eJobDescription.com website is the HR for Information Technology management
IT job market shrank
by 44,900 jobs in the first two months of 2023
In the first two months of 2023 465 tech companies let go over 126,057
employees. And 608 tech companies have announced layoffs, affecting 162,541
people (or 2,426 people per day). In 2022, there were 1,535 layoffs at tech
companies with 241,176 people let go.
Salaries for IT Pros in demand continues to move up. Based on our salary
survey and models for positions in demand we conclude that developers of all
types are in the highest demand at the highest salary levels.
In 2021, the mean compensation for all IT pros rose just 2.05%, according to
a mid-year salary survey from the business consultancy. In 2021, the median
salary for IT pros at large enterprises was $100,022, and $95,681 for those at
mid-sized firms.
In 2022, however, merit increases for IT pros lept to 5.61%, with the median
salary for all IT professionals rising from $95,845 to $101,323. The median
salary for an IT executive rose to $180,000.
Based on BLS data analyzed by Janco over the last 12 months over 200,000 IT
jobs remained unfilled due to a lack of qualified individuals. However the
number of unfilled jobs trend line is down as the economy softens and CIOs and
CFOs look to control costs and eliminate requisitions for positions that cannot
be filled.
Retention of New Hires is Key in a Tight Labor Market
IT
job market prospects are tied to overall US national employment
IT
skills are very transferable. The IT job market is tight with over 200,000
open positions due to a lack of qualified candidates. If a qualified IT
pro is not pleased with their existing position, it is not to hard to find
another. It no longer is a stigma to change jobs every few years.
The current 25 to 45 year old
IT pros, for the most part, are not tied to a particular company that they plan
on working for 20 years or till retirement. Many of them feel it is normal to
work for a year or two for a company, get the experience and training they need,
and move on to a new company - even into a new industry. Company locality
is a thing of the past. That was not the case 10 to 20 years
ago.
Covid only made the problem
worse because so many companies went out of business and IT departments were
reduced or eliminated via outsourcing. IT pros feel that it happened once to
them or their friends and will happen again. Therefore they have to look out for
themselves and change jobs when it suits them.
What companies have to do is
give employees a reason to stay. The key is to have a stable management
team from CIO down to supervisor. The focus has to be on long term team
development with a compensation and fringe benefit program that rewards
long-term loyalty.
California
is not the only state or city to require pay grades
Just signed into law and required by January 1, 2023. Over 200,000
California companies with 15 or more workers will be required to publicize
the salary range on new job postings and give demographic pay reports to a state
civil rights agency.
This salary-range requirement applies both to postings made directly by a
business, as well as postings made by a third party.
"The bill would require an employer with 15 or more employees that engages a
third party to announce, post, publish, or otherwise make known a job posting to
provide the pay scale to the third party and would require the third party to
include the pay scale in the job posting,", according to the new mandate.
Janco's
Job Family Classification & Pay Grade System
A job family classification system is one that defines how individuals can
grow in to higher level positions over time by providing benchmarks and
milestones that need to be achieved as they advance over time. This in time,
impacts the responsibilities and compensation that is paid in a fair and
objective manner.
The number of IT jobs created has fallen for the 4th month in a row. From a
peak of 29,500 in March of this year it now was 8,500 in July. Added to
that some of the major tech companies have reduced their hiring plans. For
example, Apple has eliminated all of it contract recruiters, signaling they do
not plan to hire as many IT pros as they had planned.
CIO
and IT managers have staffing issues that need to be addressed
The most important aspect of any business is recruiting,
selecting, and retaining top people. Research shows those organizations that
spend more time recruiting high-caliber people earn 22% higher return to
shareholders than their industry peers. However, most employers do a miserable
job selecting people. Many companies rely on outdated and ineffective
interviewing and hiring techniques. This critical responsibility sometimes gets
the least emphasis.
States with the Lowest Unemployment -- Full Employment States
State unemployment rates continue to improve. At the start of the shutdown,
there were 14 states with unemployment rates of less than 3.5%. For the first
time since the start of the pandemic there were 14 full employment states.
In February the 14 states with unemployment rates 3.0% or less) were -
Alabama (3.05); North Dakota (2.9%); Virginia (2.9%); Wisconsin (2.9%); Iowa
(2.8%); Minnesota (2.7%); New Hampshire (2.7%); Montana (2.6%); Oklahoma (2.6%);
South Dakota (2.6%); Kentucky (2.5%); Illinois (2.3%); Nebraska (2.1%); and Utah
(2.1%).
Implications of IT job market and employer/employee relationships due to pandemic
How hard wil it be to retain and hire needed IT Pros
Questions that many CIOs and HR executives have are what
the implications to the pandemic and the current economic outlook for the IT Job
Market are. Hiring will remain brisk given there is not a major downturn in the
overall economic environment.
The experience of 2020 and 2021 have fundamentally
employer/employee relationships. The work-life intersection has new meaning.
Working from Home and remote meetings were shown to be effective but at a cost.
A recent Gallup poll found those who prefer remote work now cite reduced
commute times and better work-life balance as the key component of the
employer/employee relationship and job requirement.
IT
skills are very transferable. The IT job market is tight with over 200,000
open positions due to a lack of qualified candidates. If a qualified IT
pro is not pleased with their existing position, it is not to hard to find
another. It no longer is a stigma to change jobs every few years.
