I understand standard of living is regional and even statewide, but when one state is 2.9% to 9.9% lower than another state and you put job postings out to pay 45% less you WILL NOT attract senior level great talent to your state! If you don’t believe me here is a recent job posting I received. Believe me this is not the first time this has happened. I was shocked when I moved to Norfolk-Virginia Beach two years ago. And after two years I have not seen any improvements. This is a problem we need to solve, asap!
Take this position for instance.
Project Manager – Agile experience
12-18 month contract opportunity in Norfolk, VA. If interested, please reply with an updated resume and I will follow up to discuss.
I need an experienced IT Project Manager for our Client in the financial services and banking industry. This includes the management of IT development, technology or non-technology efforts that have limited to moderate complexity. Candidate will work within a group of related software applications that provide a defined scope of functionality used to support business activities. Many of the platforms are Agile or have incorporated some Agile best practices. The PM leads the local effort and when it is completed then moves on to another platform to work on another local delivery effort. Candidate must have proven experience leading IT development or IT technology projects, a working knowledge of the IT development life cycle, proven ability to lead a team to desired outcome and establish working relationships with fellow team members, exposure to Agile methodology, familiarity with Clarity or similar project portfolio management tool, and proven ability to lead team matrixed from different internal groups.
This is a pretty senior level job (at least in the job posting). Yet they are paying junior level contracting rates. Here is an example based on personal experience; Minneapolis-St.Paul to the Norfolk-Virginia Beach has a 2.9% to 9.9% differential in standard of living. Norfolk-Virginia Beach is 2.9% to 9.9% less to live in than Minneapolis-St.Paul.
So I would expect 2.9 t0 9.9% (depending on living and working) less in contracting rates for senior level positions, a contractor here should be getting $90.00/hour all inclusive. As you can see this position is 45% less based on the contractor getting $50.00/hour. Now we all know the contractor is getting billed out at around $100 to $125.00 (I get that contracting firms are not a non-profit). This contract gig in Minneapolis-St.Paul would be at least $125 at the low end and $135 at the top end to the contractor, which is more inline with the 2.9%-9.9% difference.
Norfolk-Virginia Beach region is NOT going to attract top talent or even move top talent around (cross-pollination of talent is good for a region too) like we want and desire to happen. As a region if we don’t start paying to get talent, we will not get them, period! Wanting Maybach type talent and paying Plymouth Sundance prices will not get the job done! Ask company management, recruiters, and or human resource professionals in this area see what they say. Bet their first statement will be “We cannot attract talent at the wages this region has set within their budgets!” This is a top down and a bottom up solution driven problem.
What do you think region needs to do to rectify this problem?
If we don’t solve how will this affect this regions growth potential?
Tell me what you think!