Salary Compression is a major CIO issue as IT job market rebounds
Preliminary Data from Mid-Year IT Salary Survey shows Median Salary for IT pros now $97,093
Reviewing preliminary data from our Mid-Year 2022 IT Salary Survey, Janco has found the starting salaries for new hires are now at the high end of the pay range. At the same time salary increases for existing staff are not keeping up with inflation. We have even seen some cases where new team members were hired at salaries that were higher than their direct supervisors or managers. A classic case of salary compression.
This has resulted in higher attrition rates as employees are frustrated with the compensation they are getting and a rate of inflation of 8.6% and moving up. For selected in demand IT skill sets like Full Stack Developers and Blockchain team members attrition rates in 2020 were between 7-11% based on the region of the country. In the first quarter of 2022, for that group of T Pros we have seen attrition rates of 22% to 26% range.
This data was initially published in our CIO - IT Management Newsletter. Charts below are all updated automatically with the latest data as it is released by the BLS and analyzed by Janco.
IT Job Market will have shrunk by an average of 4,900 jobs each month in CY 2024
There are approximately 58K unemployed IT Professionals. The IT job market shrank by over 48,600 jobs in CY 2023. Overall that is a flattening of the long-term growth rate pattern of the IT job market. Based on our data and forecast models, there will be no growth in the IT Job Market in the calendar year 2024.
Data complied and forecast updated by Janco Associates with data as of November 2024
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