IT bosses plan to hire permanent staff

And most contractors will see the end of cutbacks in hourly rates, says research

There are more jobs around, but pay remains the same

Technology chiefs are looking to boost their departments by hiring more staff this year, but salaries are unlikely to increase, according to research.

Some 46 per cent of 42 IT directors polled by ReThink Recruitment said they will be looking to hire this year, compared with 17 per cent who plan to make staff redundant.

But 59 per cent of respondents said they will keep pay down this year. According to the study, about 71 per cent of permanent workers and 98 per cent of contractors already had their pay either frozen or cut in 2009.

Some better news for contractors will be that only five per cent of companies are likely to reduce hourly rates in 2010, compared with the 25 per cent of IT departments which cut rates in 2009.

Regardless of the prediction of flat salaries for the year ahead, there could be better pay opportunities for professionals with sought-after skills.

“IT directors are looking to keep a tight rein on pay, but this could be difficult as the job market picks up. Hiring eventually feeds through to pay increases as the best quality candidates get snapped up,” said Michael Bennett, director at ReThink Recruitment.

“Good-quality candidates with the right skills are already difficult to find. As IT departments begin hiring again they will increasingly have to poach personnel from rival organisations, which will fuel rapid pay rises.”