Buy or Train: Meeting the Indiana high-tech predicament head on
Monday, August 17, 2009
It’s a challenge, but it’s a good challenge. Software, telecom and IT companies across Indiana face a far different situation than they did a decade ago. As the Software-as-service (SAS), telecom, IT-fueled biotech and related categories grow, so does the dramatic need for qualified technology professionals.
The challenge? Hoosier IT and technology companies have great products and great sales teams that are producing a great growth. Finding and securing the professionals to staff up for that exponential growth has been a major issue.
For example, the IT workforce issue in Indiana – which closely mirrors what exists nationwide – has broadened to the point where Hoosier technology companies now either cannibalize their existing staffs to patch up development holes or openly raid their sister Indiana companies for key staff.
What’s in short supply these day – particularly in Indiana – are the highly qualified software engineers, programmers and computer science professionals to service all the new business. If you represent a high-tech company in a vertical market, you just can’t hire somebody off the street, no matter how urgent the need or how tempting the offer.
To maximize your growth opportunities in 2009, you need the right people at the right time. Average cost-per-hires for a high-end information technology professional or engineer typically range between $25,000 to $30,000, according to recent industry research. If your company needs to hire three or four technical professionals (or more) in early 2009, that can get pretty pricy in a hurry. If you throw in relocation costs and the very real opportunity costs to integrate a new technology employee into your company, the actual dollar value shoots up in a hurry.
In addition, if you hire the wrong person, you have to start all over again. Worse, make one or two bad hires in a row and your product may start missing production, implementation or maintenance milestones. When that starts happening, your customer base may start eroding.
So how can you avoid this? Here are a few suggestions:
Start planning now
When growth hits, non-billable time for planning often gets thrown under the bus. Depending on how you recruit for new talent, the process could well take months before your new professional walks in the door. You need at least your best guess to know what you need when you’re going to need it. A related point is this: are your top technology professionals nearing retirement age ( which can be as low as age 55)? Plan now on how you’re going to replace them before you find yourself with critical shortfalls in strategic talent.
Start recruiting now, even if the positions are not yet open.
Most people don’t like to wait and many are indecisive. If you can identify qualified applicants for your high-tech positions, you may have to convince them to relocate to Indiana from the East or West Coast. It’s better to start them thinking of you in advance so they have an opportunity to do their due diligence.
Put real training programs in place
You might have a number of junior people in your shop who could quickly grow in strategic value. Providing qualified technical training now can put these people in key positions to maximize profitability within a few short months. Showing interest and commitment to existing employees also represents a key means to promote corporate loyalty, which will be important to keep these employees from jumping ship later.
Buy or train?
Organic training programs offer all kinds of advantages for retaining and elevating current employees, but if your needs are urgent, you need to seriously evaluate how you will satisfy critical needs in the short-term. You can obviously run the ubiquitous want ad, but consider what that will cost you in screening, evaluating, interviewing and follow-up time. Securing the services of a professional recruiter can actually save you money and time, but if you go this route, make sure you find a recruiter or consultant who knows your business and is willing to invest the time to identify, find and present truly qualified professionals who will boost your productivity nearly immediately.
Position your company for success
Right now, and for at least a year or two, the high-tech market for professionals slants in favor of the qualified applicant. Senior technology professionals with a gold-plated resume will likely see numerous offers or promises of offers before they make a decision. To that end, consider this: IT professionals like to work for a hot company doing great work. If they can’t independently confirm that about your company, you need to consider doing a little positioning work. Right now, type your company name into a Google search box, click enter and see what you get. What you see on the first page of your search is what your prospective employee will see. Is the positioning right? If not, think about what differences you can make, and make soon.
Indiana high-tech companies today represent a great place to work. To continue to present growth, these same companies – probably yours if you’ve read this far – need great professionals. Get started now to make 2009 your banner year.
by Joe Sheets
President/CEO, Critical Skills
at 11:14 AM Link to this Article 0 Comments
Comments:
The challenge? Hoosier IT and technology companies have great products and great sales teams that are producing a great growth. Finding and securing the professionals to staff up for that exponential growth has been a major issue.
For example, the IT workforce issue in Indiana – which closely mirrors what exists nationwide – has broadened to the point where Hoosier technology companies now either cannibalize their existing staffs to patch up development holes or openly raid their sister Indiana companies for key staff.
What’s in short supply these day – particularly in Indiana – are the highly qualified software engineers, programmers and computer science professionals to service all the new business. If you represent a high-tech company in a vertical market, you just can’t hire somebody off the street, no matter how urgent the need or how tempting the offer.
To maximize your growth opportunities in 2009, you need the right people at the right time. Average cost-per-hires for a high-end information technology professional or engineer typically range between $25,000 to $30,000, according to recent industry research. If your company needs to hire three or four technical professionals (or more) in early 2009, that can get pretty pricy in a hurry. If you throw in relocation costs and the very real opportunity costs to integrate a new technology employee into your company, the actual dollar value shoots up in a hurry.
In addition, if you hire the wrong person, you have to start all over again. Worse, make one or two bad hires in a row and your product may start missing production, implementation or maintenance milestones. When that starts happening, your customer base may start eroding.
So how can you avoid this? Here are a few suggestions:
Start planning now
When growth hits, non-billable time for planning often gets thrown under the bus. Depending on how you recruit for new talent, the process could well take months before your new professional walks in the door. You need at least your best guess to know what you need when you’re going to need it. A related point is this: are your top technology professionals nearing retirement age ( which can be as low as age 55)? Plan now on how you’re going to replace them before you find yourself with critical shortfalls in strategic talent.
Start recruiting now, even if the positions are not yet open.
Most people don’t like to wait and many are indecisive. If you can identify qualified applicants for your high-tech positions, you may have to convince them to relocate to Indiana from the East or West Coast. It’s better to start them thinking of you in advance so they have an opportunity to do their due diligence.
Put real training programs in place
You might have a number of junior people in your shop who could quickly grow in strategic value. Providing qualified technical training now can put these people in key positions to maximize profitability within a few short months. Showing interest and commitment to existing employees also represents a key means to promote corporate loyalty, which will be important to keep these employees from jumping ship later.
Buy or train?
Organic training programs offer all kinds of advantages for retaining and elevating current employees, but if your needs are urgent, you need to seriously evaluate how you will satisfy critical needs in the short-term. You can obviously run the ubiquitous want ad, but consider what that will cost you in screening, evaluating, interviewing and follow-up time. Securing the services of a professional recruiter can actually save you money and time, but if you go this route, make sure you find a recruiter or consultant who knows your business and is willing to invest the time to identify, find and present truly qualified professionals who will boost your productivity nearly immediately.
Position your company for success
Right now, and for at least a year or two, the high-tech market for professionals slants in favor of the qualified applicant. Senior technology professionals with a gold-plated resume will likely see numerous offers or promises of offers before they make a decision. To that end, consider this: IT professionals like to work for a hot company doing great work. If they can’t independently confirm that about your company, you need to consider doing a little positioning work. Right now, type your company name into a Google search box, click enter and see what you get. What you see on the first page of your search is what your prospective employee will see. Is the positioning right? If not, think about what differences you can make, and make soon.
Indiana high-tech companies today represent a great place to work. To continue to present growth, these same companies – probably yours if you’ve read this far – need great professionals. Get started now to make 2009 your banner year.
by Joe Sheets
President/CEO, Critical Skills
at 11:14 AM Link to this Article
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