IT Labor Shortage Is Just a Myth
buzzardsbay writes "For the past few years, we've heard a number of analysts and high-profile IT industry executives, Bill Gates and Craig Barrett among them, promoting the idea that there's an ever-present shortage of skilled IT workers to fill the industry's demand. But now there's growing evidence suggesting the "shortage" is simply a self-serving myth. "It seems like every three years you've got one group or another saying, the world is going to come to an end there is going to be a shortage and so on," says Vivek Wadhwa, a professor for Duke University's Master of Engineering Management Program and a former technology CEO himself. "This whole concept of shortages is bogus, it shows a lack of understanding of the labor pool in the USA.""
Raise your wages, the workers will come.
The market will fix the problem. No need for special legislation or guest workers.
I can't speak for the US, but I can state that in South Africa we have a fair number of IT workers, a handful of which are actually worth anything, but on the whole not a shortage. The area of the market that DOES have a shortage, however, and a really massive one at that, is the Tester and Test Analyst side. We are struggling to get even halfway decent people.
And even with this shortage, the IT academies and schools out there are churning out MCSE's by the truckfull - rather than getting useful skills, they are giving some poor schmuck a certification that means really little in the real world, and which doesn't really have a descent career path anymore..
Testers, on the other hand, have a great job, good money, and a really flexible career. They also develop a lot of really useful business skills to augment their technical skills, and have no problems finding work.
So, yes it's a myth that there are not enough people to fill IT positions, there are lots of code monkeys willing to pound keys for their banana but what are the skilled IT people that these larger companies are looking for out of the box and where will we find them right now?
Ask not what you can do for your country. Ask what your country did to you
Over the course of last year I needed to hire 10 experienced J2EE developers. I literally interviewed hundreds, but was only able to find 6 suitable candidates. While it is true that there isn't a shortage of applicants, there is most certainly a shortage of people who can actually perform the advertised job.
Bob
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And I will second that, I am sure in other parts of the country, skilled IT are a dime a dozen. But where I am at (Midwest) actual skilled IT people are hard to find. Sure you can find the guy/girl who was promoted to IT from accounting back in the 90s but that doesn't make them a skilled pro. Show me a cross reference of IT folks who actually know what they are doing, have a passion for it, and I bet that subset is really small. I have no need for joe basement dweller who runs his guild website and knows how to install a video card. I also dont have any need for dilbert principle folks who are in waaaay over their heads and cannot configure a server without serious handholding or an in depth checklist.
CS: It is all sink or swim...oh and did I mention there are sharks in that water?
Bingo. They don't want the guys who want 95-120k a year, they want to guys who'll be happy with 25-35k a year and work 12 hour days.
When they talk about an "IT labor shortage", they are talking about how many people are willing to work for low wages and yet have a large pool of skills, talent and education.
There are plenty of people who have the skill sets they need, they just don't want to pay the kind of wages it takes to get them and keep them.
I am not talking about kids just out of college expecting a high paying job. I am talking about companies that want people with 10+ years worth of experience and want to pay them like a kid out of college.
It has been true for a very long time that the only way you can get a real pay increase in IT it to move somewhere else. Until companies start looking at their employees as a resource and not an expense and pay them accordingly, the situation will not improve.
All these cries to let them import labor is to allow them to rent temporary employees who can be deported at the first sign of "getting uppity" for demanding a living wage.
"Trademarks are the heraldry of the new feudalism."
We use some H1B's (and try to get them green cards).
We pay a "decent" salary-- my buds at HP earn roughly 10% more-- those in the oil field earn about 20% more (but have a history of frequent layoffs). We have solid benefits that exceed those of the oil field and HP.
The reality is- we are about to lose positions because we cannot even get under-qualified people to apply for them. Now part of it is that we require people with at least a couple other jobs experience under their belt. Part of it is that being a big corp, our bureaucracy is pretty harsh. I have a friend who was sucked into Schluberje (sp) recently and there you literally have to take a driving class (as a frikkin programmer???) as part of your job duties. Bureaucracy gone mad. I'm sure many of you have seen office space--- we are 3x office space. It really takes a special person to fit in a large corporation. Jobs that would take 2 hours at a small company (and be very satisfying) may take three months. I even know of one project that was finished a year ago and it is still stuck waiting to be prioritized for release.
Sarbanes Oxley takes all the joy out of being a programmer. It just sucks the life out of it. Coders like to code 32 hours a week-- not 32 hours per quarter. You can't even maintain your coding skills at those levels.
I think the IT Worker crunch IS coming- and it is going to be wicked nasty starting in about 2012.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
Sure there may not be a shortage of IT resumes on monster... But there sure is a shortage of people who can back up their resumes with actual demonstrated work/skill.
We are offering market wage, and we are hiring entry level people, maybe 1 in 30 of the people we interview actually demonstrates the minimum of critical thinking and problem solving skills needed to be a decent software developer. Our interviews are not concentrated on any one platform, we have stuff in foxpro, java, python, php, c++ and c#... So our interviews are focused on critical thinking and problem solving. We have a couple basic problem solving questions and 2 algorithm questions which we routinely ask.. This is stuff I learned in high school, or my 2nd year algorithms class in college. People who are professing CS degrees and 0-5 years experience are routinely getting these questions wrong.
Even the few people we have hired over the last 3-6 months have been disappointing in their ability to a) learn new languages, b) learn and follow best practices, c) demonstrate real troubleshooting/bug fixing skills. C is probably my biggest pet peeve, as a manager I don't know how many times in the last 6 months I've had to go to a programmers system when they say "I'm getting this error and I don't know what it means" and the error message very clearly lays out the problem, the line it is occurring on, etc...
Either CS degrees are seriously lacking in rigor since I participated ~ 8 years ago, or they are just rubber stamping people that shouldn't be passing the classes.
I am a "highly experienced J2EE person" and as a contractor I sit for interviews once a year or so.
I am not disagreeing w/your experience, simply because I wasn't there.
My point is most hiring managers don't know how to interview and frequently don't even know what skills are relevant.
My interviews routinely turn into some sort of geek dick size war (and the candidate must be polite) or a beauty pagent (where did you go to university, my professors are more glamorous than yours) or some other stupid diversion rather than the job at hand.
My least favorite is: are you kewl enough to work in our clubhouse? It's just a job, I get all the love I want at home.
It doesn't help that most jobs are using API's they barely understand. So when someone asks me an obscure question about XML bindings or hibernate, they frequently don't recognize the answer.
Anyway, I'm a little tired of hearing about "the shortage" when in fact there is none. The "shortage" (IMO) is manufactured.
I had not read through all of these today but having survived 5+ years now of business only hiring temps and "independent contractors", I have a fair amount of knowledge in the area. Because of this "outsourcing" that many of us went through, our jobs were cut by moves in business to cut IT costs and improve profits for the shareholders, et al. This really is nothing more than devaluating the duties and tasks that we do to that of a high schooler working at a local Mickey-D's.
The real "shortage" comes about because business is NOT able to find someone willing to come in and be an all-purpose IT person, network guru, server admin., etc. and accept pay to the tune of $11 per hour. Thats the real shortage issue. So they will further outsource the jobs and bring in foreigners on H1B's to do those jobs at substantially reduced rates. IBM and a handful of other international companies are notorious for this.
Really what it will come down to is let these large companies hire the kids for $11. You really do get what you paid for. Eventually when things begin to collapse for many of these companies, they will be force to bring in people with knowledge and experience, and best of all; pay them what they're worth.
Remember that: "What goes around; comes around"
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Many times in a 30 year IT career, I have seen Human Resources people who are clueless about technology writing ads that have qualifications that nobody could meet. Examples: 5 months after the introduction of the JDK 1.0, there were ads asking for 3-5 years of Java experience. There are ads currently out there asking for 3-5 years of ActionScript 3 (introduced I think June of 2006). Requiring a bachelors degree for an entry level help desk position doesn't add up to a healthy pool of qualified applicants either.
Job ads often have a huge list of "requirements" as well, and an applicant missing even one of them might well be screened out. An example of this? Seasoned web developers might not bother listing FTP on their resume. In their view, requiring a web developer to have FTP experience is like requiring a carpenter to know how to use a saw. But that failure to list FTP on the resume might well mean the application is automatically trashed. I have seen HR screen out applicants for a web developer position because they neglected to list HTTP, DHTML, and Photoshop on their resume. And don't get me started about HR's lack of understanding of the difference between a web developer and a web designer.
If HR departments are the source of some of the statistical and anecdotal evidence being trotted forth in support of the existence of this "shortage", I am not surprised the picture looks grim.
where will we find them right now
There's yer problem, right there, guv.
The problem is that the IT industry, like many industries, expects to find a pool of skilled and experienced available staff, at the drop of a hat, without the company putting in any effort themselves.
The solution is apprenticeships - a variant on "I wouldn't start from here", I admit, but the only workable solution nonetheless. Start the recruitment process two years in advance, and train up the monkeys to become experts. Another benefit is that apprenticeships, unlike university degrees, have no fixed syllabus and can quickly flex to meet new skill demand trends.
The problem with apprenticeships is that various governments have regulations against locking-in staff for long periods. Companies who invest in apprenticeships see their newly-trained staff bugger off to a better-paying competitor, who can afford to pay more since they haven't invested in apprenticeships, the moment they qualify. Governments need to relax regulations on locking-in apprentices to their sponsoring employer. Governments also need to give companies better ability to fire apprentices who fail to meet expected grades on time.
Cheap, experienced, immediately available - pick any two.
Andrew Oakley - www.aoakley.com
But who the hell would want to do that for a job? Honestly....
I found out our testers are payed on a par with or more than software developers the other day. At first I was a little angry, because I get angry whenever anyone is paid more than software developers because "we make your fscking products!".
Then I thought "What would it take to get me into that job?" and I realised they were welcome to the money.
This is what we are facing in our organization. About 66% of our openings are technical, but our HR director is clueless -- not only in writing effective job descriptions and requirements, but also when it comes to setting compensation packages that attract good candidates. Our business analysts (which are a dime dozen) make as much or more than our application engineers.
It's almost a conspiracy: inability to hire good application engineers, limits our ability to automate business analytic processes, and increases the demand for spread sheet jockeys. Good times.
Off the cuff estimate, roughly 90% of the best and brightest IT minds I personally know and including myself, the ones that git-er-done, have given up on long days, fixed pay, lousy conditions, incompetent management, threat of outsourcing, and mental cruelty. A lot of your "skilled" people bail out. We're smart, so we take jobs in lower paying, but more secure and laid back not-for-profits, or find a new second career. We've been in the industry for 10-20 years and want to do things like have families, and see our friends once in a while. I was personally told repeatedly by my management that they could hire 2 college grads or 4 foreign workers for the price of me and if I didn't like 80hr weeks I was welcome to leave. So I did.
As somebody that has just being replaced by people working in India (hello chaps!) I can categorically tell you there are labour shortages in Western countries.
I did the interviews, the people is just not there. As for myself I will take a few months off because I know there will be a job for me once I am rested and have done a few things I have in the back burner.
The situation in the US is not the way you are portraying it. Foreign workers are well paid (by definition, given the kind of visa they need to enter the country) so they are not driving salaries down, and most importantly pay taxes and spend money in the local economy, which benefits without having invested a dime in the education of these individuals.
The people driving salaries down are the ones working remotely and that never set foot in the country they are serving, very often using the infrastructure in that country, which was originally built to benefit the local population. That is what happened to me. I have no problem with this, I will have to take a lower salary most likely, but this is just natural given the savage competition to which we are being confronted (people in India are forced to work insane hours for a quarter of what we earn in the West, but fret no, salaries are going up and it is a matter of 3 or 4 years before they are comparable to Western standards, the turnover rate over there is atrocious, because techie people over there are not stupid: as soon as they get a better skill set they move on. In my experience this is at the very least 40% a year of attrition rate, so you always have a half competent group of people, half of which will leave very soon. Some companies are waking up to this fact, but some others are going ahead like a blinded lemming with suicidal thoughts).
Techies in developed countries should be writing to politicians about why they are allowing people working remotely in machines based locally, offering services locally. If they are affecting the economy in such way, they should be taxed as if they were working locally, people working remotely get all the money but pay no taxes locally, while the other way around is nigh to impossible to set up shop.
Or we should get free access to Indian and Chinese markets in order to compete in a fair basis. But our politicians are too busy wasting billions of dollars killing innocent people instead of investing in the future of our respective countries.
IANAL but write like a drunk one.