IT Salaries rise by 5.19%

IT Salaries rise more than any time in the past 8 years according to Janco Salary Survey

IT Salaries rise more than at any time since the dot com bubble.  The median salary for all IT professionals now is $87,072 and it is hard to find any positions that pay less than $50K per year. Much of this is due to the preliminary data from both actual salaries paid and budgeted for in 2017.

 

Much of this rise is due to an improving economic forecast and less of a reliance on off-shore outsourcing.  The full salary survey is to be released the second week of January.

Read on…

Order Salary SurveyDownload Selected PagesDownload Selected Pages

10 findings on highly paid CIOs a

10 facts on highly paid CIOs

The 36 highly paid CIOs have average base salary is $510,000 with total average compensation of $3.6 million.

Janco has just updated its list of highly paid CIOs for the last year. The data is from public sources including SEC fillings.  The data shows that this group of individuals is not only very diverse but also completely integrated in the executive management planning and operational teams.

Interesting findings include:

  1. One quarter of this group of CIOs are women.  That is up from less than 10% in 1999.
  2. Just under 1 in five are minorities.  This group of CIO is racially diverse and are all well educated
  3. The median base salary $700K while the average base salary is $510K/
  4. The median total compensation $3.3 million and average total compensation is $3.6 million.
  5. All of the CIOs make most of their total compensation from performance bonuses and company stock.
  6. The average tenure is well over 60 months and these individuals have the probability of retiring from these jobs versus being terminated or leaving for greener pastures.
  7. All of the positions are Vice Presidents and most are Executive Vice Presidents. All have either CIO or CTO in their official titles.
  8. Over 60% have been in IT most of their careers. and have advanced to this position.
  9. Over 40% have operational responsibility for areas beyond IT and technology.  Technology is integral to the day-to-day operations
  10. All are integrated into the executive and operational management of the enterprises they are in. Typically IT is not in a “silo” isolated from the rest of the company.
toppaidcios-36
Highly paid CIOs – Public Companies

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.

Order Salary SurveyDownload Selected Pages

Massachusetts law prohibits employers from asking about applicants’ salaries

Massachusetts law prohibits employers from asking about applicants’ salaries

Massachusetts has enacted the nation’s first law prohibiting employers from asking about applicants’ salaries before making employment offers.

The new state law, which Republican Gov. Charlie Baker signed on Aug. 1, will require employers to offer a compensation figure upfront, rather than relying upon what the applicant made at a previous position. The requirements will not go into effect until July 1, 2018. Job applicants will not be compelled to disclose past or current salary or wages, but can still volunteer past salary information.

IT Hiring IT Job Descriptions IT Salary SurveyIT Salary SurveyJob Descriptions
Order IT Hiring Kit

The first-of-its-kind bipartisan law, S. 2119, was heralded by supporters as another avenue to strengthen equal pay laws. The law’s proponents said banning pre-offer wage disclosures addressed the subtle factors that can affect compensation decisions. As well, supporters said that using salary history as a means of determining how much a potential hire could be paid was unfair to women, arguing that it allowed a continuation of a pattern that statistically paid them less.

Another provision of the law requires that women receive pay equal to that of men in the same position, as well as men who perform work “comparable” to them. The Massachusetts law incorporates a wider standard than many other state equal pay acts. Other recently passed state equal pay laws, such as California’s 2015 equal pay measure, likely will depend on the courts to practically define “comparable” worth in the workplace.

Finally, the new Massachusetts law also addresses salary transparency. Employers will not be allowed to prohibit employees from informing others how much they are compensated. Supporters argued that transparency for wages would better identify gender pay disparities.

The bill passed the state legislature unanimously and had the support of several business organizations, including the Greater Boston Chamber of Commerce.

Similar attempts at introducing novel procedures to address equal pay have inspired copy-cat legislation in other state legislatures. Several states this year attempted to pass some form of equal pay legislation but the Massachusetts action is the first one to become law.

Full employment states unemployment rate rises

Full employment states lose ground

Full employment states lose ground as 9 of the 15 states have higher unemployment rates in June than in May.  They are : Iowa, Utah, Kansas, Colorado, Maine, Hawaii, Vermont, New Hampshire, and South Dakota.

States Full Employment Compare May versus June
Full Employment States – June 2016

That is not a good omen for the rest of the year as we move into the months where unemployment tends to rise.

Add on to that some of these states are “contested” in the election that is coming up shortly

Order Salary SurveyDownload Selected Pages

The National Unemployment Rate is pro-ported to go but the participation rate is the lowest it has been in the last 30 years.  Some analysts say the true unemployment rate  is closer to 15% than 5%.

National Unemployment rate
Labor Force Participation Rate

IT Job Market Employment Trends

The IT job market grew last month by 34,200 jobs last month. This more than negates the loss of 19,400 reported for May (adjusted from an orginally reported loss of 27,700 last month). Over the past 12 months 97,200 IT jobs were created according to the lastest BLS data.

Job Market tightens

Job Market tightens

Job Market tightens – Even with the national unemployment data showing positive improvements, the job market is tightening.  In a review of the just released October unemployment data by state Janco has found two interesting items.

The first is that the number of states with unemployment levels of 6% and greater has increased to 8 states in October versus 6 states in September.  No states fell from the list and Alaska and Oregon were added.

October High Unemployment States - Job Market Tightens
October High Unemployment States – Job Market Tightens

The second is the number of states at full employment levels in October fell to 11 versus 17 in September.   Indiana, Kansas, Idaho, Maine, Wisconsin, Wyoming, Montana, and South Dakota falling from the full employment state list and no states added. Plus this data has not been adjusted for the lowest labor Market participation rate  in almost 40 years.

States with full employment levels
States with full employment levels
National Labor Participation Rate
National Labor Participation Rate lowest in over 38 years

Order Salary SurveyProvide Salary Data

Job Market – DC leads the country with the 7.3% unemployment rate

Job Market – DC leads the country with the highest unemployment rate

19 states have unemployment rates of 6.0% or greater in December

Even with the slight improvement in the job market 19 states continue to have high unemployment. California still is at 7% and DC tops the list with a whopping 7.3% rate.  When you add in the participation rate in both of these job markets the true unemployment rate is closer to 10%.

States with High Unemployment – 19 States have 6.0% or greater unemployed

High unemployment states

Add on to this the increase in the labor force due to the recent actions on illegal immigration and the job market picture is not as rosy as depicted by the overall national unemployment rate.

Labor Force Participation

In December of 2014 the work force participation percentage of all employees (male and female) fell to 62.7% as more individuals left the job market. This more than offset the gain in the number of new jobs created.

Work Force Participation

Unemployment Data

During the recession of 2009 – 2013 unemployment in the IT Industry had not been as high as the rest of the United States. Older workers had a higher unemployment rate than your ones. In addition, female high tech employees have not as well as their male counterparts. This is especially true for workers over the age of 55. The unemployment rate for women over the age of 55 for computer and math workers in 2010 was 9.4% versus 8.0% for men.

Unemployment Trend