Survey Finds Most Executives Expect to Maintain Current Staffing Levels

TORONTO - Employers are expected to remain cautious about adding information technology (IT) professionals in the third quarter, according to the Robert Half Technology IT Hiring Index and Skills Repot. Five per cent of chief information officers (CIOs) expect to hire full-time employees in the next three months, while 11 per cent anticipate personnel reductions. The majority of respondents, 80 per cent, plan to maintain current staffing levels.

The IT Hiring Index and Skills Report is based on telephone interviews with more than 270 CIOs from companies across Canada. 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.

Key Findings

- Technology executives attribute staff reductions largely to reduced IT budgets and companywide layoffs.

- Employers cite rising workloads as the primary reason to add IT personnel.

- CIOs in the finance sector are most optimistic about hiring.

- Project management is the job area experiencing the most growth.

"Many Canadian companies remain hesitant to commit to adding IT staff until they are more certain on the timing of an economic recovery," said Sandra Lavoy, a vice-president with Robert Half Technology. "Managers are watching budgets closely and working with their current teams to deliver key initiatives, with some employers bringing in project professionals to cope with rising workloads."

Twenty-three percent of technology executives hiring expect to add a mix of full-time and contract or project workers in the third quarter. When hiring full-time staff, nearly two-thirds of CIOs surveyed (64 per cent) plan to recruit IT professionals at the staff level (up to five years of experience). Nearly one-quarter (24 per cent) of CIOs said they plan to hire at the senior staff level (five or more years of experience). (Note: CIOs were allowed multiple responses.)

Technology executives expecting to decrease staff in the third quarter said the top reason is reduced IT budgets, with 50 per cent of the response. Thirty-three percent cited companywide layoffs, and 9 per cent said reduced or consolidated workloads. Forty-five per cent of executives cited rising workloads as the primary factor driving hiring demand, followed by corporate growth or expansion at 16 per cent.

Skills in Demand

Sixty per cent of CIOs report that Windows administration (Server 2000/2003) is the technical skill set most in demand in their IT departments. Desktop support received 58 per cent of the response, followed closely by Network administration (LAN, WAN), at 56 per cent.

When asked which job area is experiencing the most growth, technology executives ranked project management first, with 13 per cent of the response. Networking, internet/intranet development and applications development followed, each at 10 per cent of the response.

Industries Hiring

Twenty-two per cent of executives in the finance sector plan to add staff and 11 per cent foresee personnel cutbacks, for a net 11 per cent hiring increase, which is 17 points above the national average. Thirty-five per cent of finance sector executives said corporate growth or expansion is driving staffing activity. Help desk, technical support and systems analysis are the job areas experiencing the most growth within their IT departments. Among CIOs in this sector who plan to add staff in the third quarter, 54 per cent expect to hire IT professionals with up to five years of experience, and 27 per cent said they anticipate hiring senior staff with five or more years of experience.

About the Survey The quarterly IT Hiring Index and Skills Report was developed by Robert Half Technology and conducted by an independent research firm. First published in 1995, the study is based on more than 270 telephone interviews with CIOs from a random sample of Canadian companies.