1. HDI "The Next Labor Crisis..Déjà vu to the 1990’s All Over Again" 2.14.07 James Del Monte CPC JDA Professional Services, Inc. "The Next Labor Crisis..Déjà vu to the 1990’s All Over Again" "The Next Labor Crisis..Déjà vu to the 1990’s All Over Again"

2. #1 Success Factor of Executives Hire Good People

3. Hard Questions Part 1 1. Who are you and what does JDA stand for? 2. What is going on in the employment market? 3. Why is it taking so long to find a position I want if unemployment is so low? 4. Why don’t recruiters return my calls? 5. What does the future employment outlook look like?

4. Hard Questions Part 2 1. What positions are moving off shore and how does this impact me? 2. Are help desk positions going more contract or Full-Time? 3. Why is it that when I am hiring someone the recruiter's won’t stop calling? 4. What is the future of the support center?

5. Hard Questions Part 3 1. Where are the people we need to hire going to come from? 2. How do I position myself for a senior management position? 3. How much difference does education or certification make? 4. What suggestions do you have to keep my staff? 5. Are you done yet?

6. What JDA Does... full complement of information technology professionals. 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 Special Projects Staffing JDA

7. Sooo, Tell Me About Your Career.

8. Law of Supply and Demand 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 1984 1995 2Q01 4Q04 Demand Bottomed 4Q99 Demand Peaked Demand Bottomed Supply Demand 1989 3Q03

9. Most Requested Information on JDA web site How to write a resignation letter article How to write a resignation letter article High cost of turnover article High cost of turnover article

10. Job Creation 1 million new IT positions from 2004 – 2014 that’s a 30% increase (BLS) Labor Surplus vs. Skill Shortage

11. Employer’s MarketJob Seeker’s Market Combination Market The job market has shifted from an Employer’s Market to a Job Seeker’s Market - to a Combination Market. Candidate Position Candidate 2000 - 2003 2004 - 2010 Market Shift

12. Candidate Population 25% A Players 25% A Players 50% B Players 50% B Players 25% C Players 25% C Players

13. 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

14. 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

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

16. 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 80% of Job Growth

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

18. 2007 Houston IT Hiring

19. 2006 CIO Survey Results QUESTIONS INCREASEDECREASE 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 44.40%0%55.60% Base Salaries in 2007 89.30%10.70%0%

20. Employee Churning Comp A Comp B Comp C

21. Position Demand... %Skills Yrs. Exp. 10 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs 1 st Line Mgmt 60 Staff/Tech 0 – 5 Yrs

22. Talent Pool %Skills Yrs. Exp. 60 Mgmt./Conslt. 8+ Yrs. 30 Sr. Tech/ 4 – 8 Yrs 1 st Line Mgmt 10 Staff/Tech 0 – 5 Yrs

23. Position Demand... Talent Pool... % Skills Yrs. Exp. 10 Mgmt./Conslt. 8+ Yrs. 60 8+ Yrs 30 Sr. Tech/ 4 – 8 Yrs 30 1 st Line Mgmt 4 – 8 Yrs 60 Staff/Tech 0 – 4 Yrs 10 0 – 4 Yrs

24. Future IT Employees

25. 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.

26. 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

27. How Work Gets Done Off-shoring Out-sourcing

28. Services used for Help Desk/Call Center

29. Customer Satisfaction Comparison Service Level Off-ShoreOut-Source Better25%50% Same0%14.3% Not as Good 75%35.7%

30. Top Reasons People Work Contract It will lead to permanent employment It will lead to permanent employment Flexibility of schedule Flexibility of schedule To obtain experience/training To obtain experience/training Diversity in jobs/challenge Diversity in jobs/challenge Only work available Only work available Money is better Money is better Family or personal obligations Family or personal obligations Changing careers and need more experience Changing careers and need more experience Source: American Staffing Association Workforce Metrics Choosing Temporary Work Choosing Temporary Work

31.  Sets the Price YesNo  Annual Increases 5-15 %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

32. Positions of Tomorrow Current globalization creates a market for PM, BA, and Functional Analysts who are needed to manage 3 rd party resources.

33. 70% of CIO’s Use Help Desk as a Point of Entry Infrastructure Manager Help Desk Manager Level 1 SupportLevel II Support Service Desk Analyst Network Administrator Communications Where do Help Desk team members usually come from? External candidates with experience and certifications New technical school graduates Internally promoted employees

34. Top 3 Retention Programs Only 16% of CIO’s currently have special retention programs in place for their Help Desk employees. #1 Training – 57% #2 Career Mobility – 29% #3 Bonus Program – 14%

35. Skills CIO’s Look For L eadership Positions Business/Functional Project Management Communication - written and oral Presentation Problem Solving Critical Thinking Leadership Organization Skills Time Management Attention to Detail Learning Ability Flexibility

36. Experience vs Degrees for Management

37. Value of Education 71% of CIO’s prefer an advanced degree before promoting to a leadership role.

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

39. Who’s Looking Active – 32 Passive – 47 Not at all – 21

40. 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

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

42. 10 Ways to Keep Them! 1. Hire the right type of person: A or B 2. Have people grow into the position vs. out of the position 3. Rotate responsibilities and cross-train, offering a variety of functions and responsibilities 4. Pay above-market cash or bonuses 5. Use non-cash rewards and recognition for results/ efforts

43. 10 Ways to Keep Them! 6. Create a team environment / team building 7. Use temps or contractors for more routine work 8. Encourage communication with manager 9. Make proactive counteroffers when you have someone you want to keep 10. Set clear expectations and give feedback on how they are doing

44. 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.

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

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

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

48. 701 North Post Oak Road Suite 610 Houston, Texas 77024-3818 Phone: 713/548-5400 www.jdapsi.com Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects