Solution Providers Ready To Move Into Hiring Mode

In May, 39 percent of solution providers surveyed said they plan to add new sales positions over the next six months, a significant increase from the 33 percent that bolstered sales forces over the previous six months. The planned sales-force expansion indicates that many feel the time is right to pursue new growth goals.

"Obviously, there's more business to be captured, so we're all going out and hiring more salespeople to capture that business," said Gary Fish, CEO of Fishnet Security, Kansas City, Mo. "There's definitely an uptick in spending."

Fish has hired 35 people since January--surpassing the number of hires for all of 2003--and plans to keep hiring this year to staff two new offices and expand his services business.

Like Fishnet--and the broader economy--many solution providers already have begun creating new jobs over the past six months. The poll found that 57 percent of solution providers hired more employees during that period. Technicians accounted for 49 percent, while salespeople made up 33 percent and managers accounted for 18 percent of the new hires.

Those results are supported by the 2004 annual CRN Salary Survey, which found that channel companies last year began handing out wage increases averaging 5.9 percent--a step up from the prior year. Full results of that survey will be featured in next week's CRN.

Looking forward, solution providers in the monthly poll said they plan to continue hiring at a brisk pace. But while the survey indicated that the hiring of technicians and managers could decline slightly, the hiring of sales personnel is expected to increase.

"We are in a hiring mode. We're looking for two salespeople currently," said Jennifer Wright, vice president of Wright Business Technologies. The Houston-based solution provider is looking for people to push the company's strategic growth areas in managed services and data protection.

At Information Networking, "We're seeing that some of our competitors and some of our allies are trying to ramp up their sales forces, but they're finding it difficult to find good, quality, experienced [sales] veterans who can bring business immediately to the table," said John Riddle, president of the Irvine, Calif.-based company.

Inacom Information Systems, Madison, Wis., is looking to fill sales and technical positions in part to support geographic expansion--and is willing to train. "We're definitely stepping up hiring at all levels, but in particular salespeople," said Laurie Benson, CEO of the company. "We are hiring some people that have modest experience and are putting them through intensive consultative sales training."