Easing the Skills Shortage In Microsoft Dynamics

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1 A Whitepaper By: The Global Leader in Microsoft Dynamics Recruitment Easing the Skills Shortage In Microsoft Dynamics

2 Introduction There is an acute global shortage of qualified Dynamics staff. The main reasons for this are the proprietary development environments and the exponential growth the products have undergone since their acquisition by Microsoft. Dynamics professionals require a unique set of skills and experience that take time and dedication to develop, contributing further to the shortage. Nigel Frank has seen confidence in the Dynamics market improve significantly in the 12 months leading up to September According to our 2010/11 Microsoft Dynamics Salary Survey, most professionals in the industry have seen an increase in the amount of Dynamics work they are involved in and 69% believe that the trend will continue through to the end of Therefore, it is fair to assume that the demand for Dynamics skilled staff will continue to grow. However, finding candidates with the required level of Dynamics experience, and in sufficient numbers to meet the growing demand is once again the primary challenge for employers. As a consequence of the Dynamics skills shortage there are a number of knock-on effects: Salary inflation impacting the economic viability of projects Restrictions in the true growth potential of the Dynamics product Loss of market share to other ERP / CRM vendors Staff retention concerns as competition increases to attract limited resources Increased risk of unsuccessful projects due to inexperienced project teams Skills Gap Widens During the latter half of 2009 and early 2010 we witnessed an increase in the number of sales roles advertised. The results of the Nigel Frank Dynamics Salary Survey 2010/11 support this trend and show that bonuses are up by around 20% worldwide which is mainly driven by an increase in performance-related pay for sales professionals. This increase in demand for sales related roles has now filtered through to nearly all other job types within the Dynamics channel and Nigel Frank have more live jobs in Dynamics than available candidates. Nigel Frank internally monitors the number of new vacancies and candidates that are registered on a monthly basis. This provides an indication on the growth of the Dynamics market and allows the skills gap to be graphically represented. Nigel Frank has seen a large upswing in the number of vacancies registered by both Partners and End Users by almost 30% per month. These levels are now eclipsing the previous highs seen back in mid Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 1

3 The candidate supply is also steadily increasing. However, this growth is not as strong as that of vacancies and therefore is leading to an increasing skill gap. On average, over the last year, the growth in the rate of advertised vacancies has outstripped the rate of candidate registrations by 32%. The graph below shows Nigel Frank s experience of the growth of new candidates and vacancies using Jan-07 as a baseline. It also shows our predictions for the next 12 months. D A C B Key A. The media headlines on the looming economic slowdown resulted in many clients putting an instant freeze on recruitment. Often the recruitment freeze was companywide and was instigated from the top. B. Speaking to candidates it was clear that many were reluctant to risk moving jobs as they felt they had more job security staying with their current employer. C. As companies were affected by the downturn and the inevitable redundancies ensued, the number of candidates registering increased rapidly. D. This is the Nigel Frank prediction for the next 12 months. On the provision the economy does not have any significant setbacks the forecast is for steady growth in vacancies and candidates with the skills gap increasing. Over time we expect to see the shortage of Dynamics staff to be alleviated. It is yet to be seen whether this will be because the product experiences stunted growth and equilibrium is found or because there is a proactive strategy to address the shortage, involving all of the key players. By speaking with clients and candidates we have looked at suggestions that may help support the growth of the Dynamics community. Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 2

4 How to reduce the skills gap Recruiting & Training Staff from other ERP / CRM Vendors There is a big pool of candidates working with other vendor technologies which we can tap into. If we can reduce the risk of hiring staff with relevant experience in other technologies then it could help prevent the gap widening and stunting the growth of Dynamics going forward. People with SAP, Sage and Oracle experience continue to move into the Dynamics industry. However, the numbers are too small to have a significant impact on the skills gap. This is due to candidates finding it nearly impossible to secure their first role within Dynamics. Clients specify that they will not consider applicants without Dynamics experience. From our conversations with Partners, the reluctance to consider candidates from alternative backgrounds is primarily related to cost. The employee s salary during training and the actual cost of the training are deemed too great to justify this recruitment option. In addition there is a risk that the employee may leave before the employer has seen a return on investment. Over a third of all job applications we receive are from candidates that desire to move into Microsoft Dynamics, many of whom have extensive experience in other leading ERP or CRM solutions. Could Microsoft, working with education providers, produce a 12 month training and certification program in which Partners and End Users offer training contracts to candidates. The program would work like this: Employees would agree, upon joining from another vendor, to enrol into the 12 month program Trainers and employers would focus on building on the transferrable skills of these candidates Working together they would use these skills to bring the employee up to speed in the relevant Dynamics technology After 12 months Microsoft would test and certify staff in the relevant Dynamics product After the program ends there is a further tie-in period of 1-2 years to ensure ROI for the employer This requires, to an extent, a leap of faith from the Partners and End Users, but we feel it s a project well worth undertaking. Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 3

5 Microsoft Certification Our research shows that certification has a positive effect on a Dynamics professional s employability and salary. We found that of those in full-time employment, 55.5% were Microsoft Dynamics certified and they are paid between 15% - 20% more than those employees without a Dynamics certification. Microsoft already has a number of initiatives designed to encourage people to become certified in Dynamics. However, to speed up the rate of certifications Microsoft could: Develop more relationships with Universities to encourage them to include Dynamics as part of their syllabus, in the same way that SAP has been adopted by many Universities. Encourage Dynamics End Users and Partners to take on business and IT students during sandwich years and post-graduation with a view to getting them up to certification level within 12 months. Introduce component Microsoft certification courses which run over evenings and weekends allowing professionals to become certified without having to sacrifice holiday or paid billing time. Offer discounted training and exam vouchers in exchange for a commitment to reach a certain accreditation level over an agreed period of time. Shifting the responsibility away from Microsoft could employers consider providing training contracts much like those seen in the Accountancy and Law professions? These contracts could stipulate that a certain competency level is achieved within the first two years of employment postgraduation. This would give employers more protection and leave them more inclined to go down the training route. Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 4

6 Conclusion We predict that demand for Dynamics skills will continue to strengthen as we move into Also, due to the economic slowdown this is possibly the best opportunity for Microsoft to recruit people into the channel that aren t working at the moment and have lower salary demands. Finding a degree course that includes Microsoft Dynamics modules remains very challenging. There is at least one MBA course, but this is targeted towards seasoned professionals rather than undergraduates. By supporting the partner network and assisting with the training and recruitment of non-dynamics professionals as well as undergraduates, Microsoft could help to push Dynamics forward to the next level. About Nigel Frank Nigel Frank International is the global leader in Microsoft Dynamics recruitment. We recruit Dynamics professionals for Microsoft Partners and End Users worldwide offering them the best talent on the market. We commit to spending on candidate acquisition like no other agency in the Dynamics arena. As such, Nigel Frank has the largest database of Dynamics professionals with over 15,000 registered candidates, many whom you will not see from other agencies. As we specialise solely in Microsoft Dynamics and complementary technologies such as SharePoint and Microsoft BI, we are ideally placed to help you fill your Dynamics vacancies. For more information visit us today at Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 5

7 The Global Leader in Microsoft Dynamics Recruitment European Office (Permanent Recruitment) Nigel Frank International Limited, The Stamp Exchange, Westgate Road, Newcastle upon Tyne, Tyne and Wear, NE1 1SA Direct: +44 (0) Freephone: Fax: +44 (0) European Office (Contract / Freelance Recruitment) Nigel Frank International Limited, Ground Floor, Holland House, 1-4 Bury Street, London, EC3A 5AW Direct: +44 (0) North American Office (All Recruitment) Nigel Frank International Incorporated, 12th Floor, 880 3rd Avenue, New York, NY US Toll Free: Nigel Frank International Limited Easing the Skills Shortage in Microsoft Dynamics 6