Tech Savy Young Hires Talent Shortage

Tech savy young hires talent Shortage is real for many enterprises

Shortage of Young IT Talent makes the promotion process falter

Tech savy young hires talent shortage is widely discussed among CIOs. The shrinking unemployment rate has drained the talent pool in many corporate IT functions and industries, and companies continually complain that they can’t find qualified staff. For Information Technology departments, the problem is different: If they were looking solely for the technical skills they wanted years ago, they would be overwhelmed with candidates. Today, though, such skills are table stakes, and the focus is on finding people who stand out because they have other desired qualities as well.

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Given companies’ increasing reliance on data in decision-making, demand is soaring for a demonstrated aptitude for analytics. Even more important for the long-term success of new hires, however, are assorted “soft” skills that allow them to communicate and collaborate with others, as well as influence others’ attitudes and behaviors.

According to some CIO, there is not a shortage of finance talent per se, but there is a shortage of people who have both technical expertise and these additional skills that will enable them to work well inside an organization.

Given this shortage, IT departments are aggressively positioning themselves as employers of choice. And they can’t allow themselves the luxury of easing up on that quest, since their competitors are doing the same thing.

What are CIOs and CFOs looking for

CIOs and CFOs are telling Janco Associates they want Information Technology students who know how important application strategy will be in any IT function and who show a willingness to embrace and explore analytical tools and methods. Students don’t necessarily need to know how to code.  Many companies that are successfully hiring young candidates with prowess in analytics are looking beyond traditional sources like business schools and accounting firms.

The problem is that demand for those candidates far outpaces supply. CIO should be looking for people who may not have the desired business background or professional experience but who possess the analytical skills IT pros need now and in the future.

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…

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IT Spending Flat for 2016

IT Spending Flat for 2016

IT spending flat for 2015 as compared with 2015 according to a report published last week.  Interestingly the two areas that saw the greatest reduction in spend were equipment (down 5.3% on top of a reduction of 4.6% in the prior year) and communications (down 1.4%  and 9.2% in the prior year.

Cumulatively that is over a 10% reduction in both areas.  Now when you consider that planning is going on right now for 2017 – what does that imply.

IT-Spending Flat

First, there will be pressure for “new” hardware as equipment has not been replaced that is approaching the end of its useful life.  Second if that happens there will be further pressure to keep IT salaries down as well as head count.

With that in mind, Janco is in the process of forecasting the net number of jobs in the IT job Market for the remainder of this year.

Last month the forecast was that there would be 76,500 new jobs created this year for the domestic IT job market.

IT Job Market Forecast - June 2016
Janco’s IT Job Market Forecast – June 2016

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Growth in IT Job Market – near zero

Growth in IT Job Market – near zero

Growth in IT Job Market has come to a standstill. For the first four month of this year.  Each month this year the IT job market has not grown at all as compared to 2015.

IT job market growth slows to a 5-year low
Growth in IT Job Market

There are some new IT jobs that are continuing to be created.  However the number of this new jobs is small at best.

The CEO of Janco was quoted as saying, “There is an acceleration in the rate of slowdown in the IT Job Market.  If this continues, as we think it will, there is a probability that there could potentially be a net decrease in the size of the IT Job Market in 2016.  We will only be able to get visibility of that when we see one or two months of new data. However, we have already lowered our best case forecast for net new IT jobs for the balance of this year.”   He added, “Many companies are cutting back significantly on contractors and consultants.  That trend will continue until at least the 3rd quarter of this year.”

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IT Job Market Forecast

IT Job Market Forecast

Janco has just released its IT job market forecast and does not look good.  The forecast for 2016 is that 100,800 new IT jobs will be created.  That is 12% lower than the number of jobs that were created in 2015 and 2014.  In addition, a number of industry analysts are forecasting that a new recession is around the corner.  That was magnified with the testimony of the Fed Chairman before Congress. The Chairman said, “… we (Fed) will not raise interest rates in the near term as we are seeing signs of a recession occurring over seas.”

IT Job Market Forecast

When Janco analyzed the recent employment data provided by the BLS, they found that 5,300 new IT jobs were created in January 2016 versus 15,900 last year at the same time. The CEO of Janco said, “The BLS did reclassify some jobs from the Telecommunication category to the Computer System Design and Related Services, but that was a push and in aggregate the result was that fewer new IT jobs were created. In support of this, our interviews of 47 CIOs in the last few weeks have them being much more pessimistic than they have been as group in some time.

IT Job Market January 2016

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2015 Mid-Year Salary Survey Released by Janco

2015 Mid-Year Salary Survey Released by Janco

2015 Mid-Year Salary Survey – Janco Associates, Inc. has just released its 2015 mid-year salary survey.  To read about the salary survey go to http://www.e-janco.com/salary.htm.

IT Median Salaries Mid-Year 2014 vs. Mid-Year 2015

Historic versus current salaries IT Professionals

The major finding are:

  • In the prior 12 months the IT job market grew by 139,100.
  • IT compensation for all IT Professionals has increased by 1.22% in the last 12 months.
  • CIOs compensation across all organizations has shown another increase.  The mean compensation for CIOs in large enterprises is now $189,324 (up 2.14%) and $174,520 (up 1.44%) in mid-sized enterprises.
  • Positions in highest demand are all associated with security, training, large data center management, distributed/mobile system project management,  quality control, BYOD implementation, capacity planning and service level improvement.
  • Over the long term IT executives have fared better in large companies than mid-sized companies.
  • On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.
  • Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.
  • Companies are continuing to refine the benefits provided to full time IT professionals. Though benefits such as health care are available to 80%, IT professionals are now paying a greater portion of that cost.
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10 Things To Avoid In Your Resume

10 Things To Avoid In Your Resume

10 Things To Avoid in your Resume – Your resume is the primary marketing tool that you have. Here are the 10 things that your need to avoid:

  1. Resume that is too long – Most resume readers will just look at the top 1/3rd of a resume in the first screen and many of them will “throw out” the multi-page documents.  That is especially true of mid-level and senior level managers.  Keep your total resume to 2 pages or less.
  2. Resume that does not represent you in the best first impression – Everything that the physical or electronic resume does is visual make sure that the resume looks good.  There is your chance for a first impression and it need to be good.
  3. Resume that is not structured well – On first glance if  a resume looks cluttered or is just a long set of words which is “difficult” to get a quick image of a candidate can be excluded by the resume reader. Bullets, limited bold text, and a summary at the top are key directions to take.
  4. Resume that contains spelling errors – If you make this mistake you often will not even be phone screened.  This error is direct path to the circular file.
  5. Resume that contains grammatical and tense errors – This is just as bad as spelling errors in the minds of many resume screeners.  Do not user complex sentences and avoid starting with prepositions.
  6. Resume that does not agree with your “social profile” – Recruiters now look at social media and their network of other professionals and you resume needs to be in agreement with what the rest of the world see about.
  7. Resume that contains a photo – Do not include anything that shows your age, race, or appearance.  You could be excluded from an interview for being “too old” or “too young” or other non related factor.
  8. Resume that is not 100%  accurate –  Everything needs to be truthful and accurate.  Not matter what the factor is there should be no grey areas or out right “lies” in the resume.  Those will come back to bite you.
  9. Resume that is the same for each job and company – With word processors and email you should at least have a custom cover letter that address the “specific” job or company that you are sending the resume to.
  10. Not following up – If you do not hear back from a company and have sent a resume in, it is a must to follow up and see if the job is still open or if there is another position that you might be able to fill.
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IT Compensation up as CIOs are hiring

IT Compensation up as CIOs  turn on hiring spigot

IT Compensation up – Janco has just analyzed the latest Labor Department (BLS) data and interviewed almost 100 CIOs finds that hiring of IT Pros is on the upswing.

IT job market improves - hiring up

The three month moving average for IT job market growth trend for IT Professionals is up for the first time in several months.

Data is as of July 2014.

  • IT compensation for all IT Professionals has increased by 0.33% in the last 12 months.
  • CIOs compensation has stayed flat in larger companies and increased in smaller and mid-sized companies in the past 12 months.  The mean compensation for CIOs in large enterprises is now $182,645 (up 0.24%) and $168,214 (an increase of 1.52%) in mid-sized enterprises.
  • Positions in highest demand are all associated with the quality control, BYOD implementation, and service level improvement.
  • Over the long term IT executives have fared better in mid-sized companies than large companies.
  • IT Job growth has slowed. In 2013 the IT job market grew by 36,500 (January thru May) versus 32,200 in 2014 according to the Bureau of Labor Statistics (BLS) — at the same time not all of the IT jobs lost in the recession have not been recovered.
  • Lay-offs seem to have tapered off, however some companies continue to cut the size of the IT organizations.
  • Cost control is still the rule of the day; however we have seen an increase in the number of “part-timers” and contractors who are focused on particular critical projects.  This has resulted in few IT Pros getting health coverage
  • On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.
  • Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.
  • Companies are continuing to refine the benefits provided to full time IT professionals. Though benefits such as health care are available to 80%, IT professionals are now paying a greater portion of that cost.

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Background Screening – Would you rather hire a convict or a war veteran?

Background Screening – Would you rather hire a convict or a war veteran?

That is a question that was posed to us recently and raised some interesting issues. Both types of individuals have some “history” that may or may not affect their overall performance and probability of success.

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On the positive side the veteran has provided a major service to the country but they may bring some “baggage” list Post Traumatic Stress into the workplace that could impact others. In the case of the convict, the positive side is they would be less likely to leave to go to another job because of their history. Hypothetically, here is an individual who has served jail time for a small crime that doesn’t affect your organization. The person has served his time and is now looking for a job. Legally, he is a free man and has no criminal charge against him; it is all in the past.

In conversations with our over 100 of our clients we found that over 85% of our clients would hire a “qualified” veteran without any hesitation. In the case of the former convict fewer than 10% would even grant those individuals an interview.

What are your thoughts on this?