Oulton College

Boom has tech grads mulling their options
Google, others seek hires; pay soars

Globe and Mail | Technology - As published on March 14, 2006

By GRANT ROBERTSON
Media Reporter

Internet giant Google Inc. is stepping up recruiting efforts in Canada at a time when the increasingly competitive job market in Southern Ontario's tech industry is drawing comparisons to the dot-com bubble of the late 1990s.

Google is mounting its recruiting drive with a four-hour public event today at the University of Waterloo, in the heart of Canada's tech industry. But as the California-based company looks to expand its Canadian operations, and draw talent to Silicon Valley, it is attempting to bolster its ranks amid one of the most competitive job markets seen in years.

"It's very, very tight," said Brad Siim, chief operating officer of Sandvine Inc., a broadband equipment company in Waterloo, Ont., that employs 130 people and is struggling to address 10 unfilled positions.

"It's back to where it was back in 1999 or 2000 -- it may be a little worse, actually," Mr. Siim said.

There are 450 tech companies based in the Waterloo region that employ roughly 26,000 people. However, the industry group representing those companies estimates another 1,500 positions are unfilled.

A survey of 173 tech CEOs in the Waterloo area found 80 per cent of the companies are hiring, while about half are looking to add more than 20 per cent to their work forces in the next year. The survey was completed this month by Communitech, the industry group that represents the Waterloo-area tech industry.

Many firms have been bolstering their pay packages to poach rival engineers with cash or status, recruiters say. Interns are usually paid up to $50,000 a year, but companies are now being pushed above that range and are offering stock options on top of pay.

Lee Brooks, a student who will graduate this spring from University of Waterloo's computer engineering program, recently accepted a job with Sandvine, drawn by the opportunity to play a bigger role in the company compared to working at a larger operation. He said incentives such as stock options are welcome for students who feared three years ago they wouldn't find jobs.

"It's the icing on the cake when a company is willing to put their neck out and express to you that you really are valuable. It's definitely a tiebreaker in a lot of cases," said Mr. Brooks, who will work as a product management specialist.

"There's some students that will outright ask about things like options and stock," he added. "You don't hear too many tales of woe -- not like you did a year and a half ago."

Iain Klugman, president of Communitech, said the competition for new hires is also being driven by an increased willingness by established workers to jump ship after years of uncertainty in the industry.

"People largely have kind of stayed where they were at and kept their heads down over the past few years." Mr. Klugman said. "There's a lot of pent-up demand in the system for movement."

Google is sending its head of engineering from New York to speak at the event and meet potential recruits. The company says it will open the venue to the public, hoping to draw employees from local tech companies as well as students.

The trip comes less than six months after Microsoft Corp. founder Bill Gates made a high-profile trip to the university to lure top grads. Mr. Klugman said Microsoft used to have a monopoly on top talent, but now faces competition.

However, Yahoo's Canadian general manager Kerry Munro said firms are being more cautious in hiring and are waiting to fill positions with the right people, rather than rush to add new employees.

"During the Internet boom, it got a little bit crazy where people were making job offers almost sight unseen for fear that they would lose what on paper looked like the best candidate," Mr. Munro said. "What you're seeing now is that companies will take their time to find the right candidate as opposed to just hiring a warm body."

Mr. Siim said Sandvine is also not hurrying to fill open spots, unless it can find the calibre of employee the company wants.