talk more about the importance of competitive compensation later in this presentation. [NOTES ARE CONTINUED ON THE NEXT SLIDE]
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IT Hiring Trends: Employers Get More Strategic
A shortage of skilled tech talent persists in North America Network security and big data initiatives driving demand for IT professionals Top candidates snapped up quickly — and receiving generous offers Employers moving fast to hire, but remain selective Midlevel tech pros with solid soft skills in high demand More firms using a mix of full-time and contract hiring Even in this competitive climate, however, employers are taking care to select candidates who are likely to thrive in their organizations. One trend already in motion that we expect to see continue next year is employers conducting interviews led by panels or teams as a way to assess a potential hire’s fit. We are also seeing many businesses hiring midlevel technology professionals who have a solid mix of technical and soft skills. Companies know they can groom these candidates to lead IT initiatives, instead of waiting indefinitely to find senior-level candidates — who are also costlier to hire. Another trend to watch: Employers making full-time hires only for the most essential IT positions, and then rounding out their teams with interim specialized support, as needed.
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In Demand: Specialized Skills
Specialized skills can increase base compensation by up to 8% SharePoint skills: 8% Java development skills: 8% Hadoop skills: 7% Microsoft SQL Server database skills: 8% Cisco network administration skills: 7% .NET development skills: 7% Virtualization skills: 7% So, let’s drill down on specifics, starting with the types of skills employers are looking for – and are willing to pay more for – in 2017. Here’s an overview of just some of the specialized skills that can lead to higher base compensation for IT professionals in the United States. [READ FROM SLIDE] Tech professionals with certain in-demand skills command starting compensation that exceeds industry averages. In fact, our research shows that tech professionals, depending on their expertise, can expect to be paid up to 8 percent more in base compensation than their peers who lack the same skill sets and credentials.
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Hot Certifications and Skills for 2017
Cisco: CCNA, CCNP Security: CISSP Help desk/technical support: HDI, CompTIA A+ Development: ASP, C#, Java, .NET Database: Microsoft SQL Server, MySQL In-demand certifications continue to be an important consideration for managers hiring technology professionals. Certifications provide clear evidence of an individual’s knowledge of a particular technology or practice. It also indicates an IT professional’s commitment to continuous learning. While there are numerous IT certifications across a wide range of job categories, the examples listed here are designations currently in high demand by employers: Cisco certifications: Cisco Certified Network Associate (CCNA) and Cisco Certified Network Professional (CCNP) Security certification: Certified Information Systems Security Professional (CISSP) Help desk and technical support: HDI, CompTIA A+ Many employers in the United States are also looking for specialized skill sets, particularly development and database skills. [READ EXAMPLES FROM SLIDE]
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Highly Valued: IT Pros with Strong Soft Skills
Employers are placing more emphasis on soft skills like these when hiring for technology roles: Communication skills Problem-solving abilities Solid work ethic Creative thinking Professionalism Business acumen Leadership abilities We’re finding that many hiring managers are looking for IT professionals who can bring a solid mix of technical and soft skills to the job. Some of the soft skills employers look for include: [READ FROM SLIDE] Given the central role IT now plays in helping organizations to increase efficiency and profitability, and to shape business strategy, these types of skills are obviously essential. And because businesses are so reliant on technology for everyday operations and building competitive advantage, IT must collaborate and coordinate with other business functions on a wide range of high-profile and business-critical projects and initiatives — more than ever before.
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2017 IT Salary Trends: United States
Overall, starting salaries will increase 3.8% from 2016 levels Expected salary ranges for in-demand positions: Data Scientist $116,000 – $163,500 Front-End Web Developer $ 83,250 – $119,500 Big Data Engineer $135,000 – $196,000 Network Security Engineer $115,500 – $162,500 Chief Security Officer $145,250 – $236,750 Web Designer $ 70,500 – $118,000 Database Developer $108,000 – $161,500 Now, let’s take a look at some of our tech salary projections for 2017. Starting salaries across the United States are expected to increase by an average of 3.8 percent over 2016 levels. Here are a few examples of 2017 salary ranges for select positions that are expected to see some of the greatest increases in base pay at U.S. firms next year. [READ FROM SLIDE] Data scientists will see the biggest boost in starting salary in the United States in Base compensation for this role is expected to rise by 6.4 percent. Front-end web developers can expect the second-highest increase in starting compensation next year — a 6.2 percent jump. And as I mentioned earlier, network security and big data initiatives are driving hiring for IT professionals within many U.S. businesses. So, it’s not a surprise that big data engineers and network security engineers will also see healthy boosts in starting salaries next year — 5.8 percent and 5.7 percent, respectively. The other roles listed here will also see base compensation rise by more than 5 percent in There are several other positions in the guide that will see similar increases as well. Again, please keep in mind that the salary ranges you see here are national averages. You can adjust salaries for specific markets in the United States using the local variance numbers provided in the guide. Positions are listed in order of the highest year-over-year salary percentage increase. 10
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United States Positions in Demand
Help Desk Web Developer Software Developer Systems Engineer Security Engineer .NET Developer Web Developer Systems Administrator Software Developer Help Desk Help Desk .NET Developer Systems Administrator Web Developer Database Developer Software Engineer Network Engineer .NET Developer Web Developer Help Desk Network Engineer Help Desk Software Engineer .NET Developer Web Developer Software Engineer Systems Administrator .NET Developer Help Desk Web Developer .NET Developer Network Engineer Web Developer Database Developer Systems Analyst Network Engineer ERP Technical Developer Help Desk Software Engineer .NET Developer Now, let’s look at some of the IT positions in top demand across the U.S. [DISCUSS INFO ON SLIDE, AS APPROPRIATE] .NET Developer Help Desk Network Engineer Software Developer Systems Administrator HI
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United States: Fastest-Growing Industries
Healthcare Manufacturing Real Estate Technology Construction Healthcare Financial Services Manufacturing Construction Real Estate Manufacturing Healthcare Financial Services Professional Services Construction Healthcare Manufacturing Professional Services Financial Services Technology Healthcare Manufacturing Technology Financial Services Real Estate Healthcare Construction Manufacturing Technology Real Estate Financial Services Healthcare Professional Services Real Estate Manufacturing Healthcare Manufacturing Technology Real Estate Financial Services Demand for IT professionals is particularly strong in certain industries. Here are some of the fastest-growing industries in regions across the United States. [DISCUSS INFO ON SLIDE, AS APPROPRIATE] Healthcare Manufacturing Construction Real Estate Technology HI
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Top 5 Cities in Which to Live and Work
Key factors influencing livability: Cost of living Cultural diversity Career prospects Quality of life I’d like to share some other research that provides insight on where, geographically, many career-minded professionals are focusing their job search. According to the Robert Half Career City Index, which is the result of a study recently conducted for Robert Half by The Economist Intelligence Unit, the top five cities that professionals want to live and work in are: Seattle Boston San Francisco Bay Area Washington, D.C. Raleigh, North Carolina The key factors influencing livability in these areas include: [READ FROM SLIDE AND EXPAND ON POINTS AS APPROPRIATE] Source: The Robert Half Career City Index, 2016
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Industries to Watch in 2017 Healthcare Financial services
Here are two sectors that are likely to be especially active with IT hiring in 2017, according to our research for the Salary Guide: Healthcare: Many healthcare organizations are modernizing their operations and investing in new technologies to increase efficiency, promote innovation and meet regulatory requirements. Also, new ways of providing patient care, such as mobile health, are driving the need for IT expertise in the healthcare industry. Financial services: Financial organizations are expanding online banking and brokerage services and increasing other technology-enabled services to support their customers. There is also strong demand in the sector for experienced technology professionals to support big data and information security initiatives. Financial services
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The Benefits of Using Project Consultants
Relief for overburdened employees Minimized overtime expenses Reduced recruiting and hiring costs Support for core employees who need to focus on other initiatives temporarily Greater job stability for full-time staff We should also see steady demand for project work and consulting roles in 2017. As I mentioned earlier, many employers are strategically assembling teams of both full- time hires and interim specialized support to staff short-term projects or implementations and to meet growing business demands. We’re also finding that many businesses are reaching a tipping point with their IT ecosystem where they need to significantly upgrade legacy technology or migrate to new solutions. This is also driving the need for interim specialized support. Engaging project consultants is a staffing strategy that can provide many benefits to employers. For example, it provides relief for overburdened employees at risk of burnout (and possibly, leaving the firm altogether). It can help to minimize overtime expenses. And it can help to reduce recruiting and hiring costs. [NOTES ARE CONTINUED ON THE NEXT SLIDE]
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The Benefits of Using Project Consultants
Relief for overburdened employees Minimized overtime expenses Reduced recruiting and hiring costs Support for core employees who need to focus on other initiatives temporarily Greater job stability for full-time staff Another reason employers turn to project consultants is to support their core employees who may need to focus on special assignments, but whose jobs can’t go unattended. Use of project consultants can also help provide greater job stability for full-time employees; core staff members will be largely protected from cycles of hiring and layoffs as business needs fluctuate. Flexible staffing models that include a mix of core full-time employees and skilled project and temporary workers have proved to be an effective solution for businesses that seek greater control over their human resources budgets, and appreciate having access to skilled talent when and for as long as they need it. Many businesses find a year-round mix of core employees and contingent workers is their best bet for ultimate flexibility. Using temporary staff also serves as an “extended interview.” When companies are considering hiring on a full-time basis, more and more firms are bringing in candidates first on an interim basis. This allows them to observe performance and cultural fit over an extended period.
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How to Become a Tech Talent Magnet
Offer work-from-home arrangements Give employees the opportunity to contribute to multiple projects Provide the ability to innovate Outline a clear path of development In today’s highly competitive market, recruiting and retaining top tech talent can be tough. The level of compensation you offer is a big factor in your company’s success on both fronts, of course. But there are other things you can do to help your organization become a tech talent magnet. Offering work-from-home arrangements is one strategy. You’ll find most IT pros covet this perk. If remote work isn’t an option, consider offering flexible schedules. Give employees the opportunity to contribute to multiple projects. Talented tech pros are always seeking new challenges and want to further develop their skills. Provide the ability to innovate. Encourage your IT workers to propose new ideas and take the lead on developing solutions that can help your business operate more efficiently. A final tip: Outline a clear path of development. Starting at the job interview, show in-demand technology candidates how they can grow with, and ascend in, your organization over the long term.
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$ Financial Incentives
Pay raises: Usually permanent increases in wages based on length of service, superior performance or productivity gains Bonuses: One-shot incentive payments that are always tied to results Other common incentives: Profit-sharing plans and stock plans Pay Raises Bonuses Incentives $ Now, back to the topic of compensation. A tried-and-true strategy for recruiting highly skilled technology professionals is to pay at or above market salaries for top talent. As we just discussed, competitive compensation is essential to recruiting and retaining top IT talent in today’s fiercely competitive market. Here are a few strategies that leading employers use to keep their tech talent feeling valued, from a financial perspective. [READ FROM SLIDE; EXPAND ON POINTS, AS APPROPRIATE.] When you do offer pay raises, bonuses and other financial incentives to new hires or existing employees, be sure you: Set clear rules. Set targets or goals that can be quantified. Make goals worthwhile. Don’t ask for the impossible. And most important: Don’t make promises you can’t keep.
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rht.com/salary-center
Our Salary Calculator If you would like more information about hiring and compensation trends in the United States, please see me for a free copy of the 2017 Salary Guide. Also check out our online Salary Center. There, you can access the Robert Half Technology Salary Calculator, which allows you to look up a single position and customize salary data for your city. Visit rht.com/salary-center. Our online Salary Calculator makes it easy to quickly customize salary data for your city rht.com/salary-center rht.com/salary-center
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8 Reasons Companies Use Specialized Staffing Firms
To vastly expand their recruiting networks To connect with passive job seekers To bring in critical talent on short notice To get help when they don’t have time to conduct a rigorous search of their own To staff limited duration projects To lighten the load on overworked staff To reduce overtime expenses To provide support to core employees temporarily assigned to special projects 1 2 3 4 5 Now, before we wrap up our discussion today, I’d like to take a moment to share some of the top reasons that employers choose to work with a specialized staffing firm like Robert Half Technology. [READ FROM SLIDE; EXPAND ON SPECIFIC POINTS, AS APPROPRIATE] 6 7 8
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2017 HIRING AND COMPENSATION TRENDS [Presenter Name] [presenter title]
Thank you for joining our discussion today about IT hiring and compensation trends for I hope you find the information useful in your recruitment and retention efforts for the coming year. [CALL FOR QUESTIONS/COMMENTS] [Presenter Name] [presenter title]
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