PMI Houston

“Houston Project Management

Hiring Trends”

2013

James Del Monte CERS, CPC

JDA Professional Services, Inc.

•Friendship

•Leadership

•Industry/Business Knowledge

•Networking Opportunities

Value of a Professional Organization

Houston Project Management

Hiring Trends That Could Impact

Your Career

�Value of professional groups

Current hiring trends

Evolving P/M roles

Views of P/M’s from executives

Value of education and certification

Job Growth

Compensation trends

Are you done yet??

Famous Quote

“ . . . Almost 100% of a manager’s

success comes from hiring

and retaining good people.

Good people don’t make the

difference

- they are the difference”

» - James Del Monte, CPC, CERS

Return the Favor

What JDA Does. . .JDA Professional Services, Inc. is a Houston-based IT staffing firm

specializing in the recruitment of strategic-technical to executive-level

professionals. We provide staffing solutions through full-time, contract,

and project-based placements. Since 1981, we have been helping

companies build great IT departments while helping IT professionals

find the right career opportunities.

Full-Time Staffing

Contract /

Temporary

Staffing

Special Projects

StaffingJDA

Pearls of Wisdom

“We are all temporary – only some of you don’t

know it.”--Larry Carreker

Law of Supply and Demand

The demand for skilled professionals bottomed out 3Q09. The current cycle

indicates that we are in strong recovery. In Houston good people are hard to find.

Labor Surplus vs. Skill Shortage

1984 1995 2Q01 4Q04

4Q99

Demand

Peaked

Supply

Demand

1989

Demand Bottomed3Q03

Demand Bottomed

4Q07

Demand

Peaked

12.21.

2012

3Q 09

Demand Bottomed

3Q10

Positive Signs

• The stock market is up

• Corporate profits have flattened but lots of cash

• The unemployment numbers have stabilized and are coming down - new jobs are being created

• Price of oil is $100 +/-. Good for Houston

• Domestic oil & gas production up 20+% since 2006

• #1 Medical center in world

• 80+% of companies can now replace turnover

• Houston #2 for job growth

• Thank God we live in Houston

Market Shift

The job market has shifted from an Employer’s Market to a Job Seeker’s

Market.

Candidate

Candidate

Candidate

Position

Position

Position

Position

Candidate

2008 - 2009 2010 – 2013

Employment Index

Employment Growth

IT employment grew by 150,000 or

2.66% In 2012

Unemployment Rates

• National – 7.7%

• Texas – 6.1%

• Houston – 5.8%

• Degreed professionals 4%

• What is full employment?

Unemployment Rates

14.414.614.714.71515.613.913.915U6

9.29.39.39.69.710.28.899.7U5

8.38.48.38.68.89.37.988.9U4

7.77.97.88.18.38.77.47.58.2U3

4.14.24.24.54.64.93.93.94.7U2

4.34.44.34.44.554.24.34.9U1

201220122012201220122011201220122011

Nov.Oct.Sept.Aug.JulyNov.Nov.Oct.Nov.

Seasonally adjustedNot seasonally adjusted

Measure

U-1 Persons unemployed 15 weeks or longer, % of the civilian labor force

U-2 Job losers and persons who completed temporary jobs, % of the CLF

U-3 Total unemployed, % CLF (official unemployment rate)

U-6 Total unemployed, plus all persons marginally attached to the labor

force, plus total employed part time for economic reasons, as a percent of

the civilian labor force plus all persons marginally attached to the labor

force

2013 IT Hiring Forecast

43%

10%

47%

15%

13%

72%

Full-Time Contract

Increase Decrease No Change

UH MIS Enrollment

0

100

200

300

400

500

600

700

800

2001 2003 2005 2007 2009

Spring

Fall

Governance

Departmental

Functional

PMO Evolution

PMO Penetration 2006 2010 2013

• 41 – 46 – 47%• Do you have an effective measure of it’s

value?

• 67 – 56 – 45%• Is your PMO team involved in the business

planning process?

• 31 – 38 – 38%• Is your PMO viewed as strategic?

• 28 – 39 – 63%• Does your PMO manage projects outside of

IT?

• 56 – 78 – 67%• Is your PMO part of IT?

• 88 – 84%• Do you use a project management

methodology?

• 43 – 65 – 49%• Does your company have one?

When Hiring a Project Manager

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

PMP Certification

Very Important Somwhat Important Not a Factor

Do your require your project

managers to be PMP-certified?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Required Preferred Not Required

Experience vs Degree vs PMP for

Promotion Management

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Experience Degree PMP

Hiring Project Managers in 2013

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Yes No Unknown

Job Growth

According to Business Insider from 2010 - 2012

• 1. San Jose, California – 63,290 (+7%)

• 2. Houston, Texas – 165,969 (+6%) – 75,000 in 2012

• 3. Austin, Texas – 49,131 (+6%)

• 4. Detroit, Michigan – 92,407 (+5%)

• 5. Salt Lake City, Utah – 34,137 (+5%)

• 8. Dallas, Texas – 128,644 (+4%)

Population growth Texas and Houston – last 10 years and last year

• Population in Texas has increased by 12.7% in the last ten years, (6.4 national)

• Houston’s population increased by 2.18% from April 2010 to July 2011.

• Houston is projected to add 76,000 new jobs in 2013 GHP

Top 25 Public Companies

1. ConocoPhillips

2. Enterprise Products Partners LP

3. Schlumberger LTD.

4. Sysco Corp.

5. Plains All American Pipeline LP

6. Halliburton Co.

7. Baker Hughes Inc.

8. Apache Corp.

9. Marathon Oil Corp.

10. National Oilwell Varco Inc.

11. Anadarko Petroleum Corp.

12. Waste Management Inc.

14. KBR Inc.

15. Enbridge Energy Partners LP

16. CenterPoint Energy Inc.

17. Kinder Morgan Inc.

18. Kinder Morgan Energy

Partners LP

19. Targa Resources Corp.

20. Targa Resources Partners LP

21. Cameron International Corp.

22. Calpine Corp.

23. Group 1 Automotive Inc.

24. Spectra Energy Corp.

25. FMC Technologies Inc.

Barriers to Growth

• There are roughly 23 million firms in the US

• 4% have revenue over 1M

• Of those 4%, 1 in 10 (.4% of all companies)

have more than 10M in revenue

• 17,000 surpass 50M

• 2,500 firms in US are larger than 500M

• 500 firms worldwide are larger than 11B

Big Versus Small

• Traditional businesses don’t create jobs or

invent products, they buy them

• Risk Aversive – more committee decisions

made to limit career risk

• Job Growth vs. Job Creation

Causes of Turnover

When examining the talent at any organization, look at the culture, not

the rhetoric – look at the results, not the commentary about

potential. Despite some of the delusional perspectives in the corner

office, when we interview their employees, here’s what they tell us:

• More than 30% believe they’ll be working elsewhere within 12

months.

• More than 40% don’t respect the person they report to.

• More than 50% say they have different values than their employer.

• More than 60% don’t feel their career goals are aligned with the

plans their employers have for them.

• More than 70% don’t feel appreciated or valued by their employer.

Source: Forbes magazine

Bad Seeds

Get rid of bad seeds and people who don’t

want to be there – the dominant attitude will

proliferate through the group and pollute the

team.

Employed Workers Looking

11%

62%

27%

• Active – 11%

• Passive – 62%

• Not at all – 27%

How This Impacts You

• Employer

� Higher Turnover

� Higher Employee Cost

� Positions Open Longer

� Higher Hiring Cost

� Add Fees to Budget

• Employee

� More Career Options

� Training

� Bonuses

� Increase Base Salary

The Money Question

$$ The market sets the price $$

2011-2012 up 2-4%

Increase in 2013

40% - <3%

58% - 3 – 6%

2% - 6%+

The Bonus Question

75% as part of compensation

package

51% - 10% or less

44% - 10-20%

5% - 20%+

135k93k85kInfrastructure Project Manager

135k112k85kProject/Team Leader - Applications

135k110k85kProject Manager - with PMP

150k85k107kPMO Manager - with PMP

Compensation for Project

Managers – 2012

Total PackageBesides money what is important to you?

• First review and

history for increases

• Promotions and

career path

• First assignment

• Training and

certifications

• Bonuses and

incentives

• Benefit package –

cost and coverage

• Flexibility

• Location

• Telecommuting

• Access to

management

Compensation Package Components• Base salary

• Signing bonus

• Group bonus

• Project bonus

• Hot skill bonus

• Clothing bonus

• Travel bonus

• Early reviews

• Expense account

• Company car

• Stock or stock options

• Retirement plans

• 401k

• Titles

• Office space

• Parking – bus passes van pools

• Flexible scheduling

• Telecommuting

• Equipment

• Training/tuition

• Out of town trips

• Extra/early vacation

• Family days

• Day care

Pearls of Wisdom

1. Keep your job

2. Don’t complain about compensation

3. Home capital preservation

4. Think outside box about career

--Doug Leyendecker

Houston Project Management

Hiring trends That Could Impact

Your Career

�Value of professional groups

�Current hiring trends

�Evolving P/M roles

�Views of P/M’s from executives

�Value of education and certification

�Job Growth

�Compensation trends

�Are you done yet??

JDA Resources

• Salary Survey

• Hiring Trends

• Cost of Turn Over

• Counter offers

• Hi-Tech Calendar

• Hot Jobs

• Interviewing Tips

• Employee retention

Questions

?

?

?

USA

TEXAS

HOUSTON

701 North Post Oak Road

Suite 610

Houston, Texas 77024-3818

Phone: 713/548-5400

www.jdapsi.com

Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects