The Recruiter

Tech Wages Drop After All-Time Highs in 2007

After hitting all-time highs in 2007, tech wages drop in the first quarter of 2008. So says the Q1 Yoh Index of Technology Wages, which we released just yesterday. First quarter wages for tech professionals dropped both year-over-year, and in comparison to those recorded in the final months of 2007, doing little, I’m sure, to boost your confidence in the economy.

And while this report does seem to paint a bleak picture, all hope is not lost. We’re still seeing pockets of strength in the tech sector, especially in SAP, Oracle, security and product development, and software and hardware engineering. Plus, the wage drop in March was not as severe as in earlier months, so hopefully that’s an indication that wages are once again on the rise.

Posted by Jim L.

Why a recession won’t affect the job market

Penelope Trunk over at The Brazen Careerist put together a pretty interesting post the other day about how our currently unstable economy is affecting the job market—or not.

Penelope argues that the state of today’s job market is not so much a function of economic indicators as it is of demographic trends. This is nothing we haven’t discussed before.  Baby boomers’ mass exodus from the workforce is resulting in a major shortage of employees that Gen X and Y are incapable to fill. (Penelope attributes this to Gen X’s focus on family and Gen Y’s fascination with entrepreneurship that lead them to contribute fewer hours of work per person than the boomers.)

Whether the economy enters a recession or not, as long as boomers continue to retire, demand for younger workers will be high. This is true even for sectors such as finance, real estate and manufacturing that are often hit hardest by economic downturns.

We’d like to add another area in which we expect to see high demand: technology. As we recently reported, the Q4 Yoh Index of Technology Wages revealed all-time high wages in the tech sector before gradually slowing at the end of 2007, and showed a continuing trend of year-over-year growth. And opportunities in engineering, Java, SAP®, project management, security and customer-related projects continue to be plentiful.

So don’t let talk of a recession scare you (when it comes to jobs, at least) -   retiring baby boomers will guarantee demand. But it’s up to you to sharpen your skills, maintain your credentials and make yourself an ideal and indispensable candidate.

Posted by Christy H.

Tech wages drop after record-breaking high

The Q4 Yoh Index of Technology Wages, released just a few days ago, shows two very interesting things that happened toward the end of 2007.  Wages reached an all-time high in October ($32.39), but then quickly slowed in November and December, which could be a sign that the economy’s sluggishness is starting to affect wages and the job market.

Some of the jobs that stayed hot throughout the dip include biostatisticians, civil engineers, clinical research associates, Java developers and SAP® consultants.

Posted by Jim L.

Silicon Valley or bust

Actually, make that Silicon Valley won’t bust. For all of you shivering in your boots that the current start-up boom is doomed to fail a lá year 2000, put those fears aside. WSJ reporter Rebecca Buckman says this cycle will eventually turn down again, but it won’t have the same crushing economic impact the dot-com crash did.

Why the relative optimism? Well, the conspicuous consumption of the 90s is less du rigueur now, so companies are requesting and using less venture capital. Plus, the start-up marketplace is cheaper. Equipment is more affordable, many software apps are open-source and it’s easier to offshore jobs.

That means fewer investors and less money are tied up in tech start-ups’ fates. And that will be a blessing when (not if) the market goes south, because the shift won’t take so many dollar signs with it.

Now let’s look at what this macro view means for your micro working world. While not the runaway trains of the 90s, Silicon Valley companies are still hiring and growing at a strong clip, which can create excellent job opps for IT pros who fit the bill.

I did some regional breakdowns for in-demand skills based on the latest Yoh Index, and I think my Silicon Valley segment will give you some helpful insight. Let me know what else you’d like to know about this market, and I’ll do my best to get the answer!

Posted by Jim L.

Wages continue climbing in Q3

The Q3 Yoh Index of Technology Wages, released today, says hourly pay for highly skilled technology professionals rose nearly 6 percent in the third quarter of 2007, when compared to the same period in 2006. The salaries also slightly trail all-time highs set in the first quarter of this year.

These numbers are good, but what do they mean? Essentially, demand is still sky-high. If you have the right skill sets, experience and certifications in hot markets such as SAP, business intelligence, .NET, Java and project management, you’ve got solid opportunities in front of you.

Same goes for biostatisticians, clinical researchers, civil engineers and several other jobs most in demand nationwide. (See the full report for details.)

However, while the IT job outlook looks positive into 2008, keep your eye on the talent pipeline. Tech industries need to develop incentives for students to seek degrees in math, computer science and engineering.

That way, related fields can avoid a significant loss of IT skills and qualified professionals, and perhaps even stem the current talent shortage.

That’s it for now on Q3. Want to be first on the list to find out about next quarter’s wages? Then subscribe online!

Posted by Jim L.

The IT law of supply and demand

I don’t know if there are any economists reading The Recruiter, but if you’re out there, I think you’ll enjoy this article from Techdirt.

In a nutshell, author Tim Lee says basing IT shortage figures only on the number of available jobs is misguided. Rather, the focus should be on jobs at a particular price range. Here’s his Econ 101 summary:

“If the number of jobs exceeds the number of workers at a given wage, wages will get bid up and some employers will choose to let some non-essential jobs go unfilled. Conversely, if there are more workers than jobs, wages will fall, causing some firms to expand more aggressively than they would have at the higher wage. The number of jobs isn't fixed, it varies depending on how high salaries are.”

The real-world data supports his point—just look out for the Q3 2007 Yoh Index of Technology Wages which will be released next week.

So, if we’re following Tim’s analysis, rising wages means available jobs outnumber available workers. The result is the industry talent shortage, something we’ve often discussed here.

For extra credit, read the original BusinessWeek piece that fired up Tim’s brain cells. We’ll tackle the immigration debate in another post, once everyone recovers from having to remember basic economics!

Posted by Anna M.

Show me the comparative money

No more peering over the cubicle to catch a glimpse of your coworkers' paychecks. (Don't pretend you don't know what I'm talking about. ...) Now you can find out how your pay stacks up against your colleagues' wages in your city or region, thanks to the Bureau of Labor Statistics.

OK, you can't track it person by person, but the BLS Wages by Area and Occupation site can help you follow salary trends for your industry and location. I found the Metropolitan Area Wage Data particularly useful in narrowing down my state and profession. A couple of clicks, and voila! Instant income info.

Now, let's say you’ve reached the top earning potential in your market. Want to follow the $$$? The site also generates top-paying markets for your specialty. (But don’t forget to factor in cost of living increases, average commute time and overall quality of life issues before packing up your house.)

And if you're looking for specific tech wage data, you're in luck: In the next few weeks we'll be releasing the Q3 Yoh Index of Technology Wages, which will break down IT salaries across numerous sectors and regions. Stay tuned!

Posted by Christy H.

The Plus Side of Certification

Toni Bowers focused one of last week’s posts on View From the Cubicle on the Yoh Index. Toni’s post focused on the highest paying jobs, as determined by the Q1 numbers, but also highlighted a recent InformationWeek article that discusses certification and bonuses associated with particular certifications.

We discussed this topic on The Recruiter a few months back, but it was interesting to see the numbers from InformationWeek—just 6% of staff and only 4% of managers received bonuses that were connected to their training or certifications. Which leads to the question, are these certifications or training programs still important then? Of course!

Certifications do much more than provide opportunities for pay increases. They keep you updated on the latest tools and techniques for your area of expertise, and make you very valuable in the eyes of your employer. If you’re beginning to search for a new job—having the latest certifications will make you an outstanding candidate to consider.

So, don’t forget, while making some extra cash as a result of your training may be a benefit worth working towards, there are other benefits associated with training that may end up being just as beneficial in the long run.

Posted by Jim L.

Yoh's Regional Data

As we mentioned last week, the Q2 wages for the Yoh Index were very encouraging for IT professionals. But these wage trends and hot jobs are more than just a national theme. When we looked closely, we found this trend was reflected in a number of smaller regions as well.

Along those lines, I spoke with Diane Stafford, of The Kansas City Star and the Workspace blog, last week about trends in Kansas City. Definitely check out Diane’s post for some wage data and hot jobs for this specific market, as well as some necessary skill sets that can be applied anywhere.

Posted by Jim L.

Tech Wage Forecast

The wait is over! Today we released our quarterly compensation report, the Yoh Index of Technology Wages.

After gathering information for the second quarter of 2007, research shows that wages have held strong again.  This projection is bright considering the normal slow-down in hiring that inevitably comes with the spring and summer months.  The average hourly wage for professionals in technology was $31.61 during the middle of the quarter, only a slight drop from last quarter’s record breaking wages.

Some items of interest from the report: SAP® Technical Consultants and Hardware Designers continue to be among the jobs in greatest demand. They also reported the highest hourly wages at $85.53 and $65.63, respectively. 

Our index is based on more than 1,000 businesses in various technology fields, along with over 20,000 paychecks to more than 5,000 technology professionals.  Want to learn more about the Index?  Click here, or download the full report instead!

We’re expecting to see more competitive wages for the rest of this year, and even into the early months of 2008, as the market for qualified technology workers continues to rise.  If you want be the first to know where wages are headed next quarter, subscribe online.

Posted by Christy H.

TechDirt is spreading the word...

TechDirt linked to the Yoh Index of Technology Wages and has generated a variety of comments that you might relate to, or disagree with: everything from companies hiring more consultants instead of permanent workers, to the lack of qualified talent coming out of colleges to fill high-level positions down the road. Would love to hear your thoughts too.

Posted by Jim L.

More Good News for Tech Workers

As predicted on The Recruiter back in January, the laws of supply and demand have once again driven up technology wages.  According to the Yoh Index of Technology Wages from Q1 of 2007, the hourly wage for high-impact technology workers was $31.80 in the middle of the quarter.  This figure is the highest documented by the Yoh Index of Technology Wages, since its inception in 2001.

So what does this mean for you?

The continued emergence of new technologies, such as Web 2.0 applications, SaaS and social networking, as well as growing tech trends in the pharma and clinical industries, means that the availability of tech jobs will continue to rise.  As a result, you should expect to see wage growth continuing through 2007.

Posted by Jim L.