New Economy; The technology sector's financial downdraft has done little to ease the shortage of qualified employees in Silicon Valley.
By Laurie Flynn
June 2000

Despite the recent sell-off in technology stocks and the steady drumbeat of failing dot-coms, the search for the best high-technology employees continues. And recruiting them still takes extreme measures -- not the least of which is learning the names of potential recruits. While demand for workers shows no sign of abating, what has changed recently is what it takes to lure away a new senior-level employee: cash. Stock options, particularly in companies not yet public, have considerably less allure than they did just a few months ago, according to the recruiters helping to craft compensation packages.

''People would rather go to more established companies,'' said Valerie Frederickson, president of a high-technology recruiting company in Menlo Park, Calif., that bears her name, so they need not worry about when or if a promised initial public stock offering actually happens. ''Employees are getting angry that their companies are delaying their I.P.O.'s.''

Ms. Frederickson did note that layoffs at smaller Internet companies had helped create a noticeable increase in job candidates in May.