Is The Worst Over Yet? IT Devastated Over The Last Year
Disaster Recovery And Security Are The Hot Jobs
Park City, UT - M. Victor Janulaitis, CEO of Janco Associates, announced today results of its January 2002 Salary Survey. In the ongoing survey, the effects of the economic downturn are reflected in the overall compensation paid at all position levels in technology. For the first time since 1985, there has been an overall decrease in the benchmark salary paid for senior IT executives. Senior staff levels have some good news; “base salary” has inched up while total compensation has gone down
“As the economy worsens, mid-sized organizations are effected more and thus are cutting costs and staff faster”, stated Janulaitis. “Many larger organizations have put hiring freezes in to effect as well as stretching out the time period between normal compensation increases. In the past six months there has been a significant "thinning" of the layers within many IT organizations. "
In post interviews, Janco found reduced corporate earnings, which make up key components of most performance bonus plans, have driven the trend to lower total compensation. There has been a decrease in demand for IT professionals due to extensive across the board head count reductions. In addition as more companies have closed their doors, the surplus supply of senior level IT professionals has exploded. A factor not fully reflected in the study is the delayed effect of 9/11 and the move away from concentrated metro areas for some IT and back office operations.
There are some bright spots. The good news is that over-all productivity is up in IT organization and demand is high for Disaster Recovery and Security job titles.
Most of the decrease is based on reductions in performance bonuses for the most senior positions. The chart below shows the seven year historical trend of the benchmark ranges for the top eight positions in IT organizations.
There has continued to be an increase in the Benchmark for SELECTED positions within the IT functions. A consolidation in IT organizations has taken place and many enterprises have “eliminated” a layer in the management of the function. This has resulted in a reduction in the number of top level individuals like Vice Presidents, Directors, and Managers who report to the CIO. The table below depicts some of the short term compensation trends.
Over just the past six months, the mean salary level for all IT positions has been pushed to $71,417 in large enterprises and to $66,554 in medium sized organizations. This figure includes all forms of compensation comprising of items like bonuses and stock options to other special fringe benefits such as special trips. The survey of over seventy technology positions is based upon responses given in extensive Internet polling as well as a “survey of surveys” that includes data from across the United States and Canada.
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