Seems like all we hear about in the news is gloom and doom when it comes to the job market, but Agile’s 2Q 2011 Market Pulse has some positive findings!  Metro Atlanta IT employment is gaining momentum, and it appears IT employers are more confident about the future as an increase in IT hiring (perm and contract) continued during the second quarter of 2011.

In our latest issue of Market Pulse, you may be surprised at some of our findings including:

• The number of IT contractors placed by Agile is up 62% from Q2 2010.
• Open contract positions grew 75% from Q1 2011.
• Perm placements were up 10% from the last quarter, and over 50% from a year earlier.
• Searches for perm placements increased 42% over Q1 2010.
• Agile’s recent drop in time-to-fill for contract assignments indicates our solid network of top IT professionals.

Get more good news on  IT staffing trends in Atlanta by downloading Agile’s free Market Pulse.  We’d like to hear what you think about IT employment where you live.

Here’s the scenario:

You’re a Project Manager in the midst of finding a new job. For the past several years, you’ve worked as a contractor at a number of companies. During this time, you’ve had the chance to work on some high-profile projects using the latest emerging technologies. These projects have allowed you to learn new skills and work with teams consisting of diverse and highly talented IT professionals. You’re current contract is ending soon, but you know that your skills are in high-demand and finding a new gig shouldn’t be a problem.  In fact, your technical recruiter has presented two opportunities: one is a contract job and the other is a permanent position.

You go through the interview process at both companies, and you’re presented with two offers. You decide the contract position offers an exciting opportunity to work for an industry leading company that is in the process of developing an innovative technology. There’s also the freedom of telecommuting during the week. The perm job, on the other hand, isn’t as appealing.  The company reduced staff significantly during the Great Recession.  It has several projects that must be implemented this year, and has begun increasing staff and hiring full-time employees. You aren’t really excited about the full-time position, and the company’s culture may not be the best fit. You also don’t think there will be much opportunity within the company to grow. You really like the contract job and feel there is opportunity there that will enable you to take your career to the next level.  However, there’s one thing that makes the full-time job more attractive.  It appears to offer more stability. And that’s important given the fact you and your wife have a baby on the way.

Which offer do you choose?  As more companies are opening up full-time positions, would-be IT contractors are facing this dilemma. Many are going straight to the company with full-time work for the sake of stability. That’s understandable – given what most of us have struggled through during the recession. But keep in mind one thing. Contract jobs can offer the same level of stability and security (and more flexibility). The key is to be prepared for the next opportunity by working with a recruiter who’s always going to have your back.

If you’re a contractor and you want to ensure a high degree of job security follow these simple rules.

1. As soon as you know when you’ll be coming off your current contract, start updating your resume and get it to your recruiter ASAP!
2. Have a discussion with your recruiter early on and let her/him know what new opportunity you’re interested in. Having this information will enable the recruiter to scope out opportunities that will be a good fit and get you excited!
3. Throughout your existing assignment, make sure your quality of work remains high, your attitude is always professional, and you leave on good terms with your manager. You never know if and when you’ll be called back for another assignment with that client.  In addition, this will make it easier for your recruiter to sell you to other clients.

Full-time work can be enticing to IT professionals who want some semblance of job security.  And sometimes, taking a perm job over a contract assignment makes good sense based on the needs of the individual. But don’t discount the stability of contract work.  If you partner with a solid recruiting company, and you prepare yourself for the next assignment, there shouldn’t be a reason to worry about periods of unemployment – or being stuck in a job or company you dislike.

If you’re still not sure about what you would do if faced in the above situation, read our previous blog “10 reasons why IT contract jobs are worth considering.”

Back in October, Agile wrote “10 Reasons Why IT Jobs Are Worth Considering.” It was written, in part, because we were beginning to see an uptick in contract jobs from many of our clients. While IT budgets have loosened somewhat as the economy slowly putters along, some companies are beginning to hire more full-time employees. But as the New IT continues to dictate the way IT departments must change to survive, employers may be less inclined to commit to hiring full-time talent and choose to leverage contract workers instead.

The recession has forever changed the way technology leaders do business. A recent article in TechNewsWorld provides some interesting insight as to why companies need to use new hiring strategies to correctly staff their IT organizations. One strategy discussed is the need for employers to remain flexible during such uncertain times. Although the economy may be picking up, the road ahead in  2011, by most indications, will be bumpy at best. Analysts predict that the IT job market will improve next year (the IT unemployment rate in Georgia is only 5% ), but growth is expected to be slight.  And with recent news of a “double dip recession” on the way, further growth may very well by stymied.

Without a doubt, the economy is driving IT staffing decisions. Hiring on a contract-basis makes good business sense in many cases. Employers are able to staff projects without the costs associated with full-time employees. Leveraging contractors enable IT shops to get done what needs to get done, while removing some of the fear of what to do with those workers once a project is complete. As things improve, companies may bring contractors on full-time. But as IT organizations continue to transform, new hiring models will most likely take shape too.

What other factors are driving companies to hire IT professionals on a contract basis? During the past 18 months, businesses have had to do more with less. They have also determined that the skills sets needed one day are not the same skills required the next. Technology is changing faster than ever before, and to remain competitive, IT organizations must have the right people on the right project. By hiring contractors, employers are able to choose the talent with the skill sets that best fits the needs of the organization at that particular period of time. Companies could re-train existing and new full-time employees, and they will need to do so moving forward, but this is a conversation for another time.

In addition, both IT executives and workers are now expected to not only know about technology – they must know the business — that means understanding the overall business objectives and figuring out how technology can be used to solve business problems while adding measurable value to the business. Implementing projects for the sake of technology is a thing of the past. IT is being held accountable, and it has to justify its existence by delivering impact that extends throughout the enterprise. Full-time employees that have survived the budget cuts and lay offs of the past may or may not have the business acumen necessary to communicate how technology fits into the big picture and how to show real results.

The days of permanent jobs are far from over. But as the New IT takes hold and transforms the way IT organizations do business, contract hiring will become more prevalent. There are  advantages to contract jobs, so if you are a job seeker — don’t despair. As the economy improves, there will be exciting opportunities for those willing to take on contract work. For technology leaders and hiring managers, hiring on a contract basis will probably become the norm, at least in some instances. We’d like to hear from you. What is your IT staffing strategy? Will your organization be hiring more contractors versus full-time employees in 2011? What factors are driving your hiring decisions?

In the past year, there’s been a growth in hiring contract workers. Employers who need to fill positions but are still uncertain about the economic recovery may be more inclined to hire contractors because it frees companies from making long-term commitments in uncertain times.

While hiring contract workers may be advantageous for the employer, what about the job seeker? With unemployment still hovering around 10% in Georgia, many IT professionals who are out of work may be finding it difficult to quickly land a permanent job that pays well. Unfortunately, many of the unemployed do not or will not consider contract work. But being a contractor has its benefits. Here are 10 reasons why you should consider a contract job in today’s uncertain economy.

1. Taking on contract work can be a good opportunity in any economy. Job seekers having difficulty finding perm work can more easily find a contract position. Work with a reputable IT staffing firm (like Agile) to find contract jobs that will help further your career during this transitional period.
2. Earn more money during the transition from unemployed to permanent job. Contractors typically earn more per hour – about 15 percent more – than perm employees. Why sacrifice going without cable, eating out at your favorite restaurants or shopping when you can earn a great paycheck as a contractor?
3. The employer gets to audition for you. Taking on a contract job is an opportunity for the job seeker to get to know the employer and determine if the culture is a good fit. If it’s not, then you are free to leave once the term of the contract expires.
4. Contracting is a resume builder. As a contractor, you’ll most likely learn new skills and get exposure to a variety of technologies, industries, cultures, and responsibilities. And a contract job offers current experience for your resume which can ultimately lead to a full-time role elsewhere.
5. Variety is the spice of life. IT professionals choose contract work over a perm position for many reasons: freedom to choose assignments, exposure to more employers, better pay, and opportunities to learn new skills. Contract jobs can take the “ho-hum” out of the traditional office setting by providing more flexibility and job diversity.
6. Prove yourself and you’ll be rewarded. When you do a bang-up job for the client company, your IT recruiter will want to keep you happy by making sure there are future opportunities. It’s also likely your staffing firm will be able to place you in a perm position when the right one comes along.
7. Contracting is a terrific networking opportunity. Think of contracting as a very special networking event where you get to rub elbows with people who work with you and know how valuable you are. Take advantage and meet as many key people such as department heads, supervisors, executives, HR, and others with influence within the client company.
8. Take time off when you choose to. When you become a contractor, you typically know when a job begins and ends. Because of this, you have more flexibility and control over how much time to take off in between gigs. Imagine working on a six month project and then having the opportunity to relax on a beach for an entire month or two – depending on how well you’ve been able to save the extra money you made as a contractor!
9. Benefits. Despite the notion that only full-time employees receive benefits, staffing firms like Agile offer its contractors benefits like medical, dental, 401K and life insurance. If benefits are important, talk to your recruiter before beginning the job search to ensure the staffing firm has you covered.
10. When one door closes, another one opens. If you’re not offered a permanent job when your contract assignment ends…don’t worry; there will be more opportunities. Keep your recruiter in the loop and communicate with her on a regular basis. In the meantime, ask the client company for a reference. Leave the client company on good terms – you never know when an opportunity there might open up. And keep in touch with your boss. Remember, you can never network too much!

If you’re currently looking for an IT job, keep an open mind and consider working on a contract basis. Working on a contract basis can be exciting, rewarding, and educational. In fact, you may enjoy it so much that you won’t want to go back to the traditional “perm” job ever again.

With the technology industry slowly creeping out of the recession and growth of IT jobs continue during the first half of 2010, IT consulting firms like Agile are spending more time talking to IT job seekers who are faced with multiple job opportunities. This mix of opportunities now includes permanent positions and contract jobs.  While many IT professionals are familiar with these options, some have never had to consider different employment scenarios and are uneasy about choosing what option is best for them.

Here’s a quick summary that will help you understand some of the pros and cons of contract and permanent employment.

Full-time employee (FTE) is also referred to in the recruitment industry as a “perm” job.  Many HR departments are now using the term “direct hire” in place of “perm.” There are many reasons people like being FTE. First, people are more comfortable with this option because that’s all they have ever been – full-time employees. It’s simple: you are hired to work a certain number of hours a week and in return, you are paid a salary or hour wage. An FTE may also receive other monetary compensation such as bonus, commission, 401K matching, pension, or profit sharing. In addition, an FTE receives benefits including: paid medical, dental, and vision insurance, long and short term disability, paid vacation and holidays, and more. In the event of a company lay off, a full-time employee may also receive a severance package and will qualify for unemployment insurance when the severance package expires. When considering the entire compensation package offered to FTEs, it’s understandable why IT professionals choose this employment option.

W2 hourly contract employment is another popular choice within the IT industry for a variety of reasons. There is a perception that a contractor can make more money when paid for their skills as an hourly worker versus being paid a flat wage/salary. Since a company doesn’t typically hire W2 hourly contractors – due to running a serious risk of violating co-employment laws – IT contractors are normally hired and paid by an IT recruitment agency. As a contract employee, the IT employment agency is the employer, and as such, provides additional benefits (other than a steady pay check) to the contractor. For example, Agile offers contract employees benefits including basic life and personal accident insurance, short-term and long-term disability, flexible spending account, 401K, and pre-paid legal services. One key consideration to becoming a contractor is that you will only be hired for the length of time required by the IT recruitment agency’s client. This arrangement may or may not be an attractive alternative when taking into consideration the following:

• You will not receive regular performance reviews or promotions;
• You may have the opportunity to continuously work with new and exciting companies and technologies;
• You may be exposed to a variety of corporate cultures and a larger, more diverse professional network;
• You don’t have to get involved in office politics;
• You have the assurance that the recruitment firm has a personal interest in keeping you happy and employed on a long-term basis (the firm gets paid only if you are working).

In essence, working as a contractor is a lot like being a FTE without being tied to one particular company for an extended period of time.  Contractors get paid on a regular basis (weekly, bi-weekly, monthly), are provided with company benefits, and qualify for unemployment benefits if the contract is terminated for reasons other than performance.

Choosing to become an Independent Contractor is an alternative to the W2 contract employee. The independent contractor is typically an IT professional that has incorporated (owns a business), and either contracts directly with a company or sub contracts with an IT consulting firm (much like the W2 contractor option above). Those who have an entrepreneurial spirit tend to become independent contractors because they have the sense of being their own boss, and enjoy managing the day-to-day business. There may be tax advantages, but there is also greater risk involved with being an independent contractor. You are the business in this scenario, and you take on all responsibilities of the business including sales, marketing, billing and collections. It takes a certain kind of individual to succeed as an independent contractor.

Of course, this is just a glimpse of the employment options available to IT job seekers. If you’re thinking about alternatives to the traditional FTE, do yourself a favor and get more information before making a final decision. Talking to an IT recruiter you know and trust is a good place to start. The recruiter will help you to think objectively and consider all of the issues so that you can make an educated decision as to what type of employment will work best for you.