January 6, 2009
(eChannelLine) --
Janco Associates has just released its January 2009 IT Salary
Survey and the prospects look grim for IT professionals. A
perfect storm driven by the recent worldwide economic downturn,
company closures, layoffs, cost cutting, outsourcing, and
retirees who have had to return to the job market because of the
lost value of their investment portfolios have created a surplus
of IT talent. The CEO of Janco Associates, Victor Janulaitis,
said, "The job market for IT professionals is one of the worst
that I have seen since the late 1970s. There is a surplus of IT
talent and companies are in a cost cutting mode. The dot com
bubble was a cake walk compared to this job market."
Many companies have instituted hiring and
spending freezes. This has been augmented by extensive layoffs,
outsourcing, bonus reductions, and elimination of IT
contractors, which has decreased the demand for IT professionals
and in some cases lowered wages, with higher priced positions
being eliminated. Companies have reduced the benefits provided
to IT professionals. Though benefits such as health care are
available, IT professionals are now paying a greater portion of
that cost. Flexible hours and work schedules are now not as
available as they were before the recent economic conditions
changed. With outsourcing, lower bonuses, and the recent layoffs
there has been a decrease in the mean compensation paid to IT
professionals.
For the second time in less than ten years,
retirements are being put off because of the downturn in the
stock market and the resultant reduction in savings available to
support IT professionals as they retire. Added to this is an
influx of retirees who are looking to get back into the job
market because of the massive reduction in their savings. There
now is a surplus of seasoned IT professionals available. Hiring
demand is down for IT executives (especially in mid-sized
enterprises), while proven CIOs (Chief Information Officers) are
in high demand in large enterprises. The mean compensation for
CIOs in large enterprises is now $168,839 (a 6.11 percent
decrease) and $163,211 (a 4.97 percent decrease) in mid-sized
enterprises. Much of this is due to the loss or reduction of
bonuses and fringe benefits. The mean compensation (which
includes bonuses) for all IT executive positions surveyed now is
$142,914 (a decrease of 1.20 percent) in large enterprises and
$126,021 (a 4.57 percent decrease) in mid-sized enterprises.
The positions in the highest demand are at the
staff levels of both large and mid-size enterprises with the
focus continuing to be line operations and mandated security
requirements such as Sarbanes-Oxley, HIPAA and PCI. Outsourcing
is placing pressure on computer operations staffs, as those are
the positions are the easiest to outsource. In mid-sized
enterprises the mean total compensation for all positions has
fallen 2.91 percent from $75,814 to $73,607. At the same time in
large enterprises the median compensation has fallen from
$82,197 to $81,128. A summary of the most recent salary survey
can be downloaded by visiting http://www.e-janco.com/Salary.htm.
