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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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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Tenure of Telecom pros exceeds that of CIOs

Tenure of Telecom pros exceeds that of CIOs by 18 months

Tenure of Telecom pros – In the process of preparing for our mid-year IT salary survey, we have started to review the impact of the baby boomers who are now starting to to retire in droves.   The issue that CIOs and CSOs face is wither they have the resources in place to fill those positions as these professionals retire.

Employee Tenure
Telecom professionals have a median tenure of six years. That is 18 months longer than for CIOs.

Added to this is the fact that over the last several quarters the total number of job in the telecom field has shrunk significantly. This has also dampened the number of new entrants into that job market.

Preliminary data that we have seen shows that telecom salaries are not keeping up with the rest of the IT industry.

CIOs and CSOs are going to have to address succession planning for not only the telecom pros retiring, but also for the rest of the baby boomers that they have on their staffs.

10 steps to a raise

10 steps to a raise as the IT Job Market Improves

10 Steps To A Raise - IT Salary Survey
10 Steps To A Raise – IT Salary Survey provides data on 73 unique positions in over 100 metropolitan areas in the US and Canada.

10 steps to a raise is a program that anyone can follow.  They are easy and something that IT pros (and others) can implement fairly quickly.  However the results may take some time.

  1. Make users love you
  2. Understand where the CIO and company are moving
  3. Learn how to implement and apply the latest technology
  4. Get certification or first hand experience
  5. Market your skills
  6. Have and use the latest technology and tools
  7. Provide peers with insight and training on your area of expertise
  8. Fit into the organization as a team player
  9. Be a focal point in the latest technologies
  10. Network with IT Pros in other organizations that have the same technical responsibilities

Janco and eJobDescription.com has conducted salary surveys of the IT Job market since 1989. The data from this survey has been published in the Computer Industry Almanac, the Wall Street Journal, the New York Times, eWeek, and many other business and industry publications. In addition over the years it has been featured on CNN, the Wall Street Journal, and several national and international media outlets.

The salary survey is updated twice a year; once in January and then again in July. Janco and eJobDescription.com not only look at base salaries, they also report on total compensation.

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CIO Role Changes with Each Technology Types

CIO role changes and faces new challenges – no longer just a technologist now a business partner

The role of the CIO and CTO is changing as more enterprises more towards a “Value Added” role for the Information Technology function. The Strategic Implications of each type of technology are different.  The CIO, as a result needs to be able to adapt qucikly

CIO Role Changes
The chief information officer’s (CIO) role, responsibilities and influence is growing in today’s boardroom. And the CIOs job itself is expanding as well. The CIOs of the next decade face many challenges.

The job of overseeing technology at corporations is changing as fast as the technology itself. No longer is the chief information officer the “nerd-in-chief,” merely chasing after viruses and ordering new mouse pads. Now the CIO is finding ways to utilize hardware and software for strategic business purposes, such as discerning market opportunities and improving customer service. The high-tech tools of choice can include sophisticated data mining like social networking, and enhancements to the company website.

As the CIO’s role changes, a key question for the chief executive is whether the individual in that position can handle all of these new challenges. Today, the CIO often is working directly with all of the other C-Level executives. He or she now has to undertake customer-service, marketing, and new-product analysis. This can require “people” and analytic skills in addition to advanced e-knowledge. CIOs are called upon to think like business people.

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Read on… CIO Role

 

Hiring right employees

A critical CIO skill – hiring the right employees

Hiring the right people – Career path definition and compensation planning need to be in place along with well defined job descriptions.

Hiring right employees is one of the most critical factors in the success of a CIO.  The right people will have the skills, aptitudes and attitudes  to help mobilize and evolve systems and technology solutions necessary to compete in today’s ever changing environment.t. With the right people, CIOs can move ahead and have a team that supports the enterprise’s and CIO’s success.

CIOs in today’s tough economic conditions have to know the answer to the questions of what they can do to ensure they hire the right people?  A first step Before CIOs start the  recruiting process, they need to a good handle on:

  • Understanding the job requirements and expectations from the employee
  • Understanding the working style of the managers and staff where the position will be
  • A consistent and robust interview process is a must for a successful recruiting process

    Understanding the company’s culture and communicate that to the candidates

  • Have detail job descriptions in place for each position to be recruited
  • Conducting structured interviews that get to the true fit of the candidates with the enterprise, and
  • Managing the process to minimize your enterprise’s legal exposures
  • Remembering that a large percentage of those hired will only be with the company for fewer than 7 year – some will leave voluntarily others will be terminated.

After CIOS have completed  planning, screened the applicants and interviewed job candidates, the decision to hire a person ultimately rests on your intuitive sense of whether this is the right person for the job.

Nothing can prepare any hiring manager  for that decision except their own experience supplemented with hard facts and discussions with the other interviewers.

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If many individuals are interviewed for many position, interviewers  will learn the signs that indicate a potential hire is right. If interviews and hiring is infrequent, hiring managers will have to depend on less-intuitive methods and other people to help you.

If the company believes in high quality employees, you should be really enthusiastic about the person you want to hire, not just lukewarm.

Read on… IT Hiring Kit

Common Security Concerns

Common Security Concerns that CSOs and CIOs have

Security Manual Template - Common Security Concersn
CIOs and CSOs often are tasked to address user and C-Level management’s common security concerns. The Security Manual Template and its associated items address each of these in detail.

When the CIOs and CSOs discuss common security concerns these five topics always seem to appear:

  1. Surfing the web anonymously is a thing of the past – As online tracking systems become more sophisticated and harder to shake, the likelihood of private, anonymous browsing is becoming a long-ago memory. Take into account the latest ISP changes, where the U.S. government allows providers to not only track, but sell your browsing history without your consent. These changes in “net neutrality rules” require users to be more vigilant about their own browsing patterns. You can guard your activity by logging out of search engines before browsing, clearing your cache and search history, and switching to a private browser to minimize the various ways your browsing history is catalogued.Order Security Policies and ProceduresDownload TOC security policies
  2. Anyone gain access your webcam – Hackers can and do target cameras by disabling the light that notifies of access, and keeping tabs in order to commit some sort of crime. Many users have responded by putting dark tape or coverings over their computer’s webcam. But as more smart devices are created and purchased, the surface area for webcam hacking only expands. Think, for example, of all the places you take your smartphone, with its built-in camera almost always pointing in your direction. The malware used to hack webcams, known as RAT (remote access Trojan), is often spread through spam email. Once clicked, the software is capable of disabling your light so you’re never made aware of anyone watching.
  3. How to protect against identity theft – Be wary of sites asking for personal information to complete a basic task, such as subscribing to a newsletter. When submitting personal information, such as your address or payment method, check for https versus http and never submit this information to a party you’re not familiar with or for a request you don’t remember making.Protecting your identity, at its core, always comes back around to common sense behavior online. Understand risks, practice careful consuming, and taking precaution to diversify passwords and watch out for phishing schemes.
  4. Free antivirus software is not free – You get what you pay for in the area of antivirus and malware protection. If it is free a lot of people use it and when there is a security hole – hackers will attack.  That is opposed to paid programs were vendors constantly update the software to address new issues as the occur.
  5. Are tablets, Smartphones and Macs safe without antivirus software? – Though the Android and Mac OS X boast of operating systems that claims they are tough to breach, they still contains weak access points. Just like any tool that surfs the web or connects to wireless routers, security is needed to scan all those items you click. (Recent research suggests Macs are now more vulnerable than PCs.)While these devices have often carried around the title of most-secure operating system, it doesn’t hurt to back up your devices with the latest antivirus security protection.

Women CIOs comprise over 20% of all CIO roles

Women CIOs  hold over 20% of all CIO roles according to data analyzed by Janco Associates

Women CIOs – In the process of capturing public data on CIO compensation, Janco has found that well over 1 out of 5 CIOs is a women.

Women CIOs and other C-Level positions

According to the CEO of Janco Associates, at least two thirds of large public companies doing CIO searches require the recruiter to include women in the candidate pool. Further, when “all else is equal”, between a male candidate and a female one, companies are tending to choose the latter specifically to enhance the diversity of perspectives on the management team.

Unfortunately, even with this data, there are still too few women in senior, experienced roles to populate the candidate pools of all diversity-minded companies. So it’s not enough to decide at the CIO level to hire a woman. The relevant decisions must be made and opportunities offered earlier, at the developmental stage of potential finance leaders.

Companies need to provide more mentors who can share wisdom about things like where to invest time and ways to be motivated.

For those with leadership potential who prioritize family and stability over always making the best career move, the path to the C-suite may be inherently more difficult in CEO and finance than in other functions, like IT and human resources.

Why H-1B is Wrong Solution

Why H-1B is wrong solution – a question that we have been asked

Why H-1B is wrong solution – a question that we have been asked by a number of reporters (see press release).  Below are two tables that  Janco has created in getting the answer to that question.

Why H-1B is Wrong Solution
H-1B Visas 2015 – 2017 – What is wrong with the H-1B visa program
Why H-1B is Wrong Solution base on who get the visas
Number of H-1B visas issued for IT related jobs is 78.5% of the total – Is a lottery the right way to allocate the visas

Below are some of the questions that we were asked by a reporter for a national publication.

General Questions

Reporter: Is the Information Security Analysts job the only H-1B security job in your findings?

Janulaitis: Yes, that is the only pure security role.  However, there are individuals who have those skills and are classified as Network and Computer Systems Administrators. They fill some of the roles of the security analysts.

Reporter: Do you have any insights into whether that number is so low because. A) no company’s are looking abroad for security skills. or B) people with these skills are applying but not getting accepted? 

Janulaitis: First there has to be demand for that role.  Many C-Level executives do not feel comfortable with security being done by non-US workers who are not on shore and/or are outsourced.

When C-Level executives have a choice, the idea that an H-1B is responsible for security is not one they relish. They need some assurance that H-1B employees will remain with the company.  There have been too many hacks that have taken place where immediate response is required. There is less control when the individual is an H-1B employee that is a contractor.  Companies like Microsoft and Apple (vs Tata’s) offer real opportunities for security specialists. These are US companies, not outsourcers, and have a long term view.  I know both Microsoft and Apple have good internal training programs in place with real career paths for the “best of breed” technologist that they hire with H-1Bs.

Reporter: Do you think that IT security and cyber-security skills should be given special consideration for H-1B visas? Under the proposed revamping of the program that may include moving to merit-based selection program rather than a pure lottery system.

Janulaitis: In general, all H-1B visas should be merit based.  My feeling is that the first choice for jobs should be US nationals who are qualified, then foreign nationals who are graduates of US Universities and want to become US residents and lastly, graduates of foreign Universities who want to become US residents.  The idea that there is a lottery and companies like Tata win a large number of positions that they then use to “replace” US workers does not make any sense at all.  The purpose of the program is to give the US a competitive edge in technology not reduce cost for US corporations.

Reporter: The question is being raised because the global demand for cyber-security workers is expected to reach 6 million by 2019. There is a projected shortfall of 1.5 million qualified security pros. More than half of organizations today say that finding and recruiting talented IT security staff with the right skill sets is a “significant” or “major” challenge.

Janulaitis: First we start to educate our IT pros in the disciplines required. Then have jobs for them when they graduate and there will be much less of a need for “foreign” workers.  It should be a H-1B requirement that these individuals have a “desire” to become full time US residents.  If companies like Tata game the system, they should be penalized. Perhaps they could be required to post a bond of say 20% of the annual salary be put in trust.  That would be returned when the individual qualifies to be a permanent resident.  If they do become full time residents within a specified period, then the bond would be forfeited and the individual would have to leave the US. We need to take the profit out of gaming the H-1B program.

Other Observations

Reporter: Any other insight you might have into this would be greatly appreciated.

Janulaitis: Companies like Tata should not be allowed to get the number of H-1B visas they do.  They are gaming the system by creating US subsidiaries that are just a shell to get revenue out of the US and not necessarily help the US to be a technology leader. The focus of the H-1B program should be to get foreign nationals that are world class to come to the US, become full time residents, and contribute to our society.  Currently students come to the US and take the limited number of advanced degree slots available we have and are capping the number of US nationals who can fill them.  It is not the US’s role to educate the world.  We need to do everything possible to have H-1B visa holders stay here.  It is not good when over 75% graduates leave and go back to place like China and India.

I believe much of the problem we have is due to our educational system.  We need to have more of a focus on math and science and less on social engineering.  As a county we spend more on education but rank behind Poland. We have a bias towards foreign nationals in our graduate and doctoral programs.  We need an educated population of college graduates who focus on both math and the science. Then we need to have jobs for the individuals that have STEM (Science, Technology, Engineering and Math) degrees. That includes undergraduate as well as masters and doctoral degrees.  It is much easier to grow our skill base if we have the professors who can teach those subjects.  China, for example, is graduating more students from it universities in robotics on an annual basis than we have in total.

 

 

IT Job Market to expand

IT Job Market to expand as CIO and CFO confidence is high

Year to year comparisons show IT Jobs increased at double the rate of 2017 – Janco’s forecast of 136,500 new IT jobs stays firm

Information Technology job market spiked up with double the number new jobs in January of this year versus January of last year.  The CEO of Janco Associates said, “This increased demand for Information Technology professions remains firm with more hiring on tap for at least the next several months.  From our conversations with many CIOs, CFOs, and CEOs we feel this is the start of a boom in demand for IT professionals. Janco’s forecast of 136,500 new Information Technology jobs for 2017 is on track with 11,800 new jobs added in January. ”

Projected IT job market growth
Janco forecasts that over 124,700 new Information Technology Jobs will be added in the remaining 11 months of 2017
YTD IT Job Market growth
January 2017 had double he number of Information Technology jobs created than January 2016
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Electronic Forms are released by Janco

Electronic Forms are now available for download

Electronic FormsJanco Associates has just released its 100 IT Infrastructure Electronic Forms .  Victor Janulaitis the CEO of Janco Associates, Inc. said, “Over 1,000 companies in over 120 countries have selected the Janco’s CIO IT infrastructure Policy Bundle with electronic forms.” He added, “Forms include all areas of IT including Disaster Recovery/Business Continuity, IT Service Management, Records Management, Records Retention, Safety Program and Threat/Risk Assessment.”

The CEO added, “Many of the best features  are that they comply with US state and federal mandates, EU requirements, and ISO standards.  Best practices are followed on all of the forms product.”

The Infrastructure Electronic Forms are delivered electronically and comes as an easily modifiable Microsoft WORD and PDF documents.  They include everything needed to implement a seamless electronic document management system which works on Smartphones, tablets, and desktops.  The forms can be acquired with Janco’s CIO IT Infrastructure Policy bundle or a as a standalone item.  Janco also offers and subscription update service for 12 or 24 months.

The CEO said, “Enterprises around the world are moving away from paper files to electronic ones.  CIO who are on the top of their games have already started this implementation.  It will only be a short time until electronic forms will be a best practice.

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10 CIO questions

10 CIO questions as they move forward

There are 10 burning questions that CIOs need to have answers to.

10 CIO questions

The chief information officer’s (CIO) role, responsibilities and influence is growing in today’s boardroom. And the CIOs job itself is expanding as well. The CIOs of the next decade face many challenges. The CIOs who will succeed will have a common set of skills.

The 10 CIO questions are:

  1. Can the CIO and IT organization sustain technology hype and deliver value?
  2. How secure is the data of the enterprise and its customers and suppliers?
  3. What is the next core systems evolution that the CIO and IT organization going to undertake?
  4. How and when will drones be used with the enterpriser?
  5. What are the implication of “industry giants” like Goggle going to impact the operations of the enterprise?
  6. Can Blockchain (a distributed database that maintains a continuously-growing list of ordered records called blocks that interconnect enterprise data) be implemented within the enterprise?
  7. Can enterprise’s product designs keep up with opportunities from technology?
  8. Will vendor consolidation continue?
  9. Is digital distribution and marketplace about to take over?
  10. Are KPI metrics and  analytics investment paying off?

CIO Role – CTO Responsibilities read on…

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CIO Tenure Up

CIO Tenure up to 4 years 5 months

CIO tenure moves up as more CIOs are staying in their jobs.  However that is about to change as the “baby-boomers” will begin to retire over the next several quarters. This data is according to Janco’s 2017 IT Salary Survey.

Read on…

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Top 10 steps to an effective IT organization

Top 10 rules of the road for CIOs when creating IT organizations

Top 10 rules of the road for CIOs as they build a modern IT function.  The organizational structure must support the goals of the organization and be consistent with its culture and capabilities. Well-defined reporting structures are based on the IT and business direction; take into account organizational barriers; and consider the effect of combining or separating the functions that are targeted for change.

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  1. Limit the span of control for professional staff that report directly to the CIO – The number of direct reports should be limited to between 5 to 7 direct reports of professional resources.
  2. Minimize the depth of the organization from the CIO to the technologists (developers and planners) from the CIO to the staff doing the work.
  3. Parallel the overall IT organizational structure to the operating structure of the enterprise
  4. Create career paths for IT specialists into enterprise operational functions
  5. Have an operational management, quality control, and customer service function that can provide direct feedback to the CIO.
  6. Integrate strategic planning, security, and business continuity planning into the overall organizational management processes
  7. Create positions within the organization which non-IT professionals can take to create bridges to enterprise operations and productivity
  8. Integrate human resource planning and training with the corporate human resources group
  9. Create an industry relations function that looks at what competitors are doing with technology
  10. Build bridges to independent IT functions within operational units to keep abreast with what pragmatic technology solutions they are building independent of the CIO’s organization.

 CIO CTO Role

IT Job Market Poor

IT Job Market poor and is trending down

IT Job Market poor
IT Job Market growth poor – trending down

IT job market poor as growth continues to trend down.  This year, only a little more than one half  (53% – 66,600 jobs) of that number of new IT jobs were created. Telecommunication job growth continues to be slow and still has not recovered from the Verizon strike earlier in the year. Where the Verizon strike was about limiting shipping jobs overseas it did not cover companies that continue to outsource telecommunication jobs.

Year to date there are 47,400 fewer new jobs in 2016 than in 2015.  The forecast for all of 2016 is only 75,600  new jobs will be created for the year versus 129,400 in 2014 and 112,500 in 2015.

That is not a good sign for IT Pros who are looking to advance and for overall compensation for IT professionals.

IT Median Salaries 2015 vs. 2016

Historic versus current salaries IT Professionals

In the process of capturing the data for Janco’s 2017 IT salary survey to be released in January, the trend for IT salaries remaining flat seems to be continuing.

You can get a free copy of the full survey if you provide 10 valid data points and use a corporate e-mail address. Free e-mail accounts like gmail or yahoo do not qualify as we have no way to verify the accuracy of the data provided.
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