2009 IT Skills and Salary Report

Author: Global Knowledge

Abstract

The results are in from the 2nd Annual Global Knowledge and TechRepublic IT salary survey. With over 14,150 responses, our 2009 report is one of the industry's most relevant and revealing IT salary surveys. Our 2009 salary search revealed an average increase of 10% nationally over our 2008 salary study. Learn the top paying salaries for IT jobs based on state, industry, certification, and more.

Introduction

For the second year in a row, Global Knowledge and TechRepublic have partnered to create a comprehensive IT salary survey. With over 14,150 responses, the 2009 report has turned out to be one of this year's most relevant and revealing salary surveys in the industry. (See page 7 for survey methodology.)

Despite the current economic pressures, the salaries of IT professionals did post a 10% gain over the results reported in our 2008 IT Skills and Salary Report. In 2009, the average base salary increased from $73,900 in 2008, to $81,600. While the average base salary grew, the number of professionals who received raises and bonuses decreased slightly.

The average age and experience of survey participants revealed a slight change from last year, remaining fairly consistent overall. However, there was an increase in the education level of this year's participants as compared to 2008. Specifically, the number of respondents having at least a 4-year degree grew by 8 points over last year.

Job Satisfaction and Money

The vast majority of IT professionals are satisfied at work with 4 out of 10 being either ‘very’ or ‘extremely’ satisfied with their jobs (Figure 2). Indeed, the results show a direct correlation
between job satisfaction and the amount of money that one is paid (Figure 3). Since more money equals greater job satisfaction, one could infer that for some, money does buy
happiness—at least at work.

However, more than half (57%) of the respondents feel they should be making more money. Those who feel they are compensated fairly make an average of $91.3K, while those who expressed that they should be earning more have a salary of $73.5K. Though the majority of IT professionals seem to be
satisfied with their current jobs, it is not preventing 37% of them to start looking for new opportunities. Nearly 20% are either actively looking or will be looking within the next three months.

Base Pay, Bonuses, and Benefits

Approximately 7 out of 10 IT professionals received an increase in base salary in the past 12 months, an average increase of 6%. The average base salary increase was $5,077 and the median
base salary increase was $3,500. Sixty-five percent of respondents received an increase of $5,000 or less, while 22% received an increase between $5,000 and $10,000. The remaining 13% received an increase in their base salary of $10,000 or greater.

Nearly half (46%) of IT professionals received a bonus in the past 12 months and 36% anticipate that they will receive a bonus in 2009. The average bonus paid out in the past 12 months
was $8,575, with the median bonus being $5,000. In fact, nearly 3 out of 10 IT professionals received a bonus of $10,000 or more in the past 12 months and about half received less than $5,000.
Of those who received a bonus, 22% were given between $5K and $10K.

In addition, IT professionals receive a variety of benefits: 401K or retirement program (83%); insurance (77%); life insurance (70%); employer-paid training (55%); and profit sharing (23%).

Budget and Benefit Reduction

Budget cuts are an unfortunate reality that many companies will face in 2009. Based on a January, 2009 survey supplement, 84% of companies reported that they have already imposed costcutting
measures.

Hiring freezes and travel budgets are obvious targets. Specifically, salaries have been frozen for 43% of responders, while bonuses have been eliminated for 30%. To date, a majority of 401k matches have been preserved, with only 13% reporting the elimination of this benefit.*

* This data is from a January, 2009 survey of the “IT Professional Advisory Panel,” a blind
panel comprised of IT professionals from multiple sources. Survey data was collected by
Vision Critical, LLC.

Training, Certification, and Your Salary

As detailed in Figure 8, job performance is the single greatest contributing factor to a higher base pay. Therefore, for some, the question becomes one of how to improve job performance. One key factor to consider is the impact of training and certification. According to those surveyed, 87% who have attended training claim they are more productive in their job role. In addition, 64% stated that the training that they received had a measurable impact on their salary.

The relationship between training and pay is further validated when examing the base pay of those who attended training over the past 12 months. Nearly 75% of IT professionals who attended
training earned an average base salary of $82.8K; those who did not attend training earned an average of $78.4K.

When we asked IT professionals whether they attended training this year, the percent of those who trained stayed consistent, regardless of their years of career experience. Clearly, then, the benefits of training are visible in all stages of a career in IT.

Certification is another demonstrated way to improve job performance. According to our survey, 3 out of 4 IT professionals say that they’ve become more productive after receiving their certifications. Further, 67% of hiring managers believe that certifications impact the salaries of potential employees. These results illustrate the importance of certification-based training. Indeed, nearly 6 out of 10 people we surveyed reported that a key motivator in the decision to train in the next 12 months is to earn a certification or to recertify.

Job Roles and Your Salary

The IT industry consists of professionals with dozens of job roles across several different levels of job responsibility. Nearly half (46%) are at staff level, while 3 out of 10 hold middle management positions. Eleven percent of the industry consists of senior managers, while 10% are supervisors. Only 4% of IT professionals in the industry hold executive management positions.

We also looked at the average base salaries across several levels of responsibilities within an organization. The average base salary for executive management is $128.2K, while senior managers
earn an average base salary of $106K. Middle managers are earning an average of $86.2K, while supervisors an average of $79K. The average base salary for all IT staff is $69.6K.

Job titles within the IT industry can vary, depending on the employer. In some organizations, IT professionals have job responsibilities that are reflected in specific, or even unique, job titles.
The top 20 job titles as reported by our survey respondents, and the associated salaries, are illustrated in Figure 10.

Over 33% of IT professionals have budget responsibility in their organizations. As one would expect, there is a direct correlation between responsibility and earnings. Those with budget responsibility earn an average base salary of $93.6K, while those without reported an average base salary of $75K. These averages represent all levels of job responsibilities, from entry-level staff through executive management.

Thirty percent of respondents with staffing responsibilities earn an average base salary of $97.6K, while those who are not responsible for hiring, earn an average base salary of $72.5K.

Company Size and Salary

While there are unique benefits associated with working for a smaller company, pay is not one of them, according to our survey participants. Indeed, the results of our survey showed a distinct advantage in terms of company size and salary. Approximately half the IT professionals we surveyed work with
fewer than 25 other IT staff at their location. When comparing their salary to peers working in companies that employ larger IT staffs, there was a significant difference. IT professionals working
with an IT staff of less than five people earn an average base salary of $68.8K, while those who work with over 500 IT staff earn an average $97.7K. This year, the larger the IT staff, the
higher the reported average base salary.

The staffing size of the employer, and correlating bigger is better viewpoint, were upheld. When we analyzed average base salary versus the total number of employees, the results showed that
as the number of employees increased, so did the base salary.

Salary by Industry

From government to banking to retail, IT professionals play a vital role in the success of each industry. As systems become more complex, the need for skilled workers increases. Figure 11 illustrates

the wide range of industries in which our survey respondents are employed and their corresponding base salaries. In addition to ranking high in percent of IT staff employed, the Computer Software,
IT Consulting, and Aerospace/Defense industries rank near the top in the base salaries offered.
The highest paying industries for IT professionals are: Business Consulting ($99.6K), Biotechnology ($99.4K), Accounting ($93.7K), Computer Software ($92.8K), Information Systems ($92.5K), Pharmaceuticals ($91.8K), Computer Hardware ($91.5K), Consumer Goods ($90.9K), IT Consulting ($90.7K), Publishing ($90.2K), Professional Services ($89.7K), and Aerospace/Defense ($89.3K).

Salary by State and Region

In addition to your skills, knowledge, and the staff size of your employer, where you live affects your salary. As stated in the introduction of this report, the average national base salary for 2009 is $81.6K. Some of the highest IT salaries in the country are found in New Jersey ($94.9K), District of Columbia ($94.7K), Maryland ($93.0K), Connecticut ($90.9K), California ($90.5K), and Virginia ($90.3K) (Figures 12 and 13).

On a regional level, the Northeast and West command average salaries that are above the national average of $81.6K. The average salary in the Northeast is $85.8K, while salaries in the West

average $83.9K. While the average salary in the South is below the national average, the South Atlantic Division is noticeably strong at an average of $83.4K. The salaries in the Midwest trend on the lower end of the scale; only Illinois and Minnesota are above the national average (Figure 14).