According to the 2003 IT Staffing and Compensation Guide, an annual report released by META Group, 61% of IT managers indicate that IT compensation consumes from 25% to 50% of their budgets, even though IT budgets have decreased or remained flat this year. Last year, only 40% of IT managers claimed this same range, proving that IT salaries continue to have staying power despite the economy.
While IT salaries continue to rise, the rate of increase is holding steady with last year, averaging 5% for base salaries, though a few job categories requiring hot skills continue to see increases of 8%-10% depending on the skill. In addition, even more respondents than last year predict an increase in the IT compensation budget during the next year 26% of all respondents in 2003 compared with 22% last year.
"There is little question that IT budgets will continue to decline slightly or remain flat this year," says Maria Schafer, program director of META Group`s Human Capital Management Service and author of its annual IT Staffing and Compensation Guide. "What is most interesting is the fact that, despite this, we expect IT compensation to actually rise, in some cases at the expense of non-IT employees."
In fact, the overwhelming majority of US firms continue to pay IT employees higher salaries than their non-technical counterparts, and the number of companies doing so has increased again, with 75% of respondents indicating this, compared to 67% last year. This percentage is getting close to the historic high of 2000, in which 80% of respondents reported paying higher salaries to IT employees. This compensation imbalance can be partially attributed to the overall need to retain key IT staff.
The top method of employee retention remains the monetary reward, or cash bonus. According to the guide, 54% of respondents are still offering IT employees an annual year-end bonus, while a surprising 44% are using sign-on bonuses as a means to attract higher-level IT employees.
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META Group`s 2003 IT Staffing and Compensation Guide is recognised by IT and HR executives as the industry`s leading source for IT staffing and compensation data. This year`s edition delivers unmatched insight into the latest human capital management best practices and trends impacting the IT workforce. In addition, the report provides salary and bonus information for nearly 180 IT positions - including detailed job descriptions that outline desired skills and experience, expected responsibilities, and suggested reporting structures.
This year`s report is based on compensation and best-practice surveys of more than 650 large and midsize companies spanning 14 industries and over 40 geographic markets. For more information about META Group`s 2003 IT Staffing and Compensation Guide, please visit metagroupsa.co.za or call 011 880-5644.
META Group
META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group`s experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit www.metagroupsa.co.za for more details on our high-value approach.
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