Monday, June 29, 2009

IT Salaries Fall - Demand Down for IT Professionals

Janco released its 2009 Mid Year IT Salary Survey which shows that overall pay has declined for IT Professionals in the past 18 months. Janco also found that demand is down for IT Professionals. The most striking observations are:

--Many companies have instituted hiring and spending freezes in addition to laying-off of staff. This has been augmented by extensive outsourcing, bonus reductions, and elimination of IT contractors -- which has decreased the demand for IT professionals and in some cases lowered wages, with higher priced positions being eliminated.

---Layoffs have focused on middle management and IT support staff.

---Many mid-sized enterprises have stopped hiring all together.

---There are over 200 IT professionals in the Metro New York are who earned well into six figures that are looking for work due to mergers, bankruptcies, and layoffs

--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.

--Flexible hours and work schedules are now not as available as they were before the recent economic conditions changed.

--With outsourcing, lower bonuses, and the recent layoffs there has been a slight decrease in the mean compensation paid to IT professionals. In addition, with the fall in the Janco Benchmark it is shows that hiring "new staff" has significantly declined.

--There now is a surplus of seasoned IT professionals available. For the second time in less than ten years, retirements are being put off because of the downturn in the stock market and the resultant reduction in savings available to support IT professionals as they retire. Added to this is an influx of retirees who are looking to get back into the job market due to of the massive reduction in their investment portfolio.

More information on the IT industry can be found at www.SupportIndustry.com

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