Are Startups Having a Difficult Time Recruiting Software Engineers Even in this Job Market?

I recently read an article on the Bloomberg Businessweek web site titled “Entrepreneurs: Struggling to Recruit Software Engineers”. The article’s subtitle is “Startups vie with bigger rivals as demand for programmers
returns”. According to the article “In many industries, high
unemployment means abundant available labor. That’s not the case for fledgling
tech companies making their crucial first hires.” They report that
finding software engineers is as hard as it was during the boom.” The
article quotes Dice.com as saying tech job postings on their site are up 38%
this year and TheLadders.com saying that tech postings on their site are up
65%.

So what is causing this sudden shortfall of valuable technical talent in startups? According to the article many software professionals who in the past may have considered employment with a startup are now moving towards the
stability of larger companies and now favor higher pay over equity.

While this article addresses the problem it does not offer any solutions. All of us involved in Software Recruiting realize that the market is heating up again but the professionals actually
producing software may not be feeling it. The past two years have created
an environment of insecurity in the tech world and many of the software people
I talk to while not happy in their current roles feel their jobs are stable and
do not want to risk leaving for a potentially less stable situation. This
causes a difficult situation for the risky world of startups. As pointed
out in the article software professionals that do choose to make a move are
choosing the higher salaries and stability of larger companies rather than the
great risk/great reward of a startup.

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Comment by Amy on November 1, 2010 at 11:38pm: I recruit developers full time for a local consulting company, and I can say I truly believe that talented software developers with strong interpersonal skills and good business acumen will never have to worry about being unemployed. So while I understand some of them may be concerned about the stability of a start up or smaller company, I don't see this being a hold up if the technical environment is desirable and the pay is competitive. Most of these people could have 3-4 job offers in a week if they wanted to.

Comment by Paul Alfred on November 2, 2010 at 10:08am: Quite right Amy ... And the Best of these don't post their resumes on Job boards ... They don't have to and need to be recruited ... The demand for the best talent in Software Engineering across platforms will remain high...

Comment by Mike Astringer on November 2, 2010 at 10:17am: I respectfully disagree with both of you. You've not seen talented software talent struggle in the past 2 years? The point of the article is that software talent is opting for large companies where they believe they will have job stability and salary and benefits vs. equity. Startups from the Silicon Valley to Boston are seeing exactly this trend.

Comment by Paul Alfred on November 2, 2010 at 10:45am: Answer to your first question no Talented heavy duty software engineers were still rocking even through recession with or without the need for Recruiters... Startups that can't compete with well funded startups will always compete for the best talent where demand is high and supply is well u guessed it ... I have built a few complete teams for startups and most of the time was spent on finalizing the monetary/options etc side of the deal. But I have focused on teams where the avg age is 27 ...

Comment by Mike Astringer on November 2, 2010 at 11:40am: I only wish I had the time to debate this with you. You seem to be the only Recruiter I've ever talked to who disagrees that their was a recession for talented people! Also, having built one or two teams for a funded startup does not qualify one to speak for the startup community. Recruiting for tech startups is a different world from recruiting for more traditional companies.

Comment by Paul Alfred on November 2, 2010 at 11:53am: Mike I have been around for a long time and have ran a startup - What do you mean by traditional companies, Yahoo, Google, FB or brick and mortar companies like Pepsi, Walmart, GE ? ... Yes heavy duty developers with in the world of say SAP/Peoplesoft J2EE or Business Intelligence were not looking for work during the recession in my world ... They were busy ... Slowed down in hiring during the recession occurred in Manufacturing Retail and less critical resource requirements ... Perhaps in your world that was not the case ...

Comment by Mike Astringer on November 2, 2010 at 2:12pm: Paul, I am busy RECRUITING and as I mentioned earlier do not have time to debate this with you - some other time perhaps. I read some of the other "debates" you like to get into on this site and realize that you like to get the last work in - so go ahead. Perhaps I'll respond when I have time. It's been awhile since I've been here. Now perhaps I see why......

Comment by Paul Alfred on November 2, 2010 at 2:42pm: Its not about getting in the the last word its about sharing experiences ... I have shared mine ...I did say perhaps your experience is different ... Yes I love to debate ... its how we learn ...

Comment by Sandra McCartt on November 4, 2010 at 4:47pm: Mike,
If you run across any of those Java J2EE Sr. Software Engineers who don't want to go with a start up and want a perm position with a stable company send them my way. I have standing open job listings from clients in Texas and have had for years. the ones i am getting are all wanting the big bucks from consulting or start ups with equity and don't want or won't go fo the salary ranges offered in perm positions.

Comment by Paul Alfred on November 5, 2010 at 7:05pm: Mike ... Sandra has just provided an example of what i was seeing in my own experience and I am based out of Toronto ... Perhaps you can help her ...

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