Press Release - January 7, 2003

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Recession Slows – It Looks Like The Worst Is OVER
 Good Times May Be Around The Corner!!!

Park City, UT - M. Victor Janulaitis, CEO of Janco Associates, announced today results of its January 2003 IT Salary Survey. There is good news; salaries have stopped falling and “some” enterprises are planning on new hiring as of the first of the year to fill open positions.  Mr. Janulaitis said, “Enterprises are opting to keep and hire senior experienced staff.  This is resulting in few opening for individuals with less than 5 years experience.”  In addition, he said," Median salaries for the entire IT function has increased as direct supervision of has been taken over by managers whose number of direct reports has been increased". 

The summary findings of the study are:

·         The Mean Salary for all positions surveyed in large enterprises has moved up to $78,687 from $73,856 in January 2002 while in mid sized enterprises it has moved up to $72,619 from 66,554 (see table below).  This is a result of the retention of more experienced employees who have higher compensation and the elimination of a layer of management in many enterprises.

·         For comparable positions, compensation of CIO’s is now back at 1998 levels as bonuses to top IT professionals now are the exception versus the rule (see chart below).  Base salaries are higher but the missing bonuses are still keeping total compensation at these lower levels.

·         Many organizations have eliminated training, planning and infrastructure positions, like change control, as CIO’s try to retain the employees they need to keep on-going operations staffed.  This is one of the areas that will  place many IT organizations at risk when the economy turns around.

·         There has been a marked decrease in the number of layers within IT organizations as well as an increase in the number of direct reports that CIO's and there direct reports have.

·         Voice / Wireless Communication and Security positions have been upgraded within many enterprises.  This includes compensation.  Where these positions were lower to mid level positions before 2000, in 2003 and beyond these positions are now mid level to senior level position.

·         Demand is high for in the network areas of Voice/ Wireless Communication, Object Programming, Data Security and Data Warehousing as enterprisers try to prepare for the next wave of the new wireless technology. 

·         Adding to the supply are a large number of individuals in the 50 to 65 year old range who had planned on retiring soon and have seen their retirement portfolio’s shrink in the last two years.  In Interviews we have found a significant number of these individuals have taken positions that are lower in compensations, responsibility and title in order to stay employed.  This in turn has many individuals in key roles within IT enterprises who are “over qualified” and has resulted in better cross training of less experienced peers and higher productivity levels.

·         H1B visa applications are waning in IT as there now is a surplus of experienced professionals looking for jobs.

·         A large number of entrants in to the IT market who entered as part of the dot com boom have sought employment outside of the IT industry.

Selected Positions Compensation Analysis

At the same time, there has continued to be an increase in the Benchmark for SELECTED positions within the IT functions.  These increases typically are isolated to the security, network, Internet and e-commerce arena. Interestingly the surge of compensation for disaster recovery positions has been reversed as most of those positions have been filled or have been merged with other roles within the enterprise. Below is a table showing some results.

 

Base

 Prior
 Total Mean

 Current Total Mean

%
 Change

Prior Benchmark

Current Benchmark

%
 Change

Large

Data Security Administrator

$51,790

$78,433

51.44%

$69,568

$98,860

29.63%

Large

Network Control Analyst

$68,470

$87,730

28.13%

$97,000

$105,787

8.31%

Medium

Manager - Internet Systems

$66,500

$82,500

24.06%

$67,000

$94,875

29.38%

Large

Computer Operator

$35,568

$43,207

21.48%

$65,355

$68,887

5.13%

Large

Supervisor - Microcomputer Support

$58,687

$70,694

20.46%

$89,627

$94,388

5.04%

Large

Supervisor - Hardware Installations

$52,169

$62,619

20.03%

$65,991

$70,437

6.31%

Medium

Capacity Planning Supervisor

$61,583

$57,449

-6.71%

$65,077

$63,366

-3.00%

Medium

Production Control Analyst

$66,375

$61,489

-7.36%

$71,548

$69,985

-2.23%

Medium

Disaster Recovery Coordinator

$68,967

$62,927

-8.76%

$74,194

$71,854

-3.26%

Large

Computer Operations - Shift Supervisor

$41,642

$37,941

-8.89%

$56,914

$49,124

-15.86%

Large

Data Center Facility Administrator

$55,474

$49,604

-10.58%

$76,736

$58,701

-30.72%

Large

Average All Positions

$73,856

$78,687

6.54%

$107,552

$108,942

1.29%

Medium

Average All Positions

$69,962

$72,619

3.80%

$106,682

$108,069

0.00%

Total Mean – The “mean” of total compensation - bonuses and fringe benefits.
 Prior Benchmark – Benchmark published in our prior study
 Current Benchmark – The total compensation required to obtain / retain top performers

Benchmark Total Compensation

The total benchmark compensation for CIO and other top level positions has continued to its downward trend.  However the data shows that this trend is starting to reverse itself.  The full comparative study for the years 1996 - 2003 is now available.  Complementary copies are available to the media.

Janco Associates, Inc. is an international consulting organization based out of Park City, Utah.  It offers pre-written templates for Disaster Recovery Programs and Safety Programs, job descriptions, IT Salary data, HandiGuides® for Metrics and Internet Policies and Procedures.

These figure includes all forms of compensation comprising of items like bonuses and stock options to other special fringe benefits such as special trips.  The survey of over seventy technology positions is based upon responses given in extensive Internet polling as well as a “survey of surveys” that includes data from across the United States and Canada.  The complete 160 study is available in an electronic version for $99 and a paper version for $495, plus shipping and tax.  The seven year comparative study for the years of 1996 through 2003 is available for $289.00

© 2006 Janco Associates, Inc. - ALL RIGHTS RESERVED -- Revised: 10/04/06.