Oracle shuns job seekers in San Francisco and Seattle for cheaper cities

0
  • Hiring managers and Oracle recruiters have been invited to fill positions in cheaper US cities or overseas.
  • Some employees involved in hiring say it’s harder to find talent outside of major tech hubs.
  • The move comes amid a wave of new hiring restrictions that are impacting already low morale.

Oracle is shunning candidates in major tech hubs like Seattle, New York and the San Francisco Bay Area as it tries to save money and cut labor costs — even if he quietly cutting jobs.

At least one executive at the database giant has told recruiters and hiring managers to seek candidates in areas in the United States and abroad where salary expectations and the cost of living are lower, according to three employees of Oracle’s human resources division who spoke to Insider. In some business units, the directive goes even further, directing hiring managers to fill positions that were previously based in the United States with hires from regions like Eastern Europe, where those involved in the hires say they can get multiple new hires for the price of one.

“Oracle doesn’t want to be in the top echelon in terms of salaries,” said one of the human resources employees. “They’re fine with passing the best candidates and opting for the second-tier, more affordable candidates.”

It’s unclear if all Oracle departments have been instructed to limit hiring in expensive US regions. However, several current and recently terminated employees in Oracle’s cloud software, advertising and customer experience, security, and recruiting divisions said they had seen or heard evidence of the directive.

Filling positions in areas where talent is cheaper, especially outside the United States, has long been a cost-cutting strategy for Oracle hiring managers, current and former employees said. The employees requested anonymity because they weren’t authorized to speak to the press, but their identities are known to Insider.

Location constraints come in the middle of a wave of new hiring restrictions that employees say is undermining the already low morale of the company, which is trying to reduce costs by a billion dollars and has had two rounds of layoffs in recent months. Insider recently reported that hiring in many units of the company was frozen, with some exceptions for certain departments able to hire for critical roles or fill positions.

In some business units where hiring is still ongoing, employees have been asked to fill positions that were previously based in the United States with hires from Mexico, India and Eastern Europe. Oracle has historically pushed hiring in overseas regions where labor is cheaper.

“If you get an American workforce, you can go to India and get five or six depending on the year. In Romania, I hired three to four for one, maybe,” said a former employee involved in hiring, who left the company in recent months, Insider said. “If you need to build a squad and you need bodies, this is the way to go.”

But avoiding candidates in major tech hubs like the company’s home territory of Silicon Valley is a new level of frugality for the company, some employees involved in the hiring process said.

“They’re really trying to tighten their budget. They’re trying to be super, super tight,” said a person in the recruiting division with knowledge of Oracle Cloud Infrastructure’s hiring strategy, which is a unit heavily impacted by restrictions. location.

“That sounds crazy to me,” Oracle executive Ken Glueck said in response to a description of the claims made by Oracle employees in this story. He did not elaborate further or respond specifically to questions posed by Insider.

When asked directly if the company encourages OCI to seek candidates in areas with lower costs of living and salaries, Glueck told Insider that Oracle “doesn’t hire as many people in the Bay Area than a few years ago” due to its headquarters moving to Austin, Texas. Glueck did not directly respond to whether the company prioritizes hiring candidates outside of tech hubs like the San Francisco Bay Area, Seattle and New York.

He later added, “We hire the best people wherever we can find them. It has nothing to do with any particular geography.”

OCI is where salaries are highest, but Oracle doesn’t want to pay Seattle or San Francisco prices

In recent years, OCI has been the unit within Oracle that has commanded the biggest salaries and wages, as Oracle bets on the cloud platform to compete with cloud market leader Amazon Web Services. But now even OCI needs to tighten its belt and prioritize cheaper hires, according to the three people in Oracle’s human resources division and other current and former employees who spoke to Insider.

Since the end of Oracle’s last fiscal year in May, the three HR employees say they have been told to avoid candidates from regions Oracle considers “Tier 1” (the Bay Area) and “Tier 2” (Seattle, New York, Los Angeles, Boston and Washington, DC).

“What happened was they did a review of their hiring and they were way over budget because we kept hiring expensive people at the top end of the levels 1 and 2,” an employee with knowledge of OIC recruiting practices told Insider.

OCI management has told employees working on hiring to prioritize Tier 3, 4 and 5 candidates instead, according to several employees who received the directive.

Oracle uses its tier system to determine employee salary ranges based on location. According to an internal document reviewed by Insider, Tier 4 includes ten states, including Arizona, Florida, Georgia, Michigan, Hawaii, Nevada, North Carolina, Colorado (excluding Denver and Boulder ), New York (outside the metropolitan area), and zip code 06390, home to Fisher’s Island, an under-the-radar summer vacation spot off the coast of Connecticut. Tier 5 contains over 20 states, including Arkansas, Idaho, Montana, North Dakota, South Dakota, and Ohio.

Two Oracle HR employees who spoke to Insider said some hiring managers take the direction of hiring Levels 4 and 5 more seriously than others.

“We don’t consider Tier 1 and Tier 2 applicants,” an OCI recruiter told Insider. “The salaries are too high, so we are looking into other areas where the salaries and the cost of living are lower.”

Many of OCI’s early hires were Seattle-based poachers from Amazon and Microsoft, a current and former employee of Oracle’s cloud software organization noted.

“They were paying whatever they had to pay to get key people out of Amazon. Once you get past that, you just need people in the trenches,” said the former employee involved in the hiring. . “That makes sense. How many hundreds of key people do you need to pay the jackpot?”

Good talent is harder to find in levels 4 and 5, according to recruiters

Employees involved in the hiring process who spoke to Insider expressed frustration with the pressure to look outside of cities Oracle considers Tier 1 and Tier 2.

“Recruiters think it’s extremely difficult to find the right talent in Tier 4 and Tier 5 regions,” said one human resources employee who spoke to Insider.

According to Oracle’s tier system, Austin, Texas, where the company recently moved its headquarters in order to reduce tax burdenfalls into Tier 3. Nashville, Tennessee, where Oracle is currently building a large campus, is included in Tier 5 along with the rest of the state.

But Oracle executives don’t seem to share the concerns of their employees who are in the field to hire, another HR employee added.

Small-town tech salaries are catching up with Silicon Valley

Oracle isn’t the only tech company trying to cut labor costs by laying off staff, freezing hiring, or hiring in areas where it can pay workers less.

Earlier this month, Insider reported that Meta changes performance expectations tied to its internal review process in a move that could lead to thousands of job cuts. The company, formerly known as Facebook, is set to sever ties with hundreds of US-based contractors this year as it shifts more contracts to Singapore, where labor is cheaper .

Insider recently reported that many tech companiesfueled by the rise of remote work amid the pandemic, are increasingly moving roles out of Silicon Valley to cheaper parts of the US and overseas.

In the USA, the highest paying job market for tech workers in 2022 was the Bay Area, where the average salary is $175,909. Seattle and New York take second and third place, with average salaries of $171,432 and $162,261, respectively.

But the pay of tech workers in small towns is fast catching up with Silicon Valley.

In Austin, the average salary of technicians is $157,612. Cities like Philadelphia, Dallas Fort-Worth and Denver have seen the highest growth rates for technician salaries this year.

Share.

Comments are closed.