Historic IT Compensation

Historic IT Compensation for IT Executives

Historic IT Compensation analysis by Janco Associates shows that the Vice President of Technical Services has fared better in organizations of all sizes over the past five years than CIOs.

Since 2013  mean compensation for CIOs in large organizations has risen by 7.5% from $181,240 to $194,841 ($13,601).  At the same time, in those same organizations, the VP of Technical Services compensation has risen by 19.7% from $140,267 to $167,961 ($27,653).  In addition CSOs, also topped CIOs in large enterprises with an increase of 14.2%.

Compensation analysis for 5 years shows that the VP of Technical Services and CSO salary increase outpaces the CIOs in larger enterprises

In midsize enterprises CIOs, in the same five years saw their compensation rise by 9.6% or $15,523.  However, the VP of Technical Services saw their compensation increase by $17,991 or 13.8%.

Executives in Midsize enterprises typically are paid less than their counterparts in large enterprises

That does not mean that CIOs are doing poorly.  Rather the difference in compensations has eroded a bit in the past few years.

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The Rise of the Gig Economy offers vast benefits to Telecommunications Companies

 

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Size of the Gig Economy

US – close to one-third of working Americans are involved, at least on a part-time basis, in the gig economy[1]

Europe – 94 million[2]

Japan – 17 million[3]

China 201 million by 2020[4]

Asia-Pacific (not including China and Japan) – 34% of the workforce[5]

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Telecommunications: New Rules of Engagement in the Gig Economy

The rise of the gig economy offers vast benefits to telecommunications companies

The gig economy is on the rise all across the world, and it can be the answer to the telecommunications engineering talent supply challenge.

Freelance telecommunications engineers who work flexibly can reduce the burden on the supply chain, increase operational efficiencies and reduce project costs. Attracting and retaining top talent has been a consistent challenge for telecoms companies and this could be the answer to acute talent shortage.

In a study by the Human Capital Institute, 69% of respondents reported that outsourcing and temporary staffing significantly improved the organization’s talent quality. For instance, AMP, Australia’s largest insurance company, requires half of its 2,600-engineering workforce to be filled by contractors to ensure current skills are shared within the organization. [6]

Gig Economy workforce

The gig economy workforce functions as a pool of talent from which employers take skilled engineers when they need them, and as they need them. Instead of building a team of engineers who work full-time, and thus have various levels of engagement with the company depending on the project, whether they have vacation time, etc., a manager selects an engineer with the skillset required for a given project.

This has obvious advantages: The telecoms engineer is more likely to be fully engaged with the project as it addresses his/her skillset. And, because the engineer is only hired for a specific project, successful and timely completion matters, so that the engineer can find another assignment.

“The gig economy prevalent in US, Europe and India is expected to bring transformational changes to traditional HR practices around the world, where gig and traditional economy will thrive together,” comments New Delhi consultant Rohit Kutappan.[7]

“With a growing shift to contracted labor and asset usage, organizations have the ability to use the new on-demand economy to their advantage – for growth and to be leaders of innovation. Every industry is ripe for change and looking internally and across well-established networks can provide the seeds of, and impetus for, change,” according to Jacob Romansky, an Associate Consultant at Denneen & Company.[8]

How engineers manage on-demand working

The advantages are aplenty for the workforce too, and not just the employers, as they can pick and choose the gigs they want to work on. This means their skills will be current while retaining flexibility and autonomy, and avoiding the occupational hazards of a regular job. In effect, freelancers can operate as entrepreneurs.

More importantly, they can have a work-life balance according to their needs and feelings. A telecommunications engineer may wish to work one month, then to spend a month with his/her children at home. Or they may enjoy taking on a long project, and then waiting to see when another one that fits their skills and appeals to their inclinations come up.

Flexible working gives engineers an increased feeling of personal control over schedule and work environment, according to Human Resources expert Susan Heathfield.

“One reason people like to work for themselves is the control issue. By allowing employees to determine their own schedule and work environment, a manager appeals to the entrepreneurial spirit, which can be good for workers.”

Fieldengineer.com can help

If you are a telecommunications engineer thinking about becoming a gig economy worker, then contact Fieldengineer.com to find out more about all the advantages you can gain.

If you are a manager thinking about working with telecommunications engineers on a flexible basis, then Fieldengineer.com offers you 15,000 pre-screened telecommunications engineers to work with in locations all over the world.  You can save 30% or more with contractors from Fieldengineer.com, as you won’t have to pay for benefits or vacations.

More importantly, you can fill the skills gaps you need to get your projects finished on-time and at a high level of quality.

So, contact https://www.fieldengineer.com/ to get the best results and the best talent.

[1] https://www.fastcompany.com/3048919/the-future-of-work/are-freelancers-to-blame-for-our-slow-economic-recovery

[2] http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/digital-blog/are-we-ready-for-more-on-demand-freelance-work

[3] https://www.techinasia.com/japan-gig-economy-zehitomo-funding

[4] http://www.scmp.com/tech/china-tech/article/2073048/pots-gold-chinas-gig-economy

[5] http://www.ientrepreneur.co.in/blog/small-business/rise-of-the-gig-economy-in-india/

[6] reports.weforum.org/digital.../digital-enterprise-narrative-final-january-2016.pdf   

[7] http://www.ientrepreneur.co.in/blog/small-business/rise-of-the-gig-economy-in-india/

[8] http://www.denneen.com/2016/09/13/use-the-on-demand-economy-to-your-advantage/

IT Job Market Not Brisk

IT Job Market Not Brisk – Slower growth rate than 2016

IT Job Market Not Brisk as the number of new jobs created in 2017 lags 2016 as of July buy 35,600 jobs.  That may not be a good omen of the balance of the year.

IT Job Market Not Brisk
YTD the number of new jobs created for the IT job market lags what occurred last year.

In conversations with several dozen CIOs, CFOs, and recruiting managers, Janco found that there was significant reluctance to staff for new positions until the economic horizon is more stable.

Drivers of instability are whether a new tax plan will be passed in the near future and the political uncertainty associated with the current grid lock in Washington.

Current hiring plans by CIOs and HR recruiting managers are depicted in the chart below.

CIO and HR recruiting managers current hiring plans and forecast
CIO and HR recruiting managers current hiring plans and forecast

For more on this go to https://www.e-janco.com/Career/EmploymentData.html

 

 

Minimize breach response cost

Minimize breach response cost with operational strategy

Minimize breach response cost
Policies and procedures need to defined and be in place in order to minimize breach response cost

While the costs of a data breach can vary widely on a case-by-case basis, CIOs who understand the drivers behind the expense will be better positioned to take steps needed to protect their organization.

Here are 6 way to minimize breach response cost:

  1. Eliminate data you do not need.
    You can potentially dramatically reduce your exposure by destroying records of past customers.  You cannot lose data if you do not save it. In 2015 one company served 69 million customers, yet when they were breached that year, they exposed 78 million records. The extra nine million records most likely come from former customers. Each of these individuals had to be notified and offered credit monitoring, driving up costs.
  • Do not store street address if there is no real business requirement.
    When a breach occurs, companies are typically required to notify affected individual via old-fashioned, handwritten “snail mail.” But they can use alternative methods of notification, such as email or public announcement if they do not have a valid mailing address. Physical, written notifications can cost up to $2 per person, and the cost quickly adds up. It may be worth asking twice what the business need for those customer addresses is and considering not capturing these addresses to reduce the exposure to notification requirements.
  • Utilize logs to prove proof a breach or data loss did not occur.
    One industry study shows that in 44% of incidents, public notification is not required. To avoid notification, companies must prove that, even if they were attacked, no records were improperly accessed. To do so, they use systems logs. Without logs, a company may be forced to assume a breach occurred because it cannot prove otherwise.
  • Follow PCI rules and protect credit card data.
    For breaches that involve credit card data, reimbursing card companies for fraudulent transactions can amount to a staggering cost, from $3-$30 or more per card. New chip cards are designed to reduce fraud, and early data show they are having the intended effect – MasterCard reported a 54% reduction in counterfeit card fraud costs at retailers who have switched to chip cards.
  • Use experts who know the breach response landscape.
    Your breach response effort is not a good time to reinvent the wheel. Missteps happen fast and have serious consequences. Credit monitoring alone can cost $5 to $30 per person. Data breach specialists, such as PR consultants or data privacy lawyers, often have seen as many as hundreds of data breaches and are highly practiced at helping you craft a genuine story that keeps confusion – and costs – down.
  • Be prepared for additional audits and compliance reviews.
    In the wake of a breach, a company may be audited and investigated by a number of regulatory agencies. While it’s not guaranteed to occur, it is likely, and there are simple steps you can take to prevent sensational fines if it does. To start, CIOs and  CFOs should be strong advocates for the implementation of the security controls recommended by external auditors or by regulators themselves.

Telecom drag on IT Job Market

Telecom drag on IT Job Market – 39,200 jobs eliminated in last 12 months

Telecom drag on IT Job Market – telecommunications hiring has been suffering this year. The industry dropped 700 jobs in June, making a total of 39,200 jobs lost in 2017. That comes as no surprise considering the whirlwind of telco mergers and acquisitions. Verizon’s acquisition of Yahoo’s Internet properties led to a massive cut, Windstream’s purchase of EarthLink eliminated hundreds of employees, and Vonage recently laid off 90 people due to acquisition redundancy.

Telecom drag on IT Job Market
48,800 IT jobs have been added to the IT Job market despite a loss of 39,200 telecom jobs in the last 12 months.

Janco has just completed its analysis of the first six months of the IT job markets growth and adjusted its forecast for IT job market growth the remainder of this year.  In summary, the IT job markets should grow at the about the same rate as it did in 2016 even though IT job market growth currently is behind what occurred in the first six months of 2016.

The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “There continues to be a shrinking of telecommunication jobs.  In the last 12 months alone, there as been a loss of 39,200 telecommunication jobs while the rest of the IT job market is expanded by 88K new jobs in the same period.  This is a trend that we think will continue for the next few quarters.”

The CEO added, “In the last 3 months over 14,600 jobs have been added in the Computer System Design and Related Services sector of the IT job market. Based on our conversations with scores of CIOs, CFOs, and CEOs; we see that trend continuing. As a result, we forecast that the overall IT Job market will grow by over 60,000 jobs in the next six months. This would result in the creation of 72,000 new IT jobs in 2017. That should equal the rate of IT job market growth that was seen in 2016.”

Janco interviewed 113 CIOs, CFOs, and CEOs in the last several weeks as part of it’s IT Salary Survey process ( https://www.e-janco.com/salary.htm ).  Janco’s CEO said, “C-Level executives interviewed after the election were optimistic that there will be more incentives for increased IT spending and hiring.  It seems the tide has turned and they now feel there will be  less growth in IT budgets for the remainder of this year.” He added, “Hiring prospects are marginal at best, except for IT Staff at the worker level in the latter part of this year.”

Janulaitis added, “There is little demand for new executive and senior management positions over the next few quarters.  On the bright side there looks to be an increase the headcount for IT staff towards the end of this calendar year.  The trend to IT job creation is up and if a  tax reform is implemented one would expect that IT jobs would be the first ones that were opened to be filled.”

More information can be found on Janco’s analysis of overall labor picture and the IT job market on Janco’s website.

Janco is an international consulting firm that follows issues that concerns CIOs and CFOs and publishes a series of IT and business infrastructure HandiGuides® and Templates including a Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.

eCommerce obsoleting traditional retail

eCommerce obsoleting traditional retail – Infrastructure needs to change

eCommerce obsoleting traditional retail
One of the best ways to communicate and understand a company and its operating culture is through its policies. Designing and writing policy and communicating it effectively is an essential skill for professionals to have. By having policy carefully developed and communicated, employees will clearly know what the organization expects from them, the degree of control and independence they will have, and what the benefits and consequences are in regard to adhering to policy.

eCommerce obsoleting traditional retail with brick and mortar businesses impacted the most.

eCommerce is changing the way both business and consumers shop. Retailing is changing at lightning speed coupled with an ever-tightening decision horizon, changing consumer expectations and an unrelenting flood of data. eCommearace is disrupting classic retail models.

Traditional infrastructure models for merchandising, supply chain, and store operations are now triggered autonomously by novel and unexpected sources that are facilitated by artificial intelligence, machine learning, and voice and IoT sensors connected to a digital core.

Consumer wearables, smart appliances and homes, driverless vehicles, drones, virtual reality headsets, and online games are becoming points of brand interactions – from demand to execution. What has served retailing well in the past now is a serious liability with it being unable to drive business success.

  • By 2020, 83% of mobile users globally will use their device to access the Internet
  • By 2020, there will be 75 billion connected devices
  • By 2025, the Internet of Things (IoT) will have potential economic impact of $4 trillion – $11 trillion a year, with impact in retail up to $1.2 trillion
  • By 2025, augmented reality (AR) and virtual reality (VR) will represent up to $182 billion market opportunity

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Top 5 Hot Jobs

Top 5 Hot Jobs

Chief Digital Office (CDO) & Chief Mobility Officer (CMO) Hot C-Level Jobs

Top 5 Hot Jobs – CDO & CMO Hot C-Level Jobs that are not only new but also hot.  In the case of Chief Digital Officer (CDO), we have found that one in five companies now have some in that role.  In addition, half of those enterprises hired the incumbent in the last 12 months. The case is not quite as strong for the Chief Mobility Officer (CMO) as we found that only one in ten organizations have an individual other that the CIO assuming those responsibilities.

Top 5 hot jobs
Chief Digital Officer is one of the hottest jobs in the technology arena. Other hot jobs are Chief Mobility Officer (CMO), Digital Brand Manager, Data Scientist, and Social Media Specialist.

Many of the hot new jobs often report to the operational side of the business, instead of the traditional IT organization under the authority of the CIO.  Part of the reason for that is that almost half of all IT functions report up thru the financial side of the enterprise, not the operational side.

The five hot new jobs are listed below and have links to pages describing the major roles and responsibilities they have:

All of these jobs have one thing in common.  They are addressing the issues, roles, and responsibilities of the new age marketplace.  Without the Internet, e-commerce, and mobile users there would be no need for these positions.

But, as it is these are the new jobs that have been created by these new technologies and changes that have taken place.

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High Unemployment

High Unemployment States

High Unemployment continues to persist in four states: Alaska – 6.7%; New Mexico – 6.6%; District of Columbia – 6.9%; and Louisiana 5.7%.  All four of these states have had a dismal recovery.

Recovery has missed these four high unemployment rate states.

 

It is not clear what it will take to get the people in those states back to work.  In the case of the District of Columbia, with the emphasis of reduction in the size of goverment, unemployment will stay high.

Both Alaska an Louisiana should have a clear path to recovery with the emphasis on energy independence. New Mexico is an unknown at this time.

Full employment states

There are 21 states that are in a full employment mode.  That is the best it has been since early in the George W. Bush administration.

Colorado is in a full employment mode with the lowest unemployment rate in the nation.

All but 2 of these states (New Hamphsire and South Dakota have unemployment rates that are lower than they were in the same month of the year as last year.

In the case of IT job market, that is a very good sign.

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IT Salaries up

IT Salaries up 5.32% in the past 12 months

IT Salaries up by over 5% in the past 12 months for all IT positions surveyed by Janco in is semi-annual IT  Salary Survey. The median salary (for the positions surveyed) has gone from $82,775 to $87,175.IT Salaries up as demand for IT professionals increasesMajor findings of the 2017 IT Salary Survey are:

  • Salaries for IT executives have fared better in large companies than mid-sized companies.
  • Middle manager levels in mid-sized companies with an increase of 6.65% – most of which can be attributed to performance bonuses and the hiring of significantly more qualified individuals earlier.
  • Middle management positions in IT organizations of SMB’s had the greatest demand for new hires. Companies were gearing up their internal US based IT organizations pushing IT salaries up by 6.65% (from $80,792 June 2016 to $83,964 in June 2017).
  • 2017 IT job market started with a bang.  That has slowed. We predict that the IT job market will grow at about the same amount as it did in 2016 when 71,500 new IT jobs were added. IT salary growth will be almost nil for the remainder of the year.
  • Median CIO tenure has risen by a month to 4 years and 6 months.
  • Positions in highest demand are associated with security, training, large data center management, big data, distributed/mobile system project management, quality control, BYOD implementation, capacity planning and service level improvement.
  • On shore outsourcing and H-1B visa jobs have peaked.

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Janco interviewed over 127 (72 after the election) CIOs in the last several weeks as part of its 2017 IT Salary Survey process. Janco said, “CIOs interviewed after the election and post-election processes were optimistic that there will be more incentives for increased IT spending and hiring. It seems the tide has turned and they now feel there will be little chance for improved growth in IT budgets for the remainder of this year.” They added, “Hiring prospects are poor at best, especially with the higher salary levels due to the overall increase in IT salaries at the end of last year.”

 

Employment Picture

Employment Picture not looking good

IT Employment Picture is spotty at best.  Many CIOs were optimistic at the beginning of this year, but they have pulled back on hiring.  After 5 months, there has a net loss of 7,200 jobs in the IT job market.  In addition this year is trailing IT job creation of last last year by over 18,100 jobs.IT Employment PictureIn interviews with over 100 CIOs, we found that CIOs are no longer as confident about the economic outlook as they were earlier in the year.

CIO Hiring PlansWhit this as a preamble, Janco has reduced its forecast for the number of new IT jobs to be added to be about 77,200 for the whole of 2017.  Earlier we had forecast that well over 140,000 new jobs would be created.

Number of new IT jobs to be created in 2017

 

 

FCC anti-net neutrality

FCC anti-net neutrality results in thousands robo-comments

FCC anti-net neutrality and IT Strategy FCC anti-net neutrality – Now that FCC has announced they plan to roll back an Obama-era framework for net neutrality, their website is being flooded with several thousand duplicate comments.

The FCC asked Americans to leave comments in favor of keeping the rules. These robo-comments make any meaningful analysis of the responses next to impossible. Including those comments, well over half-a-million comments have been posted.

What does this all mean to small businesses and individuals who are using the web to conduct business and gather information.  Only time will tell.

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IT Environment and Net Neutrality

The IT environment is too complex to rely on outmoded ways to keep the business functioning and thriving flawlessly. That is one of the reasons that the net neutrality rules are important.

To balance the many crucial and changing enterprise demands to move the organization forward, an effective IT strategy is required. Without that, there are increases risks in expectations of IT — the growth of the Internet, compliance concerns, mobile computing and advanced security risks. Instituting a effective Internet and digitization strategy can serve as a catalyst that can effectively bring together the dynamics of cross-enterprise communication and summarize key, relevant data to provide critical metrics to make informed decisions.

Telecommuting Top 10 Reasons Why

Telecommuting Top 10 Reasons Why

Telecommuting Top 10 Reasons Why include the following:

  1. Flexible Work Hours – If employees telecommute then their schedules become more flexible.
  2. Reduce costs – telecommuters can save money on transportation costs such as gas, parking, public transportation, work clothes, and dry cleaning bills. Employers can save money by reducing overhead and retaining employees.
  3. Ease the strain on employees -telecommuters have greater flexibility to plan non-work-related activities around their business schedule instead of searching for the time in the early morning, late evening, or during lunch.
  4. More Productive – telecommuters will save the time they now take to commute to their place of employment.
  5. Minimize Non-Work Distractions – At times employees in an office setting can be distracted from their work by untimely interruptions from peers, impromptu meetings, or pulled away onto other projects. Telecommuters may find themselves more productive.
  6. Better Morale – Working from home usually means telecommuter have more time with their family.
  7. Green Solution  – Working from home part or full-time reduces the auto emissions and decreases gas consumption.
  8. Stay Healthy – Working from home decreases the stress caused by inflexible hours, commuting time and costs, continual rushing to unmet family needs, sitting idle during a commute and provides time to exercise or pursue endeavors of particular interest to you.
  9. Potential Tax Deductions – Income deductions are available for home-based work-related expenses such as fax, scanner, phone, computer and office supplies.
  10. Reduce the Need for Outsourcing – Working from home helps keep jobs domestic and reduces need or desire for business and industry to contract with other countries for work that can be done at sites other than the main office.
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Security Architect

Security Architect is a Hot New Job

Security Architect job description
Security Architect is just one of over 280 full job descriptions that are delivered electronically

Security Architect – The one position that CIOs and C-Level executives are looking to fill.  With all of the recent cyber-attacks and negative publicity they have generated there is a need for this proactive position.

Most of the other positions are focused on “after the fact” monitoring.  This one looks at what could happen and creates an architecture which address potential cyber-attacks and hacks.  The individuals operate on a philosophy that is easier to prevent something from happening versus trying to address problems after they occur.

Position Purpose

The individual in this position  assumes responsibility for data security including the planning, design and implementation of security measures which safeguard access to enterprise terminal files and data elements.  The administrator provides rapid response to user community’s request for security assistance.

They  secure enterprise information by determining security requirements; planning, implementing, and testing security systems; preparing security standards, policies, and procedures; mentoring team members.

The full job description for this position has just been released.

Security Architect read on…

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10 Best Practices for managing cyber-attack

10 Best Practices for managing cyber-attack

10 Best Practices for managing cyber-attack
10 Best Practices for IT Infrastructure are contained in this bundle of policies and procedures

10 Best Practices for managing cyber-attack have never been more important than today. They are:

  1. Stay calm, prioritize and don’t point fingers
  2. Assign response responsibility to a single point of contact
  3. Have both an incident response plan and a disaster recovery plan in place
  4. Take detail backups regularly – store backups on non-connected sites
  5. Have a business continuity plan in place with solutions that do not depend on the existing networks and data
  6. Have a PR/media and legal operational plan in place before the event
  7. Immediately notify customers
  8. Manage user/customer expectations
  9. Conduct a postmortem
  10. Implement policies and procedures that focus on infrastructure security
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H-1B visa holders paid less

H-1B  visa holders paid less

H-1B  visa holders paid less.  According to the latest filings by Apple Computer. 99.6% of the 4,807 visa applications for the current year have a “stated” average salary that is less than the going rate for the current year.

Apple Computer files average salaries that could lower for actual hires than the going rate for the San Francisco Bay area

Granted that Apple may pay individuals more than is stated in the application, but they do have the option to pay less.  That is the core of the issue with the H-1B visa program as it is implemented today.

The question is the program to be be altered in such a way to eliminate the possibility that companies like India based outsources can use the program for their own profit at the expense of US workers’.

In our next IT salary survey we will address this issue this issue in depth.  Janco’s survey is an industry standard and is (and has been) used by over 3,000 organizations in the US and Canada, In addition, the results of the survey have been published in the Wall Street Journal and CNN to mention a few media outlets.

Several major unions and governmental agencies use the survey for setting pay grades and overall compensation levels.

Read on IT Salary Survey