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A Unique Approach to Correcting Profound Deficiencies 
in Job Title Standardization and Tech Salary Surveys

 

Why IT salary surveys have big problems...and how we fixed them.

Rapidly evolving information technology jobs are often so unique in the universe of business employment that using passive or self-reporting surveying methods to obtain compensation benchmark data can yield extremely inaccurate results. That is because of the common (and dreaded) problem of lack of standardization in tech job titles and what tech professionals actually do on-the-job.

It's not uncommon to find specialists in Java, Python, Ruby, SAP, and dozens of other programming language skills classified by their HR departments as broader "Programmer" or "Developer" titles for the purpose of determining their compensation. Or ecommerce, digital,or mobile OS platform engineers and administrators lumped together under a catch-all "Administrator" or "Engineer" job title. The problem is that some skills are worth more in the marketplace than others so doing simple job title matches to industry salary surveys can easily result in underpaying or overpaying tech professionals.

This job title misalignment dilemma is an epidemic widely acknowledged by HR compensation professionals and tech salary surveyors alike. It affects more than half of all employed IT workers by even the most conservative estimates from HR departments.  Making the situation worse is that compensation surveys from the largest HR consulting firms including WillisTowersWatson, Mercer, Hay, Hewitt/AON and others, do not offer a complete solution via their off-the-shelf products.  Employers must contract with them for expensive custom survey consulting.   

Our solution was to create a new methodology that pioneered the first salary surveys in North America---published from 1994 to 1995---to define and accurately benchmark IT positions in Digital, Mobile, Cloud, Big Data Analytics, Ecommerce, Data Warehousing/Business Intelligence, Business Technology/Business Systems Analysts, Info/Cybersecurity, SAP and others. That innovation is the foundation of Foote Partners' tech compensation survey research.

The best part about our unique methodology is that it corrects for job title/job content mismatches.  We painstakingly classify surveyed participants not just by their job titles but according to what they do on-the-job, matching 303,313 tech professionals at 3,305 employers to a standardized set of detail job descriptions we've developed. Only then do we input their compensation data into our survey engine. Then all you need to do is match your people to our job descriptions to get the most accurate market benchmarks available today.

It is a labor-intensive way to achieve truly accurate and validated compensation benchmarking requiring a deep grounding in technology and the nuances of tech professional employment. Foote Partners uses its unprecedented access within public and private sector employers to overcome many obstacles to accurate tracking of tech compensation and workforce issues. Overall, our methodology produces better data screening and cleansing, superior statistical reliability and validity, and constantly refreshed and consistent real world salary and tech skills pay data. No other IT compensation survey research firm today incorporates extreme validation and accuracy methods similar to ours. 

In addition to traditional tech infrastructure positions, Foote Partners' competitive distinction has long been its focus on critical new strategic and tactical IT-business hybrid positions often under-reported in other IT surveys. Findings are updated continuously and published every three months aided by our constant flow of confidential tech compensation data from North American public and private sector employer HR departments. 

Our high-touch relationships with our thousands of research partners have been forged over many years: developed from among the clients, colleagues, and associates of our senior research team of former McKinsey & Company, WillisTowers Watson, and Gartner consultants and analysts. We have access not only to their tech compensation databases but to management and rank-and-file workers, which facilitates the matching of job content with comparable job titles that enables the extraordinary accuracy and reliability of our surveys.

We survey salaries and skills pay job-by-job, city-by-city: 219 positions, 83 cities in the United States and Canada. There are no geographic multipliers used in our research, no cost-of-living coefficients. Ours is constantly refreshed real world salary and skills pay data.


What We Do That Others Don't

Many aspects of Foote Partners compensation data collection methodology set us apart from other IT salary survey firms. 

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We are the only firm in North America that corrects for IT job title/job content mismatches for surveyed workers before the survey data enters the data compilation phase.  All that is needed is for our customers to match their workers to our detailed, long form job descriptions, which are regularly updated to keep up with changing job content.

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We survey and report the cash market values of more than 1,000 tech skills and certifications. As with all Foote Partners compensation surveys, we recompile and update continuously and publish our surveys every three months.  So if you are not willing to re-title jobs to match actual content but you need to differentiate workers within a broad job title (such as "software engineer", "developer" or "systems administrator"), you can use our skills pay survey data to add at-risk pay or adjust base pay for the various tech skills and certifications. You can benchmark workers pay to what their job titles should be.

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We use no self reporting, no aggregated data sources or compilation of others' surveys. Instead we collect our data from 3,305 research partner organizations job-by-job, city-by-city, continuously throughout the year.

bullet Experienced team of former Gartner industry analysts, McKinsey & Company and WillisTowersWatson consultants, and former corporate HR, IT, and business executives, who have unprecedented access to 303,313, IT professionals in North America. Foote Partners’ benchmark surveys are compiled, maintained, and analyzed by this senior team, working closely with thousands of public and private sector research partner employers to correct salary survey problems, beginning with job title/job content discontinuities. Overall, our innovative methods produce better data screening and cleansing, superior statistical reliability and validity, and constantly refreshed and consistent ‘real world’ salary and tech skills pay data.
 
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As an integrated tech analyst firm and research organization we have an insider's knowledge of evolving technology, human resource, and business trends and drivers.  We keep a close watch on the evolution of tech jobs in every environment: central infrastructure; lines of business; corporate departments and functions; and product development groups. We have been tracking compensation and reporting on tech workforce evolution trends since 1997.  



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Our research database can be used to generate custom surveys and reports on a variety of IT and business management trends and better/best practices, serving as the foundation for our consulting practices.


IT salary and cash bonus pay

Survey results from our quarterly IT survey of more than 220 critical IT jobs are available in any combination for up to 83 US and Canadian cities.  Our more than 4,600 salary and skills pay survey customers decide exactly what they need and how much to spend.     

While infrastructure positions form a strong foundation for our research, Foote Partners competitive distinction has long been its focus on those critical new strategic and tactical positions often unreported (or under-reported) in IT surveys published by large firms such as Mercer, WillisTowersWatson, Hewitt/Radford/AON, and others. Findings are updated and published every three months

Long-form JDs accompany all orders so there is no confusion. For info on obtaining detailed long-form job descriptions see: 


IT certifications and skills pay

Foote Partners' IT Skills & Certifications Pay Index and SIT Salary/Bonus + Skills Pay Survey Reports are the popular choices for hundreds of employers seeking to differentiate pay for workers possessing various technical certifications or skills.  The market values of 1,017 IT skills and certifications are compiled and published every three months, with data from North American and European employers.  

bullet IT Skills and Certifications Pay Index 
bullet IT Salary+Skills Pay Survey Report (US)
bullet IT Salary+Skills Pay Survey Report (Canada)    



Research participant metrics

IT compensation data for our 2019 research findings were collected from 3,289 public and private sector organizations representing more than 40 private sector industries plus government and educational institutions.  Data about 303,313 IT professionals are included in our continuously updated surveys. 

The size of the participating organizations, measured most appropriately for the type of business, by revenues, assets, total premiums and operating budgets, are as follows:

- 18% of participating organizations have $5 billion+ in sales/$15+ billion in total assets

28% of participating organizations earn more than $1 billion in annual revenues or more than $5 billion  in total assets

46% of participating organizations have $500+ million in sales/$1+ billion in total assets/$500+ million in premiums/$500+ million operating budget (government, educational, not-for-profit)

54% of participating organizations fall in the SMB (small-to-medium sized business) segment, generally defined as organization under $500 million in sales.

[Public sector] 5% have operating budgets of $500 million or more, [nonprofit/educational sectors] 4% with operating budgets $100 million to less than $500million


How do we get such accurate data in so many cities? 

Since 1995 we have identified the key employers and market players in 83 cities and labor markets, and enlisted them as Foote Partners research partners.  From our research partners we collect salary and skills pay information continuously.  Every three months we update complete sets of salary and skills data for all FP positions in that location. TOur bottom line: We will not release data in any city until we have accurate representative data that have been verified and validated, covering all IT positions and all skills and certifications in our general survey. 


Survey frequency and availability
 
We are the only source in North America for continuous quarterly IT salary survey research. This has made Foote Partners the popular choice for companies who know that while some IT positions need annual surveying, others require more frequent comparisons to keep up with volatile labor market segments.

Surveying during these months...                        Produces research published...

1st Qtr (January, February, March)

April  8th

2nd Qtr (April, May, June)

July 8th

3rd Qtr (July, August, September)

October 5th

4th Qtr (October, November, December)

January 10 (following year)

 

 

 

 

 

 

 

 

 

 

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