Janco releases the IT Salary Survey - Pay increases for IT Pros were the worst since the DOT.COM bust according to IT Salary Survey
Coronavirus and shutdowns impacted IT Pros salaries – only 0.08% greater than last year
Park City – UT– e-janco.com – IT Salaries were flat in 2020. That is the first time that has happened since the DOT.COM bust. Middle managers in IT organizations felt the burden the most as mean total compensation for those positions surveyed was lower than in prior years.
The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “In reviewing the data from our latest IT Salary Survey we found that total compensation was flat. The one factor that stood out the most was the reduction or flat-out elimination of discretionary bonuses. That added to the fact that SMBs, where most IT pros have positions, were the most adversely effected by the shutdowns. That drove many companies to manage costs by limiting hiring and salary increases.”
Janulaitis said, “On the bright side, there has been a pick-up in development activities associated with initiatives which support Work From Home telecomputing and related mobile applications. That could be the spark that drives any growth in salaries and hiring in the near term. However, in our opinion, salaries for IT pros will remain flat for at least the first and second quarters of 2021.”
The CEO added, “In a series of conference calls with C-Level executives, we found that hiring of many positions at all levels of IT management were put on hold. The only hiring that is taking place is for key replacements and employees with selected skills to support C-Level mandated development activities.”
Major findings of the 2021 IT Salary Survey are:
- Bonuses were all but eliminated
- Salary increases in 2020 were minimal at best
- 116,000 IT professionals were laid-off or terminated in April and May due to the Covid-19 shut-downs - this drove demand for IT salary increases down.
- There were over 84,000 fewer IT Jobs in December than at the start of the year
- The second wave of shutdowns slowed the recovery in the IT job market with an additional 8,000 plus jobs eliminated in November
- Between January 2020 and January 2021, the total mean compensation for all IT Professionals increased from $94,535 to $94,609 or 0.08%.
- Most salary increases were limited to 1% or less
- Hiring has all but stopped for all IT positions
- Consultants who augment IT Staff have all but been eliminated
- Demand has remained highest for IT professionals who support Work From Home (WFH) and e-commerce
- KPI metrics are the focus of C-Level management to understand and manage WFH employees.
The CEO of Janco added, "CIOs are now less optimistic about the direction their organizations are moving and are cautiously managing budgets, salaries, and staffing. They are waiting to see what the impact of the vaccines will be on the overall economic picture.”
The 2021 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.
Janco interviewed over 101 CIOs in the last several weeks as part of its data-gathering process for the survey. Janco's CEO said, "CIOs are not very optimistic that the economy will continue to improve.”
Change In IT Job Market Size - October 2023
7,200 IT Jobs have been added in the past 12 months - The IT Job Market grew by 4,300 jobs in the last 3 months.
More information on the 2021 IT Salary Survey can be found at https://e-janco.com/salary.htm
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.