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Gartner's 2007 IT Market Compensation Study Shows an Increasingly Competitive IT Job Market in the U.S.STAMFORD, Conn. --(Business Wire)-- As chief information officers (CIOs) put an emphasis on driving business growth, they need to have an IT workforce whose strengths lie in core areas of information and technology. This change in focus has influenced the demand for skilled IT workers and has led to increased time to fill vacant positions and difficulty in hiring high-in-demand skills, according to an annual survey by Gartner, Inc. According to a survey of 225 U.S.-based organizations, 66 percent of survey respondents projected some level of increase in IT staff for the next 12-month period (March 1, 2007 to February 29, 2008), up from 61 percent in 2006. At the same time, the survey also showed a 1 percent increase in employee-initiated turnover rate across the board compared with last year's survey results. This is the third year in a row that there has been an increase in the employee-initiated turnover rate. Much of this increase appears to be occurring at the professional staff (individual contributor) level. "With the competition for IT talent increasing in the market, even a small increase in the number of people who leave that were considered critical talent can cause an immediate and negative impact on the performance of the organization," said Lily Mok, research director for Gartner EXP's content development group. "Although employee turnover is inevitable, it can be managed by investing in the right retention programs. This year's survey results indicated that pay, career development opportunities, and work/life balance continued to score high as the key reasons for turnover, which point out where companies should focus to increase retention." While the IT job market is becoming more active, Gartner doesn't expect it to return to the same competitive level as in the late 1990s anytime soon. A slow, steady recovery is evident when looking at the relatively consistent value of average salary increase budgets reported for the past several years and what companies are budgeting for increases for the coming year. The median salary increase rate was between 3 percent and 4 percent for the surveyed period. This year's survey results also show that companies are spending, on average, 40 percent of their 2007 budget in paying salaries, incentives and benefits to their IT workforce. "Successful companies know how to leverage each reward element (from cash to flexible work arrangements) to create an integrated total rewards strategy that is critical to building a long-term, healthy relationship between the employee and employer. The best total rewards programs are designed to balance and meet both the needs of an organization and its workforce," said Diane Berry, managing vice president for Gartner EXP's content development group. "As the market continues to grow, companies that know where to invest their dollars in what reward elements and closely align their rewards strategies with those of the business and IT will gain a competitive advantage over their peers in the marketplace in attracting and retaining desired IT talent." Work/life balance is cited as one of the top reasons for employee turnover in the survey. Offering programs that enable IT professionals to more-effectively manage work/life demands and to meet their personal and professional goals is a significant differentiator for employers. One of the most-powerful work/life programs is teleworking, however, only 1 percent to 18 percent of survey participants' IT workforces have some type of telework arrangement. "The companies that address the 'whole person' and recognize the multitude of conflicting demands on individuals are often those that become the employers of choice," said Ms. Mok. "Such programs not only enhance an employee's loyalty to a company, but also improve their productivity. A key success factor is that IT managers listen to and effectively respond to the needs of their staff as individuals." Gartner's 2007 IT Market Compensation Study provides strategic and tactical benchmarking information for IT human capital management in the area of recruitment, retention, reward, recognition, work/life balance, career development and training programs. This study provides base salary, total cash compensation and short-term incentive/bonus data for 137 benchmark jobs grouped into 26 IT job families. This study provides HR and IT leaders with a guide to help them craft a total rewards strategy to bring their IT organizations ahead of the curve in an increasingly competitive market. Additional information about this report is available on Gartner's Web site at www.gartner.com/hcm/hcm_compensation.jsp. About Gartner EXP for Human Resources The Gartner Executive Program for Human Resources (EXP HR) is an exclusive membership-based program for executive-level IT and HR professionals in North America. Gartner EXP HR offers applied research and advice from experts, while providing opportunities to connect with peers and noted practitioners from best-in-class organizations. Additional information about Gartner EXP HR can be found on the Gartner Web site at www.gartner.com/hcm/hcm_exp.jsp. About Gartner Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,800 associates, including 1,200 research analysts and consultants in 75 countries. For more information, visit www.gartner.com. |
