Tech Salaries and Benefits Are Going Nowhere, Report Says

Roadside BreakdownRecent gains in employment haven’t helped compensation as IT professionals face another year of paltry raises and decreasing benefits.

The median salary for all IT professionals is $78,759, representing an increase of just .68 percent over the 2011 average of $78,229, according to a mid-year survey of 55,000 professionals conducted by disaster-planning firm Janco Associates. Large companies gave IT staffers an average raise of 1.03 percent during the first six months of 2012, while staff-level employees in mid-size firms received an average increase of .68 percent. This puts overall compensation back at levels last seen in January 2008 and 2007.

The most recent Dice Salary Survey told a slightly better story when it was released in January:

After two straight years of wages remaining nearly flat, tech professionals on average garnered salary increases of more than 2%, boosting their average annual wage to $81,327 from $79,384 in 2010.

Janco’s report says total compensation for IT executives in large companies actually decreased, as wages rose slightly but bonuses fell. The mean compensation for CIOs in large enterprises is now $179,742 (an increase of 1.75 percent). In mid-sized firms, it’s 165,472, up 0.69 percent.

More on Your Shoulders

While the cost of providing benefits has increased slightly over the last year, employers continue to remodel their programs by shifting costs and giving staffers greater responsibility to manage their benefits, according to a new study by the Society for Human Resource Management. Organizations spent an average 19 percent of an employee’s annual salary on voluntary benefits, 18 percent on mandatory benefits and 10 percent on pay for time not worked.

Only 43 percent of IT professionals in the Janco survey participate in a 401(k) plan, which is down from 47 percent last year. And just 37 percent received a personal performance bonus, down from 48 percent in 2011. Thirty five percent of employees receive a bonus based on enterprise performance, about the same as last year.

On a more positive note, Janco says companies are moving help desks and data center operations in-house, resulting in increased demand for data center managers. Meanwhile,  mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.

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Comments

  1. BY Glen Smith says:

    You can’t compare median to average because median does not necessarily mean average, although some might use average when they mean median not mean. In natural systems (salary is one), you will have a rightward skew (often extreme). For example, in 2009, about 86% of all families in the US earned less than average. If the size of the difference between the average and the median is falling while the median is growing, that is likely a good thing because employers are now hiring from the lower value supply groups (mostly the unemployed, under employed and those looking to move up). Now, to really do that analysis right though you really need to a good study of other alternatives (automation, off shoring etc,) but those would likely mean a falling median in the face of a rising mean.

  2. BY AJ says:

    As a contractor, now I have to go thru few indian firms in the middle as they take their cut till I get to the actual client. Then, every indian firm/person has to bargain with me to see how much he can get out of my rate! So, no matter what a client offers, you ll get what the indian guy working from his home anywhere in the world bargain to pay you.

    offshore companies like Cisco, infosys then onsite/offshore model where you need to compete with resume factories in India, rates are going nowhere. I am learning hindu and ready to move to India to get a decent paying job. Otherwise, I ll join the US post office and forget about IT.

  3. BY Kumar says:

    AJ – Post Offices are not doing too good either. Perhaps, you could have studies Physics, Chemistry and Mathematics in your younger years instead of boning your 14 year old girl friend.

    Water moves from high level to low level, Electrons move from lower potential to higher potential because they are negatively charged. Jobs are going to move from higher wage places to lower wage places. It is nature, nothing could go against nature.

    Now – you could chose to blame India/China/Alabama/Iraq war/Bush Tax Cut/weather/you being white/black/bown/Non-Indian/Indian/Hispanic…..or just accept the fact and do your best.

    Last….yes…..India based companies suck big time.

    -Kumar

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