A new UK survey finds that IT staff turnover is increasing, and so is the demand for both intranet and Internet development which are amongst the highest IT skills in demand. Also in high demand are business analyst skills... no doubt needed for project planning and aligning IT with business goals (something that is sorely needed in too many organizations; though consultants like myself can’t complain).

IT staff turnover, recruitment and retention problems and skills shortages have all increased over the past year according to respondents to this year's National Computing Centre Benchmark of Salaries and Employment Trends in 2006. The independent annual survey reveals:

Greater staff turnover

The rate of staff turnover over the past 12 months (staff leaving as a percentage of staff in post) was 12.0%, a significant increase from the 9.4% reported in last year's Benchmark. Systems and support staff joining respondents' organizations also increased from 12.0% to 13.1% of staff in post.

Shortages

• Perceived shortages for all systems and support staff were slightly up on last year at 5.2%, but over 25% of the respondents identified specific recruitment or retention skills over the last year (up 5% on last year).

Projected demand in decline

• 41% of respondents expect their IT staff numbers to grow over the next two years, with 41% expecting numbers to remain the same. Last year more than 50% predicted increase in IT staff numbers. The most rapid growth is forecast by small IT departments and by those in the IT Services sector.

New skills in demand
26% of respondents identified specific IT skills for which they had encountered recruitment or retention difficulties (up from 20% last year), whilst a further 26% of respondents identified a requirement for new skills over the next 12 months. Prominent amongst the new skills were .NET and Java development skills, Windows 2003 Server, VoIP, and business analysis skills.

Significant numbers of respondents are seeking business analysis skills over the next twelve months and these tend to be recruited rather than trained in house.

Managing Director of NCC Membership Services, Stefan Foster said, "Last year's Benchmark reported an upturn in most IT labor market variables and in the short term it would appear that this situation is continuing. The only indicator that has fallen since last year is respondents' expectations of future IT staff requirements."

Stefan continued, "It looks like the dust will begin to settle on the labor market by next summer, but watch out, with certain skills such as internet and intranet development, demand will be high, so put your recruitment plans together now - or risk a fight for skilled staff later in the year".

"With many organizations implementing Voice over Internet Protocol technologies (see NCC's Benchmark of IT Strategy 2005) it is no surprise that skills in this area are highly prized."

The Benchmark of Salaries and Employment Trends in IT is based on an annual survey of the IT labor market, carried out by the National Computing Centre. The Benchmark published in December 2005 covers: salary increases, fringe benefits, bonus payments, staff joining and leaving, shortages and predicted growth in demand, new skills requirements and recruitment and retention problems. The analysis is based on an aggregation of the responses from 383 organizations, which provided salary and employment details for 9,346 staff. The main analysis variables used in the report are: industry sector, geographical area and department size.

The Benchmark report can be purchased at the NCC online store (£330).

Analysis

For those hiring people, it means the cost of hiring has just gone up. It’s becoming a sellers market once again for skilled IT and business analysts. If you’re looking for a job, then the future looks bright.

If you have an intranet job that needs filling send it to me I will post (no charge) jobs daily (about 1,000 intranet minds a day are reading this site and readership is growing fast).