The Market for Tech Talent
Depending on the attrition rate for the retirement of baby boomers, tech jobs are estimated to double over the next decade, and while many perks from Silicon Valley companies have become legendary, the new pool of tech talent is looking for the same motivators found in most industries: advancement opportunities, recognition, continuing education, flexible work schedule and telecommuting. As far as hot tech employment locations, several cities such as New York City, San Francisco, and Boston will remain tech talent hubs. But there are some secondary hubs that are gaining traction such as Austin, Seattle and Vancouver.
Some of the fastest growing jobs in technology include web developers, data scientists, big data, software engineers and security professionals. What’s interesting is that tech talent can come from non-traditional backgrounds and thanks to technology there’s a variety of ways to get an education and experience in order to become a coder, a web designer or some other tech professional.
Dave Plaskow: Hello and welcome to EisnerAmper’s technology podcast series. With more than 500 technology clients, we’re always interested in the latest industry trends and developments, as well as any related business and accounting opportunities and challenges. Today’s topic is the market for tech talent. I’m your host Dave Plaskow and with us today is Dave Katz, senior audit manager in EisnerAmper’s technology and life science’s practice. We like to call this TechTalk. Dave, good seeing you again.
Dave Katz: Good to be here Dave
DP: So tell us, what does the forecast for tech employment look like?
DK: It’s looking good. So a rough estimate is double digit growth in tech jobs, somewhere in the 14% to 18% neighborhood over the next decade. To some extent that depends on attrition such as the rate at which baby boomers will retire. But it’s certainly looking up.
DP: Sure, and the boomers are definitely retiring in droves. What are some of the fastest growing jobs in technology?
DK: We’re seeing web developers, data scientists, big data - certainly a lot of jobs there - software engineers and not surprisingly information security professionals, security being a hot button issue right now. You’ll see some upsizing of tech professionals in specialty areas such as drones, 3D printing, virtual realities and others in that area.
DP: Ok. Now you told us about the what, tell us about the where – where are these jobs going to be?
DK: Yeah, so we’re seeing continued and strong hiring growth in such hubs as New York City, San Francisco, and Boston – those are your usual players. But we’re starting to see some secondary hubs gain traction such as Austin, Seattle and Vancouver, and they’re closing the gap a little bit on those main hubs that we think of.
DP: And why do you think that is?
DK: So the current trend of people moving to cities. So people are still flocking to New York City and San Francisco, but the cost of living there is certainly ridiculous. So places like Seattle and Austin offer city life but at a much cheaper price. Average salaries there may be lower but the real income is higher due to the lower cost of living. So that’s a trend we’ll probably see continue.
DP: You can make a buck go further, sure. Now, we’ve heard about some of the perks at working at the Silicon Valley companies – they’re legendary - such things as nap pods and smoothie bars and air hockey tables, but what are these professionals really looking for?
DK: The traditional motivators we find in most industries – challenging work environment, advancement opportunities, recognition for a job well done, access to continuing education and training, and also given the times, flexible work schedules and telecommuting – they appear just about on every wish list.
DP: Ok. Talk a little bit if you can about the pipeline for tech talent – where is the next gen of talent coming from?
DK: You can certainly go the college degree route – get a job that way. A good thing about tech is many people come from non-traditional backgrounds and ironically thanks to technology there’s a variety of ways to get an education and get experience in order to become a coder, a web designer or some other tech professional. So we’re starting to see some non-traditional routes continue.
DP: Ok. So billionaire Mark Cuban, who’s made his fortune from the tech area had some interesting comments about what job skills will be most important in the not-too-distant future. Tell us about that.
DK: In essence he indicated our economy will become much more automated. So technology education and skills may not matter as much as creative and critical thinking, and it’s an interesting thought and we’ll see how it shapes out.
DP: Yup. Now in your role as a business advisor, you’re out there in the trenches talking to these tech clients. What do you gather is the largest uncertainty out there when it comes to tech talent?
DK: Not to get too political here, but certainly US immigration policy comes to play. Will talent from overseas be able to easily innovate and work here and will they in fact want to come here given the prevailing policies?
DP: And definitely something to keep an eye on. Well Dave, as always, thanks for your expertise and you’re your insight.
DK: Thanks for having me Dave.
DP: Thank you for listening to the EisnerAmper podcast series. Visit EisnerAmper.com for more information on this and a host of other topics. And join us for our next EisnerAmper podcast when we get down to business.
Dave Katz, Senior Manager in EisnerAmper’s Technology and Life Sciences practice, talks about the rise and fall of Theranos. He explains what took them from biotech unicorn to dissolution, the fallout, and how companies and investors can mitigate risk.
In this episode of the Dave & Dave Show, we look at New York City’s proposed annual cap on the number of ride-sharing vehicles, such as Uber and Lyft, and the larger implications for this unique urban initiative.
Cryptocurrency still has the reputation for significant price swings. In this episode of the Dave & Dave Show, we look at a new contender—with some big backers—that’s tied to the U.S. dollar to help temper that volatility.
TechTalk takes a look at a tech startup, Aerobotics, that is using drones to help farmers in South Africa.
In this episode of TechTalk, we look at a 3D-printed housing community for needy families in El Salvador, the goals are, some of the attached business issues, and how this could be a technological game-changer for affordable housing.
The Dave and Dave Show looks at 23andMe’s DNA test-taking kit, its recent approval by the FDA to scan for certain breast cancer genes, where the market is headed, and what it means for the biotech industry and its business advisors.
TechTalk examines a few interesting things Amazon is up to on its march toward global e-tail domination, such as its choosing a city for its new headquarters, its foray into health care, Amazon Go and more.
This episode of TechTalk, we cover a unique, FDA-approved EKG device for the Apple Watch. We’ll discuss the science and the business behind this promising new technology, as well as how the market for smart watches is doing.
In this final TechTalk podcast of 2017, we examine the technology headlines that caught our attention toward the end of the year, including net neutrality, the data hack at Uber, some misbehaving drones and what might be on the menu for 2018.
In this episode of TechTalk, we talk about the debut of the world’s first ETF powered by artificial intelligence (AI). We discuss the technology behind it, if it impacts a fund’s expense ratio and, most importantly, how it’s performing.
The iPhone X has put a renewed spotlight on facial recognition technology. Dave Katz gives us a history on this type of technology, some of the privacy and security issues, what the market looks like and which companies are leading the charge.
In this episode of TechTalk, we discuss the technology and financing issues related to the possible return of supersonic air travel.
Will the robot vacuum collect customer household data and offer it to technology companies to enhance internet of things devices? Here is what information is being collected, potential data privacy and security issues, and iRobot’s response to consumer concerns.
In this episode of TechTalk, Dave Katz tells us about electric car company Tesla receiving a significant investment from Chinese technology giant Tencent.
TechTalk discusses recent mergers and acquisitions in e-commerce including Amazon's recent acquisition of Souq, a Dubai based e-commerce company.
Dave Katz, Senior Audit Manager in EisnerAmper’s Technology and Life Sciences Practice, and Richard Colloca, Partner-in-Charge of EisnerAmper’s Food and Beverage Group, discuss Amazon’s plan to use 'Just Walk Out Technology.'
David Katz gives a “state of the union” on self-driving cars, an overview of Uber’s unique experiment in Pittsburgh, and a glimpse of what we can expect in the marketplace.
In this episode of TechTalk, we learn about the real estate shortage for biotech hubs, the challenges of obtaining new space, how early-stage companies are coping, and what’s on the drawing board to help alleviate the shortage.
In this episode of TechTalk, we discuss space-age technology that could revolutionize personal travel and commercial traffic.
David in EisnerAmper's Technology and Life Sciences Practice, discusses the commercial drone market, including potential markets, barriers to entry and where capital investment is headed.
We discusses some of the financial aspects of virtual reality, such as investment, valuation, revenue recognition and more.