2014 Mid-Year IT Salary Survey

IT compensation remains flat - some raises and new hires according to the latest IT Salary Survey by Janco Associates and eJobDescription.com

Janco and eJobDescription.com has conducted salary surveys of the IT Job market since 1989. The data from this survey has been published in the Computer Industry Almanac, the Wall Street Journal, the New York Times, eWeek, and many other business and industry publications. In addition over the years it has been featured on CNN, the Wall Street Journal, and several national and international media outlets.

On a monthly basis - typically on the first Friday of the month - Janco publishes an analysis of the IT Job Market utilizing the BLS labor data and it proprietary data. See the latest press clipping go to Janco's Press Clippings and eJobDescription.com.

The salary survey is updated twice a year; once in January and then again in July. Janco and eJobDescription.com not only look at base salaries, they also report on total compensation.

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You can get a free copy of the full survey if you provide 10 valid data points and use a corporate e-mail address. Free e-mail accounts like gmail or yahoo do not qualify as we have no way to verify the accuracy of the data provided.

Salary Survey Summary

Are you paying too much or too little to your IT staff? Do you have IT job descriptions? Are you earning what you're worth? Whether employer or employee, it is important to know what other companies are paying in total compensation for a similar position in your area. Learn how your company compares in the area of compensation. Data is as of July 2014.

  • IT compensation for all IT Professionals has increased by 0.33% in the last 12 months. 
    • Between June 2013 and June 2014 the total mean compensation for all IT Professionals has increased from $79,112 to $79,376.  This puts overall compensation back at the levels they were at in January 2008 and 2007.
    • In mid-sized enterprises, the mean total compensation for all positions has increased by 0.68% from $75,727 to $76,241.   
    • In large enterprises, the median compensation has risen from $82,498 to $82,511.
  • CIOs compensation has stayed flat in larger companies and increased in smaller and mid-sized companies in the past 12 months.  The mean compensation for CIOs in large enterprises is now $182,645 (up 0.24%) and $168,214 (an increase of 1.52%) in mid-sized enterprises.
    • Media CIO tenure has increased from 4 years and 3 months to 4 years and 4 months.  In companies of all sizes fewer CIOs have changed jobs in the last 12 months than in prior periods.
  • Positions in highest demand are all associated with the quality control, BYOD implementation, and service level improvement.
  • Over the long term IT executives have fared better in mid-sized companies than large companies.
    • In mid-sized companies IT executive salaries have recovered all of the losses sustained in the recession except for only a few cases.
    • In large companies IT executive salaries are just below what they were in 2008.
  • IT Job growth has slowed. In 2013 the IT job market grew by 36,500 (January thru May) versus 32,200 in 2014 according to the Bureau of Labor Statistics (BLS) -- at the same time not all of the IT jobs lost in the recession have not been recovered.
  • Lay-offs seem to have tapered off, however some companies continue to cut the size of the IT organizations.
  • Cost control is still the rule of the day; however we have seen an increase in the number of "part-timers" and contractors who are focused on particular critical projects.  This has resulted in few IT Pros getting health coverage
  • On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.
    • A number of enterprises are moving help desks and data center operations in-house which has resulted in an increase demand for data center managers.
  • Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.
  • Companies are continuing to refine the benefits provided to full time IT professionals. Though benefits such as health care are available to 80%, IT professionals are now paying a greater portion of that cost.

The Janco Associates, Inc. salary survey draws on data collected throughout the year by extensive interviews,  Internet-based survey data, and survey forms completed by businesses throughout the United States and Canada. 

The compensation study (over 160 pages in PDF or WORD and EXCEL with the data) can be ordered here.

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If you do not want to purchase the full salary study, you can get just the data for a particular city for a fraction of the cost of the full study.  Just click here to see all the cities covered.

IT Median Salaries Mid-Year 2013 vs. Mid-Year 2014

Historic versus current salaries IT Professionals

U.S. Department of Labor National Employment Report


IT job market growth is 30,100 in the last 3 months and 108,100 jobs added in the last 12 months
Down slightly from from 40,200 and 111,100 reported last month



CIOs say short term hiring and long term prospects are significantly improved - In 2014 104,700 IT Jobs have been added

Job growth in the IT job market s continues to improve. For the first time since the recession started, the number of new IT Jobs created exceeds the number of IT graduates. In 2012 there were 70,000 IT graduates in the US. 

IT Job Market Gains

The three month moving average for IT job market growth trend for IT Professionals is up for the first time in several months.


Janco's CIO Hiring Plan Forecast is positive with CIOs now hiring. For the first time in several quarters CIOs and HR managers for IT are looking to hire staff

IT Hiring Trend

The number of new jobs (all categories excluding IT) created continues to be lower than the number of jobs needed for the US economy to stay even with adult population growth. The Labor Department has reported the economy added 321,000 in November which is now enough to cover the new entrants into the job market.

Jobs Added

IT Job Market Employment Trends

The rate of job growth in the IT job market improved a bit but still with a gain of 12,700 jobs for IT Pros. Plus the number of jobs added in prior months (see table below) makes the job gains even better.

IT job market improves - hiring up

IT job market improves - hiring up

Prior Months IT Job Market Changes Adjustments.

IT job market improves - hiring up

Health Care vs. Financial Services Job Growth

Heath Care Job Growth

The North American health care information technology (HCIT) market is forecast to grow at a compound annual growth rate (CAGR) of 7.4 percent to reach $31.3 billion by 2017 from $21.9 billion in 2012 due to the increasing demand for clinical information technology, and administrative solutions and services. The impact of IT on health care in the past decade has been modest, despite the huge potential, such as streamlining processes and reducing administrative overhead, and has the potential to transform the paper-based health care system into a digitized one. Despite the promise of growth, the report also highlights major constraints to the growth of the health care IT system, which include high cost of health care IT solutions, high maintenance and service costs, interoperability issues, shortage of IT professionals, poor standard protocols such as Health Insurance Portability and Accountability Act (HIPAA), and unprecedented growing incidences of data breaches of patient information.

Employment is on the rise in Healthcare IT and spending will reach $40 billion by the end of this year. Much of that growth will come from spending on electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards. Boosted by increased spending on healthcare software -- which is needed for the roll-out of EHR systems -- the U.S. healthcare IT market is expected to grow at a rate of about 24% per year from 2012 to 2014, the study said. Spending on healthcare software rose 20.5% in the past year, from $6.8 billion in 2010 to a projected $8.2 billion this year. Recent mergers and acquisitions in the healthcare IT market also point to growing private-sector interest in software, which will see sales grow at rate of more than 30% annually from 2012 to 2014.

Industries and occupations related to health care, personal care and social assistance, and construction are projected to have the fastest job growth from now until 2020. Total employment is projected to grow by 14.3 percent over the decade, resulting in 20.5 million new jobs. Despite rapid projected growth, construction is not expected to regain all of the jobs lost during the 2009-12 recession. The bad news is that the number of individuals dropping out of the job market continues to increase and the Labor Participation Percentage continues to fall.

Workforce Participation Rate Remains in the Low 60 Percentiles

Labor Participation Pct

The 2020 projections incorporate a new BLS system that depicts education, training, and related work experience typically needed for occupations. In occupations in which a master’s degree is typically needed for entry, employment is expected to grow by 21.7 percent, faster than the growth rate for any other education category. In occupations in which apprenticeship is the typical on-the-job training, employment is expected to grow by 22.5 percent, faster than for any other on-the-job training category.

Employment Trends

Based on this data and interviews that Janco has conducted. Janco predicts there will be more churn in IT staffs as CIOs accelerate their move to more flexible staffing models. CIOs are outsourcing more technical work, including managed IP services such as VoIP and VPNs. They are hiring more contractors for desktop and security services, and they are putting more applications such as remote backup in the cloud. At the same time, they are looking to hire IT people with business and analytical skills, such as risk management and project management. CIOs report that they're having trouble hiring IT people because either they can't find IT professionals with the right business skills or they can't afford them. All of this means more turnover in IT departments.

U.S. employment numbers released Jan. 7 (see chart above) by the Department of Labor's Bureau of Statistics revealed a net gain of 1,000 0 in IT-related jobs in December, representing the seventh straight month of positive job growth in IT labor segments in federal employment data.

One of the drivers of IT jobs in the US is the number of High-Tech Manufacturing jobs that there are in the US. Since 1998, when outsourcing began in earnest, the number of high tech manufacturing jobs in the US, as a percentage of the total has continued to decline. At the same time China has come to be a force that needs to be reckoned with.

Bellwether IT job segments in the BLS data showed a net gain of 10,000 jobs in the last six months of 2010 and 3,000 jobs in October through December. Leading all segments were gains in management and technical consulting services and computer systems design and related services segments, which accounted for 89 percent and 85 percent, respectively, of all new jobs created.

Jobs in the data processing, hosting and related services segment added 200 jobs in December, the worst performing segment in the month. Two job segments in the computer and electronics products industry category added jobs: communications equipment (+500 jobs) and computer and peripheral equipment (+700 jobs).

"The services industry has been on a steady roll since last March; in fact, nearly 95 percent of all new IT-related jobs created since March—54,600 of 56,000 jobs according to federal job loss data—were recorded in the management and technical consulting services and computer systems design and related services segments," said Victor Janulaitis, CEO and chief research officer at IT analyst firm Janco Associates, Inc. "I don't want to overemphasize CIOs' dependency on contractors, consultants and managed services; indeed, they're also making key hires in many areas. But it's clear that demand for full-time workers outside the services sector has yet to experience the kind of momentum witnessed in services jobs."

Janulaitis noted that what the federal government numbers hide are thousands of IT jobs created in other areas of the enterprise that are not considered the traditional IT workforce. "These people are working in business lines, corporate departments, and in various enterprise strategic and operation functions whose jobs require skills well beyond technology," he said. "We believe there are an additional 16 to 20 million IT professionals in the Department of Labor employment statistics on top of the 4 million technical, back office and infrastructure workers who are identified by the government's archaic definition of IT professionals."

Fourth-quarter 2010 volatility in skills and certifications values measured 29.1 percent, an increase of four points from the previous quarter. This represented a return to high volatility rates in the first half of 2010 but less than the record-setting 38.7 percent volatility during summer 2009. Non-certified and certified skills volatility this period—34.7 percent and 23.1 percent, respectively—represents a return to elevated values earlier this year following a brief decline in the third quarter.

"In our IT employment market analysis released last month, we noted that volatility remains the dominant trend right now for IT skills as well as jobs," Janulaitis said. "We've been seeing 28 percent to 38 percent volatility since early 2008 in our quarterly surveys of premium pay for certified and non-certified skills, which is defined as the percent of the 466 skills we survey. Typical quarterly volatility falls in the 14 percent to 19 percent range."

Unemployment Data

During the recession of 2009 - 2013 unemployment in the IT Industry had not been as high as the rest of the United States. Older workers had a higher unemployment rate than your ones. In addition, female high tech employees have not as well as their male counterparts. This is especially true for workers over the age of 55. The unemployment rate for women over the age of 55 for computer and math workers in 2010 was 9.4% versus 8.0% for men.

Unemployment Trend

Unemployment Factoring in People Who Left the Work Force

True Unemployment

States with High Unemployment - 16 States have over 6.5% Unemployed
one more than in September -- Question is the economy improving?

High unemployment states

Historical IT Salaries

 

Labor Force Participation

In November of 2014 the work force participation percentage of all employees (male and female) remained at 62.8% as another 800,000 individuals left the job market..

Work Force Participation

Assuming that there is a significant downsizing of the military and there are no new programs to get jobs for soldiers coming home then the true unemployment levels will not go down for some time.

 

H-1B Visas

Offshore outsourcing companies continued to make up the majority of the top H-1B visa users in 2013, according to new government data. These offshore firms have been adding employees by the thousands as their revenues increase. Infosys (India based) led the list in 2013 with 6,298  visas approved, just edging out Tata (India based) which had 6258 visas approved last year.  Cognizant, a New Jersey-based IT services provider with major operations overseas, led the list in 2012 but dropped to 3rd. The company had 5,186 visas in 2013 versus 9,281 visas approved in 2012 versus 5,095 in 2011.

H-1B Visas

Small Business Employment Trends

Forty-four (44) percent of small business owners hired or tried to hire in the last three months and 33% reported few or no qualified applicants for positions. The figures suggest that job creation has been very weak.  While reports of reductions in employment have returned to “normal” levels, the percent reporting increases in employment has not. The percent of owners reporting hard to fill job openings lost 5 points, falling to 15% of all owners. The Household survey indicates that about 3/4s of the increase in jobs last month were “part time for economic reasons.” That is not a strong labor market. Seasonally adjusted, the net percent of owners planning to create new jobs fell 3 points to 3%, an unfortunate reversal of three months of improved readings. This is definitely not typical of an expansion.

Small Business Employment

 

Methodology for Salary Survey

Below Benchmark Range - Highly impacted by forces of the marketplace

Within Benchmark Range - Subject to the normal forces of the marketplace for similar job functions and responsibilities. 

Above Benchmark Range - Not subject to the forces of the marketplace

The Benchmark represents our assessment of the compensation level required for organizations to remain competitive and minimize the risk of losing employees to other organizations. 

Reviews were conducted from the standpoint of a comparison of base salary and, when appropriate, from the additional standpoint of total compensation.  Total compensation is determined by adding the budgetary bonus amounts and an equivalent cash value for above-standard compensation to an individual's base salary. 

The compensation Study data was divided into two categories.  Large companies are companies whose gross revenues are equal to or greater than $500MM.  Mid-sized companies are companies whose gross revenues are less than $500MM.

Survey Size

The survey size and number of participants was

  • Large Companies
    • Number of companies 252
    • Number of data points 24,781
  • Mid-Sized companies
    • Number of companies 722
    • Number of data points 29,643

 

Cities Surveyed in the Salary Survey

Janco's 2014 IT Salary Survey includes the following 78 United States cities, as well as 23 selected cities in Canada.  Median compensation data is provided for each city in the survey.     

US Cities

Akron Albuquerque Allentown Anchorage
Atlanta Atlantic City Austin Baltimore
Bellingham Boise Boston Buffalo
Charleston Charlotte Cheyenne Chicago
Cincinnati Cleveland Colorado Springs Columbus
Dallas Denver Des Moines Detroit
Duluth Gary Grand Rapids Green Bay
Honolulu Houston Indianapolis Kansas City, MO
Las Vegas Lexington Little Rock Los Angeles
Louisville Madison Memphis Miami
Milwaukee Minneapolis Nashville New Orleans
New York Oakland Oklahoma City Olympia
Omaha Orange County CA Orlando Peoria
Philadelphia Phoenix Pittsburgh Portland, ME
Portland, OR Provo/Orem Raleigh-Durham Rockford
Sacramento Salt Lake City San Antonio San Diego
San Francisco San Jose Seattle Sioux Falls
St. Louis Stamford Syracuse Toledo
Topeka Tucson Tulsa Washington
Wichita Winston-Salem    

Canadian Cities

Calgary, AB Charlotte, PE Edmonton, AB Fredericton, NB
Guelph, ON Halifax, NS Hamilton, ON Hull, QC
London, ON Montreal, QC Niagara Falls, ON Ottawa, ON
Quebec City, QC Regina, SK Saskatoon, SK St. John's, NF
Sudbury, ON Toronto, ON Vancouver, BC Victoria, BC
Whitehorse, YT Windsor, ON Winnipeg, MB

 

Positions Surveyed

The following seventy-three (73) positions were surveyed for the Janco Associates, Inc. IT Salary Survey.

Executive Management  

VP - Chief Information Officer, VP - Chief Security Officer, VP - Administration, VP - Consulting Services, VP - Information Services, VP - Technical Services, Director - IT Planning, Director - Production/Data Center (Operations), Director - Systems & Programming

Middle Management

Manager - Applications, Manager - Computer Operations, Manager - Customer Service, Manager - Data Communications , Manager - Database , Manager - Information Center, Manager - Internet Systems, Manager - Network Services, Manager - Op Systems Prod, Manager - Production Services, Manager - Production Support, Manager Quality Control, Manager - Security and Workstations, Manager - Systems and Programming, Manager - Technical Services, Manager - Training Documentation, Manager - Voice Data Communication, Capacity Planning Supervisor, Change Control Supervisor, Computer Ops - Shift Manager, Computer Ops - Shift Supervisor, Data Entry Supervisor, Production Control Specialist, Production Services Supervisor, Project Manager - Applications , Project Manager - Distributed Systems, Project Manager - Network Techical Services, Project Manager - Systems, Supervisor - Hardware Installations, Supervisor - Desktop Support, Supervisor - Network Services, Voice/Wireless Communications Manager, Webmaster

Staff

Change Control Analyst, Computer Operator, Data Center Facility Administrator, Data Entry Clerk, Data Security Administrator, Database Specialist, Disaster Recovery Coordinator, e-Commerce Specialist, Forms and Graphics Designer, Hardware Installations Coordinator, Internet Developer, IT Planning Analyst, LAN Applications Support Analyst, Librarian, Network Control Analyst, Network Services Administrator, Network Technician, Object Programmer, Operations Analyst, Personal Computer Specialist, Production Control Analyst, Programmer/Analyst, Senior Network Specialist, Software Engineer, Systems Analyst, Systems Programmer, Systems Support Specialist, Technical Services Specialist, Technical Specialist, Voice/Wireless Communications Coordinator, Web Analyst

IT Positions in Demand

Hiring Trends

In the short term it looks like companies are looking to hire IT staff, contractors and consultants.

Hiring Trends

Based on Janco's interviews and survey data the following positions are in high demand.

Fringe Benefits for IT Professionals

Companies have started to adjust the fringe benefits provided to IT Professionals.   A full historical comparison of trends in benefits is included with the full version of the Janco IT Salary Survey.

 

Fringe Benefit Historical Trends

Fringe benefits Historical Trends

 

Top Paid CIOs

The top compensation for highest paid CIO is now $12.5 million and that is for Michael Schroepfer of Facebook. From public data we have found that there at least 37 CIOs who's compensation exceeds $1 million.

CIO Compensation


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If you provide ten or more job title data points you will qualify to get a free copy of the full study. If you have any questions on the survey send us an e-mail at Janco Associates, Inc.