Qualified and accomplished IT leaders never go out of style. But what “qualified” means changes over time.
Today, organizational investments in technologies like AI and the pace of digital transformation across many industries are having a significant impact on CIO job requirements in 2024. This, in turn, means job seekers will need new skills and be able to communicate effectively using the skills they already have .
“CIOs play a critical role in driving and managing technology innovation in organizations,” said Michael Butts, CEO and founder of Burtch Works, an IT executive recruiter. “The demand for strategic, forward-thinking CIOs will likely grow as the fourth industrial revolution continues to evolve.”
Security, AI and automation are driving CIO skill requirements
The last few years have seen non-stop changes, from increasing reliance on digital connectivity to an exponential rise in related information security issues. Additionally, generative AI entered the public consciousness, remote and hybrid work gained momentum, and hiring became increasingly difficult. All of these issues and many more had a significant impact on IT requirements.
Corporate boards are currently seeing a lot of interest in hiring CIOs, said Somer Hackley, founder and CEO of Distinguished Search, an IT executive recruiter. Board members are facing new reporting requirements and therefore want more confidence that their cybersecurity teams and processes are in order.
“This is more than just hiring a great CISO,” Hackley said. “They are looking for a CIO who will be involved in assessing business risk.”
Additionally, many companies want leaders who can apply automation and AI to the business.
“One CIO said to me, ‘If you haven’t done automation at scale, you’ve lost your competitive advantage.’ “This can be anything from increasing the quality of results, to creating higher levels of customer loyalty using AI, to embedding AI into products,” Hackley said.
Some companies are looking for IT leaders who can help them move their product portfolio to the cloud. This requires re-architecting valuable assets or assets embedded in the business process, Hackley said. On the other hand, some business leaders are also dissatisfied with the rising costs of cloud computing. They often look for CIOs to retain operational oversight, leaning on them more heavily than in the past.
Until then, companies want CIOs who are aligned with business strategies, Hackley said. Now more than ever, there is an expectation that they have earned a seat at the table with the CEO and senior management.
CIO salaries continue to rise, but are always tied to location and industry
A higher salary comes with greater technical and business responsibility, but to what extent depends on several factors.
Candidates often go into their prepared monologue and talk about their background chronologically, but these aren’t the people who stand out.
Somer HackleyFounder and CEO, Distinguished Search
Qualified CIOs typically earn between $210,000 and $450,000 in salary depending on company size and industry, Butts said. An incentive bonus of 10 to 25% is also common. In some cases, a long-term incentive plan may also be available that is based on company performance and includes a vesting plan of four to five years.
But several factors influence this.
The CIO salary depends largely on company size, location and industry, Hackley said.
“CIO means different things depending on who you ask,” Hackley says. “I’ve seen CIO and CTO searches that pay more than $2 million, others that pay $550,000, and still others that have low base compensation but higher equity. It’s everywhere.”
10 Skills to Get CIO Roles in 2024
CIOs are increasingly being asked to generate greater business value from technology initiatives, often without additional resources, Butts said. This means the role will become more complex and strategic, which could lead to a greater need for skilled and experienced CIOs capable of handling these expanded responsibilities. CIOs who can demonstrate that they have achieved desired business outcomes, particularly enabling revenue increases or cost savings, are attractive candidates.
To show they have “the stuff,” CIO candidates should demonstrate mastery of the following 10 skills, Butts said.
Leadership and management experience
CIOs must effectively lead and manage diverse teams, including IT staff, project managers, external vendors and business stakeholders. Experience building, motivating and leading teams is critical to ensuring IT strategy aligns with business goals.
Strategic planning and vision
A CIO should have a track record of developing and implementing IT strategies that support and drive overall business strategy. This includes understanding market trends, anticipating future technological requirements and planning accordingly.
Technical expertise
A solid foundation in various aspects of IT, including infrastructure, software development, cybersecurity and data management, is essential. While a CIO doesn’t have to be the leading expert in every area, a comprehensive understanding is required to make informed decisions.
Program management
Experience managing large IT projects, including budgeting, scheduling and risk management, is essential. CIOs often oversee significant projects that involve cross-functional teams and require significant investments.
Business acumen
It’s critical to understand the company’s core functions, from finance and operations to marketing and sales. This knowledge helps align IT initiatives with business goals and communicate the value of IT investments to stakeholders.
Change management
Technology is constantly evolving and a CIO must be able to drive change. This also includes managing the human side of change when implementing new technologies or processes.
Industry knowledge
Understanding the specific challenges, regulatory requirements and competitive landscape of the industry in which the company operates can be of great benefit and allow the CIO to adapt IT strategies that provide a competitive advantage.
Customer-centric mindset
In many companies, IT directly impacts the customer experience. A CIO should understand customer needs and how technology can increase customer satisfaction and engagement.
Innovation and continuous learning
Technology is one of the fastest evolving areas, and a successful CIO must be committed to continuous learning and open to exploring innovative solutions.
For example, many companies are conducting pilot projects with generative AI or examining how sustainability efforts fit into the IT sector.
Communication skills
CIOs must communicate effectively with all levels of the organization, from technical teams to board members. This involves translating complex IT concepts into understandable business terms and convincing others of the value of IT initiatives.
The ability above all others
Of the ten skill areas mentioned above, the need for communication skills cannot be overstated. CIO candidates can stand out by communicating well and showing where they can add value to a potential employer.
“Candidates often go into their prepared monologue and talk chronologically about their background, but those aren’t the people who stand out,” Hackley points out. “Candidates who are able to speak holistically about their background [and] short and sweet [as well as] Showing they can play a key role in the company’s journey are the ones that stand out.”
“Table stakes” are the two skills of communicating about technology and business and serving as a connection between the two, Hackley said. But senior IT leadership must also have a proven methodology for gaining trust, building relationships, influencing and leading. CIO candidates stand out when they have a guide that can be adapted to different companies and cultures.
Finally, CIO candidates who shine approach interviews with curiosity, ask good questions, are good listeners, and don’t take control of the conversation.
“They are prepared but not rehearsed, and they let their personality shine through,” Hackley said.
David Weldon is a business and technology writer who covers data management, information security, health technology, and other topics.