2017 IT Job Market

2017 IT Job Market Summary shows 60,400 IT Job Created

2017 IT Job Market Summary data reported by Janco Associates is a good sign for IT Professional. Even though the number of new IT jobs lagged behind the prior four years, most of the lost jobs were in the Telecommunications field. Much of that can be attributed to automation of that function.
IT Job Market growth 2017 Computer and Systems design IT professionals saw the greatest increase in jobs with 46,800 new jobs added. That was followed by other Information Services with 10,700 and 6,300 in Data Processing, hosting and related services. After adjuments by the BLS Telecommunications was flat and 60,400 net new jobs were added in for IT Professionals.

There some differences in the data between the various charts as the number in the final reflect an adjustment in the November 2017 data of 20,700 additions to the telecommunication job market.

States unemployment

States unemployment in December 2017 higher in one more state

States Unemployment – The December BLS data shows there are 4 states with high unemployment number.  The states are Alaska 7.3%, District of Columbia 6.0%, New Mexico 6.0% and West Virginia 5.5%.

States with high unemployment

The question is what is the impact of this change on the IT Job Market?  Our answer is none as we still have 23 states in “full-employment” with full employment being defined as an unemployment rate of 4% or less.

Full Employment states
the bellwether states of Utah, Colorado, Massachusetts, Virginia, Florida, and Texas are all at unemployment rates of 3.9% or less

IT Job Descriptions Updated

IT Job Descriptions Updated

IT Job Descriptions
The 2018 version of the Internet and IT Job Description HandiGuide now contains 288 full job descriptions

The Internet and IT Position Description Handiguide 2018 edition has just been released.  It now has 288 full job descriptions,  They have all been reviewed and updated to include social media and blockchain development and operational considerations.

Each of the job descriptions has been reviewed and updated to meet the latest security and mandated compliance requirements.  Added to this edition is a section on sexual harassment.  In addition, the electronic version of the termination checklist has been updated  to reflect all of the mandated and security requirements that have recently come about,

The  job descriptions that have been added this year include:

    • Blockchain Developer
    • BYOD Support Supervisor
    • Information Assurance Analyst
    • IT Security Engineer
    • Manager Data Center
    • Manager Device Technology
    • Security Architect

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Highest Unemployment States

Highest Unemployment States are in unrelated job markets

Highest Unemployment States are Alaska, District of Columbia, and New Mexico.  Two of the job markets that have unemployment rates higher today than a year ago are Alaska (6.6% – 2016 and 7.2% – 2017) and the District of Columbia (5.8% – 2016 and 6.6% – 2017).

Highest Unemployment States - Graphic

The interesting fact about these three states is that they have seen little of the positive effects of the improvement in the national job market with its low unemployment numbers.

National Unemployment Rate - Graphic
The U.S. national unemployment rate is at the lowest levels that it has been at in over seven (7) years.

The current unemployment rate for the U.S. is just about the full employment rate (4.1% versus 4.0%).  At that level companies typically begin to increase salaries to help acquire and maintain the necessary staffing levels to meet operational objectives.

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Blockchain Developer Job Description

Blockchain Developer Job Description added to Janco’s HandiGuide

Blockchain Job DescriptionBlockchain Developer Job Description has been added to Janco’s HandiGuide and will appear in the 2018 Edition.  Until that time anyone who orders the Job Description HandiGuide will get the MS WORD version as a separate file.

The Blockchain Developer is currently one of the hottest jobs out there.  Individuals with that skill set can easily command $125K to $150K as a starting salary.  The developer is responsible for

  • Developing innovative solutions to challenging problems, including command and control and high integrity solutions.
  • Performing complex analysis, design, development, testing, and debugging of computer software for distinct product hardware or technical service lines of businesses.
  • Performng software design, operating architecture integration, and computer system selection.
  • Having the ability to operate on multiple systems and apply knowledge of one or more platforms and programming languages.

The Blockchain Developer is challenged with legacy infrastructure that will be the main obstacle to successful implementations. This is coupled with the challenges of technical understanding – the practicality of implementing decentralized cryptosystems that fall outside of the traditional IT development skill-set.

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Women CIOs

Women CIOs – 28% of CIOs in public companies are women

Women CIOs – Women in management are making it as CIOs in large publicly traded companies.  In reviewing Janco’s historical data we have found that in 2013 only 19% of the CIOs in our sample were women.  That has grown to 28% with our more recent data.

Women CIOs
More women are CIOs in large publicly traded enterprises than in smaller one

In an earlier article post our the Janco web site (Women in Management – Women are making inroads in the CIO position and other C-Level jobs), Janco found that the areas where women are getting to the executive management positions are:

  • Human Resources -Chief Human Resources Officers
  • Marketing – Chief Marketing Officers
  • Information Technology – CIO

Within those organization the number of women supervisors is  currently in the 30 to 40% range.

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Digital Brand Manager Why?

Digital Brand Manager why have the position

Digital Brand Manager Why
The Digital Brand Manager helps a company drive growth in its brands and product lines

Digital Brand Manager why have the position is a question that if you have to ask means that you do not understand the new market place.  Social media and networks drive traffic to social networking sites and websites where reputations and products are focused on.

The Digital Brand Manager is the primary focus point for the Internet and social network presence of a brand. The individual is responsible for digital consumer experiences across the entire enterprise and its operations. They help a company drive growth in its brands and product lines by converting traditional physical brand management process to social media ones, and oversee the rapidly changing digital sectors like mobile applications, social media and Internet based marketing.

The reasons why an organization should have a Digital Band Manager:

  • They are responsible for executing and evolving the enterprise’s Social Media Strategy
  • Understanding a brands performance & emerging company/consumer needs.
  • Defining channel roles
  • Establishing content strategy
  • Managing the social persona development of the brand’s social network

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596,300 IT jobs to be created

596,300 IT jobs to be created between 2016 and 2026

596,300 IT jobs to be created in the next 10 years according to BLS Forecasts.  The BLS projects the median salary for all IT jobs will be $82,830 excluding inflation.  For most jobs a Bachelor’s degree will be required, those would include:

  • Software Developers, system software (46,100 jobs median salary $105,860)
  • Software Developers, applications (253,400 jobs median salary $100,080)
  • Computer Systems Analysts (53,000 jobs median salary $87,220)
  • Operations Research Analysts (31,300 jobs median salary $79,200)

For those IT Pros that do not have a degree but some college, they will opportunities as Computer User Support Specialists (71,100 jobs median salary $49,390). These will be the lowest paying jobs in the IT job market.

When we take that project and compare it with what Janco says are the median salaries for staff positions we there there is significant room for growth in compensation levels.

IT jobs median salary
These are the latest summary results of Janco’s salary survey which is is updated twice a year; once in January and then again in July.

The growth in salaries will be greatest amount those who “create” code and applications. User support will end up being minimum wage jobs.  Added to that as new applications are created they will have more built in help, self correction and tutorials negating the need for “specialist” who know the the applications and devices at a very low level of detail.

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Over 50% Job References Not Checked

Job references not checked by employers

Job references used to be the gold standard that almost all enterprises used to verify candidates backgrounds and character.  That is no longer the case according to Janco Associates.

In the process of updated and re-issuing its Interview and Hiring Guide, they found that only 46% checked even one reference.  Surprisingly they discovered that 30% depended on statements made by candidates during the actual interview process.  In addition, 26% whet to social media pages like Linkedin and Facebook reviewed what was posted there and assumed it was factual and correct.

Job references
Hiring managers no longer depend as much on job references when evaluating whether to hire a candidate.

The move away from personal references has been driven by the inability of individuals to provide “accurate” information on candidates.  For example, if a negative reference is given by an enterprise’s employee or agent, the enterprise could bee subject to litigation. Plus, many severance agreements stipulate that companies provide “positive references” for terminated employees.

Interview and Hiring Guide

Version 2.0 of the Interview and Hiring Guide contains specific questions that interviews can ask about prior employment, the position the candidate is interviewing for, education and training, remote workers, decision-making and creativity, management and leadership, non-work activities and interests, and questions that should be avoided. In addition, it provides a list of best practices for screening resumes, phone screening, the top 10 interview best practices, and hiring best practices.

The Interview and Hiring Kit can be purchased separately $89 or with one of the four versions of the IT Hiring Kit, ranging in price from $579 to $2,399 with 12 months of update service or $799 to $2,799 with 24 months of update service.

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Top 10 Interview Best Practices

Top 10 Interview Best Practices to get the candidate to say yes

Top 10 Interview Best Practices to improve an enterprise’s chances that a candidate will say yes to your job offer.

  1. Make the right impression from the first point of contact to the job offer.
  2. Have complete and accurate job description available during the interview.
  3. Let the candidate review the job description before the interview.
  4. Communicate to the candidate what the interview will entail.
  5. Be prompt and do not make the candidate wait.
  6. Allow no interruptions and focus on the candidate.
  7. Prepare for the interview and have a set of questions ready to be asked.
  8. Have materials to be provided to the candidate available –  put a post-it note on the materials with the candidate’s name on the materials.
  9. Be enthusiastic and positive not only about the job that is being filled but also about the company.
  10. Define next steps at the end of the interview.
Top 10 Interview Best Practices
“Everything enterprises need to hire the best IT Pros as demand for IT Professionals increases” – CIO Fortune 500
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IT Job Market spotty

IT job Market spotty while overall job market is flat

IT job Market spotty with the overall hiring of IT Pros falling behind the rate of growth in the prior 3 years.

As of August, IT IT job market has grown by only 19,300 in 2017 versus 55,400 in 2016.

With the YTD rate being slower, the two hurricanes, and growth of 11,400 in September of last year the prospects for IT Pros are not all that great.

Sure companies involved in the rebuilding processes in Texas and Florida will do well.  However, we do not think this will translate into new IT jobs.  Rather we believe that CIOs and CFO will continue to put the breaks on increased IT spending.

From our analysis of current hiring prospects, we see that hiring for all levels of management in IT is projected to be down for several quarters. Consultants and contractor use will be flat.  The only bright spot will be in the programming and systems analysis staff levels.

IT Hiring down with the only positive aspects being at the IT staff levels
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Top 10 IoT skills

Top 10 IoT skills

IoT device challenges
The Internet of Things (IoT) is more than internet enabled sensors and analytics.

The top 10 IoT skills in demand are:

  1. Machine Learning algorithms that build the AI of IoT Devices
  2. AutoCAD software to allow IoT devices to make late-stage design changes quickly with minimal cost and time delays
  3. Node management via the server to manage the connected devices
  4. Security Infrastructure since everything is connected with these multiple endpoints
  5. Security engineering to design in security and block intrusions and break-ins
  6. Big Data to aggregate the data captured in both collection and analysis
  7. GPS connectivity and analysis
  8. Electrical Engineering to improve and support on-going device availability and radio frequency connectivity
  9. Circuit design to adjust for new requirements
  10. Microcontroller programming to add logic and intelligence to the devices

Job market improves

Job market improves – 25 states now at full employment levels

Job market improves to the point that there are currently 25 states, (including the District of Columbia), that have unemloyment rates of 4% or less.  At those levels most HR professionals consider those areas as being at full employment levels.

Job market improves
Job market improves – Comparison of unemployment rates for states currently at full employment levels (4% or lower unemployment)

The striking factor in our analysis of the data is the dramatic improvement in the unemployment levels if the 25 states that are at full emploment.  It is almost as if a light swith has been flipped.

Almost one half of the states have unemployent levels that are 2 to 3 percent range.

Read on …

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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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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