Quarterly Market UpdateIT & Telecommunications Recruitment

June/July 2015

corporate solutions

Contents

Spotlight on: What do jobseekers value most? 1

Denmark 2

Germany - North 3

Germany - South 4

The Netherlands 5

Norway 6

Sweden 7

Switzerland 8

The United Kingdom 9

Contact 10

Spotlight on: What do jobseekers value the most?

150 IT and telecommunications professionals were surveyed to discover the most important factors when choosing a new employer:

Company Brand

Challenging Job Content

Career Progression

Job Security

Competitive Salary& Benefits

Flexible Working

Work/Life Balance

Working Atmosphere

Travel Opportunities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

As expected, those surveyed rated Competitive Salary and benefits as the most important factor, but challenging job content came in at an extremely close second. Over the last 3 months we have seen many candidates drop out of the recruitment process due to job responsibilties not meeting up to original expectations.

We were surprised at the results for ‘company brand’ as we have seen an increasing number of candidates who, having gained their experience at an SME, decide to move roles to join a larger, well-known, company.

1

Denmark

“In addition to finding candidates with these niche skills, employers are also keen to secure individuals with a strong cultural fit to ensure longevity of their hire in such a competitive market, as such; many are offering attractive counter-offers to those looking to move on.” 2Denmark is one of the top locations in the world for ICT activities and investments and is praised as the best test market in the world. As a result we have seen an increase in new tech businesses that are looking to place investment into talent acquisition to support their growth.

Dubbed as Europe’s newest Silicon Valley, Denmark has world-class IT infrastructure with some of the world’s highest ICT penetration rates for mobiles. As a result, the IT recruitment market has become extremely competitive in recent months, with employers competing to attract the best talent in Denmark. Technologists with experience of Angular JS, Node JS, PHP and JavaScript are extremely sought after. In addition to finding candidates with these niche skills, employers are also keen to secure individuals with a strong cultural fit to ensure longevity of their hire in such a competitive market, as such; many are offering attractive counter-offers to those looking to move on.

Salary and remuneration levels have remained static in recent months, but this does not mean that employers are being frugal. Salaries in Denmark are very competitive and businesses generally offer the right level of compensation to attract the required talent. Candidates have fair understanding of what they are worth in the current market so are not often disappointed with offers. Skilled candidates are very often keen to secure a role where they will enjoy autonomy, the opportunity to work with new technologies, and career growth. Employers who offer a pension are also more attractive.

As the market is so competitive, skilled candidates are seldom found in the open market. Therefore, the vast majority of our hires are made by headhunting in the passive market using a variety of professional/technical social networks. Drive is the most difficult trait to find in the open market. Many candidates who are actively looking are those who simply feel that they can earn more elsewhere. We seek those who are driven by the desire to try their hand at something new, and Denmark has more than enough to offer in terms of exciting projects.

We have had a presence in Denmark for the last 4 years and, as a result, have developed an enviable database of skilled technologists. Our team focus solely on this region and in strict technical verticals so many of our candidates are keen to recommend us to colleagues after being impressed with our knowledge and expertise.

Germany - North

“The expectation of applicants to ‘tick every box’ whilst offering salaries that are below the market rate, has proven unsuccessful in securing specialists that are often interviewing with 3/4 companies at the same time.”

Whilst candidate expectation of remuneration remains on par with the market average, many SME’s are losing skilled, experienced individuals to big-named businesses. The expectation of applicants to ‘tick every box’ whilst offering salaries that are below the market rate, has proven unsuccessful in securing specialists that are often interviewing with 3/4 companies at the same time. Candidates with niche skills within front-end frameworks, have proven to be particularly elusive over the last few months. These skilled professionals are more than aware of their worth in today’s competitive, candidate led market. However, they are not demanding inflated salaries; they are more enticed by relocation packages and city travel cards. The desire for a healthy work-life balance remains a constant. Candidates have been lured to competitors who are offering flexible working opportunities.

For many of our candidates, a new challenge is the reason for dissatisfaction in their current role. A position with a variety of responsibilities and challenges is often more of a ‘deal-breaker’ than an higher salary. We have also seen many individuals, who have gained skills and experience with SME’s, keen to move to a larger, more corporate working environment. To help fight the war for talent, we have been able to use our extensive, Pan-European networks and database to encourage professionals from around Europe to move to Germany. Higher salaries, a well-established infrastructure and advanced technical development teamed with excellent healthcare and education means that Germany can offer a higher standard of living to many skilled individuals and their families. To encourage this, many of our clients are becoming less insistent on only considering German speaking candidates, especially those based in Berlin. Dubbed by some as Silicon Allee, Berlin’s startup community is fueled by an increasingly international, hip population. However, This avenue does come with its difficulties; some of those with hopes of relocating to Berlin have experienced struggles obtaining a VISA or securing suitable employment for loved ones.

Over the last few years there has been a consistent increase in the number of small start-up organisations looking to place a substantial investment into talent acquisition to support the growth of their fledgling businesses. Over the last 3 months, much of this investment is being focussed on hiring Big Data professionals with experience in Hadoop, Scala and NoSQL.

Within the booming E-commerce space we are also witnessing an increasing demand for PHP and JavaScript developers who can offer the competitive edge in an aggressive market. As a result of the fast growing, ever evolving technology market in Berlin, there has been an influx of individuals, notably software development freelancers, who are looking to secure their first contract role outside of their hometown and enjoy the international, eclectic culture that the region has to offer. Due to the demand in the market for these skilled individuals, those with a high proficiency and experience in their arena, such as senior developers, can command much higher salaries. Remuneration for junior and mid-level candidates has remained static in recent months as they are more readily available and somewhat easier to find.

PHP

HADOOP SCALA

NoSQL

3

Germany - South - Bavaria

4

Last year, the European Commission’s Joint Research Centre released a report called “Mapping the European ICT Poles of Excellence” and Munich was named above all other tech scenes, followed by London’s eastern quarter and Paris. As a result of such market growth, many of our clients are looking to increase headcount to support key projects. Attrition has also been a problem for many businesses who are up against fierce competition in a talent short market.

Over the last few months, there has been a distinct lack of available talent in all areas of web development and those in the field of ‘Big Data’ have been in particular demand, as well as those with experience of Java, JavaScript and PHP Our clients have been finding it increasingly difficult to find a strong cultural fit in combination with the technical requirements for their businesses when the available talent pool is so limited.

Many strong applicants are receiving offers from multiple organisations, so niche experts are enjoying remuneration packages that have increased dramatically in the last few years. Despite the salary inflation in the region, many junior candidates, or those with a less experience of the sector, are still becoming disappointed during offer stage as they expect an even larger base salary that what they are offered. In recent months, many technologists have been encouraged to move roles for the opportunity to work in an innovative environment, training and development packages and flexible working schemes.

There has been a noticeable increase in the number of Eastern European candidates who are looking to move to Bavaria, especially those in the Software Development area. The chance to move to an area that has such a booming technological economy, and a very high quality of life, is very enticing indeed, including the fact that in Germany overall we are lacking around 40.000 specialists alone in the ICT Sector. In the Mercer Quality of Living Survey 2014, Munich was ranked, again, as the most attractive expatriate hotspot around the globe. Most organisations in Bavaria, however, require all applicants to speak fluent German and this has posed quite a problem for recruiters in the region.

At Darwin, we have over 120 specialist consultants who work within a strict recruitment framework split by geographic region and technical vertical. We have a database of over 250,000 skilled technologists and each specialist consultant has a strong presence on a broad range of professional/technical networking sites.

“The chance to move to an area that has such a booming technological economy, and a very high quality of life, is very enticing indeed. In the Mercer Quality of Living Survey 2014, Munich was ranked, again, as the most attractive expatriate hotspot around the globe. Most organisations in Bavaria, however, require all applicants to speak fluent German and this has posed quite a problem for recruiters in the region.”

Over the last few years, we have seen a large number of international businesses opening their European IT departments in The Netherlands, in order to attract the right talent from around Europe. The Netherlands is extremely international and multi-cultural and almost everybody speaks English. The infrastructure is great, and Knowledge Migrants will be eligible for a 30% Ruling Tax benefit. As a result many skilled professionals from Southern and Eastern Europe are keen to relocate.

However, for many clients, the move to The Netherlands has generated some difficulties in finding the right individual. The struggle to find the right cultural fit teamed with difficulties negotiating the right package in a new geographic region, mean that many employers are finding it increasingly difficult to grow their teams, especially when candidates with niche skills are proving ever elusive.

Many of our clients are keen to replace their existing contract workforce with permanent staff, but again, skilled, experienced individuals are very difficult to find, alongside a demand for a strong cultural fit. With Cloud Security being such a hot topic over the last year, many of our clients are implementing new cloud technologies. Candidates with Microsoft MCSE, VMware VCP and Citrix CCEA certifications are in high demand.

Training and development remains and key driver for applicants with the opportunity to learn new, state-of-the-art, IT systems becoming a strong selling point for employers.

Over recent months, we have seen an increased number of candidates pulling out of the recruitment process by accepting a counter-offer from their existing employer. As many individuals were considering a relocation for their new role, an enhanced salary offer has outweighed the allure of a new role with exciting prospects, especially when they have a family to consider.

As always, skilled, experienced technology professionals are difficult to find, but there has been significant increase in the demand for candidates with Python, Perl and Java in particular. There is a huge demand, also, for DevOps professionals. These candidates cannot be found easily in the open market, or even on widely used social networks such as LinkedIn. The only way we are able to find these candidates is to build relationships using very niche networking sites and by canvassing our existing database of clients and candidates for recommendations. Headhunting in a super-passive market is always difficult, and Employers need to consider this when calculating their salary and benefits packages.

5

The Netherlands

“Candidates are becoming dissatisfied during the recruitment process as they have unrealistic expectations of remuneration, but applicants can be enticed by an improved work-life balance. Many candidates express a keen interest in roles that offer flexible working, or the potential to work from home.”

We have seen salaries increase by 15% in this region over the last 3 years, but they have remained static in recent months. Candidates are becoming dissatisfied during the recruitment process as they have unrealistic expectations of remuneration. Salaries are expected to increase again later on this year and as we enter 2016, but until then many applicants can be enticed by an improved work-life balance. Many candidates express a keen interest in roles that offer flexible working, or the potential to work from home.

6

Norway

“We are working with a growing number of consulting and in-house technology organisations who are flourishing in the current market and, as a result, are expanding rapidly. These businesses are investing heavily in growing their Application Development and Infrastructure departments”

In recent months, expansion has been the key driver in terms of resourcing for a number of our Norwegian clients. We are working with a growing number of consulting and in-house technology organisations who are flourishing in the current market and, as a result, are expanding rapidly. These businesses are investing heavily in growing their Application Development and Infrastructure departments.

Historically, candidates with proficiency with Java & .NET development languages have always been a skill in high demand throughout Norway, and, as a result, competition is fierce to secure key hires in this arena.

Salaries and remuneration packages has remained relatively static in Norway over the last few months, and indeed the last 2-3 years. Candidates’ expectations of salary are in line with what our clients are offering. Whilst applicants are, in most cases, happy with the salaries offered, many are enticed by employers who offer training courses and certifications that allow them to up-skill. Challenging job content is also a very common pre-requisite.

We often work with candidates who are based throughout Europe but are keen to relocate to Norway. This number has increased further in recent months. Norway is an extremely family orientated country and offers many excellent opportunities to enjoy the outdoor lifestyle; skiing, fishing, etc. They also pay some of the highest salaries in Europe. However, the ability to speak the Norwegian language is a pre-requisite for most employers. We are also working with an increasing number of Norwegian nationals, who have previously relocated and are looking to return.

In recent months we have made an increasing number of placements in the EpiServer space. This is a very tough skill set to find, and there are hardly anyone possessing it who are actively looking for a new role. In the past few months we have had to tap into our talent networks in Sweden & Denmark to find those with this, and other niche skills, in order to meet demand.

The Norwegian recruitment market is very passive in nature, with the strongest candidates inactive in the open job market. As such, a consultative approach is required to reach out to the passive market. Our consultants interact with skilled technologists via ‘Meet Up’s’, professional/technical online network sites, and our extensive in-house database to engage with professionals who are open but not active.

Over the last 3 months, we have seen many clients dramatically enhance their hiring strategies as a result of winning a number of new client/projects that need to be staffed quickly. Due to our strong local networks we have been able to provide excellent service in these situations.

Sweden“Due to the dynamic nature of the technology market in Sweden, if an employer is not providing an exciting working environment and challenging job content then the candidate is very likely to move onto the ‘next big thing’ very quickly.”

7The Swedish IT and Telecommunications recruitment market is, as a whole, extremely dynamic. The most talented individuals are constantly moving on to the next challenge to gain skills and experience. This, teamed with a large number of businesses growing and expanding to keep up with technical developments, new products and competition, means that the most skilled candidates are in high demand. Over the last three months we have seen a steady demand for candidates that have Java, .NET, JavaScript and mobile skills. Cultural fit is also extremely important to Swedish employers; even the most skilled ‘coder’ will be unsuccessful at interview if they are not deemed to be a team player. Swedish employers also have a very high preference for candidates to be based on the ground in a near location to the company, as they do not see the value in bringing candidates from outside of Sweden.

Since the upturn in the economy, Swedish salaries have remained stable. However, in the last 3 months we have seen more flexibility from employers. If a skilled candidate comes along, who is also a strong cultural fit, then hiring managers have the flexibility to overpay to ensure that they do not lose out. This is also a testament to how fierce the competition is between employers in Sweden to ‘win’ the best talent.

Most applicants have a solid view of market rates in terms of salaries. However, should a candidate wish to explore a new challenge, it is often difficult to meet remuneration expectations if their current employer paid an inflated rate to secure their services in the first instance. Most applicants cannot be swayed by any additional benefits. As long is an employer is offering a competitive base salary along with the standard benefits; healthcare, pension etc, they are satisfied.

Challenging job content has always been the biggest driver for IT professionals in Sweden. Highly skilled candidates desire a challenging environment using the latest tech stacks, working on exciting projects. Due to the dynamic nature of the technology market in Sweden, if an employer is not providing an exciting working environment and challenging job content then the candidate is very likely to move onto the ‘next big thing’ very quickly. In order to retain these individuals, counter offers are a huge part of Swedish employment culture.

Over the last few months, we have found that the toughest talent to find are those with experience using Python. Although this is predominantly a ‘widely underused’ technology, there are still a number of businesses using the stack, but candidates are moving away from this, favouring newer methods and technologies. Big data specialists are also a rarity in Sweden, but through our extensive networks, we are starting to see new talent filtering through. Applicants that are proficient in the latest JavaScript frameworks are also in high demand; this is a dynamic and ever-changing technology so our competitive client base all seek the strongest professionals in this arena.

Due to the competitive nature of our technology clients in Sweden, we receive requests for candidates with skills within new frameworks month on month. To meet demand, we have to ensure that we utilise strong relationships on the bigger social networks, such as LinkedIn, as well as the lesser-known, niche sites that are specific to developers. These, teamed with our extensive database and a range of advertising channels, help us source the most talented individuals on the market.

8

Switzerland“For those businesses that have a predominantly international client base, hiring has been put on hold. The Swiss exchange rate has had an adverse effect on trading costs and a knock-on effect on resourcing.”

Over the last 3 months, our Swiss clients have been concentrating their resourcing efforts on expanding their existing IT departments, and moving into previously unexplored areas of technology. This is the case for larger organisations, as well as smaller start-ups and SMEs. Competition is fierce to attract those with niche key skills so that they keep up with attrition, as well as trying to expand, are common problems across the board.

However, for those businesses that have a predominantly international client base, hiring has been put on hold. The Swiss exchange rate has had an adverse effect on trading costs and a knock-on effect on resourcing.

For the vast majority of organisations, expansion has been focused on securing talent within the Mobile, Front End and UI/UX technologies. These skills are in particularly high demand, especially in the ecommerce space. Alongside our client’s further growth in the world of mobile and web technology, comes an increasing need for specialists within Cloud Computing and Security.

Finding talented individuals with multiple language skills is a constant challenge, as well as securing a skilled technologist who is a strong cultural fit for a business. Many of our candidates, who possess the aforementioned skills and experience, are often interviewing with multiple companies, so those hiring teams who move the quickest through the recruitment process are prevailing.

As a whole, salaries have remained steady since the turn of the year. However, they can range from company to company, with some paying above the market average. This can be particularly problematic for our consultants as the majority of our candidates are sourced from the passive market. If a current employer is the one who offers higher remuneration, it is almost impossible to entice an employee to move roles. Skilled technologists can be swayed by a good company/team culture, career progression, challenging projects and training opportunities. For those looking to relocate to Switzerland, poor online research has often led to inaccurate salary expectations.

In a candidate led Swiss recruitment market, those with experience of MS Lync, CCIE Certified Network Engineers and SQL Server Specialists have been in particularly high demand in recent months as well as those with C++ and Embedded Linux skills. These candidates are predominantly inactive in the open market. Our consultants operate solely in Switzerland, in strict technical verticals. As a result, they have large networks on multiple professional/technical networking sites and access to a database of over 250,000 skilled technologists.

Over the last 3 months, we have seen a definite increase in recruitment activity amongst our UK clients. Many of organisations are pushing forward with strategies to hire technical experts, whilst trying to remain commercially competitive. An improving confidence in the UK economy and a better global economic outlook, partly linked to the Eurozone monetary policy and certainty over the UK election, has contributed to the willingness to expand.

In some larger organisations such as Warner Music, where amalgamations, buyouts and takeovers have recently taken place, the focus on maximising the scope of the incumbent workforce has superseded further recruitment.

With many businesses being at the cutting edge of innovation, competition is fierce and the issue of IP and NDA’s within the contractor community is a thorny one, and one that could create friction between the employer and the workforce.

As a result of the high number of skilled candidates available in the UK market, salaries have stabilised in recent months. Having canvassed professionals across the typical skillsets; Java, C#, .Net, SQL and Windows Server, salary expectations are on par with those offered by employers in the last 18 months. However, key questioning of a candidate’s salary and how it is built will be key to managing expectations moving forward.

In terms of benefits, skilled candidates are driven by exciting projects and career learning. There has also been a particular interest in flexible and remote working. Candidate hesitancies are usually based around commuting distances (hence the interest in flexible working) and the amount of personal investment they can expect from an employer. Following an increase in the number of small start-up organisations who are focussing on talent acquisition, many applicants are concerned over the stability on their position in a fledgling business.

At Darwin, we are very proud to announce that Simon Ebdon has joined us as the Director of our UK business. Simon brings with him over 15 years of recruitment experience with Hays, Modis, Abraxas and The Morgan Partnership.

9

The UK“With many businesses being at the cutting edge of innovation, competition is fierce and the issue of IP and NDA’s within the contractor community is a thorny one, and one that could create friction between the employer and the workforce.”

Experienced individuals with ‘Big data world’ skills have been in particular demand in recent months, especially candidates with competence on Java platforms, and those with storage and extraction technology skills such as Hadoop, Mongo and No SQL. There is also a constant need for professionals within the DevOps environment, imaginative Front End Developers, and those with strong JavaScript and HTML5 experience who create beautiful, dancing webpages!

As we move further into 2015, we have seen a steady stream of skilled candidates on the market. However, attracting technologists who are able to understand code beyond the ‘plug and play library’ remains a challenge to our clients. Applicants with skills that dive deeper than the software repository are in constant demand, and clients have a particular interest in those with Scala, Python, Erlang and real time, low latency Java.

Contact UsDarwin RecruitmentCumberland House129 High StreetBillericayEssexCM12 9AH

+44 (0)1277 637 970

info@darwinrecruitment.com

www.darwinrecruitment.com

Darwin Recruitment B.VLevel 15B Tower, WTCStrawinskylaan 15371077 XX, AmsterdamNederland

+31 (0) 20 30 500 65

info@darwinrecruitment.com

www.darwinrecruitment.nl

Darwin Recruitment AGBeethovenstrasse 478002 ZürichSwitzerland

+41 (0) 4150 62900

info@darwinrecruitment.com

www.darwinrecruitment.ch

Darwin Recruitment GmbHMünchen, Fünf HöfeTheatinerstraße 1180333, München Germany

+49 (0) 8971 042 2140

info@darwinrecruitment.com

www.darwinrecruitment.de

10

Darwin Recruitment BelgiumKievitplein 20 - c122018 AntwerpenBelgium

+32 (0) 3808 1770

info@darwinrecruitment.com

www.darwinrecruitment.be