Supply and Demand

It was bound to happen.  I have talked before about the short supply of IT talent here.  Demand for IT talent has never been higher. Unemployment in the IT sector is still less than 1%.  With supply low and demand high, what is going to change?  Salaries!  With the economy ticking up salaries are on the rise.  I was talking to another IT Consulting firm owner the other day and he was saying  that he has seen entry level positions right out of college go from the mid $50’s two years ago to the mid $70’s today.  That’s about a 35% jump in two years.  That is not too different from one of the positions we are filling.  The salary range for the position is $70K – $95K.  We are finding the talent, but the salary ranges being demanded are $90k – $110k. 

The CIO is frustrated with HR, because they will not start someone at the high end of the salary range.  My simple solution was to change the salary range based on what we are seeing in the market.  That did not fly either.  We could try to put in an under qualified candidate that fits the salary range, but that doesn’t seem like the right thing to do.  So right now we are holding out the hope that a qualified candidate that doesn’t know the market value will appear.  Hope is not a strategy, so maybe pigs will fly!