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 Flat for FY 2024
The number of IT jobs not filled now is just over over 156K unemployed IT Professionals. The IT job market shrank by over 57,400 jobs in CY 2023. Overall that is a flattening of the long term growth rate pattern of IT job market.
Janco's mid-year IT salary survey will be released in the next few weeks and we will have a better understanding of the impact of inflation, recovery/recession, and attrition rates of salary for IT Pros for the budgeting process for 2023.
Data complied and forecast updated by Janco Associates with data as of February 2024