|
Despite a succession of blows to the economy of the San Francisco
Bay Area (including Silicon Valley), the foundation of the region's
economic boom remains intact. Bay Area recruiters face new challenges,
but also new opportunities. Best of all, they expect that the
demand for technical workers will remain steady.
Fears
Allayed
It
has been a jarring winter for recruiters in the Bay Area. First,
the NASDAQ began dropping faster than San Francisco temperatures
after sunset. Some dot-coms went under, while the survivors, and
older technology companies, began cutting jobs.
Then,
the lights went out. Literally. The energy crisis didn't directly
impact business (blackouts were confined to residential areas),
but it created a brief panic -- some worried that technology companies
might leave the area, a nightmare that never materialized.
Still,
Silicon Valley recruiters remain optimistic. Many of the layoffs
occurred in marketing and sales departments. These are important
functions to a successful company, no doubt, but redundant in
a down economy -- and not the main thrust of most recruiting efforts
in the area.
Speculation
that job candidates would be wary of moving to the Bay Area because
of its energy woes has proven false. "People are a lot more worried
about earthquakes," says Steve McIntosh, an HR manager for a technology
company in San Jose.
The
Current Climate
Companies
are being more conservative in their hiring. "There are still
positions," says Heidi Jensen, an executive recruiter for eBizPeople,
"but whereas companies previously had 3-10+ open reqs for each
department, it may now be 1-2." The talent rush of the past few
years is over, relegated to the history books, just like the gold
rush of 1849.
Job
cuts continue as technology companies strive for profitability
-- most notably Cisco Systems, which recently announced plans
to layoff more than 8,000 Bay Area workers.
Nevertheless,
the hiring outlook for technical candidates -- the cornerstone
of the Bay Area hiring market -- is still strong. "There are actually
more IT job openings in the Bay Area now than there were at this
time last year," says Jay Finkelman, VP of marketing at Bridgepath,
a San-Francisco based online exchange for recruiting firms. "It
is still very much a candidate-driven market."
Positions
still exist in abundance for experienced candidates with demonstrable
skills. For inexperienced candidates, however, who might have
been hired in desperation, they might have more difficulties finding
work.
Facing
the Slowdown
To
cope with the hiring slowdown, recruiters in the Bay Area are
focusing on the core skills that make their services valuable
to clients:
- Proactive
candidate searches
- Proper
evaluation of job orders
- Making
the best match possible
Inexperienced
recruiters, many of whom were hired to meet the massive labor
demands in the Bay Area during the dot-com boom, will have to
improve their skills or find a new profession. "Some recruiting
contractors are being let go," confirms McIntosh.
A
Challenge, But Also An Opportunity
The
slowdown actually presents some positives to recruiters, says
Finkelman. "The probability of making a better match is higher
now." Better
still, the outrageous candidate demands of the past are over,
as job seekers are far less sure of their place in the market.
"Candidates seem to have fewer offers in hand," says McIntosh.
"Instead of having five offers, they only have two or three."
The
youth of information technology professionals presents an opportunity
for recruiters as well. Most of those looking for work were in
school at the time of the last recession. Their entire professional
life transpired during the economic boom -- a boom that was greater
in the Bay Area than anywhere else. In this time of economic uncertainty,
Bay Area candidates value placement professionals even more than
ever before.
"The
Bay Area recruiter must be supportive -- providing counseling
beyond the pure placement process," says Finkelman. Even though
most candidates can still expect to land numerous job offers,
the downturn has been a shock -- for which some IT professionals
feel they have to overcompensate. Those laid off from dot-coms
are suddenly interested in brick-and-mortar companies, says Finkelman,
despite the fact that those companies are laying off workers as
well.
IT
Pros Won't Stray
With
its high concentration of technology companies, the Bay Area probably
experienced the most robust hiring market of any area in the United
States during the dot-com boom. Despite continued layoffs, San
Francisco recruiters sleep well with the knowledge that the world's
top tech companies and information technology pros won't stray
from the Bay. "This area is so popular, there is so much going
on," says Steve McIntosh. "Where else would they go?"
|
