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2002 Mid-Year Information Technology Compensation Study from JancoA new study comparing compensation among information technology (IT) professionals, conducted by Janco Associates Inc., found an overall decline in mean benchmark salaries between January and July 2002. In general, total compensation for the top IT professionals declined as performance bonuses were slashed, while network positions in wireless technology, object programming, data security and data warehousing saw a rise in benchmark salaries over the same period. The Information Technology (IT) Compensation Study incorporated results from surveys to businesses throughout the U.S. and Canada in a variety of industries. Survey responses were added to pertinent salary information from other prominent IT salary surveys; from this data, benchmark compensation ranges were determined for both base and total compensation for each normalized job position, taking into account similarities in job function and responsibilities rather than merely job title. Upper and lower quartiles were eliminated to establish the benchmark ranges, which are used to assess the alignment of a company’s actual compensation to the marketplace for each job function. The benchmarks in this study represent Janco’s assessment of the compensation level required for organizations to remain competitive and minimize the risk of losing employees to other organizations. The Janco Total Benchmark Compensation Range is split into top-level, mid- level and staff positions. Total compensation includes estimated bonuses and fair value of car allowances, special business trips, additional time off and stock options. The report shows that both mean benchmark salaries and mean salaries dropped from January to July 2002 for large companies, but the mean salary among mid-size company workers rose over the same period.
Overall, among the 234 large companies and 71 positions surveyed, the mean benchmark salary dropped from $108,941 in January 2002 to $107,552 in July. The mean salary dropped even more dramatically from $73,856 to $71,417 over the same period. Among the 353 mid-size companies and 71 positions surveyed, mean benchmark salary dropped from $109,258 to $106,682, while the mean salary rose from $66,554 in January to $69,962 in July. Among the top eight positions in IT organizations, there was an overall decrease in benchmark salaries. Most of the decrease is based on reductions in performance bonuses for the most senior positions. The chart below shows the trend of the benchmark ranges for the top eight positions in IT organizations.
Along with the effects of the general economic downturn and September 11, there was an accompanying trend to cut positions and decrease the number of layers within IT organizations. In many mid-size companies, training and planning positions were eliminated while CIOs attempt to retain existing employees to staff their operations. And across the industry, many older workers (ages 50 to 65) who had planned to retire have watched their retirement portfolios shrink in the last two years. Nevertheless, there was an increase recorded in the benchmark salary for network area positions such as voice and wireless communications, object programming, data security and data warehousing as companies try to prepare for the next wave of wireless technology.
The online version of the study lists total compensation range for more than 70 IT positions, along with accompanying job descriptions. The full study also contains complete data reports for each IT position, listing minimum and maximum base and total salaries both for large and mid-size companies and graphing benchmark compensation ranges. There is also a breakdown of salary figures for 75 U.S. and 28 Canadian metro areas with cost of living adjustments included. For more information and sample statistics from the study, visit http://www.e-janco.com. |
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