Where the Tech Things Are

CTC | September 16, 2014 | 9:00am

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Boston among Top Cities for Tech Talent, Startups, & Innovation

Job, expansion, & funding opportunities are in Boston, report finds

The nations high-tech industry has reached new heights, with the Greater Boston area continuing to be a major driving force of its growth, suggests the most recent annual technology outlook report by global real estate management firm Jones Lang Lasalle (JLL).

According to JLLs comprehensive analysis of 34 high-tech markets across the country, Boston ranks seventh overall for the strength and potential of its tech sector. Its technology workforce (more than 145,000 strong) is the second-largest in the nation, with a 4.3% annual job growth rate.

Given the solidity of Bostons innovation-oriented infrastructure, its unsurprising that the area continues to see such growth, said David Brockmann. IT Talent Acquisition Specialist at IT staffing firm Chase Technology Consultants (CTC). Bostons home to top-ranked STEM institutions like MIT, Harvard, BU, Northeastern, and WPI, who not only conduct world-class technology research and development, but also produce highly educated and technically skilled professionals and actively encourage them in their entrepreneurial endeavors. Those startups then get mentoring and financial support from local incubators, accelerators, and VC firms.

Local companies in fact raised a total of $441.6 million in high-tech venture-capital funding this past quarter, the fourth-largest sum in the nation, noted the JLL report. Massachusetts also ranks fourth in the nation for innovation, with 6,409 patents registered in the state last year.

With so many opportunities and resources available for tech professionals, there really is no better place cohesive tech ecosystem than Boston to launch your IT career – or company, reiterated Brockmann. The founders of some of the most well-known companies headquartered in Boston – HubSpot, Zipcar, and Formlabs, to name a few – also got their start as students in Boston. They pay it forward to the community that helped develop them and their business by supporting other startups through cross-enterprise collaborations and business partnerships, and hiring local tech talent and investing in their education.

Bostons tech ecosystem is very integrated and cyclical. Which means in a way, navigating your career here is like playing chess, added Mike Grasso. CTC s Director of IT Sales & Recruiting. Its all about thinking three moves ahead, and acting now to prepare for future success. For instance, Boston-area college students start on a level playing field; their classmates receive the same instruction, and thus will be just as qualified as they are for internships and jobs. What will set them apart from the rest is what they do outside the classroom. They should be thinking ahead about the career moves they want to make, and pursuing opportunities that will help them apply what they learn from academia and gain the experience their prospective employers will look for. Internships in Boston often lead to full-time offers down the road, whether at the same company or at another which recognizes the value.

All this being said, more job opportunities does not necessarily mean less competition in the labor market. With the economy improving, people are more open to making career changes like improving on their current employment situation or changing fields entirely. IT job seekers are having to compete not only with those looking to reenter or transition into the IT workforce (Looking at you, coding bootcamp graduates !), but also top talent already established in the industry.

Job seekers should also expect to experience a more lengthy – and an even more thorough – hiring process. Often when theres an influx of job candidates into the market, companies tend to believe they have the luxury of being more picky with their next hire, Brockmann explained. They really raise the bar on their candidate requirements and take the time to figure out whether someone is a good cultural fit .

So if you plan on landing a job this fall, heres a tip: Employers are looking for software engineers who are team players and bring something unique to the table, and are eager to continue doing so, advised Brockmann. Having that fire to always be learning and contributing is a must that needs to be prominently displayed in your resume and interview.

Working with an technology recruitment agency like CTC can also help you get in front of IT hiring managers and through the hiring process faster, Grasso chimed in. Think about it; the candidate who applies directly to a company often has their resume going through an HR professional or ATS system, which only searches for job keywords. Theyre not necessarily looking at the depth of their background or breadth of experience, nor considering how someones cultural fit may help compensate for their lack of technical skill. So if they dont spot the words or phrases theyve been told to watch for, your resume is passed over.

While as by working with us [CTC ], you bypass the gatekeepers who may not be as technical and thus may be unable to read as well between the lines of your resume, Grasso continued. We are working directly with the hiring manager and/or reporting supervisor, and are in the position to explain specifically what makes you a good fit for a particular role. Think of us as your personal marketing agency that helps you compete with other brands – the other job seekers – in the market for the same position youve applied to.

In addition, candidates arent the only ones struggling to stand out from one another when the availability of jobs becomes increasingly abundant.

Theres competition amongst employers to attract and keep their top performers , Brockmann revealed. With employee turnover more likely and the cost of a bad hire so high, talent recruitment and retention should be priorities. Were seeing more candidates actively seeking other employment options, and more getting multiple job offers and negotiating higher salaries .

JLL found the average annual salary of a high-tech professional in Boston to be approximately $126,000, the fourth-highest wage in the nation, with year-over-year wage growth of 3.6%. They take home about 22% more yearly than their national counterparts, who earn around $103,000 on average and experience a annual salary increase of 1.8%.

Slow hiring is understandable, but not ideal, Brockmann concluded. If youre a hiring manager and you see good talent come in the market, you need to move quickly otherwise theyll be gone just as quickly. Holding out in the hopes that someone better will come along may not be in your best interest because despite the increase in overall supply, the demand for a specific talent and skillset is much higher – which creates a tight labor market.

It is a war out there when it comes to hiring talented software engineers and other technology professionals, and communication is key, confirmed Grasso. Were all on the same side. We (CTC ) are on the recruitment frontlines, and understand what it takes to get you the employee you want. We have the answers for you when it comes to a candidates level of interest and other interview activity. Those are just two components that affect a candidates acceptance of a job offer, but perhaps the most critical when it comes to hiring. For instance, as a hiring manager you should act quickly and get a job offer out if you hear that someone youre highly considering hiring has a final round coming up. In short, everyone needs to work together in a timely and urgent fashion in order to secure the choice hire.

This growth in Bostons tech market also impacts other industry sectors and consequently the overall economy, Brockmann noted.

For example, many other entrepreneurs who look for a place for their headquarters or expansion eye our areas real estate, Brockmann explained. Maybe its because theyve heard about Boston-based so-and-sos success and believe theres opportunity for growth here. Or perhaps its because they lost out on some rockstar developers from MIT to their competitor, and think opening a satellite office in close proximity to these top-notch universities will help them attract the nations best technical talent. Whatever the case may be, these firms are driving the competition – not to mention the prices – for Boston office space way up.

The average rent per square foot in the Boston area has increased by 7.9% over the last year to $32.58, according to JLL. The average cost per square foot of office space in Cambridge in particular has risen significantly year-over-year by 13.6%.

The JLL report also noted that East Cambridge, Route 128 / Mass Pike, and the Seaport District have high concentrations of tech companies, with Boston (specifically the Financial District and Downtown Crossing) and more suburban areas like Somerville, Burlington, Watertown, and Charlestown rapidly emerging as clusters.

Sound familiar? The JLLs finding is consistent with Brockmann s mapping of the Boston tech scene from Where in the World is the Tech Talent Going? : Weve got your funky web and mobile startups in Kendall Square, Seaport District, and downtown Boston; VC firms and data storage and medical info companies in Waltham / Route 128; manufacturing and product-based startups in Somerville

People go where the opportunities are, and Boston is where the tech things are, added Grasso. Ten years ago, the 128 belt was a hotbed for tech employment. Since then, Boston and Cambridge has flourished with interesting startups in hot spaces like healthcare and mobile, and the tech talent has followed suit. Of course, there are plenty of great companies outside of Boston. However, young talent and particularly Millennials are looking first to the city to find companies that will welcome them with open arms.

So what makes the Boston area such a popular destination for IT professionals looking for employment, start-up funding, and high wages? Below is a short video highlighting the key characteristics JLL found the nations major high-tech markets (Boston included) to have in common. You can get access to JLLs latest full High-technology Office Outlook report here.