Winter, Wyman News & Views: The Technology Market is Thriving

When the technology industry in the Northeast heats up, and small and mid-sized organizations are driving the growth, venture capital money flows to fund solid products and organizations.  Experienced job seekers and company leaders approach these times with some trepidation, especially those burned by the rise and fall of the tech market in the ‘90s and early ‘00s.  They wonder, Are we about to experience another hiring frenzy, where eager companies made offers to seemingly anybody and everybody?  How does this surge in the industry translate into hiring?  What does it mean for the hiring process?  For company leaders?  For those looking for a career change?

The following are interesting hiring trends that emerge among progressive companies, in both New England and New York, who work diligently to recruit and retain the best talent.

The hiring criteria is less rigid — In other markets, a job candidate would have to meet eleven out of ten requirements on a company’s wish list of skills and experience to even get an interview.  In a hot marketing, however, firms are looking more to hire problem solvers and critical thinkers, people who may be able to fill multiple job descriptions — not necessarily the candidate with the most experience in one particular skill set. 

While hiring managers are definitely anxious to fill positions, they are still discerning about who makes the cut.  They learned from the mistakes of years past when anyone with minimally-related skills was hired.  Today, companies want to ensure each hire counts.

Tech firms are also willing to do more to attract qualified workers from overseas, including arranging transfers of work visas for the right candidates.  Many companies are consistently looking for people with H1 visas from Asia and Europe, which differs from a few years ago when there was so much talent to choose from that companies were likely to forego the hassle of dealing with transferring work visas. 

The interview process is more flexible — One of the biggest changes is tech companies’ willingness to be flexible.  Hiring managers realize that many desirable prospects already have jobs, so they are more accommodating of schedules.  They are also trying to expedite the interview process.  They know that job seekers are most likely looking at more than one company and they want to be the first to make an offer.  Candidates may be able to interview during lunch times or off-business hours.  They can also meet with several people at once, instead of having to return for multiple interviews.  Some companies are even tailoring the interview process to meet each prospect’s individual needs.  For example, companies have begun using phone screenings as a first step in the interview process, realizing that candidates are better able to slip away from work for a 20 minute phone call, rather than for an afternoon of face-to-face interviews.  In one case, a Boston firm that typically conducts a phone call and two in-person interviews shortened the process to one face-to-face interview in order to make a quick decision.  They made the candidate an offer at the end of that same day.

“Missing” jobs are making a comeback — The jobs that were the first to get downsized when the tech market started to falter years ago are starting to reemerge.  Project Manager and Release Engineer positions are once again in demand in the Northeast.  Contrary to popular belief, tech companies have actually pulled back on off-shoring positions in New England.  While some technology companies do have an overseas presence, it is often for maintenance and operational positions.  The critical jobs in design and strategy are staying in New England.

In New York, on the other hand, the home to many large tech firms, off-shoring is still prevalent, but it is for the same type of upkeep positions.  In addition to Project Managers and Release Engineers, New York companies are heavily recruiting managers with international experience.  These managers may oversee one team in Russia and another in Manhattan!

Contract-to-permanent positions are evolving — Contract-to-hire positions also adapt to the hot market.  Tech firms were hesitant to hire permanent employees when the market was tepid, and often “tested the waters” by hiring via contract positions.  Today they are much less hesitant to commit.  In fact, many tech companies are making a longer-term investment and working to convince their contract employees to take on permanent posts.

Companies are selling themselves more aggressively — When the market is more competitive, company leaders have to convince candidates of their organization’s value.  This is a change from a few years ago when the talent pool was larger and companies didn’t have to work as hard to hire.  Tech firms are also delivering their sales pitch earlier on in the interview process.  Company leaders are realizing the importance of having a consistent message about the company that is easily articulated amongst all employees.  That way, no matter whom the candidate is speaking with, the message is strong.  Having a consistent message also helps ensure that the prospect is a good fit for the organization because he or she will have a better understanding of the company’s culture before accepting the position. 

It isn’t uncommon for the CEO and other executives to be involved in the interview process.  Members of upper management are also accessible to prospects to field questions, and may even make unsolicited phone calls to candidates to convince them to take the job.  In one example, a Manhattan-based tech firm aggressively pursued a contractor for a full-time position.  The Vice President got involved and personally negotiated the offer, which included a sign-on bonus. 

Hiring “teams” are looking for the right fit — More than just having tangible skills, candidates need to be a good match for the organization.  This is a drastic change from the tech boom when companies were desperate to fill positions with just about anybody — and the turnover rate reflected companies’ haste.  One way firms are avoiding this pitfall is by delegating a hiring team, where many members of the organization’s various departments are involved in the process, instead of just HR and a hiring manager. 

Jobs and job offers are customized — Company leaders are making job offers and giving candidates options about how their position will be structured and compensated.  In many cases, companies will adapt a job description to fit the person rather than the other way around.  Candidates are also empowered to decide how they want to be compensated, and hiring managers will tailor a mix of salary, bonuses, equity and benefits to better meet each candidate’s needs.  For instance, a large tech firm recently extended two different offers to a prospect.  One had a larger baseline salary, and the other was heavier on equity. 

And while equity is certainly still a portion of an offer package, prospects today are not taking large pay cuts and making up the difference in equity like we saw in the late ‘90s.  Base pay is staying level and equity is adjusted accordingly.  Companies are also moving away from frivolously handing out outrageous bonuses and perks.  Today, signing bonuses are more concerted and are reserved for the very best candidates.

All these trends point to one solid conclusion — when technology companies are hiring, they are eager to fill positions with the right candidates and they are willing to be more flexible to do so.  Company leaders have learned from the mistakes of the past, and are being more thoughtful about each hire.  This is an exciting time for the tech industry, and for those candidates looking to help these organizations grow!