IT labour market monitor 2016 Netherlands. Developments & opportunities in the IT labour market
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1 IT labour market monitor 2016 Netherlands Developments & opportunities in the IT labour market TM
2 Colofon Executive Search RPO Services IT Search TM Donald Derksen Marko Hol Gerben Bekker Véronique Oonk May Copyright Sterksen and Intelligence Group, The copyright of this report remains the property of Sterksen and Intelligence Group. This version may not be replicated. For publication of (parts of ) this report in media, literature or other forms of publication, permission from Sterksen and Intelligence Group is required. In case of publication, the client must always state Sterksen and Intelligence Group as its source.
3 Introduction Following the 2014 and 2015 edition, we are pleased to present our 2016 IT Labour Market Monitor with information on the current trends and developments in the Dutch IT labour market. The market is changing rapidly: the availability of talent is decreasing in all segments. The number of active job seekers and IT professionals who actually changed jobs has declined since Meanwhile, the demand for IT professionals increased by 28%. There used to be a race for talent, but the current battle shows a market that is completely out of balance, especially where junior and mid-career professionals are concerned. There is only one younger IT professional candidate available for every 13 vacancies, and for mid-career IT professionals, 1 for every 12. Among the senior group, the battle is less fierce, but still, it exists. Moreover, the IT labour market in the Randstad and the southern province of North Brabant is least in balance. We wouldn t like to disillusion you, and therefore, this paper offers you insights into your competition, sourcing facts, employee drivers and employer benefits. We have differentiated between three categories of talent, based upon experience level, to allow you to adjust sourcing strategies and job offer to acquire the talent you want to attract. We trust this 2016 edition of the Dutch IT Labour Market Monitor will be of value to your recruitment practice. Your response and thoughts are appreciated. Feel free to us at info@sterksen.com. Happy reading! Donald Derksen & Marko Hol 3 TM
4 Table of contents Available IT talent is declining rapidly 5 Demand for IT talent has increased immensely in every functional and technical area 9 Extreme shortage of IT professionals is the result of a serious mismatch between demand and available talent 12 Solutions: Campus recruitment most successful in the western and southern parts of the country By sourcing the same small group of people, many employers keep missing unique opportunities How to make an appealing offer: drivers, primary and secondary employee benefits 26 Research justification 31 Intelligence Group & Sterksen
5 Available IT talent is declining rapidly 5 TM
6 Number of IT professionals is increasing, but especially among the small group of self-employed junior and mid-career professionals. Total Supply in Dutch IT labour market 2015 IT professionals with permanent labour contracts 332,000 Junior < 4 years work experience 16,000 Mid-career 4-10 years work experience 66,000 Senior > 10 years work experience 249,000 +9% compared to % compared to % compared to % compared to % 84% IT professionals on Dutch labour market 371,000 Self-employed IT professionals Junior < 4 years work experience Mid-career 4-10 years work experience Senior > 10 years work experience 39,000 2,000 7,000 31,000 +9% compared to % compared to % compared to % compared to % 77% Source: Intelligence Group (2015) 6
7 Total number of active job seekers has declined: IT talent is less actively looking for a new job, except for juniors. Supply of actively seeking a job Permanent labour contract Self-employed 4-10 years work experience 33,000 7,000-17% compared to % compared to 2014 IT professionals actively looking for a new job 40,000 Junior < 4 years work experience 3,000 Mid-career 4-10 years work experience 7,000 Senior > 10 years work experience 30,000-13% compared to % compared to % compared to % compared to 2014 Female Male 7,000 33,000 +2% compared to % compared to 2014 Source: Intelligence Group (2015) 7
8 Total number of IT professionals who changed jobs has declined: less talent has been available for job openings, except for seniors. Mobility in the IT labour market IT professionals with permanent labour contract who joined a new employer 37,000 Junior < 4 years work experience 4,000 Mid-career 4-10 years work experience 11,000 Senior > 10 years work experience 22,000-4% compared to % compared to % compared to % compared to % 11% Self-employed IT professionals with a new appointment 32,000 New assignment at a new employer 12,000 New appointment at a current employer 9,000 New appointment at a previous employer 11,000-20% compared to % compared to % compared to % compared to % 69% Source: Intelligence Group (2015) 8
9 Demand for IT Talent has increased immensely since 2014 in every functional & technical area 9 TM
10 Demand for IT professionals is increasing enormously. Number of vacancies for IT professionals 200, % 180, , , % 140, ,000 80, ,214 +3% 103, % 123, ,705 60,000 40,000 20, Source: Jobfeed (published vacancies in 2015) 10
11 Extremely great and growing demand for software development professionals. Top 10 most relevant IT jobs (number of vacancies 2015) 1 Software engineer 21,355 2 Java developer 3 Php programmer 4.Net programmer 5 Web developer 6 Software tester 7 Programmer c, c++, c# 8 System administrator 9 Manager IT 10 System architect 12,164 10,822 8,837 8,404 6,572 5,737 5,572 4,982 4,439 Top 5 most relevant AND fast growing IT jobs (vacancy growth ) Profession Number of Growth in % vacancies Software engineer 8,408 54% 2 Information analyst 3,234 59% 3 IT security specialist 2,252 64% 4 Team leader programming 1,545 51% 5 Java programmer 1,515 73% 11
12 Extreme shortage of IT professionals as a result of a serious mismatch between demand and supply 12 TM
13 Battle for talent takes place at every experience level. Especially when sourcing junior and mid-career IT professionals. Junior Mid-career Senior???????????????????????????? Available talent: 2,000 Job vacancies: 23,000 Supply versus demand: 1:13 Available talent: 6,000 Job vacancies: 59,000 Supply versus demand: 1:12 Available talent: 25,000 Job vacancies: 80,000 Supply versus demand: 1:3 Intelligence Group Jobfeed (published vacancies in 2015) 13
14 Battleground for IT Talent: the Randstad and the province of North Brabant: where you can find the largest supply of available talent with demand exceeding supply 4-7 times over. Supply versus demand per province The size of the circles indicates the number of available talent. Available talent is talent that is actively looking for a new job. The figure as well as the colour explain the shortage. Available talent : vacancies 1:1 1:9 1:5 1:7 1:5 1:7 1:4 1:8 1:3 3:4 1:5 1:1 Supply and demand are in balance. No shortage There is a huge shortage of talent: demand exceeds the available talent There is an extreme shortage of talent: demand exceeds the available talent Intelligence Group Jobfeed 14
15 In the Randstad and the province of North Brabant, competition is fierce: 5 out of 6 job openings are not filled. Supply versus demand per region The size of the circles indicates the number of available talent. Available talent: talent actively looking for a new job. The figure as well as the colour explain the shortage. Available talent : vacancies Randstad + Noord-Brabant Available talent: 25,500 Job vacancies: 140,000 1:3 1:6 Other provinces Available talent: 14,500 Job vacancies: 40,000 Supply and demand are in balance. No shortage There is a huge shortage of talent: demand exceeds the available talent There is an extreme shortage of talent: demand exceeds the available talent Intelligence Group Jobfeed 15
16 Campus recruitment most successful in the western and southern parts of the country 16 TM
17 Popularity of IT studies is increasing. More students headhunted at universities, starting their career without a degree. Development of IT students and graduates 30,000 29,397 25,000 20,000 22,463 22,716 7,689 7,778 25,009 8,833 26,904 9,679 10,892 15,000 16,176 17,228 18,505 14,774 14,938 10,000 5, ,944 3,525 3,832 3,952 1,785 2,159 1,566 1,959 1,805 2,027 1,935 2, Applied sciences Students Applied sciences Graduates Academic Students Academic Graduates Source: Dienst Uitvoering Onderwijs (DUO) 17
18 Campus recruitment with focus on IT bachelor studies at Universities of Applied Sciences will reach the majority of the IT student population. Most popular bachelor (applied sciences) IT studies 1 IT Applied Sciences 13,271 2 Information Science 3,268 3 Business IT & Management 1,289 Most popular bachelor (academic) IT studies 1 Information Science 1,604 2 Technical Information Science 1,485 3 Life Science & Technology 1,436 Most popular master (academic) IT studies 1 Computer Science Artificial Intelligence Business Information Management 1,436 Source: Dienst Uitvoering Onderwijs (DUO) 18
19 The majority of junior IT talent with or without bachelor degree from a university of Applied Sciences gained IT knowledge in the southern or western part of the country. Applied sciences graduates per university of applied sciences Source: Dienst Uitvoering Onderwijs (DUO) 19
20 Majority of junior IT talent with or without bachelor or master degree from a university gained IT knowledge in the Randstad. Academic graduates per university Source: Dienst Uitvoering Onderwijs (DUO) 20
21 Recruiters source the same small group of people. We seem to keep missing opportunities to engage with a larger candidate target group 21 TM
22 Demand for mid-career IT professionals has increased enormously: 39% is being approached each month (22% in 2014). Who is being hunted and how often for a new job? Has never been approached Experience Junior 29% 37% Mid-career 24% 35% Senior 32% 29% Average 30% 34% Is being approached monthly Experience Junior 28% 25% Mid-career 39% 22% Senior 26% 32% Average 29% 25% 106,000 IT professionals with a permanent labour contract and an additional 5,000 self-employed IT professionals have never been approached. Intelligence Group, 2015 * Provisional data Intelligence Group, 2016 Q1 22
23 The content of the job and the work environment are almost as important as salary in convincing IT professionals to work for a new employer. Keep in mind while sourcing IT professionals Be clear about what the job entails Be clear about who the employer is Be clear about salary The job matches the education/skills Be clear about the work location There is currently a vacancy Be clear about how you found their profile Quick follow-up to the (initial) contact Be clear who the contact person is Time within which a decision on the offer is required 8% 13% 18% 12% 11% 22% 19% 28% 23% 35% 41% 57% 56% 56% 49% 54% 47% 57% 68% Senior Mid-career Junior 76% Intelligence Group,
24 IT, Media & Telecom is the industry that IT professionals most prefer. Top 10 most wanted industries IT, media & telecom 55% Federal & local government 28% Education, training & coaching 22% Accountancy, advice, legal services, advertisement & (market) research Financial/banking & insurance services 17% 21% Art, culture, sport & recreation 17% Health care 17% Personal & other services 15% Business services 13% Energy supply 13% Intelligence Group,
25 3 out of the top 10 employers have a very strong employer brand: ING, Philips and ASML. Top 10 top-of-mind most favourite employers for IT professionals Top 10 employers hiring IT professionals 1 Google 1 2 Shell 2 3 ING 3 4 Philips 4 5 De Rijksoverheid 5 6 Microsoft 6 7 Rabobank 7 8 Air France-KLM 8 9 IBM 9 10 ASML 10 KPN ING Sogeti Philips Centric ASML ABN AMRO Bank N.V. Capgemini CGI Ordina Source: Intelligence Group Source: Jobfeed (published vacancies) 25
26 How to make an appealing offer: drivers, primary and secondary employee benefits 26 TM
27 The content of the job and the work environment are almost as important as salary in convincing IT professionals to work for a new employer. Top 10 most important drivers when choosing an employer for IT professionals with a permanent labour contract Good salary Permanent contract Job content Close to home/acceptable travel time Working atmosphere How challenging the job is Flexible working hours Working independently on the job Good secondary employee benefits Career opportunities 13% 30% 29% 33% 30% 23% 27% 20% 22% 22% 49% 44% 41% 41% 37% 38% 29% 31% 46% 53% Senior Mid-career Junior Intelligence Group,
28 The competition between employers in this battle for IT talent has increased enormously, but the salary has not been part of the weaponry. Average annual salaries offered E 41,200 E 41,100 Junior E 48,700 E 48,400 Mid-career E 55,000 E 56,400 Senior Average: E 45,900 (2015) E 45,300 (2014) Average annual salaries offered Profession ICT service managers E 54,400 E 53,700 System analysts E 49,700 E 47,900 Computer network professionals E 47,400 E 48,800 Software developers E 46,900 E 46,300 Database designers & administrators E 46,100 E 44,200 Application programmers E 44,100 E 43,400 Web& multimedia developers E 44,000 E 43,500 Systems administrators E 42,400 E 42,500 ICT user support technicians E 39,600 E 38,500 Jobdigger 28
29 The opportunity to work from home is by far the most important employee benefit. Nevertheless, it s important to keep in mind at which experience level you are hiring: the expectations and wishes differ a lot. Top 10 most important employee benefits when choosing an employer for IT professionals with a permanent labour contract Opportunity to work from home Pension arrangement 23% 36% 42% 55% Travel allowance Number of days off 31% 31% 34% 43% 13th month salary Education & training budget 23% 26% 34% 43% Company car 20% 22% Company laptop/tablet/phone Bonus/profit arrangement Carpark near the office 6% 18% 14% 16% 14% 24% Senior Mid-career Junior Intelligence Group,
30 Content of the assignment is by far the most appealing benefit for self-employed IT professionals when choosing an assignment. Top 10 most important employee drivers when choosing an assignment for self-employed IT professionals Assignment content 55% Good hourly rate 42% How challenging the assignment is 37% Duration of assignment 28% Flexible working hours 27% Acceptable travel time 22% Good payment terms 21% Good relationship with client 20% Increased value of CV 15% Matches personal ideals 15% Intelligence Group,
31 Research justification This paper has been created using Intelligence Group s data. Intelligence Group has conducted the largest and most extensive on-going labour market research in The Netherlands since 2003: the Labour Market Behavioural Research [Arbeidsmarkt GedragsOnderzoek] (AGO), which is characterized by its real-time information, reliability, representativeness and independence. The most-recent data set, based on 24,443 respondents, is used and weighted according to the Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS). The target group of IT professionals is very well represented in Intelligence Group s Dutch database. The quantitative research for this paper regards highly educated IT professionals. Additional sources have been addressed to obtain more detailed information on the demand for this target group and the new generations on the labour market: Jobfeed, Jobdigger, as well as the registration numbers of students and graduates of all public education institutes (Dienst Uitvoering Onderwijs, DUO) respectively. Salary information has been drawn from Salariskompas of the website Intermediair.nl 31
32 Intelligence Group & Sterksen Intelligence Group is a Dutch research agency specialized in (global) recruitment intelligence. Intelligence Group analyses and solves recruitment issues by means of recruitment and labour market data, as well as by innovative research methods. This can range from research reports and consultancy to all-encompassing solutions for recruitment, recruitment marketing and employer branding problems on local, national and international level. Intelligence Group is a trend setting partner of many employers and recruitment-related companies Geert-Jan Waasdorp, CEO Intelligence Group geert-jan@intelligence-group.nl TM Sterksen is a Dutch-based recruitment services company. Sterksen specializes in executive search, RPO/recruitment outsourcing and IT & Technology Search. With offices in Breda and Utrecht, we deliver recruitment services to a variety of Corporate and Corporate Mid-Market clients in The Netherlands and Northern Europe. Paul Storimans, Managing Partner Sterksen Paul.storimans@sterksen.com 32
33 TM Executive Search RPO Services IT Search
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