IT firms in the dark ages

IT firms only have themselves to blame for a skills shortage,rtages. according to a report published last week.

The study from management consultants Elgin Scott revealed that, despite having one of the fastest staff-turnover rates with around 40 per cent of employees likely to move in the first two years, IT is in the dark ages when it comes to recruitment. Despite shortages, managers and agencies are failing to plan and budget for recruitment.

Kay McGregor, consultant at Elgin Scott, said: "IT businesses are jeopardising growth by failing to plan and budget for recruitment."

The research, based on interviews with managing directors and senior management in 200 UK IT companies, revealed unplanned recruitment can cost over £0.5m a year in lost profits.

One in eight managers spend more than 20 hours recruiting each employee, and larger firms spend over 143 managerial working days per year in recruitment activities.

McGregor claimed companies should treat recruitment like other business services and consult with specialists to get the best results. But recruitment agencies were also criticised. A third of respondents said the quality of agency candidates was poor. "They don't understand our business," said one.