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Retailers invest their way out of trouble with IT

Retailers invest their way out of trouble with IT
Computer People IT Monitor June 2011
In May the retail industry was amongst the few to post an increase in permanent IT staff vacancies to the tune of 5.08%. Retailers are realising that at some point the cost cutting will need to give way to investment to propel the sector out of trouble and are beginning to focus on a performance-led sales strategy, rather than short term windfalls from swinging cuts.
Permanent out contract in
We are seeing clear signs that a number of permanent vacancies are still being converted to contract. In May the overall number of IT permanent vacancies dropped by 0.30% whilst the number of contractor vacancies increased by 0.36%. Market confidence is playing a part as hiring managers are still cautious to resource with permanent staff due to market uncertainty.
Move quickly to secure the best talent
Organisations are taking a long time to recruit and are losing out on talent. In the current market, IT candidates have the upper hand its not about who is paying the highest salary, its about who can move fastest to offer stage and give reassurance to the candidate that theyre making the best career choice.
Public sector strengthens in contract employment
In May there was a sharp rise (8.94%) in the number of IT contractor vacancies as more permanent roles were converted to contract. The public sector is becoming more wary of increasing the number of permanent staff as this adds to their fixed costs at a time when cuts
are so prevalent.
Hiring managers budgets squeezed
Five months of consecutive salary increases across the IT industry are having an adverse effect on hiring managers budgets as they continue to look for ways to tighten their belts. Permanent salaries rose by 0.08 % and contractor rates by 1.17% in May.
All comments by Sid Barnes
Executive Director, Computer People
Retail is desperate for IT permanent staff
We are still seeing a number of permanent vacancies reverting to contract
Mindset change needed so employers dont lose out on the best talent.


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