IT Salaries up by 4.9% in the last year
Approximately 100,000 new IT jobs were created in 2019 – another record year
Park City – UT– e-janco.com – Janco Associates - Average IT Salaries in large corporations are up an average of $4,505 according to Janco in its just-released 2020 IT Salary Survey. At the same time, its forecast for IT job market growth in the next 12 months will be another 100K to 120K jobs will be added.
The median salary (for the positions surveyed) has gone from $90,116 to $94,535. The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “With the increase in demand for experienced IT professions comes with a resultant increase in compensation. It now is getting harder to find qualified individuals. that is one of the primary drivers of the increases in median compensation. The economic outlook has not looked this good for quite some time.” He added, “The Millennial generation has displaced the Baby Boomer generation of IT professionals as the primary drivers of IT technology. That is changing the face of many IT organizations. There are fewer IT pros around who know and prefer the ways of legacy batch processing and more who understand how the Internet activated applications need to work.”
Major findings of the 2020 IT Salary Survey are:
- Over 154,000 net new IT jobs were created since January 2018.
- Baby Boomers have shrunk to only 16% of the IT total labor force.
- Between January 2019 and January 2020, the total mean compensation for all IT Professionals increased from $90,116 to $94,535 or 4.9%.
- Last year’s compensation for IT executives in large companies has fared better than mid-size companies with increases that were 5.84% versus 4.62%.
- The greatest increases in compensation were for IT Professionals at the staff levels of mid-sized organizations and executive levels of large organizations.
- In mid-sized enterprises, the mean total compensation for all positions increased from $87,254 to $91,587.
- In the last two quarters of 2019, staff-level positions in IT organizations of SMB's had the greatest demand for new hires.
- In large enterprises, the median compensation rose from $92,979 to $97,484 or 4.85%.
- Some markets like the SF Bay Area, Boston Metro, and Salt Lake areas are suffering significant shortages of qualified IT professionals.
- Technology centers like San Francisco (Bay Area), Atlanta, District of Columbia, New York and Washington State continued to lead the way in new IT job creation.
- Many CIOs and IT professionals have retired. Succession planning and promotion of Millennials into that role is a top priority.
- Large organizations are planning to beef up their middle management as those enterprises focus on Big Data, Blockchain, SEO and Smartphone, and tablet connectivity.
- Onshore outsourcing and H-1B visa jobs have peaked. The America first campaign has resulted in more infrastructure functions being moved in-house.
- New positions were added to the survey as e-commerce continues to expand.
- KPI metrics are now the way performance is being measured.
The CEO of Janco added, "CIOs are now more optimistic about the direction their organizations are moving and are looking forward to increased budgets and staffing. However, with the improved employment opportunities, they are facing challenges in both compensation levels paid and promotion opportunities for existing staff. Some have already experienced the loss of highly qualified IT pros who have moved on and increased the attrition rate for IT Pros.”
The 2020 IT Salary is available via electronic distribution either as a standalone product or with the IT Hiring Kit which contains the IT salary survey, Interview and Hiring Guide, and 324 IT Job Descriptions.
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.
Data complied and forecast updated by Janco Associates with data as of February 2024
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.