James Calladine:OTTAWA CITIZEN: SUN 20, 2000 SEASON on High Tech Recruiting:
ÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ottawacitizen.com
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Sunday February 20, 2000ÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿ Open season
ÿÿÿÿÿÿÿÿÿÿÿÿÿ As Ottawa's high-tech community
ÿÿÿÿÿÿÿÿÿÿÿÿÿ swells, recruiters and workers are
ÿÿÿÿÿÿÿÿÿÿÿÿÿ taking off the gloves in the all-out
ÿÿÿÿÿÿÿÿÿÿÿÿÿ war over talent. Bert Hill and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Jennifer Campbell report.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Bert Hill and Jennifer Campbell
ÿÿÿÿÿÿÿÿÿÿÿÿÿ The Ottawa Citizen
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Massive expansions by Nortel Networks, JDS
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Uniphase, Cisco Systems and a host of
ÿÿÿÿÿÿÿÿÿÿÿÿÿ new players is creatingÿ a cut-throat
ÿÿÿÿÿÿÿÿÿÿÿÿÿ California-style high-technology
ÿÿÿÿÿÿÿÿÿÿÿÿÿ employment market in Ottawa.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Major companies plan to hire 6,000 new
ÿÿÿÿÿÿÿÿÿÿÿÿÿ workers this year andÿ a host of new small
ÿÿÿÿÿÿÿÿÿÿÿÿÿ companies backed byÿ U.S. venture capitalists
ÿÿÿÿÿÿÿÿÿÿÿÿÿ could push the total hiring above 8,000.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ The strong interest ofÿ the U.S. companies
ÿÿÿÿÿÿÿÿÿÿÿÿÿ shows that Ottawa,ÿ despite complaints about everythingÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ from high taxes to aÿÿ cold climate, still has more talent
ÿÿÿÿÿÿÿÿÿÿÿÿÿ at attractive prices thanÿ they can find at home.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ But clearly something has to give. There are only about
ÿÿÿÿÿÿÿÿÿÿÿÿÿ 55,000 high-tech workers in the region. Even with a rising
ÿÿÿÿÿÿÿÿÿÿÿÿÿ tide of engineering graduates, new programs to retrain
ÿÿÿÿÿÿÿÿÿÿÿÿÿ obsolete workers and aggressive foreign recruiting, the
ÿÿÿÿÿÿÿÿÿÿÿÿÿ industry faces a crisis.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Experts are predicting soaring wages, fatter signing and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ performance bonuses and more generous stock-option
ÿÿÿÿÿÿÿÿÿÿÿÿÿ plans. Increasingly, companies will have to offer more
ÿÿÿÿÿÿÿÿÿÿÿÿÿ perks such as cars, computers, even houses, to land top
ÿÿÿÿÿÿÿÿÿÿÿÿÿ talent. And companies will increasingly make
ÿÿÿÿÿÿÿÿÿÿÿÿÿ counter-offers to keep key talent.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ "The gloves are off," said Alan Kearns, co-founder of
ÿÿÿÿÿÿÿÿÿÿÿÿÿ TalentLab.com, an employment agency in the thick of
ÿÿÿÿÿÿÿÿÿÿÿÿÿ talent war. "Whoever gets the best person wins.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ "The Californian or American style that didn't exist in
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Canada three years ago now does."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Matt Dumais of Career Agent predicts high- tech stars
ÿÿÿÿÿÿÿÿÿÿÿÿÿ will start behaving more like hockey or entertainment
ÿÿÿÿÿÿÿÿÿÿÿÿÿ stars, demanding a re-opening of compensation packages,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ including stock options, and increasingly resorting to free
ÿÿÿÿÿÿÿÿÿÿÿÿÿ agency.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ "The arms race for talent is definitely under way -- not
ÿÿÿÿÿÿÿÿÿÿÿÿÿ just for the top stars but also for the main high technology
ÿÿÿÿÿÿÿÿÿÿÿÿÿ workforce."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Recruiters will search for advantage to get attention.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Watch for more advertising: radio and television, in
ÿÿÿÿÿÿÿÿÿÿÿÿÿ movie houses, sports arenas, home and garden shows, on
ÿÿÿÿÿÿÿÿÿÿÿÿÿ buses, billboards and even in the sports sections of
ÿÿÿÿÿÿÿÿÿÿÿÿÿ newspapers.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Headhunters aren't looking only in the corporate sector.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ John Chinneck, associate chair of Carleton University's
ÿÿÿÿÿÿÿÿÿÿÿÿÿ department of systems and computer engineering, recently
ÿÿÿÿÿÿÿÿÿÿÿÿÿ got a salary offer of $100,000 U.S. and bonuses and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ benefits worth $75,000 more from a New York financial
ÿÿÿÿÿÿÿÿÿÿÿÿÿ services company.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ "They are making amazing offers to get the people they
ÿÿÿÿÿÿÿÿÿÿÿÿÿ want."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ With pumped-up poaching, it won't be surprising to see
ÿÿÿÿÿÿÿÿÿÿÿÿÿ fierce competitors challenging each others' tactics in
ÿÿÿÿÿÿÿÿÿÿÿÿÿ court. Nortel sued Optical Networks, a California startup
ÿÿÿÿÿÿÿÿÿÿÿÿÿ partly owned by Cisco, which successfully raided Nortel
ÿÿÿÿÿÿÿÿÿÿÿÿÿ operations in Montreal and Toronto for top talent.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Cisco said this week it will hire 2,400 employees in
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Ottawa in the next few years.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ With the 1997 introduction of Cisco into the market,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ salaries started to rise toward U.S. rates. Still, Mr.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Kearns pointed out that the California-based company is
ÿÿÿÿÿÿÿÿÿÿÿÿÿ paying its Kanata research plant engineers in Canadian
ÿÿÿÿÿÿÿÿÿÿÿÿÿ dollars while their U.S. counterparts collect more than a
ÿÿÿÿÿÿÿÿÿÿÿÿÿ third more, based on exchange only. He said that pay is
ÿÿÿÿÿÿÿÿÿÿÿÿÿ rising 10 per cent in some specialized fields and another
ÿÿÿÿÿÿÿÿÿÿÿÿÿ 10- to 20-per-cent increase wouldn't be surprising.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Personnel Systems consultant Richard Annett said people
ÿÿÿÿÿÿÿÿÿÿÿÿÿ with expertise in wireless, networking, systems design
ÿÿÿÿÿÿÿÿÿÿÿÿÿ and senior software skills are winning pay increases well
ÿÿÿÿÿÿÿÿÿÿÿÿÿ above those in other technology jobs. "There is real
ÿÿÿÿÿÿÿÿÿÿÿÿÿ pressure in the market for the top players."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Nokia, the Finnish cellular phone giant, has been shopping
ÿÿÿÿÿÿÿÿÿÿÿÿÿ for land for a year and is expected to announce plans for a
ÿÿÿÿÿÿÿÿÿÿÿÿÿ major development facility based on its Vienna Systems
ÿÿÿÿÿÿÿÿÿÿÿÿÿ acquisition.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ A wave of major companies is arriving in Ottawa, eager
ÿÿÿÿÿÿÿÿÿÿÿÿÿ to pick up talent they can't find in California, Texas, North
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Carolina and the New England states.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ A host of tiny new startup companies with names such as
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Catena, Sedona, PowerTel, Extreme Packet Devices and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Silicon Access is joining the feeding frenzy. Most are
ÿÿÿÿÿÿÿÿÿÿÿÿÿ looking for 50 to 75 employees and they have large
ÿÿÿÿÿÿÿÿÿÿÿÿÿ amounts of fresh U.S. venture-capital money to feed their
ÿÿÿÿÿÿÿÿÿÿÿÿÿ hiring plans.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mr. Kearns said small companies can offer much bigger
ÿÿÿÿÿÿÿÿÿÿÿÿÿ stock options with much greater prospect of big gains than
ÿÿÿÿÿÿÿÿÿÿÿÿÿ the big competitors.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ "Whereas Nortel might offer 5,000 options, you might be
ÿÿÿÿÿÿÿÿÿÿÿÿÿ offered 20,000 with the startups. And they might be worth
ÿÿÿÿÿÿÿÿÿÿÿÿÿ a million bucks after four months. That's the wild card."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ But Bibi Patel, senior manager of the 60-member Nortel
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Canadian recruiting team, said she's not worried. She said
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Nortel has already hired 2,406 people, many of them
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Class of 2000 graduates. "The bottom line is, Nortel
ÿÿÿÿÿÿÿÿÿÿÿÿÿ wouldn't be making this investment if we didn't think we
ÿÿÿÿÿÿÿÿÿÿÿÿÿ could find the people."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ She'll advertise on billboards, at bus stops, Web sites that
ÿÿÿÿÿÿÿÿÿÿÿÿÿ attract engineers and in the sports sections of newspapers.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Nortel is going to technical trade shows rather than just
ÿÿÿÿÿÿÿÿÿÿÿÿÿ job fairs. Cisco human resources manager Randy Baker is
ÿÿÿÿÿÿÿÿÿÿÿÿÿ making the same rounds and more. Cisco also does more
ÿÿÿÿÿÿÿÿÿÿÿÿÿ subtle but creative marketing by sponsoring events such as
ÿÿÿÿÿÿÿÿÿÿÿÿÿ an "Ultimate Frisbee" tournament.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Cisco, like most companies, rewards its employees for
ÿÿÿÿÿÿÿÿÿÿÿÿÿ finding new talent. "We talk to our people and find out
ÿÿÿÿÿÿÿÿÿÿÿÿÿ what they do and where their friends are."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Extreme Packet Devices has grown from four employees
ÿÿÿÿÿÿÿÿÿÿÿÿÿ last March to 62 today and is looking for 20 more. "We're
ÿÿÿÿÿÿÿÿÿÿÿÿÿ not having any problem," said John Langevin,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ vice-president of marketing. "We're just a bunch of guys
ÿÿÿÿÿÿÿÿÿÿÿÿÿ working our tails off. One of things you see is that
ÿÿÿÿÿÿÿÿÿÿÿÿÿ everyone feels they're part of the success of the company."
ÿÿÿÿÿÿÿÿÿÿÿÿÿ With so many companies fighting over so few workers,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ the situation looks bleak. But immigration and education
ÿÿÿÿÿÿÿÿÿÿÿÿÿ offer hope.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ More than 3,000 workers from Europe and Asia with
ÿÿÿÿÿÿÿÿÿÿÿÿÿ specialized software skills came to Canada under a new
ÿÿÿÿÿÿÿÿÿÿÿÿÿ temporary worker program in the past two years. More
ÿÿÿÿÿÿÿÿÿÿÿÿÿ are expected because Canada now allows the spouses of
ÿÿÿÿÿÿÿÿÿÿÿÿÿ these people to work in Canada, unlike the U.S.
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Howard Greenberg, a Toronto immigration lawyer,
ÿÿÿÿÿÿÿÿÿÿÿÿ predicted Canada will stay a jump ahead of the U.S.,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ where a new Congressional battle over expanding
ÿÿÿÿÿÿÿÿÿÿÿÿÿ high-tech visas is brewing. "There are very promising
ÿÿÿÿÿÿÿÿÿÿÿÿÿ changes in the works to move beyond software skills to
ÿÿÿÿÿÿÿÿÿÿÿÿÿ semiconductor designers, fibre-optic engineers and other
ÿÿÿÿÿÿÿÿÿÿÿÿÿ scarce skills which can't be filled in Canada."ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ He said it is now possible to bring skilled workers into
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Canada in three weeks compared with three months in the
ÿÿÿÿÿÿÿÿÿÿÿÿÿ past.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ The University of Ottawa and Carleton University have
ÿÿÿÿÿÿÿÿÿÿÿÿÿ doubled enrolment in their engineering programs in the
ÿÿÿÿÿÿÿÿÿÿÿÿÿ past two years, and the results will start hitting job
ÿÿÿÿÿÿÿÿÿÿÿÿÿ markets soon.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Tyseer Aboulnasr of the University of Ottawa said it will
ÿÿÿÿÿÿÿÿÿÿÿÿÿ be difficult to expand enrolment more, but it is already
ÿÿÿÿÿÿÿÿÿÿÿÿÿ reshaping engineering programs to add fibre-optic skills,
ÿÿÿÿÿÿÿÿÿÿÿÿÿ which are in hot demand.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Dr. Sami Mahmoud of Carleton University said new
ÿÿÿÿÿÿÿÿÿÿÿÿÿ programs are in the works to reskill up to 150 engineers
ÿÿÿÿÿÿÿÿÿÿÿÿÿ and scientists annually in fibre optics, semiconductor and
ÿÿÿÿÿÿÿÿÿÿÿÿÿ software design skills.ÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿ He said the prospects for further enrolment growth are
ÿÿÿÿÿÿÿÿÿÿÿÿÿ good, provided funding barriers are broken, because
ÿÿÿÿÿÿÿÿÿÿÿÿÿ Carleton has attracted more professors than expected with
ÿÿÿÿÿÿÿÿÿÿÿÿÿ the prospect of consulting work and sabbaticals at
ÿÿÿÿÿÿÿÿÿÿÿÿÿ high-technology companies. "Professors in Europe now
ÿÿÿÿÿÿÿÿÿÿÿÿÿ know what Ottawa has to offer and they are increasingly
ÿÿÿÿÿÿÿÿÿÿÿÿÿ interested in coming."
TA
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you said
Message #17352 from James Calladine at Feb 20 2000 12:53PM
TUNICA:
"Michael M, we all know CSCO won't let NN go without a fight."
Well, I don't know that, for example. I would love to think that that is true because CSCO has the highest value share currency to offer, and is in a position to be the
most generous in any offer.
BUT--what are you basing that comment on?
Best wishes,
Jim |
