Your rising pay

Network executives are commanding generous bonuses and inflation-beating pay raises that have bumped up total compensation to nearly $140,000.

Your check stub should give you reason to smile. Despite an economy that is only now crawling out of its years-long doldrums, network professionals’ pay has continued to grow far faster than the rate of inflation. Top this off with a broadening set of long-term career options (with more C-level IT positions created every year), and you can count on networking as a good living for years to come.

Network executives, those with senior-level titles (senior vice president/vice president of MIS/IT/IS/DP), fared particularly well when it came to pay raises, finds the 2004 Network World Salary Survey of 3,575 respondents, conducted by researchers King, Brown & Partners. Network executives reported an average base pay of $111,020 – a 5.6% increase over 2003 and well above the 2003 inflation rate of 2.3% that InflationData.com reported. Bonuses, too, look good, with network executives indicating they anticipate a 1.6% increase this year. While that might not sound like much, as senior managers, network executives already are at the top of the IT bonus scale. They estimate their average 2004 bonus will be a hefty $19,460.

Total compensation (which includes bonuses, stock options and other income) for network executives rose to $136,380, only 3.7%. The “other income” category is to blame for the meager increase. Respondents expect other income to dip 42% compared to what it yielded in 2003. Other income includes items such as car allowances, pay premiums (for overseas work, for example), and income earned outside their corporate jobs, such as consulting fees.

For middle IT management – those with network manager or director titles – base pay rose 4.3% to $74,890, and total compensation gained 4.6%, to $79,840. Within that group, e-commerce managers did particularly well in total compensation increases, seeing 5.3% raises to $88,250. However, they received a comparatively anemic 3.9% base-pay raise, to $79,820.

Among staff-level positions, network operations workers snagged a notable 4.7% increase in total compensation, to $58,160, and a competitive 4.3% base-pay raise to $55,500. The average total compensation for all staff-level personnel grew 4.2% to $67,640, with base pay rising 4% to $64,200. Perhaps that doesn’t make entry-level network professionals Jaguar material, but it certainly lets them afford a starter-home mortgage in most areas.

The only sore spot was bonuses for some staff-level job titles, with help desk/trainer staff and Web programmers taking considerable hits (see “Show me the benefits package”). Consolation might be found in knowing that those with general corporate management titles (C-level, non-IT positions), also took a hit on bonuses (“Your salary,” ). So if your staff is feeling the pain, know that your boss is feeling it, too.

Composite of the well-paid net exec

If you were to sketch a composite of a network executive who exceeds the 2004 national averages for compensation, you would find a man 45 years of age (or older), with at least 10 years tenure at a global corporation, responsible for two-dozen-plus direct reports and thousands of servers. He would have some graduate-level studies under his belt and be regularly working some 55-plus hours a week. (See “Influences on your pay”.)

The sketch could be of Tony Iannotti, the 44-year-old director of network operations for global financial services firm CheckFree, in Norcross, Ga., where he has 10 years tenure.

Want his success? Concentrate on school. “Education is really important – being able to extend your knowledge and skills,” says Iannotti, who works at the firm’s Newark, N.J., facilities. Availing himself of CheckFree’s training ethic, Iannotti has earned a handful of certificates, mostly in security. “All up and down, account managers, IT folks, everyone gets training. We view it as an investment in the company,” he says, noting that the more trained the workers, the better they perform. He stands in contrast to peers – 69% of the highest-paid respondents reported having no certificates, with only 14% having more than two. But Iannotti is so dedicated to education that he plans to earn a graduate degree in cryptography – for “fun,” he says, not because the job demands it.

Or, your sketch could resemble Brian Hobbs, director of MIS services and support for window-covering giant Hunter Douglas in Denver. A little younger than the composite at 39, Hobbs has more than made up for his youth with accomplishments. He’s earned an MBA, been in the industry 15 years – four years at his current job – and manages 21 direct reports.

He, too, credits education, not just for his success but as a criteria in job candidates. Sure, he wants employees who can do the technical work, but they also should understand the business implications of their jobs. “Education is good, and certificates are important things. Also project management skills have to be in the job candidate’s background. I certainly expect my managers to have business understanding, but staff has to have a basic understanding, too,” he says.

New jobs, here and abroad

Economic signs point to a rebound in the number of job opportunities for network professionals. Net execs are hiring again, for the right skill set, they say.

“I didn’t hire anyone at all last year. Now I have one opening for an operating system security specialist. There are a lot of candidates out there looking for work, but I’m not finding the mix I need,” Iannotti says.

IT Director Lauren Anders agrees. Anders, 27, with eight years tenure, two computer-related bachelor’s degrees and work toward her master’s, is the top IT executive for 6,000-employee Sunwest PEO of Florida, a fast-growing human resources outsourcing firm in Tampa. “I’ve had difficulty finding qualified candidates. We’re currently looking for an entry-level network/workstation end-user support person. Out of 6,000 résumés . . . a good percentage are just paper-experienced. They don’t have enough real-world knowledge. Five years ago, I’d have said, ‘Fine, you can learn on the job.’ But now I need a self-starter,” she says.

The 25 factors named “most critical” for job satisfaction When ranking only the items named “most critical” by survey respondents, the list of factors remain similar to last year’s, with job security ranking No. 1. Economic pressures forcing more work on fewer workers has elevated the importance of time off. 2004 2003 Job security 1 1 Benefits package 2 2 Overall compensation 3 4 Challenge of work 4 3 Base salary 5 5 Leave (vacation, holidays, etc.) 6 12 Professional development & training 7 6 Access to new technologies 8 7 Advancement potential 9 8 Annual raises 10 9 Family friendliness 11 10 Recognition/appreciation of your work 12 11 Proximity to home 13 13 Performance incentives/bonuses 14 14 Flexible work schedule 15 15 Autonomy 16 16 Workload 17 17 On the job training 18 18 Comp. time 19 20 Increased scope of responsibilities 20 19 Opportunity to telecommute 21 21 Tuition reimbursement 22 22 Vertical industry 23 23 Stock options 24 24 Size of company (large, small) 25 25 Source: 2004 Network World Salary Survey

Seeking new jobs vs. staying put The relative numbers of people looking for new work or not remain the same in 2004 over 2003, but since five years ago, more people are opting to stay put.   Loyalists: Cannot envision changing jobs soon.   Approachables: Would apply for an interesting job if asked to.   Explorers: Would apply for an interesting job found on job listings.   Seekers: Actively seeking a new position. Source: 2004 Network World Salary Survey

Hobbs adds that regional economics also are at issue: “It’s not hard to get résumés; it’s hard to find qualified people. The Denver area is still kind of soft, as evidenced by some of the layoffs that are occurring.The people I’m seeing tend to have administrative skills, but not senior-level skills. They can troubleshoot [but I need] project management skills.”

Despite the help-wanted signs, network professionals remain fearful of job security. In a list of the 26 most critical items for job satisfaction, respondents named job security as No. 1 this year, like last.

The fear-causing culprit this year doesn’t seem to be layoffs because of the economy, but job loss from offshore outsourcing. How justifiable that fear is remains debatable, say network executives who have used offshore IT services.

“Offshore outsourcing – we do some here. We haven’t replaced headcount with offshore, but it does make it harder to bring people in. If candidates hear that you are outsourcing, they’re fearful. The fear is blown out of proportion – but they read all the bad about it and get worried,” Hobbs says.

Iannotti agrees, saying that CheckFree has engaged in offshore outsourcing only for projects where the local or in-house talent didn’t have the skills and couldn’t acquire them in time. The skill needed in one case was Java 2 Platform Enterprise Edition, which the majority of programmers at CheckFree didn’t have at the time, he says. “But they are now all going to classes for it,” he explains.

Perhaps the fear of outsourcing is counterbalanced by the rising variety of chief-titled IT jobs. Today, companies are splitting IS operations from IT planning and inviting both roles to the executive suite. CTO is becoming an additional role, not a CIO-alternative title. Companies also are creating chief security officers, chief compliance officers, and the future might bring still other jobs. (See “Your life in the virtualized future.” )

It all adds up to bright prospects for those in network executive spots today. “I would agree that there’s more long-term career opportunity,” Anders says. Her bright career outlook stems from the variety of technical exposure she gets as the top IT dog, mastering not just networking, but databases, operating systems and all sorts of new technologies. “Others might only have worked as a network administrator for their 10 years of experience. I have a broad background.”

She says intertwining IT with the business creates her job security. “In this type of position, you deal with the lifeline and essence of the company. The company needs to understand that – and not feel like that’s an easy position to be in and that they can easily bring in someone else to do that,” she says.

Judging by growing salaries network professionals command year in and out – companies are understanding what a hard, important job their network executives hold.

Salary by region Higher pay in higher-cost-of-living areas continues to be the norm.   Region 2004 mean salary 2003 mean salary % change from 2003   New England $86,220 $81,870 5.3   Mid-Atlantic $79,660 $75,670 5.3   North Midwest $72,330 $69,600 3.9   Northwest $68,040 $65,800 3.4   South Atlantic $80,800 $77,130 4.8   South Midwest $66,280 $63,200 4.9 Criteria for happy workers This list ranks 26 factors for job satisfaction. It combines those named “critical” with those named “very important” and shows how IT workers in 2004 value benefits and cash over working on cool IT projects. Factor 2004 2003 2002 Benefits package (insurance, etc.) 1 5 3 Overall compensation 2 2 2 Job security 3 3 5 Challenge of work 4 1 1 Base salary 5 4 4 Leave (vacation, holidays, etc.) 6 10 10 Professional development & training 7 6 7 Access to new technologies 8 7 6 Annual salary reviews (raises) 9 8 8 Advancement potential 10 9 9 Recognition/appreciation of your work 11 12 11 Family friendliness 12 11 12 Proximity to home 13 13 15 Autonomy 14 16 14 Performance incentives/bonuses 15 14 13 Job flexibility (work schedule) 16 15 16 Workload 17 17 17 On the job training 18 18 18 Increased scope of responsibility 19 19 19 Comp. time 20 20 20 Tuition reimbursement 21 22 21 Opportunity to telecommute 22 21 22 Industry 23 23 23 Stock options 24 24 24 Small company 25 26 25 Large company 26 25 26 Source: 2004 Network World Salary Survey IT Director Lauren Anders agrees. Anders, 27, with eight years tenure, two computer-related bachelor’s degrees and work toward her master’s, is the top IT executive for 6,000-employee Sunwest PEO of Florida, a fast-growing human resources outsourcing firm in Tampa. “I’ve had difficulty finding qualified candidates. We’re currently looking for an entry-level network/workstation end-user support person. Out of 6,000 résumés . . . a good percentage are just paper-experienced. They don’t have enough real-world knowledge. Five years ago, I’d have said, ‘Fine, you can learn on the job.’ But now I need a self-starter,” she says. The 25 factors named “most critical” for job satisfaction When ranking only the items named “most critical” by survey respondents, the list of factors remain similar to last year’s, with job security ranking No. 1. Economic pressures forcing more work on fewer workers has elevated the importance of time off. 2004 2003 Job security 1 1 Benefits package 2 2 Overall compensation 3 4 Challenge of work 4 3 Base salary 5 5 Leave (vacation, holidays, etc.) 6 12 Professional development & training 7 6 Access to new technologies 8 7 Advancement potential 9 8 Annual raises 10 9 Family friendliness 11 10 Recognition/appreciation of your work 12 11 Proximity to home 13 13 Performance incentives/bonuses 14 14 Flexible work schedule 15 15 Autonomy 16 16 Workload 17 17 On the job training 18 18 Comp. time 19 20 Increased scope of responsibilities 20 19 Opportunity to telecommute 21 21 Tuition reimbursement 22 22 Vertical industry 23 23 Stock options 24 24 Size of company (large, small) 25 25 Source: 2004 Network World Salary Survey Seeking new jobs vs. staying put The relative numbers of people looking for new work or not remain the same in 2004 over 2003, but since five years ago, more people are opting to stay put.   Loyalists: Cannot envision changing jobs soon.   Approachables: Would apply for an interesting job if asked to.   Explorers: Would apply for an interesting job found on job listings.   Seekers: Actively seeking a new position. Source: 2004 Network World Salary Survey Hobbs adds that regional economics also are at issue: “It’s not hard to get résumés; it’s hard to find qualified people. The Denver area is still kind of soft, as evidenced by some of the layoffs that are occurring.The people I’m seeing tend to have administrative skills, but not senior-level skills. They can troubleshoot [but I need] project management skills.” Despite the help-wanted signs, network professionals remain fearful of job security. In a list of the 26 most critical items for job satisfaction, respondents named job security as No. 1 this year, like last. The fear-causing culprit this year doesn’t seem to be layoffs because of the economy, but job loss from offshore outsourcing. How justifiable that fear is remains debatable, say network executives who have used offshore IT services. “Offshore outsourcing – we do some here. We haven’t replaced headcount with offshore, but it does make it harder to bring people in. If candidates hear that you are outsourcing, they’re fearful. The fear is blown out of proportion – but they read all the bad about it and get worried,” Hobbs says. Iannotti agrees, saying that CheckFree has engaged in offshore outsourcing only for projects where the local or in-house talent didn’t have the skills and couldn’t acquire them in time. The skill needed in one case was Java 2 Platform Enterprise Edition, which the majority of programmers at CheckFree didn’t have at the time, he says. “But they are now all going to classes for it,” he explains. Perhaps the fear of outsourcing is counterbalanced by the rising variety of chief-titled IT jobs. Today, companies are splitting IS operations from IT planning and inviting both roles to the executive suite. CTO is becoming an additional role, not a CIO-alternative title. Companies also are creating chief security officers, chief compliance officers, and the future might bring still other jobs. (See “Your life in the virtualized future.” ) It all adds up to bright prospects for those in network executive spots today. “I would agree that there’s more long-term career opportunity,” Anders says. Her bright career outlook stems from the variety of technical exposure she gets as the top IT dog, mastering not just networking, but databases, operating systems and all sorts of new technologies. “Others might only have worked as a network administrator for their 10 years of experience. I have a broad background.” She says intertwining IT with the business creates her job security. “In this type of position, you deal with the lifeline and essence of the company. The company needs to understand that – and not feel like that’s an easy position to be in and that they can easily bring in someone else to do that,” she says. Judging by growing salaries network professionals command year in and out – companies are understanding what a hard, important job their network executives hold. Salary by region Higher pay in higher-cost-of-living areas continues to be the norm.   Region 2004 mean salary 2003 mean salary % change from 2003   New England $86,220 $81,870 5.3   Mid-Atlantic $79,660 $75,670 5.3   North Midwest $72,330 $69,600 3.9   Northwest $68,040 $65,800 3.4   South Atlantic $80,800 $77,130 4.8   South Midwest $66,280 $63,200 4.9   Southwest $70,690 $68,820 2.7   West $76,090 $71,870 5.9   Pacific $81,060 $77,830 4.2 Source: 2004 Network World Salary Survey