Issue link: http://cp.revolio.com/i/886554
16 | THE DATA CENTER JOURNAL www.datacenterjournal.com of 2017, according to Bureau of Labor Statistics data—and even that number is fairly low (the lowest in about 10 years). IT employees, therefore, are in a much better position on average compared with employees in other sectors of the economy. THE PUZZLING ISSUE OF SALARY One indicator of demand is price: these two factors are generally corre- lated, all else being equal. One would therefore expect in the case of employ- ment that increased hiring would come with higher wages, particularly in light of the low unemployment figure from the TEKsystems data. As companies compete for talent, their main "weapon" is salary. Other benefits play some role, however, so a single number doesn't tell the whole story. Nevertheless, salary should be the most important metric. Interestingly, the TEKsystems data indicates that only about one-third (36%) of IT leaders plan to boost sala- ries in 2017. Nearly all the rest (63%) expect salaries to stay the same. On the surface, this number seems to contra- dict claims of high demand for talent. Yet as a single number that covers IT as a whole, it doesn't address dynam- ics of specialties. For instance, given a changing technology landscape, certain IT fields (related to new technologies) may be seeing high demand and ris- ing salaries whereas others (related to legacy technologies) may be seeing low demand and static or falling salaries. "IT salaries, perhaps more than any other sector, can vary widely depending on variables such as the skill set, roles/ responsibilities, geographies, certifica- tions and industry," Hayman noted. "I point this out because if you don't take that fact into account and only look at a single data point, a flawed narrative can develop that could misinform deci- sion making." Nevertheless, a strange tension remains, since both the salary and unemployment numbers are for IT broadly; one would expect generally stable or slightly rising salaries to go with a more middling unemployment rate of at least 3–4%. For specialties that use new technologies gaining steam with compa- nies, employees are in a good position. Hayman notes, "For IT professionals with in-demand skills, the problem isn't finding a job, it's finding the right job. e average IT professional receives more than 34 solicitations a week from recruiters, and sorting through so many offers and opportunities can be daunting." Among the hottest areas are the cloud, data analytics, security and automation, he added. "Beyond those technical skills, IT professionals who have a strong business acumen, have good communication skills, are able to drive change and have good network- ing abilities are highly prized." Again, the benefits of business skills on top of technical skills are growing with the changing technology landscape. A TOUGH MARKET FOR EMPLOYEES, TOO Even for talented individuals who have the right skills and find a great job to match those skills, the biggest challenge may still be ahead. As long as technology is changing—as it is now with increasing automation, emphasis on deep learning/artificial intelligence and a growing shi to the cloud—em- ployees must adapt their skills or risk falling behind. "IT is an incredibly challenging business right now," said Hayman. "e steadily increasing pace of change re- quires IT professionals to be in a mode of perpetual training and development, honing and adding skills." He also notes that although survey data indicates turnover isn't a huge problem for the industry right now, "About two-thirds of IT professionals have been motivated to search for employment elsewhere owing to a stressful situation at work. And about half of organizations report they increased IT hiring in order to backfill a vacated position." Should turnover increase, the unemployment rate would likely increase slightly as well. Once again, however, the picture of high de- mand for employees would seem to go better with high turnover as companies poach professionals from one another. CONCLUSIONS In IT areas where technology is changing most quickly or is seeing the fastest adoption, companies will have to do more with less in several respects. First, owing to a lack of talent in the hottest specialties, a company may sim- ply have to get by with fewer employees than would otherwise be appropriate simply because too few have the skills to meet the industry's demand. Second, getting ahold of talent can be an expen- sive proposition, crimping IT hiring and other spending elsewhere. e data from the TEKsystems survey is somewhat mixed. Despite a very low unemployment rate for IT professionals, salaries are at least moderately steady. One would normally expect faster price (salary) growth in a market with a supply (talent) short- age. Yet broad-based numbers oen fail to capture the dynamics inside an industry. Some areas are seeing higher demand and faster salary growth than others, perhaps creating a balance that reflects in the broader data. Another contributing factor might be departure of IT professionals with outdated skills into other industries; such individu- als would put downward pressure on unemployment figures. Regardless of the numbers, a fast- changing technology landscape can make life difficult on both employers and employees. Both sides may feel like they're in a constant battle (sometimes with each other) to be more productive with fewer resources. Yet if they each remember that their success is inter- twined, navigating new technologies may become easier and more profitable for all. n