Senior IT Salaries Flat in 2012

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According to the findings of a recent salary survey from Janco Associates, many senior IT managers have received minimal pay increases. This salary trend is attributable to concerns about the overall health of the economy as the C-Suite considers the impact of  political policy decisions. The  uncertainty from these policies has them trying to contain costs in the event of another downturn. 

In addition to flat salaries other benefits such as company sponsored retirement plans and performances bonuses are also on the table for further cuts. According to Janco, many CIOs will now need to delay non-critical IT projects and delay staffing increases. "Companies continue to look ahead and see an uncertain future," says Victor Janulaitis, CEO of Janco. "They do not want to commit capital or raise infrastructure costs when they are not sure that they will have a good ROI. Bottom-line results rule the day and any cost that can be deferred helps." 

More than 55,000 CIOs and other IT professionals took part in the research.

Some of the Trends across the entire IT worker space include

1. Salaries are flat and hiring has slowed for all types of IT related jobs.

2. Overall IT compensation has remained flat for the last 12 months with less than an increase of just 0.68% versus 0.81% last January.  The total mean compensation for all IT Professionals has increased modestly to $78,229 from $78.59 at the beginning of 2012.  This puts overall compensation back at the levels they were at in January 2008 and 2007.

3. Earlier in 2012 there was an increased demand for IT executives in mid-sized companies as those firms begin to re-tool as they believed recession was coming to an end. Those plans have changed as many have pulled back and are waiting until after the election and seeing what impact the EU’s difficulties are going to have on the recovery. Uncertainty never helps the stock markets or the decision making process in the C-Suite.

4. Enterprises  are moving help desks and data center operations in-house which has resulted in an increase demand for data center managers.

5. Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and librarians of mechanized records.

6. IT hiring is up since June of 2012 – 24,600 IT jobs have been added in the United States according to the Bureau of Labor Statistics (BLS) – not enough to employee the number of IT graduates from US universities.

7. Layoffs seem to have tapered off, however some companies continue to cut the size of the IT organizations.

8. On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.

9. Cost reduction is still the primary decision driver in the C-Suite. There is an increase in the number of “part-timers” and contractors who are focused on particular critical projects.

10. Companies are continuing to reduce the benefits provided to IT professionals. Though benefits such as health care are available, IT professionals are now paying a greater portion of that cost.

11. CIOs compensation is mixed over the last 12 months – the mean base compensation is higher however bonuses received in 2011 were lower than the prior year.  The mean compensation for CIOs in large enterprises is now $179,742 (an increase of 1.75%) and $165,472 (an increase of 0.69%) in mid-sized enterprises. In the last 6 months the mean compensation across all IT professionals has increased by 0.68% (from $78,229 to $78,759).



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