IT+Salary+Survey+E Guide

IT Salary Survey 2012
Examining job satisfaction and salary trends
IT Salary Survey 2012: Examining job satisfaction and salary trends
Contents
Salary statistics reveal modest growth in IT sector in 2012 Gap among industries in average salary for senior IT is considerable Job satisfaction: Why senior IT leaders stay and why they go
TechTarget's annual IT Salary Survey delves into executive and staff salary trends, pay by industry and the factors that contribute to job satisfaction.
TechTarget's IT Salary Survey 2012, conducted among readers across TechTarget's network of sites, polled 2,277 IT professionals in North America boasting specialties in 40 areas of IT. We conducted a comprehensive analysis of their responses, hoping to gain insights into salary trends in different industries and at various levels of the organization, as well as to gauge the factors that drive job satisfaction among IT managers and staff. Review our IT Salary Survey 2012 findings below to learn how your salary and career outlook stacks up in today's IT landscape. Salary statistics reveal modest growth in IT sector in 2012
In the IT industry, it's no surprise that the big money comes from the coffers of larger companies. TechTarget's IT Salary Survey 2012 looks at the latest salary statistics and delves into the differences between the average salaries of senior IT leaders and IT talent at enterprise organizations, as well as between CIO and CTO average salary rates. If 2012 was any indication, typical IT staffers shouldn't hold their breath waiting for an average yearly raise greater than 4% in 2013. The salary survey, conducted among readers across TechTarget's network of sites, gathered 2,277 responses from IT professionals in North America, including 778 senior IT leaders who were a vice president or CIO or who reported to a C-level executive. Participants in the salary survey reported having specialties in 40 areas of IT, and they hailed from all fifty U.S. states, Canada and Mexico. Salary averages were in direct correlation with the role the survey respondents played in the IT organization. Respondents who held senior IT
Page 1 of 12
leadership positions -- vice president or CIO -- or who reported to a C-level executive -- reported salaries that were on average about 15% higher than the professionals who reported to them. On average, senior IT leaders
Contents
reported an average salary of $104,589, compared to the $88,763 average salary that was reported by general IT staff and subject matter experts. This delta remained consistent in all companies with fewer than 1,000 employees, but for enterprise companies, senior IT leaders made an average of 25% more than their reports.
Across the board, company size was a predictor of salary -- professionals at smaller companies made significantly lower average salaries than professionals at larger ones. The salary statistics suggest that senior IT leaders at organizations with fewer than 100 employees actually receive lower pay, on average, than general IT staff and subject matter experts at companies with more than 1,000 employees: The average salary for senior IT leaders at small companies is $92,303, compared with $93,165 for general IT staffers at enterprise companies.
Page 2 of 12
Salary statistics by job title Across the salary survey, the average highest-paying IT position was the position the survey titled EVP/SVP/VP of Business Applications. Survey
Contents
respondents who identified themselves as an executive vice president, senior vice president or vice president of business applications reported an average salary of $167,900; their individual base salaries were widely spread between $56,000 and $300,000 annually.
If you've ever wondered what the real difference is between a chief technology officer (CTO) and a CIO, the difference is more than a simple middle initial. Survey respondents who identified themselves as a CTO reported an average salary of $155,625, and CTOs base salaries ranged from $80,000 to $275,000. Meanwhile, CIOs reported an average salary that was $30,000 less than the average salary reported by CTOs, and CIOs base salaries varied more, ranging from $45,000 to $360,000.
Page 3 of 12
CTOs in general reported larger average salaries: Among CTOs, 85% reported earning more than $110,000, while 58% of CIOs reported the same income marker. CIOs in larger, enterprise-level companies tended to earn
Contents
larger average salaries that were larger than CTOs average salaries -$164,750 was the average salary reported by CIOs in enterprise organizations -- but similarly, CTOs in enterprise-level organizations also reported a higher average salary ($231,667 average salary). "In my mind, the 'right' salary for CIO depends on the size of the institution, its complexity and your negotiation skills. A CIO touches every corner of the institution and feels he or she should be under the same compensation as the business executives," said Jaime Manriquez, CTO at the Santa Cruz County Bank in California. The lowest average salary rates were reported by respondents who identified themselves as being in the survey categories of IT Staff and Network Manager/Administrator. The average salaries across the board for those individuals were the lowest, at $72,717 and $73,934 respectively, but professionals in those roles in organizations with fewer than 100 employees reported the lowest average salaries of any group in the survey ($47,787 and $55,486, respectively). See the sidebar for the average salaries paid for the most common IT job titles. Insight into the average yearly raise If 2012 is any indication, the average pay raise for 2013 is going to be modest. By far the majority of respondents (61%) received an average yearly raise of 2.0% to 4.9%, with another 10% of respondents receiving an average pay raise of .01% to 1.9%. While the number of respondents receiving an average pay raise of.01% to 1.9% has climbed over the last three years of TechTarget's IT salary surveys (up from 7.2% in 2010), so has the number of respondents receiving more than a 7% average raise. In 2010, 12.4% of survey takers reported receiving an average pay raise of 7.0% or higher. In 2011, the percentage of survey takers in that group rose to 15.7%; and in 2012, about one in five survey takers reporting average raises higher than 7.0%.
Page 4 of 12
Annual salary increases 0.01% to 1.9% 2.0% to 4.9% 5.0% to 6.9% 7.0% to 9.9% 10% to 14.9% 15% to 19.9% 20% to 49.9% 50% to 99% 100% or more
2010 7.2% 65.3% 15.2% 3.7% 4.9% 0.9% 2.6% 0.0% 0.2%
2011 7.5% 62.9% 13.9% 5.1% 4.4% 2.4% 2.9% 0.7% 0.2%
2012 10.0% 61.3% 9.8% 4.3% 7.1% 3.2% 3.6% 0.7% 0.0%
Contents
Here are more takeaways from TechTarget's IT Salary Survey 2012: The majority (47%) of respondents had been in their current roles for one to five years. About a quarter (24%) had been in their roles for six to 10 years. However, while the average time spent in any given role is usually less than 10 years, the majority of respondents had been in the IT field from 11 to 20 years (42%), and more than a third (36%) of respondents had been in the IT field for more than 21 years. One-fifth (22%) of respondents were happy in their current roles, while almost half (47%) had their eyes on internal advancement in the next three to five years, in either IT or another area of the business. Only 17% were interested in leaving their current organization. IT staff working in larger companies were more likely to report being contacted by recruiters. More than 70% of respondents in enterprise organizations had been tapped by executive headhunters, compared to 57% of respondents in companies with fewer than 100 employees. About half (57%) of the salary survey respondents felt their overall compensation had improved or increased compared to 2011, while 17% felt that it had declined or taken a negative turn. We looked at our 2011 salary survey data, and the statistics were nearly identical, with 56% reporting a positive trend compared to 2010. There are still strong indicators that the recession is still having an impact on IT departments, but an optimistic 41% of survey
Page 5 of 12
respondents reported that their IT department is growing or is actively hiring. Almost one-third (30%), however, reported their departments are shrinking or under a hiring freeze, while 1%
Contents
reported they currently have a staff shortage but are not able to fill the positions. TechTarget will be bringing you deeper dives into this first-ever network-wide salary survey event. We'll be looking at the ways salaries are affected by size of company, industry and gender, as well as the secret to retaining IT talent in 2013 and beyond.
Gap among industries in average salary for senior IT is considerable

Does it matter to which industry senior IT leaders take their talents? Yes and no, according to TechTarget's IT Salary Survey 2012. Measured by dollars, the answer is an unambiguous "heck, yes!"
Page 6 of 12
The average salary of survey respondents in senior IT roles, including CIO, chief technology officer (CTO) and IT positions reporting to the C-suite, differed by as much as 80% by industry. Average salaries for senior IT
Contents
ranged from $146,000 in the manufacturing (IT-related) industry to a low of $80,991 in the education industry. The data is based on responses from 778 senior IT leaders working in 22 industries. The linkages among industries that pay well and those that don't will take some teasing out. (Why, for example, are the automotive and energy industries, which increasingly require sophisticated IT skills, at the bottom of the pack?) The senior IT pay-by-industry pecking order, however, does reveal a clear trend when the average salary data from 1,499 general IT staff people is also considered. The disparity in pay between senior and junior people is much more pronounced in the highest-paying industries. The haves not only have more than their peers, but they also have much more than junior folks in their own industries. General IT people employed by industries ranking in the top one-third in senior IT pay (see below), earn on average only 74% of what their senior IT peers make per year. The biggest gap is in top-ranked IT-related manufacturing, where the rank and file makes only 68% of what senior IT is paid: Manufacturing (IT-related) Financial Computer and data processing/consulting Research and development Telecommunications/communications carrier Business services/consulting Entertainment
In contrast, general IT staff people working in the second tier of industries (below) earn 85% of what their bosses make. Technology service provider (ISP/application service provider/manufacturing service provider) Legal/insurance/real estate
Page 7 of 12
Media/marketing/advertising Manufacturing (non-IT) Value-added reseller/value-added distribution/systems and network integrator IT-related services Aerospace/defense
Contents
The bottom one-third of industries (below) boasts the smallest gap between the upper echelon and the rank and file, with general IT staff making 94% of what their superiors earn. Medical/health care/pharmaceutical/biotech Wholesale/retail/trade (non-IT) Construction/mining/agriculture Government Nonprofit/trade association Automotive/transportation Energy/utilities Education
Average salary and the Easterlin Paradox Given the significant salary gap between high- and low-paying industries for senior IT leaders, one might expect these professionals to be jockeying to land jobs in sectors that pay the highest average salaries -- or at least be unhappy that industry limits how much money they can make. This, however, proved decidedly not the case for the senior IT survey respondents we checked in with. Instead, they are more likely to embody the Easterlin Paradox, which argues that once people attain a certain level of economic stability in their own domain (the original data looked at countries), money no longer matters quite as much and instead is trumped by factors such as quality of life, stability and job satisfaction. Job satisfaction is the main reason Tim Stockton plans to stay put. A systems engineer who reports to the CIO at Virginia Western Community College in Roanoke, he is measured on his ability on systems uptime and innovation. A recent effort is his work on the school's move away from computer labs to a
Page 8 of 12
virtualized infrastructure that offers students anywhere, anytime access from their own devices. Stockton said he could earn more (his salary is in the $70,000 range) at a
Contents
four-year institution but finds the environment at his two-year college less bureaucratic. "Four-year institutions tend to be more compartmentalized, and IT departments compete for resources," he said. A private industry would also pay him more, he added, but in a down economy where companies get downsized or bought, he prefers the stability of an institution (one of the largest community colleges in the state) that "isn't going anywhere," he said. The likelihood of a college closing is small. "I've done the risk vs. rewards, and right now I like stability." Jeff Swiney, director of IS and distribution at a small, fast-growing women's apparel chain and about 15 years older than Stockton, also is not driven by money. He actually took a "significant cut in pay" to work in a business that is not only taps his expertise in both IT and logistics but also is located in his beloved Tennessee, where he has family and grandchildren. In fact, his pay is under the retail industry's average salary of $92,000 in the TechTarget survey, but he stands to make considerably more if the company goes public. "The quality of life made up for the pay," he said. Already on top, with nowhere to grow "Jim," a senior software architect at a large IT services provider on the East Coast, who needed to remain anonymous to discuss salary details, is in the top echelon of pay. An experienced IT professional in his mid-40s with a master's degree in electronics and telecommunications, he earns $220,000 in salary and earned a $6,000 bonus in 2011. For him, career development must focus on parameters other than just pay. Jim joined his company in 2007 through an acquisition, and considers himself fortunate to have made the leap at the cusp of a recession that put many startups out of business. The last time he worked at a large company was during the dot-com bust, also by way of an acquisition made just before the economy went sour. "Large companies weather the storm better," he said. As a senior professional in the provider's research and development arm, Jim is measured on his ability to innovate, work creatively and bring
Page 9 of 12
projects to completion. He is open to making a move and is often contacted by recruiters, but he's finding that his salary is pricing him out of contention.
Contents
"They'll say, 'Oh, that is out of our range,'" he said, adding that this past downturn has been hard for IT professionals at the upper end of the scale. "Companies are not investing in expensive senior people." People like him used to be able to demand signing bonuses and were offered lucrative stock options. "You might still get those perks when you come aboard, especially in an acquisition, but once you're there, for sure they dry up," he said. For all these reasons, Jim's employment is dictated by three questions: Is the division he's in growing, and can he grow with it? What other divisions in the company offer opportunities to grow? If advancement isn't possible, is it prudent to go to another startup? Some of his friends in Silicon Valley are making the leap now, but his sense is that the tech economy on the East Coast is not robust enough to warrant a move. The big question going forward is whether the pay disparity between industries and the pay disparities between IT leaders and IT staff people remain stable. If IT folks in an industry are focused on how they are doing relative to others in the same industry, according to current trends in TechTarget's IT Salary Survey 2012, these disparities are likely to be with us for some time.
Job satisfaction: Why senior IT leaders stay and why they go

What do senior IT leaders working for an international packaging company, a global plastics manufacturer and a nonprofit with 57 locations have in common? What they make in a year holds little sway over why they choose to stay at their company-- or in the case of one of them, why he plans to leave his current job. Pulling out the data for senior IT leaders in our IT Salary Survey 2012, only 8% said they stayed in their current job because of their salary. The majority
Page 10 of 12
of the 691 senior IT executives who answered the question of why they stayed said they did so for three reasons: because their job was intellectually challenging (38%), because they enjoyed the working environment and co-
Contents
workers (19%), and because they had a flexible work schedule (12%). The director of IS for the international packaging company is on the hunt for a job despite making $210,000 to $245,000, well above the average salary for senior IT leaders employed by non-IT related manufacturers, who on average make $98,201.
"The salary is great, but I rate my job satisfaction pretty low," said the executive, who asked to remain anonymous because he is seeking new employment. High up on the list of reasons he is choosing to jump ship is company mismanagement (the company is losing money every year and management will not listen to suggestions on how to fix such problems as low customer satisfaction) and a culture of fear. There have been more than a dozen layoffs since he joined the company almost a decade ago. "Senior management micromanages, so the morale is very depressed: Keep your
Page 11 of 12
head down, stay under the radar to hold onto your job. The environment is pretty toxic," he said.
Contents
Job satisfaction and the culture factor As the director of IS and IT infrastructure operations for a New York-based victim's advocacy agency and nonprofit Safe Horizon Inc., a culture of recognition for a job well done is a strong motivator for Wendell Thomas. He makes between $80,000 and $90,000, right in line with the average salary for senior IT leaders in the nonprofit sector ($80,943), according to our IT Salary Survey 2012 data. He knows he could make more money in the private sector, but one of the main reasons he stays is the constant feedback he receives from people across the company. "I know there is an appreciation for what I do and the value that I bring," said Thomas, who has been with Safe Horizon for five years. "I am not rewarded monetarily because we are a nonprofit, but I have a great working relationship with my boss [and] with the program leaders, and I get a whole lot of positive feedback, which goes a long way." What doesn't go a long way for Thomas is a homogenous corporate culture. At a past job with a large for-profit company with 25,000 employees, he made a decent salary, learned a lot as a manager and was given "loads of training," he said. But "it was a very structured, be-like-us environment. There was a diversity of people, but not a diversity of thought. They all thought the same way and new ideas were slow to be accepted," he added. Like Thomas, Serafin Salgado ran into micromanagement at his past job with a technology services provider. "It eats away at you after a while," he said. Today, as an IT manager with Poppelmann Plastics USA LLC, he has free rein. His company is the North Carolina-based U.S. division of Germanbased Poppelmann GmbH, which operates in 70 countries. "I am my own boss, and I never know what's going to hit me from day to day," Salgado said. As the first hire to head up Poppelmann's U.S. IT operations, he is pretty much left to his own devices, and he loves it whether
Page 12 of 12
those "devices" call for setting up laptops or high-end responsibilities, such as managing the network or implementing an ERP system.
Contents
And what is going to keep him there? The opportunity to grow with the company, learn new skills and mentor new hires. In other words, the job is challenging, and he likes it that way, even if he is paid less than the industry average for what he does. And he is not alone. Of the 90 senior IT executives who responded to the IT Salary Survey 2012 question as to why they left their job in 2012, 23% said they wanted a new challenge.
Page 13 of 12
Contents
Free resources for technology professionals

TechTarget publishes targeted technology media that address your need for information and resources for researching products, developing strategy and making cost-effective purchase decisions. Our network of technology-specific Web sites gives you access to industry experts, independent content and analysis and the Webs largest library of vendor-provided white papers, webcasts, podcasts, videos, virtual trade shows, research reports and more drawing on the rich R&D resources of technology providers to address market trends, challenges and solutions. Our live events and virtual seminars give you access to vendor neutral, expert commentary and advice on the issues and challenges you face daily. Our social community IT Knowledge Exchange allows you to share real world information in real time with peers and experts.
What makes TechTarget unique?

TechTarget is squarely focused on the enterprise IT space. Our team of editors and network of industry experts provide the richest, most relevant content to IT professionals and management. We leverage the immediacy of the Web, the networking and face-to-face opportunities of events and virtual events, and the ability to interact with peersall to create compelling and actionable information for enterprise IT professionals across all industries and markets.
Page 14 of 12

IT+Salary+Survey+E Guide

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IT+Salary+Survey+E Guide

Uploaded by

Copyright:

Available Formats

IT Salary Survey 2012

Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

Gap among industries in average salary for senior IT is considerable

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

Job satisfaction: Why senior IT leaders stay and why they go

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

IT Salary Survey 2012: Examining job satisfaction and salary trends

Free resources for technology professionals

What makes TechTarget unique?

You might also like