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This article was featured in the September, 2005 issue
of the Technology First Magazine.
Dayton, OH
September 13, 2005 -
By Angela Richardson, IT Recruiter,
Roytman Information Services, Inc.
There is little doubt that over the past several years, the
economy has had a negative impact on nearly all sectors of
the work force. However, few fields have experienced as much
turbulence as the IT sector. In a relatively short period
of time, technical recruiters went from negotiating high dollar
salaries, sign-on bonuses and relocation packages to having
very few positions to fill. The economy has been improving
and along with it the demand for IT talent is steadily increasing.
However, some of the perks of a highly competitive market
are making a slow come back, with relocation assistance being
among them. If you are interested in relocating, you will
need to consider the pros and cons and prepare yourself for
the challenge.
Although the IT job market is not what it was in the late
90’s, we are seeing many indications of improvement.
The Bureau of Labor Statistics reports that the unemployment
rate has been trending downward since February, 2005 when
it was 5.4 percent; it decreased from 5.1 percent in May to
5.0 in June. Job growth is most notable in the area of professional
and business services. Additionally, technical recruiting
firms are increasingly active. According to over 12,000 IT
professionals who participated in a survey conducted by Information
Week earlier this year, 41% percent of IT managers and
33% of IT staffers have been contacted during the past year
by a recruiter regarding a new position.
 Local
talent unavailable - look elsewhere ...
Another indication the IT job market is becoming more competitive
is many companies are now advertising their positions as being
open to candidates outside of the local area. This is certainly
a sign of improvement. In the recent past, job advertisements
were resulting in such a high volume of response there was
generally no need to look outside for qualified candidates
with the only exceptions being positions requiring highly
specialized, unique skills. However, unlike the days when
the IT talent search was at its peak, most companies in the
Southwestern, Central Ohio and surrounding areas are still
generally able to find local candidates to fill their IT positions
and are not compelled to incur the expense of relocating an
employee. In the last 18 months, just over 10% of our client’s
openings have included allowance for out-of-state prospects.
The non-local candidates were hired in only 4% of the cases.
These numbers include contract opportunities, which are generally
more open for the out-of-state employees and cannot be considered
a true “relocation”, but rather a temporary living
arrangement. In most cases these employees return home upon
the completion of the assignment.
What inspires employers to go out of town for the
next hire?
There are typically two factors that motivate companies to
consider bringing a non-local employee on board: (1) skills
and (2) location.
1) The need to find a true expert can drive the demand to
consider all candidates no matter where they reside. A hiring
manager may be challenged to install and support a unique
software application, or the job may require an understanding
of an industry specific standard, or the company may be challenged
to stay on top of technological progress. In any of these
situations, one can easily envision an IT Manager running
to the Human Resources Department with desperation in his
eyes, “Please find us someone who knows this system!”
This situation calls for the HR department to mark the “Open
for Relocation” box on their Job Request form.
2) Another compelling reason to transfer an employee from
out of the area is the location of the company. Smaller towns
in the rural areas have very limited talent pools and often
have to go outside of the region to fill their open positions.
It is actually not as common in the Dayton / Cincinnati /
Columbus triangle. However, if the company is situated outside
of a reasonable commute to one of the larger cities, such
as Washington Court House, Bellefontaine or Lima, it is not
always easy to fill positions (including the openings with
minimal qualifications requirements). Additionally, when a
company is trying to fill a need in a remote satellite location,
i.e. their Nebraska plant with the closest airport being almost
4 hours away, they are motivated to search outside of the
local area.
Although these are some compelling reasons for companies
to recruit non-local employees, when one looks at the numbers,
you can see why they try to avoid the cost of relocation.
According to the Employee Relocation Council, the average
cost of relocating a home owning new hire in 2003 was slightly
over $50K if you include the cost of selling a home. Many
companies keep relocation cost down by not offering assistance
in the sale of a home as part of the package. However, it
is not difficult to see how any amount paid towards relocation
expenses would make a local candidate less competitive than
those who do not seek this type of assistance.
Want to move?
If you do not possess a highly specialized skill set that
is in demand in the area in which you would like to relocate
or if you are not interested in working in a rural area, all
is not lost. However, you may be up for a bit of a challenge
in your search. Following are some suggestions to assist you.
Think outside the box
In searching for a position out of town, try tipping the scales
by expanding your job search beyond your typical full time
position. Search for contract to hire opportunities as well.
Companies are more inclined to bring in a non-local candidate
for a contract period. Once you are “on board”
and have proven yourself to be a valuable resource, a company
will be more apt to hire and justify relocation reimbursement
in lieu of recruiting expenses. Another option is to apply
for a transfer within your current company. Although the expense
of the average current employee relocation is even more then
new hire relocation, the company is more likely to be willing
to incur these costs for a valued employee.
Check the numbers before packing your bags
If you are fortunate enough to find an out-of-town position
through a conventional job search, keep in mind that most
companies do not include the expense of selling a home as
part of the relocation package. It is important to consider
this cost in addition to the difference in the overall cost
of living. In reference to the cost of living, your $50,000
annual salary in Dayton is equivalent to $123,143 in San Francisco,
$158,693 in Manhattan, and $47,836 in Little Rock (according
to homefair.com). This formula includes five major factors
adopted by the Bureau of Labor Statistics: housing costs,
utilities, consumables, transportation, and “other services”.
Many job seekers underestimate the value of additional costs
incurred such as the difference in state and local taxes,
home and car insurance, and even home maintenance and public
transportation costs. Therefore, you need to be sure to consider
all these factors together.
Anticipate that it may take you more time and effort to find
the position that you are seeking outside of your local area,
and be prepared to compromise.  Stay
focused and work steadily towards your goals. Although IT
professionals long for the splendor of the late 90’s,
we are just not there yet. Hang in there, keep up the hard
work and keep your finger crossed. We are moving in the right
direction and soon you will be too!
The Salary Calculator
A $50,000 salary in Dayton is equivalent to:
Manhattan, NY - $158,693
San Francisco, CA - $123,143
Honolulu, HI - $122,661
Chicago, IL - $108,227
Los Angeles, CA - $94,050
Washington, DC - $89,848
Miami, FL - $82,903
Anchorage, AL - $80,811
Atlanta, GA - $67,844
Detroit, MI - $65,644
Las Vegas, NV - $60,972
Cleveland, OH - $59,917
Cincinnati, OH - $55,655
Columbus, OH - $54,485
Lexington, KY - $50,729
Little Rock, AR - $47,836
Fort Wayne, IN - $46,377
* Source: www.homefair.com
(data as of Dec, 2004)
Angela Richardson is a Recruiting Specialist
at Roytman Information Services, Inc., a Dayton, Ohio-based
provider of Career Placement and Consulting solutions in Information
Technology, Management and Engineering. Established in 1995
the company has been growing consistently in a highly competitive
industry. For additional information please visit http://www.roytmanIS.com
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