This year Portland tech companies expect their revenue and head counts to increase. But, with the reality of remote work for more companies, they can also expect increased competition for talent and rising wages.
So reveals the Portland Tech in Focus: 2022 Trends Report, the second such report from staffing firm ProFocus Technology.
According to the survey, just 4% of Portland’s tech workers are in the office full time. At the same time, 68% prefer remote work with an option for office work as needed. A further warning for employers looking at how to set up their workforce, 43% would likely leave their job if they were required to be in the office full time.
“That (43%) is incredible to me,” said ProFocus founder and President John Boone. “That shows the transformation of the American workforce that is not going to go back.”
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Historically, workers seek jobs within 20 minutes of their homes. Now, area companies seeking employees must compete against other Portland firms as well as national and international companies that are now game for remote workers. That puts pressure on wages in an already tight market.
“It’s really scrambled things. You can imagine someone with a specialty in a technology might have three to four companies within 20 minutes that use that technology and the options for getting a job were limited,” Boone said. “Now, there are potentially hundreds of jobs. And those jobs pay more.”
Oregon tech workers already make 1.4 times the national average. Data from the survey shows they could grow further, as 64% of respondents expect compensation to grow. Another 85% expect upward wage pressure, compared to 63% who indicated the same last year.
“To meet our new reality, we’ve reevaluated our pay bands and offer process, along with adjusting current employees who fall outside of the new bands. In doing so, our offer acceptance has increased 10-20 percentage points,” said Jim D’Angelo, of Cash App in the report. Cash App, which is owned by Block (formerly called Square), has an office in downtown Portland.
The fintech company has several open positions in various roles for remote or Portland.
Here’s some other highlights from the report:
- 57% of executives said the talent shortage is disrupting their company’s ability to meet key goals.
- 78% say their firm builds and maintains a positive culture. That's slightly up from 75% saying so last year.
- However, culture ratings vary based on gender identity and race. 67% of female, nonbinary and gender queer respondents say there is a positive culture. 82% of men say there is a positive culture. Seventy percent of Black, indigenous and people of color respondents say their company’s have a positive culture, versus 81% of white respondents.
- Burnout, career pathing and training were all rated less positively by non-white, non-male respondents.
- 62% of companies have plans to upskill employees, but only 51% say their company has sufficient training and development.
- There is a disconnect between C-suite execs and the rest of employees when it comes to whether a company demonstrates clear vision and mission. 90% of C-level employees feel this is true while only 76% of employees agree, a similar disconnect to last year's results.
- In areas of physical and mental health, 89% say their company supports their physical health while 84% said their company supports their mental health and well being.
Boone advises to adopt a quick and efficient hiring process. Hiring moves that used to take a long time can now be a detriment since potential employees will likely interview with several other companies at the same time.
“Employees judge a company based on the hiring process,” he said.
This year’s survey occurred last fall and included 173 responses from executives, managers and individual contributors from businesses large and small.
