Tuesday, August 4, 2009

IT Market Compensation Study Shows That Organizations Are Focusing on Containing Workforce Costs

In today’s economy, it is imperative that CIOs understand what resources they have and may need in the short and long term and avoid making deep staff cuts without first considering their effects on the organization’s ability to attract and retain talent. However, a recent survey by Gartner, Inc. showed that nearly 66 percent of respondents do not currently have a formal IT workforce planning process that will enable them to leverage the opportunities presented by this downturn.

According to a survey of 325 U.S.-based organizations in March of 2009, 64.1 percent of survey respondents indicated that they will put hiring on hold for the next 12 months (March 1, 2009 to February 28, 2010). In contrast, a total of 35.9 percent of respondents projected an increase in IT head count. Although some geographic markets, such as the Northeast, were seriously affected by hiring freezes and layoffs, survey respondents continue to have difficulty in finding skilled enterprise architects, database administrators, ERP programmers/analysts, project managers, Internet/Web architects and Web application programmers.

In a financial crisis, companies can’t reward everyone in the same way as in good times and one of the first items to be cut is the annual salary increase budget. Results from this year’s survey shows there will be an across-the-board reduction (IT and non-IT) in salary increase budgets for 2009 and 2010. The median IT salary increase budget (including 0s) for 2009 is 3 percent, a half point drop from the 2008 figure of 3.5 percent, and it will remain at 3 percent for 2010. The median 2009 salary increase budget for all other departments outside of IT dropped to 2.8 percent and is expected to move up to 3 percent in 2010.

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

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