AEA Attraction/Retention Survey for IT Employees Shows Networking as Most Effective Recruiting Skill; AEA to Host One-Day High Tech Attraction/Retention Conference.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 2, 1998--According to a new survey just released by the American Electronics Association (AEA), employee referrals and professional and informal networking were the most important factors in recruiting new information technology (IT) employees.

AEA's 1998 IT Attraction and Retention Survey was produced to help relatively small high tech employers understand what works and what doesn't in attracting and retaining employees in the new and highly competitive field of information technology. More than 100 high tech firms across the country, each employing less than 500 workers, participated in the survey.

Mike McQuade, AEA Senior Vice President, said the high level of competition for attracting and retaining information technology employees is vividly apparent from the results of this survey. "Companies are implementing programs and exploring new avenues at a highly aggressive pace, turning recruiting/retention practices that once were considered unusual into what is now the norm."

Seventy-six percent of the surveyed firms said they implement one or more aggressive, flexible cash compensation approaches to both attract and retain IT employees. These include more aggressive pay increases, stay/retention bonuses, project milestone bonuses, project completion bonuses, other short-term incentives, and premium pay for in-demand skills.

All survey participants, regardless of size or product sector, encounter the same basic barriers to recruiting new IT talent. These include scarcity of qualified talent, competition from high profile or more desirable employers, and the potential for IT professionals to earn more as independent contractors.

To further explore the implications of the survey, AEA will host a three-part workshop on employee attraction and retention in the high tech industry on November 5, 1998, at the Fairmont Hotel, San Jose, California. For more information, call 408/987-4252 or visit our website, www.acanet.org.

For more information on AEA's 1998 IT Attraction/Retention Survey or to purchase a copy, call 800/284-4232.

The American Electronics Association represents more than 3,000 U.S. based high tech companies throughout the United States. With 18 local councils, AEA has a unique grassroots lobbying capability that results in significant industry impact with government at all levels. For more than 55 years, AEA has been the accepted voice of the U.S. technology community. -0-

Barrier                                           %Barrier

Lack of qualified candidates                      82%
Competing with high profile companies             80%
Recruits can earn more as contractors             56%
No image in market as an employer of choice       47%
Salaries not competitive                          39%