As companies move to cloud computing and other technologies, high demand for IT workers raises employee confidence and job security, bringing risk of high attrition rates of skilled workers for new career opportunities.
According to the Randstad IT Employee Confidence Index for Q3 2012, the majority (56.8 percent) of US technology workers are optimistic about their career opportunities and growth. Confidence levels in the IT jobs market grew nearly 10% (5.1 percentage points) from Q2 of this year due to extremely low unemployment rates, high demand for new technologies among organizations and high reported levels of job security. In addition, the majority (55 percent) were confident in their ability to find a new job if pressed an 27 percent of IT workers believe there were more available openings this quarter (up from 19 percent) than last.
“Technology workers were more optimistic about nearly all confidence measures this quarter, including the strength of the economy, the availability of jobs, and overall employability,” said Bob Dickey, EVP of Technologies at Randstad U.S. “This is not surprising given the future outlook for this sector, which remains bright and encouraging. In fact, according to a recent TechServe Alliance report, from the first quarter to second quarter of 2012, the unemployment rate for computer hardware engineers went from 4.4 percent to 0.5 percent. Similarly, for software developers, the unemployment rate declined from 3.6 percent to 2.5 percent. These are incredibly low unemployment rates and reflect the market’s greater hiring demand for these skill sets. Also contributing to a healthy outlook for this sector is the high demand for cloud computing skills and experience. According to Wanted Analytics, August had more than 10,000 online IT job ads requiring cloud computing training, experience, or knowledge—an increase of 80 percent compared to August 2011. With ongoing technological advancements in cloud computing and others, the IT sector is well-positioned for growth in 2013 and beyond—a sentiment reflected by IT workers’ overall confidence measures.”
As the job market increasingly looks more promising, IT workers are beginning to scout for new positions with 34 percent responding that they would likely apply for new positions within the next year. With demand continually rising for skilled IT workers to implement new technologies, employers will have to reevaluate the competitiveness their compensation and incentives plans in order to retain and attract employees.