H-1B Visa make up a major portion of the IT Job Market. Just the visa holders who were approved in 2018 make a total compenstation of close to $15 billion dollars. Those are all high wage jobs with the mean compensation of $91,604.
On an annual basis the mean compensation for the holders continues to rise. Since most of these are “temporary” postions, the long term value for the enterprises is questionable.
H-1B Visa applicants typically go to larger companies. In addition, most of the companies requesting visas are the same year after year. Question is that a way for them to get unique skills or to hold salaries down
Supply of Qualified IT Professionals Low – Starting Salaries Higher
Supply of Qualified IT Professionals Low as CIO and recruiters look to add the skill sets necessary to meed the demands of seamless information flow via ERP and Blockchain. This shortage is not limited to these skill sets, programmers and business analysts of all stripes are also in high demand.
IT job market growth is marked bu shortages of qualified professionsal. Still Janco forecasts that over 89,000 new IT jobs will be created in 2019.
The political turmoil and lack of any material progress on the trade talks with China and the EU adds a level of risk on the direction of the economy. However, even with all those factors in play there still is positive IT job market growth. CIOs are still planning on expanding the size of their organizations.
Most of the hiring that is occurring is at staff levels. Based on our current data we believe the hiring that will be done this year will be completed by June or July. Demand for consultants and contract employees will still be above average, however, there is a tendency to move towards in-house staff. This data is compiled by reviewing public data, open/filled positions at our client organization, and interviews with selected CIOs, Recruiters and our clients’ internal HR staffs.
CIO Hiring plans for the next year show the focus is on meeting the skill shortage need at the staff level
In order to assist its clients, Janco has just released it 2019 version of the IT Hiring Kit – https://www.e-janco.com/ITHirePack.htm. the Kit contains the over 300 full IT job descriptions, the 2019 IT Salary Survey, and the Interview and Hiring which is packed full of electronic forms and best practices.
IT Job Market growth exploded in 2018 with over 107,000 new jobs added. In the past ten (10) years only twice have over 100.000 new job been added. For the first time since 2015 have the number of new job created exceeded the the number of graduates for the U.S. university system.
2018 was a banner year for IT job market growth with 107,100 new IT jobs created. Driving this is a booming economy and a move by many corporations to ERP and Blockchain applications
At the same time the median salary paid to all IT professionals now is over $93,000 and projected to be over $100,000 in a very short time. Salaries are higher in large enterprise (those whose revenues exceed $250 million per year and / or employ over 1,200 individuals.
Median Salaries for IT professionals now are $93,077 and forecasted to be around $98,000 by 2020.
Jobs in demand like blockchain and ERP,currently command over $100,000 and some over $200,00
IT job market size and median salaries paid are driven up by the demand and bright economy prospects
IT Organization is dependent a clear set of IT Job Descriptions and a career planning system.
IT Organization structure is dependent on clearly defined roles and career paths for all IT Professionals
IT Job Family Classification System – Both in an individual’s personal career planning and an enterprise’s staffing, promotion and compensation it is important to have benchmarks on the levels that individuals are at. To that end, one of the best objective ways to meet this goal is to have formal job descriptions and clear paths for promotion and compensation.
Over the past three decades Janco Associates and its principles have created a set of 300 IT Job descriptions that are viewed by many as the industry standard. As a natural extension of that offering Janco has documented its IT job classification system.
A job family classification system is one that defines how individuals can grow in to higher level positions over time by providing benchmarks milestones that need to be achieved as they advance over time. This in time impacts the compensation that is paid in a fair and objective manner.
The traditional job families within an organization does not have clearly defined promotion paths. In addition compensation levels are often driven by factors other than an individuals capabilities and performance.
Top 10 in Demand IT Skills to drive median IT Salaries up
Top 10 in Demand IT Skills are primary drivers for the increase in IT Median Salaries. A secondary factor is the limited supply of IT professionals as the economy continues to boom.
Median Salaries for IT professionals now are $93,077 and foretasted to be around $98,000 by 2020.
There are a number of skill that the booming economy places a high value on. Janco’s analysis of the IT job market concurs with this list of in demand skills.
Java (SE and EE) is significant expansion of the skills required and programming language that has been around since the introduction of Java.
Lawson ERP software which has a focus on HR, customer service, and manufacturing needs unique application knowledge to implement is in high demand.
SAP for manufacturing industrial use – With manufacturing companies increasingly undergoing digital transformation and compliance on the rise, SAP are in high demand.
Compliance expertise – CaCPA and GDPR skills have an increased value as companies scramble to hire qualified professionals who could help them meet compliance mandates
SAP Forecasting and Replenishment is designed to help retail and food companies automate forecast and replenishment planning.
SAP Point-of-Sale Data Management is a point-of-sale management solution that allows sales data to be quickly transferred from the cash register to a back-office system automatically throughout the day
SAP FS (Insurance) is designed specifically for the insurance industry. It helps organizations streamline operations, improve customer engagement and gain deeper insights on potential risks.
Microsoft VISIO – a big data tool that is a data visualization program that lets users take complex data and turn it into easy-to-read charts, graphs and flow charts
Data Visualization are growing in demand as more companies turn to data analytics and business intelligence for decision-making, risk assessment and process improvements.
Quantitative analysis and regression analysis are quantitative research methods that are used for modeling and analyzing large amounts of data with several variables. They’re important skills as businesses try to make sense of all the data they’ve collected over the years.
CIOs Management Focus changed with he improved economy and the resulting increase in budgets.
Janco Associates conduct a survey of CIO and senior IT Managers in large and mid-sized corporations. 156 individuals participated in the study.
The top ten areas of management focus that we identified are listed below along with the percentage of participants who listed that as an area of their focus.
New Security Threats – identification, remediation and protections.
Data Protection / Compliance – The EU’s GDPR regulation and California’s data privacy legislation are driving this.
Staff Skill Gaps – Many enterprises have not invested enough into staff development in the past several years.
Multi Platform Security – With the move towards disparate operating environments away for the core data center to multiple cloud platforms security and data protection are more of a priority.
Innovation / Digital Transformation – New ways of doing things and the move away from traditional ways of doing everything towards a digital environment are driving top level IT Pros to rethink how they can provide value to the enterprise.
Revenue Stream Improvement – IT now is viewed more as an additional source of operational revenue.
Agility of IT – For most companies, projects with a 3 year development life cycle no long exist.
Outsourcing Risks – In outsourcing your work, the quality of the deliverable is at the mercy of the firm you outsourced to.
Business Results – IT value is now tied to the results of the operation units.
Tools for Digital Workers – With more remote users who operate on tablets and smartphones remotely instead of an office environment with direct connection to the processing center, productivity tool are more critical.
Experienced IT Pros Harder to find as demand rises
Experienced IT Pros Harder to find – A major research firm has just published our forecast for US tech employment and compensation (2019 US Tech Talent Market Outlook). It has some foreboding news for CIOs and for tech vendors: Tech talent will be harder to find and more expensive over the next two years.
The median salary for IT Professionals continues to rise. Currently, it is $93,077 and Janco forecasts that it will be around $95,000 by the end of this year. Experienced IT Pro harder to find as demand increases.
At the same time, they found that the supply of tech workers has largely kept up with demand. But the current data available for 2018 suggests that wage growth is starting to accelerate. This supports the finding in the latest IT Salary Survey from Janco Associates, Inc.
This acceleration poses a special threat to CIOs, who could find themselves paying premiums for certain tech roles in high demand.
Blockchain Education is Addressed by Several Universities
The blockchain job description was created with the assistance of two Fortune 100 CIOs.
Blockchain Education now is addressed by a number of universities. They understand that it is a hot evolving technology. Salaries for developers can reach $180,000. Late last year there were over 12,000 open positions – that was 4 times the number of open positions at the same time in the prior year.
Course address cyber currency (Bitcoin) and business scale blockchain networks. Some of the universities include:
Stanford University has a course called “Bitcoin Engineering”
UC Berkeley scheduled a two-course series which attracted 7,400 students before it was closed out. The topics were cryptocurrencies and business-scale blockchain networks.
MIT has two Instructors teaching Applied Blockchain.
Many other universities are addressing this area as well. It’s still very early in the game, so there is going to be that market for the hotshot blockchain technologist who will build systems and can hop from company to company and make a ton of money. But, if the promise comes through on the potential, there will be a lot of work in this space for many years, even a decade or more. This will be entrenched and deeply connected into the enterprise. It will be making money. It will be a core piece of the infrastructure.
Role of the Blockchain developer
The job description documents over 25 specific accountabilities for an individual in this role. Below are some of them:
Design groundbreaking software products with an eye toward compliance.
The subject-matter expert (SME) for the Blockchain applications including a knowledge of the top partners that make up our Blockchain segment globally.
Own the execution of the strategic plan for each market segment, which includes aligning with partner development managers who manage our top technology and consulting partners focused on Blockchain, maximizing influenced revenue driven with and through partners
Working with partner development managers, build C-level relationships with our top partners and generate interest in new programs focused on DevOps/Tools
Represent the partner strategy for Blockchain to our internal and external stakeholders including the sales teams as well as media coverage and industry events focused on the Blockchain segment
Median Compensation for IT Professionals based on Janco’s January 2019 IT Salary Survey
High Paying IT Jobs that are in high demand are associated with the new e-commerce roles and Internet based application areas. All of the job titles that we have listed here fall into positions where the starting salaries are above the median salary of $93,077 for all IT professionals.
The positions that fall we define as high paying for this analysis are associated with IoT (Internet of Things), Salesforce Automation, Virtual Reality and Security. These are the hot Job titles. The entry level for each of these positions is over $100,000 and some have pay ranges that exceed $200,000.
The positions most in demand and commanding the highest are the associated with Salesforce Automation and that unique application. That is followed closely by IoT and Security.
If the current demand for these skills continues, two things will happen. First, there will continue to be an increase in the compensation levels for these positions. Second, more IT Pros will migrate into these positions increasing the supply. That in turn will be dampening factor on compensation.
We have seen this before when new technologies required specialized skills. Typically we found that it took 24 to 36 months for the supply to catch up with the demand. At that time salaries leveled off.
In any case, we see the median salary for all IT professionals at around $97,000 by the end of 2019.
High Demand for Big Data and Data Warehouse Skills. Data Warehouse and Big Data Salaries are on the upswing because of this. In addition, they are tied closely with blockchain applications which is an area of intensive focus. As a result, many of these positions are difficult to fill with qualified individuals. In some situations companies have to hire contractors who have these skills in order to complete the design and implementation of systems requiring these skills. The challenge that CIO and hiring managers face is how to train and / or recruit this talent.
Beyond the management of these technical resources, the positions are divided up in three (3) categories: architects (Data Scientist, Business Analyst. Data Analyst), administrators (Oracle DBA, SQL DBA), and developers (Data Warehouse Programmer, Oracle Programmer, Entry Level Programmer, Hadoop/Cluster Programmer, SQL Programmer)
In Janco’s Job Classification System each of these groupings are a job family classification. Classes provide the ability to set minimum job requirements, promotion criteria and compensation. All of these factors are used in the definition of detail job descriptions.
Salaries for Big Data IT Pros are in the upper mid-range. Only the top seven positions fall at or above the overall median range of salaries of $93,077 in the 2018 IT Salary survey