IT Feels Economic Pinch Reports Janco In Its June 2008 IT Salary Survey
Hiring and spending has slowed down in IT as businesses
try to control costs in tough economic times
Park City,
UT – The
prospect for IT professionals is not good. Janco has found that IT
compensation growth remains flat, hiring is limited to key replacements, and
discretionary spending has been cut back and in many cases eliminated.
Victor Janulaitis, the CEO of Janco said, "As we collected compensation data
for our mid-year 2008 IT Salary Survey we found that at the end of the first
quarter businesses turned off the faucet for IT spending. Many businesses,
in response to economic projections, slowed down and halted discretionary
spending for software and hardware as well as placed hiring requisitions on
a slow track."
The summary findings in Janco 2008 Mid-Year IT Salary Survey are:
Hiring demand is now the lowest it has been
since 2004. Many enterprises have stopped hiring except for key
replacements and those positions are being replaced at lower salary
levels.
Enterprises have slowed down and in many cases
eliminated discretionary spending by IT. This has resulted in fewer
projects being initiated, consultants use being reduced (if not
eliminated), and a slow-down of initiatives that had already been
approved.
In the last twelve (12) months the increases in
compensation for most IT Professionals were lower than increases in the
cost of living.
The mean increase in compensation for CIO’s was
less that 1.5%. The mean compensation for CIOs in large enterprises now
is $179,823 and $171,755 for CIOs in mid-sized enterprises. (Large
enterprises have over $500 million in revenue and mid-sized have are
$100 to $499 million in revenue).
The mean compensation (which includes bonuses)
for all Executive IT positions surveyed now is $144,645 in large
enterprises and $131,763 in mid-sized enterprises.
Positions that were in high demand in the 4th
quarter of 2007 such as CSOs and others to develop new Web 2.0
applications are now back to normal hiring patterns.
Administrative positions in some IT functions
are now being looked at as those that are expendable
IT Median Salaries June 2007 vs June 2008
June '07 Mean
June '08 Mean
Total
Base
Total
Base
Total
Change
Executives
$127,620
$143,106
$128,491
$144,645
1.08%
Middle Managers
$75,143
$78,845
$76,073
$79,777
1.18%
Staff
$63,146
$66,517
$63,186
$66,433
-0.13%
Large Enterprise
$76,518
$81,532
$77,063
$82,108
0.71%
Executives
$116,838
$131,321
$116,666
$131,793
0.36%
Middle Managers
$71,009
$74,645
$70,949
$74,701
0.08%
Staff
$58,352
$60,442
$58,647
$60,736
0.49%
Mid-Size Enterprises
$71,284
$75,601
$71,361
$75,810
0.28%
IT Averages All
$73,901
$78,567
$74,212
$78,959
0.50%
The positions that
have the greatest change in demand are listed below. The positions that show an
increased demand tend to have significantly higher offering salaries. This in
turn, inflates the level of compensation for individuals who remain in those
existing positions.
In those positions
that are facing decreasing demand, increases in compensation are normally based
on “time-in-grade” or tenure within the enterprise.
Positions with
Increased Demand
Positions with
Decreased Demand
Large Enterprises
VP – Information Service
Director Systems & Programming
Manager Data Warehouse
Computer Operations – Shift
Manager
Voice Wireless Communications
Manager
Manager Wireless Communications
Data Center Facility
Administrator
VP –
Consulting Services
Project
Manager Systems
Network
Services Administrator
Network
Technician
Software
Engineer
Systems
Programmers
Mid
Sized Enterprises
VP –
Security (CSO)
Director
Systems & Programming
Director
IT Planning
Computer
Operations – Shift Manager
Computer
Operations – Shift Supervisor
Change
Control Analyst
VP –
Technical Services
Manager
Operating Systems Production
Production Services Administrator
Project
Manager Applications
Network
Service Administrator
Fringe Benefits
About
Janco Associates, Inc
Janco is Mountain States
based consulting firm that publishes the HandiGuide® series of book used by
IT, HR and other professionals as the source of information on topics from
PC Polices to job positions and responsibilities. In addition to its
electronic book and survey publishing, Janco also publishes award winning
business software.
