Chapter 9
Human Resource Considerations
Managing the Information
Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 1
Chapter Outline
• Market for IT professionals
• What IT professionals seek in a position
• Characteristics of IT environment contributing to
HR complexity
• Future for IT professionals
• Skills required for successful IT future
• Retention of IT talent
• Stress in the workplace
• IT career development
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 2
National Average of IT Salaries
• CIO/VP of IT
– $165,100
• Director of IT/IS/MIS
– $108,200
• Project Manager
– $88,200
• Database Manager
– $84,800
• Senior Systems
Analyst
– $72,300
• Senior Systems
Programmer
– $68,900
• Web Application Developer
– $61,700
• Network Administrator
– $60,000
• Programmer/Analyst
– $55,100
• Help Desk Operator
– $39,700
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 3
What IT Professionals Are Looking For
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Career advancement
Salary requirements
Empowerment to affect company success
Ability to telecommute
Discuss career goals with management
Reasonable workload
Company-sponsored training and seminars
Less stress
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 4
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 5
Top IT Jobs in Percentage of Growth
• Computer Engineer
– 108%
• Computer Support Specialist
– 102%
• System Analyst
– 94%
• Database Administrator
– 77%
• Desktop Publishing Specialist
– 73%
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 6
Skills for Future in IT
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Business analyst
Change management
Communication
Finance
Project management
Leadership
Managing value
• Marketing
• Mentoring/career
development
• Stakeholder
management
• Team building
• Training
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 7
General Technology Skills Needed
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Application software
Databases
Hardware infrastructure/architecture
Knowledge of general IT management issues
Networks and networking architecture
Systems development and programming
Integration within and across all architectures
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 8
Industry and Firm-Type Knowledge
• Industry Knowledge
– Best practices
– Industry issues
– Industry-specific solutions
• Firm-Type-Specific Knowledge
– Business processes
– Generalized business strategies
– Influencing decision making
– Marketing
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 9
Necessary Managerial Skills
• Ability to communicate across business
disciplines
• Ability to employ consulting skills
• Ability to influence decision making
• Information about business process
• Understanding organizational philosophy
• Understanding the strategic goals and
objectives
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 10
Becoming a First-Line Manager
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Become responsible for output of other people
Act as leader
Stay informed on technical issues
Acquire new and unfamiliar administrative
duties
• Deal with employees and their problems
• Face new situations that have unclear action
requiring judgment
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 11
Problems of Retention of IT Talent
• Difficult to know how to plan to use human
resources
• Disruptive to organization and negative impact
on morale when talented workers leave
• Real costs of losing skilled employees and
replacing them
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 12
Recruiting IT Talent
Source: Lee Hecht Harrison, Inc., http://www.lhh.com/us/rsrchinfo/res&info.html
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 13
Gartner’s Successful Retention Guidelines
• Compensation
– Pay within 10% of market rates
– Integrate HR and IT functions
– Allow IT function managers greater flexibility
– Build defensive intelligence sources and survey
often
– Set aside money for training that vests over time
– Offer time- and performance-based bonuses that
pay out over 3-5 year period
– Stock options
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 14
Gartner’s Successful Retention Guidelines
• Benefits
– Health, dental, and vision
– Financial benefits include
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401-K
Pension plan
Employee stock purchase plans
Tuition/education reimbursement
– Lifestyle benefits
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Casual dress
Telecommuting
Flexible hours
Sabbaticals
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 15
Gartner’s Successful Retention Guidelines
• Training
– Invest at least 10% in training and upgrading
skills
• Work Environment
– Provide chance to work with new technologies
– Make work environment fun
– Recognition programs
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 16
Gartner’s Successful Retention Guidelines
• Eliminate Burnout Through Staffing/Time Off
– Staff to meet objectives, negotiate service levels,
increase after-hours premium support
– Offer time-off to employees who put in long hours
• Poll Employees
– Employee satisfaction data once a year
– 360° review process
– Implement skip-level lunches to gain better insight
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 17
Gartner’s Successful Retention Guidelines
• Hire Appropriate Profile
– Beware of “go-getters”
– Understand person’s cultural fit within
organization
• Open Career Paths
– NO artificial boundaries on career ladders
– Allow people to build process management
skills
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 18
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 19
Source: Personnel Decisions Inc., Minneapolis, MN, http://www.personneldecisions.com
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 20
Motivation Factors for IT Staff
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Allow people to learn new technologies
Give people necessary resources
Be competitive in terms of salary and benefits
Provide for worker’s personal development
Provide strong leadership during rapid
change
• Make certain people perceive that work is
meaningful
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 21
Common Sources of Stress
• Pace of technology
change
• Commuting
• Work-life balance
• Office politics
• Increasing workloads
• Other
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 22
Greatest Sources of Workplace Stress
Pace of
technology
change, 1%
Other or don't
know, 4%
Commuting, 4%
Work-life
balance, 12%
Office politics,
24%
Increasing
workloads, 55%
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 23
Stress-Reduction Techniques
• Bring in outside contractors to reduce
workloads
• Improve communications and encourage
team building
• Involve employees in decisions about
managing workloads
• Plan and promote outside activities to
break monotony
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 24
IT Management Can Reduce IT Staff Stress
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Keep staff updated on project status
Let people know what is expected
Set priorities
Manage deadlines
Make sure staff takes breaks regularly
Make sure staff knows updates on latest
developments
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 25
IT Management Can Reduce IT Staff Stress
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Arrange for massages/exercise
Arrange for well-balanced food
Encourage work with “stress buddies”
Keep stress diary
Encourage time off if highly stressed
Encourage staff to ask for help
Provide ergonomic work environment
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 26
Career Development
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Personal career development
Increased quality of work
Improved capacity to solve problems
Better team performance
Improved capacity to cope with change in
workplace
• Higher success rate in promoting employees
• Increased output of products and services
• Increased employee retention
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 27
Ethical Conduct and
Data Management
• Provide training in ethical conduct
• Employees understand rules of ethical
behavior and actions
• Enforce ethical conduct on management
of firm
• Bring visibility to all information
• Formal and on-the-job
• Can cover broad range of topics
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 28
Six Commandments of Ethical Management
• Data is valuable corporate asset.
• CIO is steward of corporate data and responsible for
managing it over its life cycle.
• CIO is responsible for controlling access to and use
of data.
• CIO is responsible for preventing inappropriate
destruction of data.
• CIO is responsible for brining technological
knowledge to development.
• CIO should partner with executive peers to develop
and execute data management policies.
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 29
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 9 - Slide 30