Denver is growing, and the technology sector is driving that growth with more than 7,000 jobs added in 2016 and 2017, a growth rate of 12.5%. CRBE’s 2018 Tech 30 report noted that for every three office jobs created in Denver, one is in the technology sector. With growth comes growing pains, like finding and hiring executive leadership. Working with a Denver executive recruiter provides the advantage of local knowledge and expertise.
According to a Korn Ferry survey, 60% of business professionals in Denver said that the shortage of talent is impacting their growth. But that is not slowing them down, as nearly half anticipate increased hiring this year. More than two-thirds also said it was harder to find qualified candidates than it was three years ago.
Denver just cracked the top 10 markets for technology talent. The scorecard looks at 13 different metrics including talent supply, cost, industry job outlook, and rental cost growth. The metro area’s technology labor pool is roughly 100,000 and accounts for 6.2% of total employment. As a top 10 market, Denver is above the national average in North America, in which technology accounts for 3.5% of total employment.
University of Colorado Boulder’s Leeds School of Business recently forecasted that the big winners in the job market will be high-tech jobs, which are expected to see significant gains in the coming year. However, the issues of finding skilled workers to fill positions continues to be a problem for employers.
According to Frannie Matthews, president and CEO of the Colorado Technology Association, “In 2019, I think we’ll continue to struggle with the talent gap,” she said. “That’s what we really have to figure out.” Economist Richard Wobbekind agrees, “The biggest single factor is there’s really not any available workforce. Every sector is having difficulty finding workers and so to have job growth higher than we’re predicting would take more in migration to the state than we’re going to see in 2019.”
Between July 2017 and June of 2018, 22 tech firms either moved their headquarters or opened field offices in Colorado. The Downtown Denver Partnership noted that 265 technology startups were created in the past three years.
Wages in the metro Denver area for technology related jobs are rising, with the average now just over $100,000. The increase is helping attract new skilled employees to the area. And the wages are lower than the Bay Area average technology wage of $125,438, which is appealing to companies looking to expand more cost effectively.
The battle for top leadership talent is only going to heat up in the coming years. As new companies grow and existing companies move into the area, the leadership gap will expand. To accelerate growth, you need an executive recruiting partner in Denver that not only knows the market, but has the experience to build your team.
Sheer Velocity’s retained search consultants have worked with startups and Fortune 500 companies over the past decade. Our executive recruiters understand how to build your leadership team, create an enviable culture, and navigate the local waters. To learn more about the Denver technology market or discuss your leadership needs, send us a note. We’re here to help!