IT Salaries Inching Up -Economic climate may be better
Economic climate may be better for IT Managers
IT Salaries Inching Up -Economic climate may be better - In spite of the recent economic climate, the salaries of IT employees seem to be making some progress. The results of international management consulting firm Janco Associates’ “Mid-Year IT Salary Survey” were encouraging. Total average compensation for all IT professionals has increased from $77,690 to $78,210, although total compensation for all positions in midsized enterprises has dropped slightly while that for larger enterprises has risen slightly.
The Janco Associates study examined businesses in a variety of industries across the United States and Canada. The study looked at large companies with gross revenues equal to or greater than $500 million and midsized companies with gross revenues less than $500 million. Rather than just strictly salaries, the study looked at total employee compensation, which includes bonuses, perks, the fair value of supplemental compensation such as additional time off, educational cost requirements, business trips, car allowances, stock options, insurance, and 401(k) programs.
The study group included executives, middle managers, and staff at large enterprises as well as their counterparts at midsized enterprises. Of these groups, executives at midsized enterprises were the only ones to have experienced a drop in salary. The rest saw an increase. Victor Janulaitis, CEO of Janco, says, “Smaller companies have management which typically are in-tune with the operations of the enterprise, and management is often paid with an eye toward company earnings performance vs. demand for particular skill sets,” which could explain the drop in average salaries for executives at midsized organizations.
CIOs fared the best. Their mean compensation in large enterprises increased 7.52% to $181,533. Salaries for CIOs in midsized enterprises rose 3.73% to $169,303. “As productivity has improved, CIOs have been given much of the credit and they are getting more bonuses based on job performance,” Janulaitis says. But these increases have yet to be passed down in the organization.
In spite of the increase in salaries, the news is not all good. “The recession has cut IT to the bone, and there is no clear sign that IT jobs will regain the luster they had before the recession,” Janulaitis says. IT is “standing still” in small and medium-sized enterprises, he says, and it will be difficult for CEOs to “see IT as something other than a cost center. ”