Unprecedented demand for technology talent is starting to pressure companies to raise IT wages, Harley Lippman, Founder and CEO of Genesis10, tells the Wall Street Journal in a recent episode of its Tech News Briefing podcast.
The podcast episode, “Will Tech Sector Finally See Growth in Wages?” focuses on why—despite the historic squeeze on IT talent—tech sector wages have remained essentially flat when adjusted for inflation.
Among the reasons Lippman gave host J.R. Whalen for wages that have barely budged is that “employers have gotten far more sophisticated and savvy in terms of understanding pricing and services.”
This includes volume discounts that companies negotiate with staffing suppliers, the use of managed services providers (MSP) that act as a middleman and often play vendors off one another, and skilled foreign workers on H1-B visas, who currently fill the IT staffing ranks.
Lippman added that this is the “best market in history” and that he’s “never seen more demand for IT workers.”
In response to Whalen’s question regarding what might cause wages to come into line with demand and when that might happen, Lippman pointed to several trends that are already beginning to impact wages.
“The process has been ongoing while it’s not yet visible," he said. "IT managers across the country are complaining because IT workers are looking to get more money elsewhere. It’s a great market for them in terms of choice because hiring is so robust. That is putting pressure on companies to do something about wages.”
Lippman also said the Trump administration’s immigration reform measures are making it riskier for companies to rely on H1-B workers.
“[H1-B workers] make up a large part of the landscape of the IT workforce. Now because the administration is tightening existing laws and not renewing H1-B visas, companies need reliability. They are reluctant to take on H1-B visa [holders]. If you lose an employee, it is very painful. It takes three to six months before even a talented IT person is optimally productive.”
Listen to the WSJ podcast: Will Tech Sector Finally See Growth in Wages?
Harley’s leadership extends beyond business. He serves on the boards of leading business, academic, and policy institutions. His appointments include the U.S. Agency for International Development’s Partnership for Peace Advisory Board, where he helps advance efforts to foster trust and cooperation between Israelis and Palestinians. He has also served, by presidential appointment and Senate confirmation, on the U.S. Commission for the Preservation of America’s Heritage Abroad under multiple administrations.
He sits on the boards or advisory councils of Yale University’s School of Management, Columbia University’s School of International and Public Affairs, the Brookings Institution, The Washington Institute, the Middle East Forum, and the American Israel Public Affairs Committee (AIPAC), where he serves on the Political Leadership Council and Executive Committee.
Previously, Harley served as public director of the New York Mercantile Exchange and held leadership positions with the American Jewish Congress and the America-Israel Friendship League.
A committed philanthropist, Harley is the sole financial supporter of an orphanage in Cambodia, where he has helped dozens of children access education and opportunity, including funding college tuition for many. He has also led efforts to identify and memorialize unmarked Holocaust mass graves in Eastern Europe, helping preserve the memory of those lost. His documentary, Safeguarding Memory, aired on PBS and received two awards for its impact and storytelling.
Harley continues to combine business leadership with civic responsibility, making lasting contributions to the fields of technology, education, diplomacy, and remembrance.