IT Salaries and Hiring are both up Significantly according to Janco
Year to year comparisons show IT salaries up by 5.19% and Janco forecasts 136,500 new IT jobs will be created in 2017
Park City, UT - IT Salaries and Hiring are both up Significantly according to Janco - Janco Associates (https://www.e-janco.com) has just released its 2017 IT Salary Survey (https://www.e-janco.com/salary.htm) and IT Hiring Kit (https://www.e-janco.com/ithirepack.htm). At the same time Janco has completed its analysis of the latest BLS data.
IT salaries on a year-to-year comparison have risen 5.19%. The median salary (for the positions surveyed) has gone from $82,775 to $87,072. Janco forecasts that on average approximately 6,500 new IT jobs will be created each month in 2017 resulting in 136,500 new domestic IT jobs. The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “The recent election has created a positive outlook for job growth in general and Information Technology in particular. If as the new administration says, jobs will be brought back to the US, a re-vamped H-1B visa program implemented, tax system improved, and infrastructure spending increased that should result in a significantly improved economic picture." He added. "With the stimulus and constraints proposed by the new administration there will be greater need for US based IT resources. IT hiring will be up."
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All of that comes at a time the labor statistics from the BLS show an economy that that has over 95 million individuals not even in the labor force with an unemployment rate that is 4.7%. Those 95 million people are a resource to provide the capacity for growth.
Janco interviewed over 127 (72 after the election) CIOs in the last several weeks as part of its 2017 IT Salary Survey process ( https://www.e-janco.com/salary.htm ). Janco's CEO said, "CIOs interviewed after the election and post-election processes are optimistic that there will be more incentives for increased IT spending and hiring. Those interviewed earlier were not as optimistic." He added, "SMBs are actively looking for experienced managers who will be able to manage the increased technology initiatives that they feel will be stated in the next two quarters."
This chart is not the originally published one, rather it is updated with the current data based on the analysis by Janco Associates, Inc. For the latest IT Employment Data click here.
The CEO added, “In reviewing the last 24 months of data on new IT job creation, it is very clear that there has been a downward bias in the number of new jobs created due to the prior administration's governmental policies.” He added, “In direct interviews with 76 CIOs and CFOs (before the election) we found that they have budgeted for slower growth in 2017. Few of these C-level executives were comfortable with the overall direction of the economy and prospects for new IT jobs. This also was reflected in lower acquisitions for new equipment and major application developments and implementations. Many of these executives were hedging their bets and forecasting flat to lower budgets for the 2017. A common thread we heard was that it will be easier to come back and get more monies than to have to cut spending after the new year starts.” He added, "That has all changed, after the election many are more optimistic and are looking to increase staff sizes and IT spending."
The CEO also said, “Even before the election, many CFOs were not adverse incremental spending for IT related activities that have operational support and have a good ROI.”
Major findings of the 2017 IT Salary Survey are:
- In 2017, the middle management of SMB's IT organizations is where there will be the greatest demand for IT professionals as those companies gear up their internal US based IT organizations.
- IT compensation for all IT Professionals will increase by 5.19% in 2017.
- Median CIO tenure has risen by a month to 4 years and 5 months.
- Over the long term IT executives have fared better in large companies than mid-sized companies.
- The greatest increases have been at the middle manager levels in mid-sized companies with an increase of 6.45% - most of which can be attributed to performance bonuses hiring significantly more qualified individuals. The positions with the greatest increases are:
- Manager - Application Development
- Manager - Data Warehouse
- Manager - Quality Control
- Manager - Training & Documentation
- Manager - Voice / Wireless Communications
- Computer Operations - Shift Supervisor
- Project Manager - Network Technical Services
- Desktop BYOD Support - Supervisor
- 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.
- In 2016 the IT job market grew by 71,900 versus 112,000 in 2015, 129,400 in 2014 and 74,900 and 21,800 in 2013 and 2012 respectively according to the Bureau of Labor Statistics (BLS).
- 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.
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.