Salaries for IT personnel have stagnated in 2008, according to a recent study from Park City, Utah-based management consulting firm Janco Associates Inc. Polling more than 800 companies, including insurers throughout the United States and Canada, Janco’s “2008 Mid-Year IT Salary Survey” also found that hiring is now limited to key replacements, and discretionary spending is falling. In many cases, it is being eliminated.
The survey reveals that hiring demand in IT is at its lowest level since 2004, with many enterprises not hiring at all, save for replacement personnel at lower salary levels. To go along with this, in the past year, increases in IT professionals salaries were lower than the increases in the cost of living. Moreover, companies have reduced discretionary spending by the IT department, resulting in fewer projects being initiated, lesser use of consultants and a slowing of previously approved projects.
Mean compensation — including bonuses — for all executive-level IT positions surveyed is $144,645 in large enterprises (more than $500 million in revenue), and $131,763 in mid-size enterprises ($100 million to $499 million in revenue). Concurrently, it was reported the mean increase in compensation for CIOs from last year is less than 1.5%, with $179,823 being the mean salary for CIOs of large enterprises, and $171,755 for CIOs of mid-sized enterprises. The study also found that positions that were in high demand at the end of 2007 (i.e. CSOs and others responsible for the development of Web 2.0 applications) are now back to normal hiring patterns.
While salaries may be dropping, IT workers are still receiving other non-monetary compensation from their employers in the form of benefits. Of those surveyed, 95% received health insurance, 85% had life insurance, 70% had a 401K plan, 55% go on trips (i.e. off-site planning, trade shows, training), 60% were able to work some form of flexible hours or schedule, 59% received a personal performance bonus, 46% got an enterprise performance bonus, 22% had stock options and 10% were given a company automobile.
A number of positions within larger enterprises are now under increased demand, including:
* VP - information services
* Director - systems & programming
* Manager - data warehouse
* Manager - voice wireless communications
* Manager - wireless communications
* Facility administrator - data center
* Shift manager - computer operations
However, many administrative positions in some IT functions have been deemed expendable.
(c) 2008 Insurance Networking News and SourceMedia, Inc. All Rights Reserved.
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