Write your ticket
Demand remains strong for networking skills,
making the competition for talent fierce. You've
got to innovate to survive.
By Tom Duffy
Network World, 9/1/97
Three months ago, Ken Weaver left his job as a
network engineer for the University of North
Carolina (UNC) at Chapel Hill. In three years at
UNC, he built and upgraded the school's computer
network to the point that it needed little maintenance.
Like the Maytag repairman, Weaver had little to
occupy his time.
In search of new challenges, as well as benefits that
a state-owned operation such as UNC couldn't offer,
Weaver took a similar position at SAS Institute, Inc.,
an 11-year-old software development firm in nearby
Cary.
At SAS, a firm with more than 4,700 employees
worldwide, Weaver is working on a much larger
network. He's dealing with LAN and WAN
connectivity issues, and he's getting to know the
intricacies of ATM and FDDI.
SAS, which is routinely listed as a top-notch company
to work for by Working Woman magazine, also
offers on-site day care. That was a critical perk for
Weaver, the father of then 9-month-old Elizabeth.
Oh, and he got an 8% raise.
Weaver's raise is slightly higher than the average,
judging from the returns of the 1997 Network
World/Deloitte & Touche Consulting Group Salary
Survey. The 400 network professionals surveyed saw
their salaries jump an average of 7.4% this year, up a
notch from the average raise of 7% reported in last
year's survey. Weaver can expect his paycheck to
grow more next year, too. Respondents said they
expect raises of between 4.9% and 6% during the next 12 months.
Clearly, network professionals are doing better than the
average worker,
whose paycheck expanded by a more modest 3.2% in the year
ended June
30, according to the U.S. Bureau of Labor Statistics.
The respondents we surveyed work for large companies that report
revenues of more than $1 billion annually. Why? Because, as Weaver's
experience illustrates, no matter the size of your company,
you've got to
compete against the big guys for the top talent. "Most
companies are
working very hard to make their company a good place to
work,'' says Frank
Schoff, president of Management Re-cruiters, of Cedar
Mountain, N.C. "So
the competition is stiff all the way around - that includes
benefits and perks
and everything else.''
But the survey refutes the notion that technology workers are
jumping ship
every few months in search of fatter paychecks and
leading-edge jobs.
Respondents reported being in their current position for an
average of three
years and with the same employer for an average of a decade.
Still, many of
those employees are hearing about plenty of opportunities, so
it's critical to
make sure they're happy.
"I don't think a day goes by that one of my consultants
doesn't get a job offer
from a client,'' says David Jackson, vice president of the
network systems
consulting practice for The Registry, a Newton, Mass.-based integration
firm.
Jackson and others report getting off-the-chart salary demands
from some
prospective employees. While he counsels that companies have
to keep up
with the competition, they don't have to be held hostage.
"We get people who've recently received first-level
certifications and who
have limited consulting experience expecting $90,000 to
$100,000 right out of
the box,'' he says. "But we pass on those people. We're
very firm about the
ranges we pay and the levels of experience [we require].''
The chart on page 45 shows the salary breakdown by position.
As expected,
those with strategic planning and project management skills
come out on top,
whereas those with operations and liaison skills fall lower on
the pay scale.
While skilled employees are in demand, employers reported that
those with
top-shelf technology skills and management experience are even
harder to
find.
An MIS manager for a leading national transportation firm, who
asked not to
be named, said it has become almost impossible to find
employees with good
project management skills.
"It's a killer,'' he says. "We've contracted outside
for some certified project
managers either because we couldn't find them or we couldn't
find them
quickly enough.'' Broader management skills and the ability to
deal with
other branches of the business are becoming increasingly important,
especially with the implementation of large-scale financial
and business
systems such as SAP, according to Glenn James, partner in the
telecommunications and media practice of Deloitte & Touche.
"The challenge is not talking just routers, ATM, IP and
all that stuff,'' James
says. "You've got to be able to talk the application and
the business process
as well.'' Finding people with those skills, many of which
don't show up on a
resume, takes innovation. "You have to look in places
where you haven't
traditionally looked, maybe people coming out of MBA schools
who used to
work at HP or IBM or Digital, as opposed to just getting
someone from Bell
Labs,'' he says.
Skill-wise, the survey reveals that the biggest gulf between
supply and
demand exists in client/server and Internet/intranet network infrastructure
development and deployment, as well as network management.
More than
half of all respondents said they would be willing to pay
premiums of 16% to
17% to employees with those skills.
At CompuServe, Inc., the network services division has had significant
difficulty finding workers with substantial expertise in Cisco router
technology and Windows NT, according to Ramin Hashemi,
director of
CompuServe's network technical center. With more than 120
network-related positions open, the firm has begun hiring
college graduates
or people with limited experience and training them for
positions it can't
otherwise fill. "We'd rather get the skilled technical
talent, but there's such a
shortage that we don't always have that luxury,'' he says.
CompuServe's problem is exacerbated by its location in
Columbus, Ohio. Not
exactly a technology mecca, Columbus also is experiencing a
boom period in
which the unemployment rate is currently below 3%, according
to Hashemi.
Still, if em-ployees come to their bosses to report another
job offer,
CompuServe will not make counteroffers. "We try not to
get into that kind of
bartering,'' Hashemi says. "It tends to lead to internal
salary inequities.''
That's the reason that signing bonuses and other innovative compensation
programs continue to be popular, says Jill Herrin, president
of J&D
Resources, Inc., a Memphis, Tenn., recruitment firm. Companies
can get
individual employees more money without skewing the pay scale
for the
entire firm.
"The sign-on bonuses are almost becoming
run-of-the-mill,'' she says. "We're
seeing $8,000 to $10,000 fairly regularly. And $2,000 or
$3,000 is routine.''
Salary innovation doesn't stop once employees come in the
door, either. Last
month, Bell Atlantic Network Services, Inc. moved to a competency-based
model that rewards employees with raises of up to 10% for gaining
certifications and advanced degrees, as well as bonuses for
making a
significant impact in their field, such as publishing a white
paper or making a
presentation at a major seminar.
"What we've found is that information technology people
are motivated by
increasing their skill sets,'' says Elizabeth Segal, a Bell
Atlantic recruiting
manager. "This model is a way to promote that. You can
get this without
getting a traditional promotion, which in the past was the
only way to
increase your pay.''
The belief that incentives make technology workers more
productive is at
the core of an enhanced program for employees at Digital Equipment
Corp.'s systems integration services division. In the program,
bonuses of up
to 30%, based on a combination of company performance and individual
achievement, are awarded to technology workers as individual
project goals
are achieved.
The intent of the program is to tie compensation more directly
to employee
accomplishments, says Alan Zimmerle, a vice president for
human resources
at Digital. "Our employees are incented to make sure
customer problems are
solved,'' Zimmerle says. "It widens their ability to earn
money inside of
Digital.''
But even while Digital uses pay to retain workers, the company
is conscious
that money is not the only factor. Relationships among
employees and
between employees and customers are critical issues as well.
"We're learning that we have to ensure that the
environment in which people
work is a good one,'' Zimmerle says. "That means
investing in team building
with our folks and between our folks and our customers' folks
in order to
establish a good working environment.''
Another part of job satisfaction is giving employees the
ability to acquire new
skills, either on the job or through outside training. In some
cases, that can
make up for pay that lags behind industry averages.
At Latitude Communications, a Santa Clara, Calif., maker of conferencing
software, employees who had opportunities to move to other
firms and gain
experience on new technologies received what amounted to counteroffers.
The counteroffers didn't include higher pay, but did include
the ability to
work on similar technology, according to Joy Strull,
Latitude's information
systems manager. Strull says because the company is a
start-up, pay scales
are lower than at many Bay-area companies.
"If it makes business sense for us, then it's something
that we will try to
accomplish,'' Strull says.
Latitude's approach makes sense in light of the survey
results. The top two
reasons for changing jobs, cited by 47% and 35% of respondents,
respectively, were to gain added responsibility and learn new skills.
Increased compensation lagged just behind, cited by 34%of respondents.
Part of retaining skilled people is making sure they are a
good fit when they
are hired. Increasingly, managers are filling positions
temporarily with
contract workers until they find someone who not only has the necessary
skills, but also is a good fit with the company's culture and
key coworkers.
"It's definitely a way for companies to source and try
out full-time talent,''
says Mark Young, manager of consulting services at Howard Systems
International, an Englewood, Colo., recruiting firm.
Typically, firms are precluded from offering contract workers full-time
positions for eight to 12 months, Young says. Lately, though,
some firms
asked to re-duce the period to four months. "Call it a
four-month interview if
you will,'' he says.
That approach just makes sense, says Terry Stader, MIS manager for
Concord Communications, Inc., a 100-person maker of network diagnostic
software in Marlborough, Mass. Stader says he used a dozen contract
workers in a systems administrator position before hiring a
full-timer several
months ago. As it turned out, the person was not among the
contractors who
had done the job temporarily.
"From the various contractors we got a better feeling for
what kind of
person we would bring on full-time,'' Stader says. "We
used them to help us
figure out more about what the job was and what the right mix was.''
Employers increasingly say that if technology workers want to make
themselves valuable, they need to be able to approach their
work from micro
and macro levels.
"We want people with the ability to get down to the
nitty-gritty and fix the
problem,'' Stader says. "But they also need to be able to
step back and see
where the technology is headed, where the future lies for our
network and
the Internet and intranet connections for our activity
throughout the world.''
Looking ahead as technology workers mature, the challenge of
keeping the
best employees in place is providing a logical career path,
says Deloitte &
Touche's James. That might mean providing opportunities far
afield from
their initial technical expertise.
"The challenge of having those people with broader skills
is that they are
looking for more out of life than rearchitecting the
network,'' he says. "You
have to provide a way that they can move up by increasing their
responsibilities and moving into areas where they might not
have any
expertise, such as marketing and sales.''
For those ready to meet the responsibilities, it seems there's
still no limit to
what they can achieve, especially if they are willing to move
on to new
companies.
"If you've got skills and a heartbeat, you generally can
find a place to land
where you'll make more money,'' James says.