Sixteen percent of executives polled plan to hire full-time IT staff in the fourth quarter of 2005 while just four percent expect personnel reductions. The net 12 percent increase in hiring is the largest net increase since the third quarter of 2002. Results are up one point from the previous quarter and six points from the same quarter last year.
The national poll includes responses from more than 1,400 CIOs from a stratified random sample of U.S. companies with 100 or more employees. It was conducted by an independent research firm and developed by Robert Half Technology, a leading provider of IT professionals on a project and full-time basis.
Networking remains the specialty most in demand.
“Companies are making new investments in technology and initiating IT projects to support business growth,” said Katherine Spencer Lee, executive director of Robert Half Technology. “As a result, managers are expanding their workforces once again, adding IT personnel gradually to meet individual staffing needs.”
Lee added that the improving employment environment, combined with a decline in the number of computer science graduates, is impacting the labor pool and slowly shifting the market in the candidate’s favor.
Among CIOs who plan to hire in the fourth quarter, 36% said corporate expansion is the reason, while 21% cited increased customer and end-user support needs.
Skills in Demand
When asked which technical skill sets were needed most within their IT departments, 81% of CIOs said Microsoft Windows (NT/2000/XP) administration expertise. SQL Server management ranked second, with 51% of the response, followed closely by wireless network management at 49%. (Note: Survey respondents were allowed multiple answers.)
According to CIOs, the specialty most in demand within IT departments is networking (19% of the response). Businesses also seek help desk/end user support specialists (15%), applications developers (12%) and data/database managers (11%).
Regional Outlook
Technology executives in the Pacific states anticipate the strongest IT hiring activity in the fourth quarter. Twenty-one percent of CIOs expect to add personnel and just three percent foresee staff cutbacks. The net 18% increase is six percentage points above the national average.
“Companies in the Pacific region who may have experienced deep cuts during the technology downturn are beginning to expand and require additional IT staff to support this growth,” Lee said. “Web and applications developers, database administrators, networking professionals and software engineers are in particularly strong demand.”
Notable hiring gains also are expected in the Middle Atlantic region. Twenty percent of CIOs plan to expand their IT departments and just four percent anticipate personnel reductions, a net 16% hiring increase.
Robert Half Technology has conducted additional interviews in major metropolitan markets to provide more detailed analysis of IT hiring trends in these cities.
Industries Hiring
The finance, insurance and real estate (FIRE) sector is expected to lead the nation in hiring activity during the fourth quarter. Thirty-nine percent of CIOs in this industry plan to add IT staff and only three percent expect personnel cutbacks.
CIOs in the business services industry also plan strong hiring activity. Eighteen percent of technology executives plan to expand their IT departments and none anticipate staff reductions, a net 18 percent hiring increase.
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