Houston Hiring Trends Boom Bust Beyond PMI by James Del Monte CPC, CERS JDA Professional Services, Inc.

Transcription

1 Houston Hiring Trends Boom Bust Beyond PMI 2016 by James Del Monte CPC, CERS JDA Professional Services, Inc.

2 Agenda Overview of JDA State of the Market Employment Trends in Houston Compensation Trends The Hard Questions

3 What JDA Does... JDA Professional Services, Inc. is a Houston-based IT staffing firm specializing in the recruitment of strategic-technical to executive-level professionals. We provide staffing solutions through full-time, contract, and project-based placements. Since 1981, we have been helping companies build great IT departments while helping IT professionals find the right career opportunities. Full-Time Staffing Contract / Temporary Staffing JDA Special Projects Staffing

4 Interactive

5 Either Way

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

7 Famous Quote... Almost 100% of a manager s success comes from hiring and retaining good people. Good people don t make the difference - they are the difference - James Del Monte - CERS

8 Employed Workers Looking 27% 11% Active 11% Passive 62% Not at all 27% 62% 73% of your success

9 Total Houston Employment 1990 to 2015 Significant increase in area total employment since Early (2006) oil & gas shale boom employment around 2.4MM. Current employment around 3MM looks vulnerable. Each past slow down has caused a dip. How deep and how long?

10 Job Growth Houston

11 The Latest News From Greater Houston Partnership Houston lost 8,600 jobs in July 2016.

12 Unemployment Rates National 5.0% Texas 4.8% Houston 5.7% +.9% from 1 year ago IT professionals doubled last 12 months IT Professionals to 4% up from 2% Degreed Professionals 5% Job growth Harris county +.3 down from 4.0% 2 years ago

13 Employment Cycles Supply and Demand Demand 4Q99 Demand Peaked 4Q07 Demand Peaked 4Q13 Demand peaked Q01 4Q04 3Q10 4Q2015 Supply 1989 Demand Bottomed 3Q03 Demand Bottomed 3Q 09 Demand Bottomed The demand for skilled professionals topped out 4Q13. The current cycle indicates that we may have reached bottom. In Houston good people are still hard to find. Labor Surplus vs. Skill Shortage

14 Market Shift xx Candidate Position Candidate Position Candidate Position Candidate Position The job market is shifting from an Job Seeker s Market to a Employer Market.

15 Top 24 Public Companies Phillips66 Sysco Corp. Conoco Phillips Enterprise Products Partners LP Halliburton Co. Plains GP Holding Baker Hughes Inc. National Oilwell Varco Inc. Kinder Morgan Inc. Waste Management Inc. Occidental Petroleum Group 1 Automotive Inc. Huntsman Cameron International Corp. EOG Resources Inc. Anadarko Petroleum Corp. Quanta Services Centerpoint Energy Targa Resources Corp. Apache Corp. Calpine Corp. FMC Technologies Inc. Marathon Oil Corp. Spectra Energy Corp.

16 Largest Employers 1. Walmart 37,000 employees 2. Memorial Hermann Health System 24,108 employees 3. H-E-B 23,732 employees 4. The University of Texas MD Anderson Cancer Center 21,086 employees 5. McDonald's Corp 20,918 employees 6. Houston Methodist 20,000 employees 7. Kroger 16,000 employees 8. United Airlines 14,941 employees 9. Schlumberger 12,069 employees 10. Shell Oil Co. 11,507 employees 11. Exxon Mobil Corp. 11,000 employees 12. Texas Children's Hospital 10,992 employees 13. HCA 10,830 employees

17 Largest Employers 14. Landry's 10,800 employees 15. UTMB Health 9,928 employees 16. Harris Health System 9,174 employees 17. National Oilwell Varco 8, 960 employees 18. UT Health Science Center at Houston 8,220 employees 19. Chevron 8,000 employees 20. The Home Depot 7,880 employees 21. Fluor Corp. 7,705 employees 22. Baylor College of Medicine 7,705 employees 23. CHI St.Luke's Health 7,198 employees 24. JPMorgan Chase 6,850 employees 25. Whataburger 6,620 employees

18 Big Versus Small Traditional business don t create jobs or invent products, they buy them Risk Averse more committee decisions made to limit career risk Job Growth vs. Job Creation

19 Barriers to Growth There are roughly 23 million firms in the US 4% have revenue over 1M Of those 4%, 1 in 10 (.4% of all companies) have more than 10M in revenue 17,000 surpass 50M 2,500 firms in US are larger than 500M 2000 firms world wide over 1B 500 firms worldwide are larger than 11B

20 Results of 2016 JDA Hiring and Salary Survey

21 Projected department spending, year by year % 26% 34% 33% 52% 6% 33% 19% 68% Increase Decrease No Change

22 Does your company anticipate a change in total IT staffing level? % 39% 55% 54% 16% Increase Decrease No Change 7% 44% 51% 46% 47% 5% 7%

23 2016 IT Hiring Forecast Full-Time Contract 23% 10% 63% 14% 57% 33% Increase Decrease No Change

24 What do you consider to be the top issue facing your company's IT department? Year by year. Hiring and retaining staff Decreased IT budget Increased cost of doing business IT service level performance Disaster recovery capabilities IT security Cloud technology Adapting social media Utilizing mobile and pad technology BYOD Creating/maintaining a global workforce

25 In your company, what areas are anticipated to have the largest growth potential over the next few years? Networking Helpdesk/end user support Internet/intranet development Applications development Data/database management ERP Busines process Change management Cloud computing Mobile applications Business intelligence Socal media Cyber security

26 Does your company plan to increase base salaries for IT staff in 2016? No 41% Yes 59% 0% 10% 20% 30% 40% 50% 60% 70% By what percentage? 2% 43% 55% <3% 3-6% 7-10%

27 Are bonuses included as part of your company's compensation packages? No 21% Yes 79% 0% 20% 40% 60% 80% 100% If yes, what is the average bonus percentage given based on salary? 5% 2% <10% 46% 10-20% 21-30% 47% >30%

28 Total Package Besides money what is important to you? Review and history for increases Promotions and career path Assignment Training and certifications Bonuses and incentives Benefit package cost and coverage Flexibility Location Telecommuting Access to management

29 Skills Executives Look For Business/Functional Project Management Communication - written and oral Presentation Problem Solving Critical Thinking Personal Inventory Leadership Organization Skills Time Management Attention to Detail Learning Ability Flexibility

30 Increase value Certifications PMP Six Sigma Agile Scrum ITIL Education MBA Skill Development Toastmasters Negotiating

31 Know Your Value Understand how you fit in Understand the value that creates Create value propositions Self promote

32 The Hard Questions When will the market turn around Meet minimum standard Should I get more certifications Are you done yet

33 Pearls of Wisdom 1. Keep your job 2. Don t complain about compensation 3. Home capital preservation 4. Think outside box about career increase your value --Doug Leyendecker

34 Speakers Fee

35 Return the Favor

36 Speak for Food

37 Questions

38 701 North Post Oak Road Suite 610 Houston, Texas Phone: Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects