Hiring to Hold Steady in 2017

With the inauguration of the next U.S. president less than three weeks away, the latest employment survey by DHI Group Inc. notes no changes in hiring plans for the year when compared to the firm’s semiannual survey released in November 2016.

At that time, employers signaled more cautious hiring plans than in previous surveys. DHI provides data, insights and employment opportunities via service arm Dice, the career hub for IT professionals.

Despite the looming uncertainty about President-elect Donald Trump’s impact on the U.S. economy, the latest DHI survey supplement reports that 77 percent of employers said that their hiring plans were unchanged and 12 percent anticipate more hiring on the horizon related to Trump’s election.

Thirty-five percent of survey respondents anticipate an improved economy with the incoming president, while an additional 19 percent expect tax reform for corporations to have a favorable effect.

The incoming president also raised concern for some hiring managers who expect a decrease in hiring driven by the election (11 percent) while another 26 percent expect immigration reform and reduced availability of skilled labor in the U.S. to take a hit on hiring.

“Tech is an industry that is consistently in need of highly skilled talent and will source far and wide to ensure the best talent is hired,” said Michael Durney, president and CEO of DHI Group. “Having the ability to recruit from the widest talent pool is a key driver of the ability to innovate for companies with tech needs. We’ve long said programs like H-1B visas are necessary as long as companies are not exploiting the system and the program is leveraged as intended, which is to bring access to the best and brightest to American employers.”{ad}

According to DHI, employers continue to have a tough time finding top talent. Eighty-three percent of companies have employee referral programs, yet these efforts yield low results — with fewer than 10 percent of new hires coming from referral programs.

The biggest draw for new hires is compensation, but companies still have to do more to attract millennials, such as improved company brand and culture, which work together to drive and retain talent, the company stated.

More than one-third of hiring managers or respondents in the DHI survey noted that they offered higher compensation packages in 2016 compared to 2015. The overall company bonus pool was mostly unchanged for tech-focused recruiters and those who recruit a variety of professionals. For those employers with higher bonus pools, the majority, or 64 percent, said overall firm performance was the main driver, followed by department performance (14 percent) and a shift to more incentive-based compensation (14%).

The current survey was conducted between Nov. 16 and Dec. 12, 2016, targeting companies across the U.S. There were 224 respondents.