Tom Sweeney

It's a coming of age tale….

What’s my current market value….

Posted by sweens on January 21, 2009



Today’s blog entry is about the market value any position has in the IT market today and where that may or may not go.  With the recent layoffs by many Information Technology companies in Ottawa, the simple ‘supply and demand’ equation comes to the front to help us look at this issue.  Supply and demand states that in a competitive market, salary will function to equalize the quantity demanded by employers and the quantity of hires made by the market conditions.

 

So, with more and more people being let go as of late, we now enter a situation where the supply of candidates exceeds the demand employers have on the labour market.  Some people would have suggested prior to this economic downturn that current salary expectations were a bit higher then where they should have been and that new-grads were demanding too much coming out of school.  That situation was made possible by a lack of candidates to fill employers’ requirements – which allowed candidates to demand more from their new employers.

 

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We are now entering a situation where there are too many candidates to fill a limited number of positions which MAY lead to people taking a salary cut in order to find employment.  This ultimately could lower the salary expectations once the Information Technology sector begins to grow again as people may begin to join companies at a lower salary range then they are currently in.

 

WHAT DOES THIS MEAN FOR SOMEONE MAKING A MOVE NOW?

 

I think the suggestion I can make is that you should seriously consider what you are willing to accept in terms of compensation for any offer made from this point forward.  I say this for two main reasons.  The first, being that companies who are still going to hire people may be a little nervous about a big salary and would be more comfortable going with a moderate salary.  Secondly, with more people actively searching for a position at the moment, your competition for each position just got tougher, and if you won’t accept a position that pays lower then your last position did, someone else might.

 

And where would that leave you…

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