Salary Survey Reveals Companies Are Cutting Benefits to Control Costs
Janco has just released it 2009 IT Salary Survey and it finding
show that IT compensation has been adversely impacted by the down turn in the
economy, outsourcing, lay-offs, and hiring freezes. In addition companies are now cutting
benefits to help control costs.

Fringe Benefit Analysis
|
Fringe
Benefits - Historical Trends |
2006 |
2007 |
2008 |
2009 |
|
Insurance - Health |
87% |
90% |
95% |
81% |
|
Insurance - Life |
75% |
75% |
85% |
64% |
|
401K |
69% |
71% |
70% |
64% |
|
Trips (i.e. off-site planning, trade shows, training)
|
42% |
63% |
55% |
44% |
|
Insurance - Disability (beyond mandated requirements)
|
63% |
58% |
67% |
49% |
|
Flexible Hours and or Schedule
|
61% |
57% |
60% |
49% |
|
Personal Performance Bonus |
53% |
53% |
59% |
66% |
|
Enterprise Performance Bonus |
42% |
38% |
46% |
42% |
|
Stock Options |
45% |
21% |
22% |
27% |
|
Automobile |
9% |
11% |
10% |
21% |
Since
2006, for the most part, there has been a continued reduction in the fringe
benefits paid by companies of all sizes.
In the case of 401K's many companies have stopped providing a
contribution to those plans for their employees. In 2008 and 2009 the companies falling
into that category include:
-
Cushman
& Wakefield
-
GenCorp
-
Eastman
Kodak
-
FedEx
-
Ford
Motor Company
-
Frontier Airlines
-
General
Motors
-
Intermountain Healthcare
-
Motorola
-
Resorts
International
-
Vail
Resorts
That
along with all of the firms that have declared bankruptcy or gone out of
business is placing pressure on the remaining firms to control employee expense
more. As a result there now is
pressure to reduce other expenses such as family paid health insurance versus
employee health insurance, life insurance, disability insurance beyond what is
mandated by law and "unnecessary" travel and trip
expenses.

With
outsourcing and lay-offs impacting may companies, IT professionals are now more
focused on "being in the office" during normal work hours so their
employers can see that they are providing value. Flexible hours are not viewed as being
as important a benefit as maintaining a job. Outsourcing to Drive More IT Job Offshore In This Downturn
Plenty of
companies have reasonable qualms about their offshore outsourcing initiatives,
but make no mistake: offshoring is alive and well.
In two years, 25 percent of all IT jobs will be located outside
the U.S. That's one of the more compelling findings in the new study.
A total of
more than 350,000 jobs in finance, HR, information technology and procurement
will be farmed out overseas over the next two years, according to the study.
About half will come in IT.
And
businesses are seeing substantial benefits. The study says that by 2010, a
typical Global 1000 firm will see annual general/administrative cost savings of
more than $28 million, thanks to globalization.
But
the economy still stinks, and those job cuts everyone feared are in the works.
The study says almost one-third of companies polled say they have enacted a
combination of hiring freezes and cutbacks in IT, the most-hard hit area
overall. Lost Data Causes Productivity Loss
Information is one of a companys strategic resources. The
company owns valuable proprietary processes, sensitive customer information,
private vendor lists, and strategic goals that have great value and may be
attractive targets for competitors or thieves. In some cases companies have a
legal obligation to protect that data. Data also has to be protected from
accidental (or intentional) corruption, and IT professionals must ensure that
company data is accessible or deliverable when necessary.
As a result, companies spend a
significant portion of their IT budget on managing and protecting information.
Sometimes business interests collide. More security sometimes means less
productivity, more cost and less return on business investment. A companys data
can be lost or stolen if network users dont follow basic security procedures.
Lost data can mean
IT Spending Will Increase With the Coming Recovery
Factors that are driving our forecast that things will be better
are:
- Falling Energy
Costs - With the drop in energy a major downward pull on the
economy has been eliminated. Everything will continue to be priced
reasonably, and imports will increase again. That will boost the economy
in China and help drive the world wide
recovery.
- Falling Interest
Rates - Will push the improvement in the performance of banks and
investment firms, which will result in some modest growth. The lower interest
rates will enable companies in many sectors of the economy to invest in some
growth as well.
- The Dollar's Value is
increasing - The dollar has gained value during the economic
crisis because it's seen as a safe haven and there should be an increase in
the DOW and NASDQ.
- Government's economic
stimulus plan - It looks like the package will include $700
billion to $800 billion in new investments, many of which will involve
technology. Targeted vertical markets will include education, health care and
energy, the latter with an array of new initiatives that will rely on
IT.
2009 Version of Job Descriptions HandiGuide Released
The 2009 Version of the Internet and Informantion Technology
Position Descriptions HandiGuide® has been released. The HandiGuide® now
has 220 full Job Descriptions and has been updated to use a standard CSS style
sheet for the HandiGuide and the Word versions of the job
descriptions.
All of the job descriptions have been upated to be
fully compliant and take into account the requirements of Sarbanes-Oxley, HIPAA,
PCI-DSS, and the ISO standards. In additon to the full job descriptions
for Chief Information Officer (CIO), Chief Technology Officer (CTO), Chief
Security Officer (CSO,) Chief Compliance Officer (CCO) the new job descriptions include:
- Director Safety Program
- Manager Record Administrator
- Manager Sarbanes-Oxley Compliance
- Manager Waste Management
- Project Manager Enterprise Architecture
- Enterprise Architect
- PCI-DSS Coordinator
- Record Management Coordinator
- Systems Integrator
- Waste Management Coordinator
Added to the HandiGuide a sectionon motivating
employees and a Candidate Interview Control log. A full table of
contents can be downloaded from the IT Productivity
Center. Disaster Recovery - Business Continuity Template Defined
Jancos
professionals have written and maintained hundreds of plans. The Disaster Recovery Business
Continuity Template they have developed, helps you with vision, strategy,
problem solving, and the day-to-day challenges of the Disaster Planning and
Business Continuity processes.
It is highly recommended that your Disaster Recovery Business
Continuity plans be updated on at least an annual basis and more frequently if
the pace of change at your enterprise dictates. Have you updated all of your
plans in the last year? No resources? No experience? The Disaster Recovery
Business Continuity Template is what is needed.
The Disaster Recovery Business
Continuity Template can assist you achieve your goals and
objectives.
The objectives of a disaster recovery and business continuity plan
are first to protect your business human and physical infrastructure and second
to stay in business...no matter what happens. Have you met the major objectives
of a disaster recovery and business continuity plan?
Regardless of all your good efforts--without advance Business
Continuity Planning (BCP)--your business may be closed due to an overt or covert
terrorist attack, a cyber attack, severe electrical storm, hurricane,
earthquake, wildfire, flood, epidemic or other
cause.
The questions that the Disaster
Recovery / Business Continuity Plan template help you answer
are:
- How
well protected is your business against future hurricanes, tornadoes,
earthquakes, floods, a pandemic event or a terrorist
attack?
- How
prepared is your business to reopen within 24 to 48 hours following a natural
or man-made disaster or epidemic?
- What
is your disaster Recovery-Time Objective (RTO: your targeted time-limit to get
critical operations/systems back up and running) following a local
disaster?
- Have
you formulated a plan and strategies to limit the impact of risks to your
business?
- How
quickly can you return from incremental business resumption to normal business
operations after a minor disaster? After a major
disaster?
- Do
you believe that insurance will take care of the
losses?
- Where
will your customers/clients, vendors/suppliers go, during downtime, when your
building is destroyed or employees are quarantined and your business is
knocked to its knees?
- Will
your management team, employees, suppliers, and customers be well informed
about impact, on the bottom line, if there is no Business Continuity
Plan?
Succession Planning a Must for Your Success
Janco has
learned some lessons about managing sudden changes from loss of key managers.
Losing a business is a tough way to "go to school".
-
Lesson One: Have a Succession
Plan - Start immediately to work with your current
executives to create a succession plan. This is not an implied threat, but
rather an appropriate leadership responsibility. Prudent and diligent
management will provide a clear process in the event of a planned or an
unexpected vacancy.
That plan, actually part of the wise management of
your organization, should contain systems that capture and preserve the
institutional memory of your organization. Too often, executives have
treasures of knowledge that are never recorded, entered into the database, or
placed in the donor files. When they go, they walk out of the door with those
treasures.
Second, make contact with individuals or firms that provide
interim executive leadership. This is a growing service being provided by a
number of professionals that will allow your organization to have experienced
leadership during the transition to your next placement. Having an interim
executive managing the organization can free the directors to focus their
energies on the search for a permanent leader.
Finally, become knowledgeable about the talent pool in
your community and have a list of potential all-stars youd like to recruit.
Pay attention to the success and failure of the other nonprofits in your area
and your field. Learn who the players are and dont be hesitant to keep track
of the up-and-comers. Look beyond just other executive directors. I would
recommend that top fundraisers might be great sources of potential
leaders.
-
Lesson Two:
When your radar says its going to be bad - get out - For
many potential disasters, signs of trouble are visible before you feel the
wind in your face. One of the intriguing notions about business failures is
that you know days in advance that theyre out there. Trouble often gives
plenty of notice, and yet many of us let complacency seduce us into
inaction.
Trust your early
warning system. Most effective leaders have good intuition that can provide
time to head off disaster or to make appropriate
preparations.
-
Lesson Three:
No matter what anyone says you are on your own - Waiting
for the rescue team to get to you is not an option. Solving the problem of
executive transition lies firmly (and appropriately) in your hands.
Tackling this matter now,
rather than in the throes of the disaster, can be a critical factor in
recruiting your next leader. You are demonstrating the kind of management
acumen that will attract strong executives. The well-documented shortage of
qualified executives will mean the competition for these top candidates will
be intense. The way you manage this transition can speak volumes to prospects
and will place your organization in the best possible light.
Have a
worst-case scenario plan, use and trust your intuition, and take the
initiative in managing a potential transition. Face your reality and begin now
planning for the unexpected. We all know it will
come. Disaster Risk Definitions
A major
part of the disaster recovery planning process is the assessment of the
potential risks to the organization which could result in the disasters or
emergency situations themselves. It is necessary to consider all the possible
incident types, as well as and the impact each may have on the organisation's
ability to continue to deliver its normal business services.
This can be complex and demanding. To assist in
this area therefore there are a number of tools available. The most widely known
of these is COBRA, which employs a method aligned to various international
standards.
The science of risk assessment is currently beyond
the scope of this portal, but hopefully the information presented below may give
you some insight into this task and some guidance in terms of what is
included.
Part of the risk process is to review the types of
disruptive events that can affect the normal running of the
organization.
There are many potential disruptive events and the
impact and probability level must be assessed to give a sound basis for
progress. To assist with this process the following list of potential events has
been produced:
Environmental
Disasters o
Tornado o
Hurricane o
Flood o
Snowstorm o
Drought o
Earthquake o
Electrical storms o
Fire o Subsidence and
Landslides o Freezing
Conditions o
Contamination and Environmental
Hazards o Epidemic
Organised and / or Deliberate
Disruption o Act of
terrorism o Act of
Sabotage o Act of
war o
Theft o
Arson o Labour
Disputes / Industrial Action
Loss of Utilities
and Services o
Electrical power
failure o Loss of gas
supply o Loss of water
supply o Petroleum and
oil shortage o
Communications services
breakdown o Loss of
drainage / waste removal
Equipment or System
Failure o Internal
power failure o Air
conditioning failure o
Production line
failure o Cooling
plant failure o
Equipment failure (excluding IT hardware)
Serious Information
Security Incidents o
Cyber crime o Loss of
records or data o
Disclosure of sensitive
information o IT
system failure
Other Emergency
Situations o Workplace
violence o Public
transportation
disruption o
Neighbourhood hazard o
Health and Safety
Regulations o Employee
morale o Mergers and
acquisitions o
Negative publicity o
Legal problems
Although not a complete list, it does give a good
idea of the wide variety of potential threats. Metrics Drive Productivity Improvements
IT
Metrics are the key to improved productivity and managing budgets in these
troubled times. A good metrics system looks at IT from six
directions:

Certain
projects offer IT organizations the greatest opportunity to increase operational
efficiency and save company dollars. These include power management, which
provides both actual energy cost savings and per-asset utility rebates; patch
management, which reduces staffing requirements and eliminates second-pass
remediation; software asset management, which avoids inflated licensing costs by
enabling you to use only what you need; and infrastructure consolidation, which
reduces the number of consoles and number of Full-Time Employees (FTEs) needed
to manage them. Skype Is Data Breach Waiting to Happen
Skype is a peer-to-peer protocol that intentionally evades
network policies and exposes networks and enterprises using them to security and
liability risks. Skype is difficult to control via traditional means, such as
firewalls. The use of Skype in the
workplace can cause a number of problems, including the following:
-
All
Skype traffic is encrypted using proprietary encryption, so none of the
communications can be logged. This could be a violation of Sarbanes-Oxley,
mandated record management policies, and HIPAA.
-
Skype
file transfers may expose the enterprise network to viruses, spyware or other
malicious code.
-
Skype
file transfers may also expose enterprises to the risk of confidential
information being leaked to outside parties.
-
As
video data is bandwidth-intensive, Skype users can consume a sizeable amount
of bandwidth on an enterprise network.
-
Use of
Skype PCs as part of a Botnet of PCs to launch denial-of-service and other
attacks.
-
Skype
users may use its Instant Messaging (IM) functionality to evade enterprise IM
controls and send out confidential data.
|