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Articles > JDA SME (Subject Matter Expert) - Supply and Demand - The Fordyce Letter, January 2006 Volume XXXVIII
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JDA SME (Subject Matter Expert) - Supply and Demand - The Fordyce Letter, January 2006 Volume XXXVIII

By James Del Monte, JDA Professional Services, Inc.

James Del Monte CPC, President of JDA Professional Services, Inc. who "provides companies in Houston with a full range of IT staffing services including full-time, contract and special projects.  Our services range from strategic technical to executive level.  

Over the last 12 months the push back on fees has been reduced as demand exceeds supply. We have also received more call in business in the last 6 months than in the last 2 years.  The sweet spots this year have been for applications developers mostly .NET or Java, security and audit, ERP specialists and degreed infrastructure professionals.  We also completed several CIO searches so there is activity at all levels.  

Its getting harder to find good people off the job boards and through advertising and accounted for only 15% of our placements.  60% of our placements were from referrals and recruiting.  25% was out of our database and internal marketing.  The competition for good people has picked up and we are in the same mode as we were in 1997.  We are seeing more counter offers, multiple offers and salaries increasing.  We have been using our creative deal doing again including sign on and bonus structures to attract candidates.  

From the client perspective they are realizing that employee retention is going to be an issue and the need for professional recruiters is becoming more critical in finding good people.  Also time is of the essence in getting someone committed clients no longer have weeks to decide on a candidate or to see 3 5 people and compare.   As we get more business, making good choices on where we invest our time on both clients and candidates becomes more critical. We only have so much time and have to be very selective with our investment.  We have to let our clients compete for talent as demand increases, this means salaries are going to increase as the market heats up and makes adjustments.  Our fees will increase both as a % and total dollar amount as it becomes more difficult to find people and we have more choices on where to send them.  

I think we have 2 years where supply and demand are in reasonable balance.  This is the best time to be in our business and help a lot of companies and candidates make good moves.  Once the demand curve gets too high the effort it will take to find people will make this business more difficult, just like 1999 and 2000.  Make hay while the sun shines and the sun is shining."

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