For over a year CIOs and IT Managers have had an open checkbook for both hiring and spending. As they enter the budget planning season CFOs are putting the breaks on discretionary spending and “non-essential” hiring and spending. One of the reasons is the requirement to increase salaries to adjust for inflation and the potential adverse earnings impacts. However there now are signs that CFOs and CIOs are becoming more cautious in planning for next year. The specter of high inflation, a slowing economic recovery, and the unsettled political situation is driving C-level executives to contain costs. They are planning for fewer new FTEs being hired, reducing service fees like consultant and contractor contracts. One area that is taking a big hit is for recruiting fees paid to recruiters.
Concerns about a looming recession have not derailed the booming IT job market. In the first half of this year, 115,000 new IT jobs were added, according to consulting firm Janco Associates. Even with inflation, high energy costs, and the invasion of Ukraine, IT hiring continued at a record-setting pace, but keeping tech talent still poses challenges. IT salaries for existing IT staff and middle managers increased by just under 3%, while new hires were paid 5% to 6% more than existing staff, raising the appeal for some to switch jobs.
If that weren’t enough to keep IT leaders on edge, a crop of new forces - from Supreme Court rulings to climate change, four-day workweeks, and office face time - are poised to impact where tech employees choose to work and for how long they stay. Hiring will remain at peak levels for at least the next few months. Janco still forecasts almost 200K new IT jobs will be added by 12/31. Positions in high demand are now centered on those associated with security.
Hard to fill IT jobs
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