Plunging profits
Salary and benefit levels are down across the IT industry

2008 salary survey makes grim reading for IT staff

Not a very happy New Year

Written by Iain Thomson in San Francisco

An extensive survey of IT jobs by management consultants Janco Associates will offer little consolation for IT professionals across the board.

Overall salary and benefit levels are down across the industry, while competition for jobs is fierce thanks to layoffs by large companies and pressure from outsourcing.

Average salaries for chief information officers fell by more than six per cent last year, with staff in medium sized firms seeing a fall of nearly five per cent. The only benefits that rose were the provision of stock options, up five per cent, and an increase in company car allowances.

"The job market for IT professionals is one of the worst I have seen since the late 1970s," said Victor Janulaitis, chief executive at Janco Associates, in a statement.

"There is a surplus of IT talent and companies are in a cost-cutting mode. The dotcom bubble was a cake walk compared to this job market."

Benefits have been severely cut back in the past year, and nearly one in five IT staff are now without health insurance. Over a third are no longer getting a 401k retirement contribution, and fewer than half are allowed to work flexibly.

The findings, taken from questionnaires and US Securities and Exchange Commission filings, found that the jobs market is facing increasing pressure. Outsourcing and layoffs are being used to cull staff from payrolls, and many companies have instituted near total hiring freezes.

Meanwhile, large numbers of staff are putting off retirement due to stock market falls, and those jobs that are available are oversubscribed with potential interviewees.

The survey identified the positions most at risk as IT planning roles, technical services managers, operating systems production managers, planning analysts and data entry staff.

However, there is still demand for CIOs with a proven track record, as well as network control staff, systems analysts and database specialists.

  • Have your say
  • Send to a friend
  • Print this
  • Share

reader comments

related articles

EspionageCommunications

IT administrators admit they would steal data

Nine out of ten admins admit to espionage 28 Aug 2008

 

Companies urged to address staff turnover

Good training better than increased pay, finds report 21 Aug 2008

IT workers turn down permanent jobs

Firms struggling to recruit permanent staff as IT professionals turn to contract work for better pay 11 Aug 2008

Students put off by 'boring' IT jobs

Half of IT employers are failing to fill vacancies 24 Jun 2008

UK needs more migrant IT workers

Highly skilled workers from abroad required to maintain tech edge 02 Jun 2008

Act now to avoid mainframe skills gap

IT and HR leaders must co-operate on cross-training and internships, says report 13 Apr 2010

EU kicks off latest carbon trading crackdown

As carbon prices hit record high, France urges commission to go further in war on carbon fraud 20 Apr 2010

Carbon price rises ahead of Copenhagen

Energy firms predict further increases in carbon price are imminent if phase three allowances are not auctioned earlier 04 Dec 2009

related white papers

today's top stories

ARM-based servers to carve out a datacentre niche

ARM architecture is ideal for power efficiency, but faces the market dominance of x86 servers 03 Sep 2010

Openreach wants comms providers to nominate exchanges for upgrade

It's a broadband beauty contest, says analyst. 03 Sep 2010

Amazon Kindle 3 e-book reader review

Amazon trims the size and price of its newest Kindle, and adds a bargain Wi-Fi-only model 02 Sep 2010

RBS to cut 1,000 IT roles

Royal Bank of Scotland has announced it will cut 3,500 jobs, 1,000 of which are in IT support 02 Sep 2010

Apple overhauls iPod Shuffle, Nano and Touch

New models come with iTunes update and social networking tool 02 Sep 2010

Advertisement

Best practices to secure and protect backup data
Exploding the myths about data security and backup encryption

Using data integration to drive down costs and increase profits
This paper outlines why data integration is an important weapon in an enterprise’s competitive arsenal

Advertisement

Citrix

Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you thousands of white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

Latest poll

The Chinese Market

The Chinese Market

Is your company considering expansion into the Chinese market?

View poll results

Latest audio and video articles

A microphoneAudio

Computing Podcast: Tech Talk episode 5

Join Tech Talk for an overview of the week's top IT stories, and a debate on IT self-service. Will it provide value? 27 Aug 2010

A microphoneAudio

Computing podcast: Tech Talk episode 4

Join Tech Talk for an overview of the week's top IT stories, and a debate on IT skills. Is the UK slipping behind? 20 Aug 2010

Latest in-depth articles

DatacentreAnalysis

ARM-based servers to carve out a datacentre niche

ARM architecture is ideal for power efficiency, but faces the market dominance of x86 servers 03 Sep 2010

picture of a TV studioAnalysis

Salford's MediaCity pushes technology boundaries

In preparation for 3D, ultra HD and a tapeless workflow 02 Sep 2010

Primary Navigation