Welcome to our mid-year round-up of the local tech market, covering trends, activity and a general view of what we’ve been seeing out there over the past three months. We hope that this update finds you all well and look forward to chatting with you over the coming months.Please don’t hesitate to get in touch with us if you’re looking for any information on salary surveys, role positioning, specific market intelligence or similar. We’re in a unique position to watch the market as it evolves and are always happy to share these insights. General CommentsFrom a client point-of-view, the past three months have seen activity on an almost unprecedented level. This has been broad across both the contract and permanent markets and has touched on almost all role areas, though with a particular emphasis on project resources for Software Development and Business Applications delivery projects. The market for Business Analysts, Software Developers and Systems Analysts has been extremely competitive, and contracts have been a flow-on effect from employers unable to secure these candidates on a permanent basis.A change from other periods of busyness, we have also seen a number of clients recruiting in volume. While through 2020 and early 2021 we saw many clients going through rightsizing exercises – reviewing and reorganising team structures – now seems to be the season of growth. We are not seeing any signs of this letting up, taking just as much activity into the next quarter. Activity seems to be driven by business improvement projects, including opportunities to grow and diversify, shore up existing systems or introduce new products and services to market. Candidate movements and motivationsFrom a retention perspective, we are seeing a relatively high level of staff retention, meaning recruitment is coming from those relocating from within New Zealand, such as people moving from permanent roles to contracting, expats returning to New Zealand, and in smaller numbers, those who perhaps had alternative plans such as travelling pre-COVID-19 and are now resettling into the local market.We are certainly noticing that candidates that are moving off into new roles/new companies are carefully considering their options. They are feeling ready for a new challenge and are still seeking stability, interesting project challenges, work/life balance and growth opportunities. With a market that has offered little in the way of significant growth or exceptional projects over the past two years, this has been the main impetus for change. Salary levels remain fairly stagnant and are not a driving factor for candidates. Market trendsFrom an employer point of view, there has been a continued focus on developing and retaining tighter, more collaborative teams by promoting a strong internal culture. We are not seeing candidates who have been affected by restructuring and redundancies at present, and those that were affected through COVID-19 have well and truly been redeployed and are now enjoying interesting and challenging work with their new employers.From a contract perspective, BAs can afford to pick and choose, with a significant number of opportunities available across a variety of sectors and applications. Business Systems, Business Process and Software Development BAs have all been well catered for and we have really struggled to keep up with demand. Where our preference is to always use contractors we have an ongoing relationship with, we have had to grow our pool quickly to keep up with the demand from the market.We are continuing to grow our footprint in the Auckland and Wellington markets and are certainly seeing similar levels of activity in those markets. There appears to be a very strong post-COVID-19 bounce-back, with businesses rapidly accelerating their business improvement projects. Within Sourced WallsIt was lovely to see another settled quarter with the team. We are all thoroughly enjoying having Archer, our office dog, onsite, and agree that the wellness benefits of having a furry friend available are outstanding! Otherwise, we continue to enjoy an office environment that is fun, high-energy, motivated, but mostly just really engaged. We’re not corporate; we’re a family business, and we really have developed that culture internally. Who’s in DemandIn terms of candidates in demand, BAs, Technical Analysts and Systems Analysts are sitting right at the top in both a contract and permanent capacity.In the permanent space, recruitment has largely been geared towards the Business Systems and Software Development/Applications side, with a below-average demand for Project and Programme Managers and continued demand for Developers. Infrastructure roles have been busier than usual, however, the activity is spread over a small number of employers.As we have seen for some time now, there has been very little movement in the Management/Team Leader space. We have observed a very low number of Management/CIO roles coming to market; however, this was to be expected given the amount of movement and roles emerging in 2018.On the contracting side, we are very heavily geared towards Business Analysis and Software Development (in far smaller numbers), with BI and Data Engineering requirements also coming into the frame. Requirements have been driven by projects of significant scale kicking off, as well as additional resources needed to get work across the line and to cover periods of absence. It’s definitely a contractor’s market right now, however, this is stifled by the lack of resources to keep up demand. General Round-UpCandidates have the upper hand in the current market, should they want it. Unfortunately, this candidate’s market coincides with a high level of staff retention, so we’re having to be really creative with how we entice new talent into the market, from within the country and offshore. We continue to watch the border situation with interest but are realistic that this is not likely to change in 2021.Work/life balance, learning opportunities, growth and development, and a positive work environment continue to sit at the top of candidates’ wish lists, with salaries still remaining static.We look forward to keeping you abreast with how the year evolves! In Case You Missed ItOver the last quarter, we’ve written some new blogs. You can find them below:6 Business Analyst Interview Questions and Tips for Answering Them Whether you’re a seasoned pro or rookie Business Analyst, our top BA interview questions will have you prepared and ready to impress during your next job interview. Make sure all bases are covered so you have the chance to shine!How to Create a Job Offer that Gets a “Yes” In the highly competitive technology space, top talent can take their pick of job offers. That’s why it’s imperative your offer is so compelling, your ideal candidate just can’t say no. Consider these tips to help you craft an offer that’s too good to refuse.
