The Future of New York IT Contractors in 2016 and Beyond
To say the tech sector is big in New York is one heck of an understatement. NYC boasts the second largest tech economy in the United States and is a hot destination for IT contractors. Yet trends can shift in a short time.
Now that 2016 is in full swing, we’re going to take a look at the future of New York IT contractors and see what their future outlook is like.
New York Is Dealing with a Tech Shortage
Since New York rose to prominence as a tech center, the city has worked to cultivate opportunities for IT professionals. Looking at this digital map of NYC’s startups, VC investors, and incubators gives a sense of a thriving tech ecosystem. Yet tough-to-fill vacancies are still common.
At last year’s NYC startup job fair, founder Patrick Duggan said that though 50 percent of the open positions at the event were for developers, only 30 percent of applicants were qualified. The challenge is that businesses from startups to Fortune 500s are competing in the same space, fighting over a shortage of resources.
The talent shortage seems to be so pronounced, that New York City has taken action to fill the future talent pool by starting the Computer Science for All program to create more homegrown tech professionals. Yet the question remains: how do we deal with the talent shortage now?
The Advantage of More New York IT Contractors
IT contractors are a quick way to fill open positions in the New York tech ecosystem. They return to the job market more frequently than direct hires. Additionally, they are more willing to make cross country moves to find work with companies that satisfy their job criteria. At least 52 percent of tech employees would move to another state or region for work. The trick is giving them the incentive to do so.
New York IT contractors already have a number of factors to draw them to the area (competitive employers, vibrant city life, no shortage of job opportunities), but there are a few considerations that businesses need to keep in mind.
Because high quality IT contractors have a choice about which cities they choose to call home, there is an impetus to provide the right conditions to keep them in NYC. The companies that know when and how to compensate will have an easier time attracting tech talent.
What Draws New York IT Contractors Away
Two of the main factors drawing tech talent away from New York are contractor rates and cost of living expenses. In a recent study, New York was ranked 33rd among cities that offer the highest effective pay. Prices in New York City tend to be 22.3 percent higher than the national average and is the 4th most expensive place to live in the United States.
Other cities with lower costs of living but equally competitive compensation end up having a greater allure. For example, for every dollar earned in Seattle, New Yorkers need to earn $1.14 to keep up. Disparity of that kind exists in metropolitan areas across the United States.
What’s the solution for New York’s businesses? Go into the hiring process with the most competitive compensation data possible. Our NYC IT Contractor Rates guide provides current rates for a variety of tech positions and tips on how to find reliable tech talent. Download it today so you can attract the best IT contractors and keep them in the New York market.