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IT Pro Salaries Growing Very Slowly

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Edward GatelyThe hiring of IT professionals has slowed and salaries are static for IT positions in most U.S. metropolitan areas, with only a 1.4 percent increase in the past 12 months.

That’s according to the 2016 IT Salary Survey released by Janco Associates and eJobDescription.com. The survey is based on Janco’s IT professionals compensation database.

Victor Janulaitis, Janco’s CEO, tells Channel Partners that now is “not a good time for individual IT pros to be looking for a job.” Organizations, on the other hand, will be able to find “highly qualified candidates without having to worry about paying a premium for that new talent,” he said.

According to the survey, compensation for all IT professionals has increased by only a little more than 1 percent in the last 12 months. Between January 2015 and January 2016, the total mean compensation for all IT professionals has increased from $81,583 to $82,483.{ad}

In large enterprises, the median compensation has risen less than 1-and-a-half percent, from $83,872 to $85,110, while in midsize enterprises, the mean total compensation for all positions has increased by approximately 1.3 percent, from $78,838 to $79,856.

In general, staff-level IT positions have not seen much pay fluctuation over the past eight years, according to the survey.

“The fact that salaries have not moved up compared to prior years shows the ‘frustration’ that exists with the staff levels of IT,” Janulaitis said. “Motivation of these employees with the better benefits and working conditions are some of the hidden compensation components that we have found.”

Chief information officer compensation across all organizations has shown another increase, according to the survey. The mean compensation for CIOs in large enterprises is now $189,672, up 2.3 percent, and $174,124, up 1.2 percent, in midsize enterprises.

In 2015, the IT job market grew by 125,700 versus 129,400 in 2014, and 74,900 and 62,500 in 2013 and 2012 respectively, according to the U.S. Bureau of Labor Statistics.

Technology centers like the San Francisco Bay Area, Chicago, Atlanta, the District of Columbia, New York and Washington state continue to lead the way in new IT job creation, according to the survey.

Positions in highest demand are all associated with security, training, large data-center management, distributed/mobile system project management, quality control, bring-your-own-device implementation, capacity planning and …

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… service-level improvement.

Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records, according to the survey.

“One of the primary challenges will be from the potential for entry-level individuals looking for careers in fields other than IT,” Janulaitis said. “That will have an impact two to four years down the road.”

Over the long term, IT executives have fared better in large companies than in midsize companies, according to the survey. Also, on-shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.

“The biggest surprise was that the optimism that CIOs had at the beginning of last year did not translate into higher compensation within IT organizations,” Janulaitis said.

Companies are continuing to refine the benefits provided to full-time IT professionals. Though benefits such as health care are available to 80 percent, IT professionals now are paying a greater portion of that cost, according to the survey.


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