The good news is that recruiting activity has accelerated significantly over the past 12 months, and the trend is likely to continue. The bad news for hiring managers is that we have already crossed the line into a sellers' market.

However, a “lag-effect” has impacted recruiting activity as many hiring managers have not fully adjusted compensation tables to reflect the accelerating recovery and ramp-up in recruiting activity. Compensation for development professionals is the most extreme example of this situation. Development activity lagged behind recruiting for investment professionals, however, over the last 12 months the tide has turned and searches for developers from junior project managers to top development executives is reaching epic proportions.

The result is a shortage of talent and a corresponding ramp-up in compensation. Wake-up hiring managers and dust off your checkbook.