1. PMI – Houston "The Next Labor Crisis
PMI – Houston "The Next Labor Crisis..Déjà vu to the 1990’s All Over Again" James Del Monte CPC JDA Professional Services, Inc.
Intelligence test – with the foot
What expectations from this presentation
Hand out oath

2. Success “ . . . Almost 100% of a managers success comes from hiring
and retaining good people.
Good people don’t make the
difference
- they are the difference“
- James Del Monte
How I started to do this presentation and became a student of my business understanding what impacts it
Started my business as a great doer – organized great at executing good at producing results - - wanted to grow – talked to my mentors – education training experience need to get some fast – trade groups – get something done in a volunteer group . What you put in is what you get out – met my wife there
needed to lean some management – systems, processes, controls – charts, graphs, goals, milestones management report –and turn over lots of turn over – management was great except for the people -people did things for their reasons not mine and if our reasons were not aligned there are options – the more options people have the less the tolerance level to poor management is
Back to mentors and needed to learn the difference between management and leadership

3. Value of a Professional Organization
Leadership
Industry/Business knowledge
Networking Opportunities
Friendship

4. Hard Questions Part 1 Who are you and what does JDA stand for?
What is going on in the employment market?
Why is it taking so long to find a position I want if unemployment is so low?
Why don’t recruiters return my calls?
What does the future employment outlook look like?
Presentation was developed from many conversations with project managers and their concerns and frustration
We polled 40 CIO’s in Houston to gather information to prepare for this

5. Hard Questions Part 2
What positions are moving off shore and how does this impact me?
Are P/M positions going more contract or Full-Time?
Why is it that when I am hiring someone the recruiter's won’t stop calling?
Where are the people we need to hire going to come from?

6. Hard Questions Part 3 What is the future of PMO’s?
I’m a PMP why don’t I get respect?
How much difference does a PMP make?
How do I position myself for a senior management position?
What suggestions do you have to keep my staff?
Are you done yet?
If you finish before me you know what to do

7. What JDA Does. . .
JDA provides clients with a full complement of information technology professionals.
Our services are designed to meet the unique and changing requirements of our clients.
Full-Time Staffing
Contract /
Temporary
Staffing
Who are you and what does JDA stand for?
Having fun – honesty integrity quality excellence customer service
Kids kept asking for new stuff so finally one said I know what jda stands for - Just don’t ask
Special Projects
Staffing
JDA

8. Sooo, Tell Me About Your Career.
We can help you in one of 2 way – introduce you to competitive positions in the market to help you get the career you want or help you identify you to top talent to build a great IT dept.

9. Law of Supply and Demand
4Q99
Demand
Peaked
1984
2Q01
1995
4Q04
1989
3Q03
What is going on in the employment market?
In the peak 2000 there was 4.0% unemployment and 4 million jobs were unfilled. Bottomed in 2003 at 6% Today we are at 4.6% unemployment and it is expected that by 2010 there will be 10 million unfilled positions.
In 2003 they say that the US lost 3 million positions and unemployment was at 6% we have fully recovered and have had a net gain over 5 million positions
Since 2003 we have had a net gain of 6 million jobs - bls
Supply
Demand Bottomed
Demand Bottomed
The demand for skilled professionals peaked 4Q99 and has decreased, bottoming out 3Q03. The current cycle indicates that once again there are more positions than skilled professionals, and this is projected to continue past 2010.
Labor Surplus vs. Skill Shortage

10. National Economic Stats for 2006
National unemployment rate is at a 6 year low of 4.6%
National average hourly wage increased 3.85% from $16.10 to $16.72 in 2006, the greatest increase since 2000
National average annual expenditure for 2005 was $46, 409, a 6.9% increase from 2004, and the highest increase since 1989
Stock market prices have been on the rise since early 2003 and they are currently at their highest point since early 2001

11. Houston’s Economic Stats for 2006
Houston’s unemployment rate averaged 5.1% for 2006, our lowest since 2001 when it was just 4.7%
Houston’s average hourly wage was at $19.57 in December 2005, more than $3 above the national average at that same time
Consumers in Houston spent an average of $52,998 per household in 2005, 10.3% higher than in 2004 , an increase which is unmatched in at least the past 20 years
Hbj k new jobs created in Houston metro area – most of any metro area in the country
Oil- and gas-related jobs grew the most, with a 7.1 percent increase in the extraction sector and a 12.1 percent increase in support activities. Architectural and engineering services jobs rose by 11.1 percent, while computer systems design and related services jobs increased by 7.2 percent and jobs in durable goods manufacturing rose 5.9 percent.
"The BLS numbers show Houston on a dramatic growth trend, outpacing the rest of the nation in jobs gained," said Jeff Moseley, president and CEO of the Greater Houston Partnership. "This is great news for our region and further validates our board's vision of contributing to the creation of 600,000 new jobs and $60 billion in capital investment by 2015."

12. National vs. Local Economies
STATISTIC
NATIONAL
HOUSTON
HOW WE COMPARE
Unemployment Rate (Avg. for 2006)
4.6%
5.1%
+.5%
Average Hourly Wage (Dec 2005)
$16.35
$19.57
+19.7%
Average Consumer Spending Per Household (2005)
$46,409
$52,998
+14%

13. Most Requested Information on JDA web site
How to write a resignation letter article
High cost of turnover article
We knew the market changed when our web site activity changed

14. Labor Surplus vs. Skill Shortage
Job Creation
1 million new IT positions from 2004 – 2014 that’s a 30% increase
(BLS)
There are people but are they the right people

15. Candidate Population 25% A Players 50% B Players 25% C Players
Everyone is working

16. 80% of Job Growth
Will come from companies with less than 100 employees
In Houston there are less than 4,000 companies with over 100 employees
These companies need the same services as large companies - just not all the time
Houston has over 87,000 businesses
What IT services do they need?
Job creation from smaller companies
Big companies don’t spawn new technologies or create new job they buy them from smaller start ups

17. Houston Companies by Number of Employees
86000 businesses in Houston

18. Big VS Small
Traditional business don’t create jobs or invent products they buy them
Job Growth vs Job Creation
Risk Aversive – more committee decision make to limit career risk
Traditional business don’t create jobs or invent products they buy them
Job growth vs job creation
Risk aversive – more committee decision make to limit career risk

19. 2007 CIO Survey Results QUESTIONS INCREASE DECREASE STAY THE SAME
Company Growth in 2007
77.10%
2.90%
20%
Department Budget in 2007
74.30%
8.60%
17.10%
Staffing Level in 2007
75% 3%
22%
Base Salaries in 2007
89.30%
10.70% 0%

20. 2007 IT Hiring Percentages
Jda poll 40 cio’s in Houston from large to mid size companies about their expected hiring for 2007
75% of those companies are additional head count either full-time or contract
Only 3% or 1 expected to decrease
Hbj k new jobs created in houston metro area
Oil- and gas-related jobs grew the most, with a 7.1 percent increase in the extraction sector and a 12.1 percent increase in support activities. Architectural and engineering services jobs rose by 11.1 percent, while computer systems design and related services jobs increased by 7.2 percent and jobs in durable goods manufacturing rose 5.9 percent.
"The BLS numbers show Houston on a dramatic growth trend, outpacing the rest of the nation in jobs gained," said Jeff Moseley, president and CEO of the Greater Houston Partnership. "This is great news for our region and further validates our board's vision of contributing to the creation of 600,000 new jobs and $60 billion in capital investment by 2015."

21. Who’s Looking Active – 32 Passive – 47 Not at all – 21
Cio survey results
Ask who is looking
Exclude those with their bosses there
Active – unemployed mentally unemployed
Passive – have a resume updated last year keep your ears open
Not at all
Who has intentionally changed job in the last 2-5 years
Who moved for more or less a lateral position doing similar things for a little more $$ or better location from something vs moving to a position that was clearly a step up
People move from something vs to something
People never stop looking
People will join a company based on the sizzle of the company but they stay based on the management and team they are working with
How much of your success is based upon the people on your team?
How does it make you feel that 79% could walk out the door next week?

22. Employee Churning
With full-employment there are not enough existing resources to fill the void this will cause a churning of people moving from a to b to c
When demand exceeds supply what happens to price?

23. Position Demand . . . 10 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs
% Skills Yrs. Exp.
10 Mgmt./Conslt Yrs.
Sr. Tech/ – 8 Yrs
1st Line Mgmt
Staff/Tech – 5 Yrs
Why is it taking so long to find a position I want if unemployment is so low?
Peak demand for 2-5 years of experience - why?
more Indians than chiefs
Labor pool has more SR level people in - what happens to them? Contract, retooled
Some major oil companies have 50+ % of their IT staff approaching 50+ and will be looking at retiring at age 55

24. Talent Pool 60 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs
% Skills Yrs. Exp.
60 Mgmt./Conslt Yrs.
Sr. Tech/ – 8 Yrs
1st Line Mgmt
Staff/Tech – 5 Yrs
Peak demand for 2-5 years of experience - why?more Indians than chiefs
Labor pool has more SR level people in - what happens to them? Contract, retooled
Some major oil companies have 50+ % of their IT staff approaching 50+ and will be looking at retiring at age 55

25. Position Demand . . . Talent Pool . . . 10 Mgmt./Conslt. 8+ Yrs.
% Skills Yrs. Exp.
Mgmt./Conslt Yrs.
Yrs
Sr. Tech/ – 8 Yrs
st Line Mgmt 4 – 8 Yrs
Staff/Tech – 4 Yrs
– 4 Yrs
Why don’t recruiters return my calls?
Peak demand for 2-5 years of experience - why?more Indians than chiefs
Labor pool has more SR level people in - what happens to them? Contract, retooled
Some major oil companies have 50+ % of their IT staff approaching 50+ and will be looking at retiring at age 55
Also in our poll 80 % of the cio’s were wither actively passively looking
Talent Pool . . .

26. Disconnect
IT employment levels exceeds pre recession or pre-bust levels.
New college enrollment for MIS, CIS, and CS students from 99 to fall 00 increased 13.8% from 28,018 to 31,881 and remained at record highs through 2002.
New enrollment numbers plummeted 17.9% from 02 to 03 and another 26.8% to 18,046, the lowest number on record.

27. Market Shift
Candidate
Position
The hardest position to get is the first one – this position will also set the trend for your entire career
Once you have 2years you become mid market and 60+% of position are in this range.
The job market has shifted from an Employer’s Market to a Job Seeker’s Market - to a Combination Market.

28. Where Do All of the People Come From?
Internal Full-Time Staff
Low Cost Providers
Network Integrators
Hardware Support Providers
Software Developers/Support
Software Providers
Voice Data Providers
Contract or Temp Labor
Training Companies
Management Consultants
What does the future employment outlook look like?
Where are the people we need to hire going to come from?
34 million American workers 33% are now considered to be contingent workers – temps part-time consultants free lancers self employed
Close to 10 million workers are considered self employed 9%

29. Global Competition

30. How Work Gets Done Off-shoring Out-sourcing
What positions are moving off shore and how does this impact me
World Wide Shortage
Project Managers
Engineers
Oil and Gas people
Out-sourcing

31. Positions of Tomorrow
High touch – direct value to business – cross functional SME
Nurses
Current globalization creates a market for PM, BA, and Functional Analysts who are
needed to manage 3rd party resources.

32. What are we best at?
Giving people what they need not what they ask for.
Innovation and creativity

33. Top Reasons to Work Contract
It will lead to permanent employment
Flexibility of schedule
To obtain experience/training
Diversity in jobs/challenge
This was the only type of work I could find
The money is better
Family or personal obligations
Changing careers and need more experience
Source: American Staffing Association Workforce Metrics
Choosing Temporary Work
Are P/M positions going more contract or Full-Time?

34. Today’s Menu Your Company The Market Sets the Price Yes No
Annual Increases % 3-6 %
Today’s Menu
Business Analyst $50K - $ 80K
Project/Team Leader - $65K - $110K
Large Company
Data Center Manager $75K - $105K
Data/Voice Comm Spec. $55K - $ 95K
. NET Market Value
Supply and demand sets the price

35. Skills CIO’s Look For Personal 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
What is the future of PMO’s?

36. PMO Penetration From cio survey
55% had formal pmo’s – most were at beginning phases – most were dealing with IT projects and were not enterprise wide
Those that did not have formal pmo had dedicated project managers – there were a few smaller mid size companies (less than 50 IT people)

37. The PMO
I hear a lot from p/m about wanting a seat at the table and a way to be more strategic
Only 31% consider their PMO to be strategic but most were involved in the business planning process
Surprise was the way pmo’s success was measured

38. Business Strategy Vision Mission Statement Clients Candidates Internal
Strategies
Project Portfolio
Long Term Objectives (Branding)
Help Companies build great IT Departments.
Help our Candidates have the career they want.
Company of choice for our industry.
Why were so few considered strategic? I belong to a ceo round table and we went thought this elaborate multi year business planning process defining mission vision goals branding a project portfolio and implementation plans – once the strategy was developed it became all about implementation and very tactical in nature until the next planning process or something changed in the business

39. What You Can’t Measure, You Can’t Manage
With no measurable criteria for a PMO, Businesses are not going to see the added value and budgetary increases will cease.
Show your worth, give measurable results to show progress and proof of value.

40. Hiring a Project Manager
No one required as a hard requirement
Only 35% preferred
Don’t know how many of them had pmp’s them selves

41. Formal Education vs. Certifications
50% of Companies questioned, claimed no better results with a PMP certified Project Manager than with one who has qualified experience but no certification.
More than half of the Companies preferred a formal degree and;
71% prefer an advanced degree before promoting to a leadership role.
The piss off slide
Probed into this question about results
Basic knowledge but doesn’t mean you can get results
Leadership and team development was key to success
More than 50% of the cio’s had mba’s

42. Experience vs Degrees for Management
Most looked at what you have done and your accomplishments first vs education and certifications but all think being equal the more education and certification you have the better.
Small companies higher level because it give comfort level – perception of knowledge
Bigger companies more willing to pay for it

43. #1 Success Factor of Executives
Hire Good People

44. A faithful employee is as refreshing as a cool day in the hot summertime. Proverbs 26:13

45. Why People Stay Like the people they work with – mostly their manager
Control and independence over work
Flexible work schedules
Decision making
Increased levels of responsibility
Reward and recognition
A sense of belonging
Fun

46. Why People Leave Bad management Lack of recognition or reward
Too much travel
Bad work environment
Lack of job security
Lack of training
Long commute
Pay/benefits
Uncertainty about future
Lack of career advancement

47. 10 Ways to Keep Them! Hire the right type of person: A or B
Have people grow into the position vs. out of the position
Rotate responsibilities and cross-train, offering a variety of functions and responsibilities
Pay above-market cash or bonuses
Use non-cash rewards and recognition for results/ efforts

48. 10 Ways to Keep Them! Create a team environment / team building
Use temps or contractors for more routine work
Encourage communication with manager
Make proactive counteroffers when you have someone you want to keep
Set clear expectations and give feedback on how they are doing

49. Bad Seeds
Get rid of bad seeds and people who don’t want to be there – the dominant attitude will proliferate through the group and pollute the team.

50. How This Impacts You Employer Employee Higher Turn Over
Higher Employee Cost
Positions Open Longer
Higher Hiring Cost
Add Fees to Budget
Employee
More Career Options
Training
Bonuses
Increase Base Salary

51. Solutions for JDA Clients
Review and Revise Retention Plans
Make Salary Adjustments Based on Market Rates
Spend Time & Money Training & Developing Staff (includes cross training)
Hire Interns &/or Part-Time Students
Encourage Entrance into the Field by Getting Involved with Local High Schools
Adopt a Proactive Recruiting Model – CALL JDA!!!

52. JDA Resources Salary Survey Hiring Trends Cost of Turn Over
Counter offers
Hi-Tech Calendar
Hot Jobs
Interviewing Tips

53. www.jdapsi.com 701 North Post Oak Road Suite 610
Houston, Texas
Phone: 713/
Closing thought – don’t hold in your gas – a Harvard medical research team has found that gas permeates up thought your spine and loges itself in the base of your brain and that’s where crappy ideas come from.
Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects