PMI – Clear LakePMI – Clear Lake

"The Next Labor "The Next Labor Crisis..DéjàCrisis..Déjà

vu to the 1990’s All Over Again" vu to the 1990’s All Over Again"

20062006

by James Del Monte by James Del Monte JDA Professional Services, Inc.JDA Professional Services, Inc.

Hard Questions Part 1Hard Questions Part 1

1.1. Who are you and what does JDA stand Who are you and what does JDA stand for?for?

2.2. What is going on in the employment What is going on in the employment market?market?

3.3. Why is it taking so long to find a position Why is it taking so long to find a position I Want if unemployment is so low?I Want if unemployment is so low?

4.4. Why don’t recruiters return my calls?Why don’t recruiters return my calls?

5.5. What does the future employment What does the future employment outlook look like?outlook look like?

Hard Questions Part 2 Hard Questions Part 2

1.1. What positions are moving off shore What positions are moving off shore and how does this impact me?and how does this impact me?

2.2. Are P/M positions going more Are P/M positions going more contract or Full-Time?contract or Full-Time?

3.3. Why is it that when I am hiring Why is it that when I am hiring someone the recruiter's won’t stop someone the recruiter's won’t stop calling?calling?

4.4. Where are the people we need to Where are the people we need to hire going to come from?hire going to come from?

Hard Questions Part 3Hard Questions Part 3

1.1. What is the future of PMO’s?What is the future of PMO’s?

2.2. How much difference does a PMP How much difference does a PMP make?make?

3.3. I’m a PMP why don’t I get respect?I’m a PMP why don’t I get respect?

4.4. How do I position myself for a senior How do I position myself for a senior management position? management position?

5.5. What suggestions do you have to keep What suggestions do you have to keep my staff?my staff?

6.6. Are you done yet?Are you done yet?

What JDA Does. . .What JDA Does. . .

JDA provides clients with a full full complement complement of information of information technology professionals.technology professionals.Our services are designed to meet Our services are designed to meet the unique and changing the unique and changing requirements of our clients.requirements of our clients. Full-Time Staffing

Contract /Temporary Staffing

Special Projects Staffing

JDA

Sooo, Tell Me About Your Career.Sooo, Tell Me About Your Career.

Law of Supply and DemandLaw 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

Most Requested InformationMost Requested Information

How to write a How to write a resignation letter resignation letter articlearticle

High cost of High cost of turnover article turnover article

Job Creation

10 million more positions than people in the USA by 2010

Labor Surplus vs. Skill ShortageLabor Surplus vs. Skill Shortage

Employment IndexEmployment Index

Employment of workers in IT Occupations

3,150,000

3,200,000

3,250,000

3,300,000

3,350,000

3,400,000

3,450,000

3,500,000

3,550,000

3,600,000

3,650,000

3,700,000

Source: National Association of Computer Consultant Businesses (www.naccb.org)

Unemployment Virtually “Zero” Among Unemployment Virtually “Zero” Among IT ProfessionalsIT Professionals

OccupationOccupation 1Q2006 Unemployment rate1Q2006 Unemployment rate

Computer hardware engineers 2.0

Computer and information systems managers

2.3

Computer programmers 3.1

Computer scientists and systems analysts 2.2

Computer software engineers 2.3

Computer support specialists 3.6

Database administrators 1.3

Network and computer systems administrators

1.3

Network systems and data communications analysts

2.9

Source: unpublished tabulations of Current Population Survey data furnished by the U.S. Bureau of Labor Statistics.

Candidate PopulationCandidate Population

25% A Players25% A Players

50% B Players50% B Players

25% C Players25% C Players

• 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 Growth80% of Job Growth

Increase Staff, 75%

Remain the Same, 22%

Decrease Staff, 3%

2007 IT Hiring Percentages2007 IT Hiring Percentages

Position Demand . . .Position Demand . . .

% Skills Yrs. Exp.

10 Mgmt./Conslt. 8+ Yrs.

30 Sr. Tech/ 4 – 8 Yrs 1st Line Mgmt

60 Staff/Tech 0 – 5 Yrs

Talent PoolTalent Pool

% Skills Yrs. Exp.

60 Mgmt./Conslt. 8+ Yrs.

30 Sr. Tech/ 4 – 8 Yrs 1st Line Mgmt

10 Staff/Tech 0 – 5 Yrs

Position Demand . . . Position Demand . . .

Talent Pool . . . Talent Pool . . .

% Skills Yrs. Exp.

10 Mgmt./Conslt. 8+ Yrs. 60 8+ Yrs

30 Sr. Tech/ 4 – 8 Yrs 30 1st Line Mgmt 4 – 8 Yrs

60 Staff/Tech 0 – 4 Yrs10 0 – 4 Yrs

Future IT EmployeesFuture IT Employees

The job market has shifted from an Employer’s MarketEmployer’s Market to a Job Seeker’s MarketJob Seeker’s Market - to a Combination MarketCombination Market.

Candidate

Candidate

Candidate

Position

Position

Position

Position

Candidate

2000 - 20032000 - 20032000 - 20032000 - 2003 2004 - 20102004 - 20102004 - 20102004 - 2010

Market ShiftMarket Shift

Where Do All of the People Come Where Do All of the People Come From?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

How Work Gets DoneHow Work Gets DoneOff-shoring

Out-sourcing

Sets the Price Yes NoAnnual Increases 5-15 % 3-6 %

Today’s MenuBusiness Analyst $50K - $ 80KProject/Team Leader - $65K - $110K Large CompanyData Center Manager $75K - $105KData/Voice Comm Spec. $55K - $ 95K. NET Market Value

Positions of TomorrowPositions of Tomorrow

Current globalization creates a market for PM, BA, and Functional Analysts who areneeded to manage 3rd party resources.

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

PMO PenetrationPMO Penetration

0

10

20

30

40

50

60

70

80

PMO Part of IT Outside Projects

yes

no

The PMOThe PMO

31%

69% 67%

33%41%

59%

0%

10%

20%

30%

40%

50%

60%

70%

PMO PMO part ofBusinessPlanning?

Do you measureyour PMO?

Strategic or Yes Tactical or No

What You Can’t Measure, You What You Can’t Measure, You Can’t ManageCan’t Manage

With no measurable criteria for a With no measurable criteria for a PMO, Businesses are not going to see PMO, Businesses are not going to see the added value and budgetary the added value and budgetary increases will cease.increases will cease.

Show your worth, give measurable Show your worth, give measurable results to show progress and proof of results to show progress and proof of value.value.

Hiring a Project Manager Hiring a Project Manager

0.0%

34.5%

65.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

PMP Certification

Required

Preferred

No Preference

Formal Education vs. CertificationsFormal Education vs. Certifications

50% of Companies questioned, claimed 50% of Companies questioned, claimed no better results with a PMP certified no better results with a PMP certified Project Manager than with one who has Project Manager than with one who has qualified experience but no certification.qualified experience but no certification.

More than half of the Companies More than half of the Companies preferred a formal degree and;preferred a formal degree and;

71% prefer an advanced degree before 71% prefer an advanced degree before promoting to a leadership role.promoting to a leadership role.

Advanced Degrees for Advanced Degrees for Management Management

71.9%

28.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Advanced Degree

Experience

Degree

Both

A faithful employee is as refreshing as a cool day in the

hot summertime. Proverbs 26:13

#1 Success Factor of Executives

• Hire Good People

Why People StayWhy People Stay

Like the people they work withLike the people they work with Control and independence over Control and independence over

workwork Flexible work schedules Flexible work schedules Decision makingDecision making Increased levels of responsibilityIncreased levels of responsibility Reward and recognitionReward and recognition A sense of belonging A sense of belonging FunFun

Why People LeaveWhy 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

10 Ways to Keep Them!10 Ways to Keep Them!

1.1. Hire the right type of person: A or BHire the right type of person: A or B

2.2. Have people grow into the position vs. out of the position Have people grow into the position vs. out of the position

3.3. Rotate responsibilities and cross-train, offering a variety of Rotate responsibilities and cross-train, offering a variety of functions and responsibilitiesfunctions and responsibilities

4.4. Pay above-market cash or bonusesPay above-market cash or bonuses

5.5. Use non-cash rewards and recognition for results/ effortsUse non-cash rewards and recognition for results/ efforts

10 Ways to Keep Them!10 Ways to Keep Them!

6.6. Create a team environment / team buildingCreate a team environment / team building

7.7. Use temps or contractors for more routine Use temps or contractors for more routine workwork

8.8. Encourage communication with managerEncourage communication with manager

9.9. Make proactive counteroffers when you Make proactive counteroffers when you have someone you want to keep have someone you want to keep

10.10.Set clear expectations and give feedback Set clear expectations and give feedback on how they are doingon how they are doing

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

701 North Post Oak RoadSuite 610

Houston, Texas 77024-3818

Phone: 713/548-5400www.jdapsi.com

Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects