Predicting Chief Information Officer Salary Trends for 2021: What to Expect?
2020 has been a challenging year, to say the least, for most industries due to the pandemic. The CIO position is no exception. As organizations transitioned abruptly to remote work and leveraged technology to adapt to the changing market conditions, CIOs played a crucial role in enabling these changes. The role has become more important than ever before, and organizations are likely to continue relying on technology to drive their operations going forward. So it’s only natural that the CIO’s compensation will change as well. In this article, we’ll look at the trends that will shape CIO salaries in 2021.
1. Increased Compensation
According to the Robert Half Technology 2021 Salary Guide, CIOs’ salaries are likely to increase between 2.5% and 5% in 2021. The pandemic forced companies to increase their investments in technology, and now they are looking to hire CIOs who can help them leverage that technology to increase efficiencies, innovate, and outsmart their competition. So, the demand for experienced CIOs has gone up, and to attract the right candidates, companies are willing to pay a premium.
2. Performance-Based Pay
Salary is no longer just a fixed number that you receive annually. It’s transformed into a reward-based model that pays you based on your performance. As business operations become more complex, companies are looking for CIOs who can think outside the box and come up with innovative solutions. Therefore, CIOs will increasingly receive pay bumps based on their ability to drive technological change, improve operational efficiencies and satisfy customers. With performance-based pay becoming the norm, CIOs who excel will see higher salaries than their peers.
3. Cybersecurity Focus
As companies rely more heavily on technology, cybersecurity risks multiply, making cybersecurity a top priority. Cyberattacks have been on the rise, and the risk of compromised data and disrupted operations has forced companies to increase their cybersecurity budgets and look for CIOs with deep cybersecurity expertise. CIOs who can demonstrate significant experience in the cybersecurity arena can expect to be in high demand, and therefore, command higher salaries.
4. Digital Transformation
2020 brought into sharp focus the importance of digitization. As companies worked to adjust their business model to remote work, digital transformation rose up the priority list. Many companies found that they needed a CIO who understood their industry, their business, and how to apply new technologies to drive core business processes and build new revenue streams. CIOs who can drive digital transformation and innovation can expect to see higher salaries as companies look to invest in their future.
Conclusion
The CIO role has never been more important, and even the most traditional organizations have recognized the essential role that CIOs play in driving business value through technology. Therefore, CIOs can expect to earn higher salaries in 2021 and beyond. The factors that are driving these salary hikes include the CIO’s ability to drive technological change, improve efficiencies, satisfy customers, and provide leadership in the areas of cybersecurity and digital transformation. CIOs who can demonstrate these skill sets and align them with the strategic goals of the organization can expect to be in high demand and command top-of-the-range salaries.
