IT Employment

Janco report: IT job market flooded, salaries and benefits in decline

Both salaries for IT professionals and overall IT job openings are down in the past 18 months, according to new data released by Janco on Monday as part of its 2009 Mid Year IT Salary Survey. The survey also contained some other residual bad news for IT pros, although there were a couple a few bright spots.

Both salaries for IT professionals and overall IT job openings are down in the past 18 months, according to new data released by Janco on Monday as part of its 2009 Mid Year IT Salary Survey. The survey also contained some other residual bad news for IT pros, although there were a couple a few bright spots.

Victor Janulaitis, Janco CEO, said, "The current economic climate with its cost cutting mind sets, business closures, and extensive outsourcing has put such great pressure on the IT job market that overall pay has been impacted. Added to that many 'baby-boomers' who had planned on retiring in the next few years are not leaving the job market and you have more potential employees than positions available."

Some of the highlights from the report include:

  • In addition to layoffs, many companies are doing hiring freezes
  • A lot of mid-sized companies have completely stopped hiring
  • Bonuses are being reduced for many IT workers
  • Flexible work schedules are becoming less common
  • Some IT pros are paying a greater share of their health care costs
  • There is an over-abundance of veteran IT pros in the market, with many retirements being put off and many retirees returning to the job market
  • The meltdown of the financial industry is drastically hurting the New York IT market. The report states, "There are over 200 IT professionals in the Metro New York are who earned well into six figures that are looking for work due to mergers, bankruptcies, and layoffs"

And here are some interesting graphs as well. The first one shows which IT jobs are in demand and which ones have been most in danger of being cut. The second shows the change in average IT salaries over the past 18 months. The third shows the demand for IT leadership jobs.

If you'd like to see the full report, you'll have to purchase the PDF from Janco.

Analysis

The most interesting part of the report has to do with middle managers. They are often heavily targeted in layoffs. In Janco's report it looks like a lot of middle managers have been shed in layoffs in the past 18 months, but the ones who remained in large organizations have actually received a pay increase.

The same goes for technical staff members who have survived in large organizations. Their average salaries increased in the past 18 months as well. In both cases, it may be that the best performers are the ones who remain and they are being asked to take one larger workloads due to layoffs, so the extra money could be a way to compensate them and keep them happy. In some cases, these workers may also be more valuable now if they are being asked to manage outsourced workers.

Another interesting dichotomy is the role of database managers. For mid-sized companies in Janco's report, database managers and database specialists were both in the strong demand column. However, for large companies, DBMs were in the expendable column. Maybe this means that most large enterprises are simply farther along in the establishment of a business-class database infrastructure, while many mid-sized companies are still in the build-out stage.

See alsoU.S. loses 35K IT jobs in May, but market could be stabilizing

About

Jason Hiner is Editor in Chief of TechRepublic and Long Form Editor of ZDNet. He writes about the people, products, and ideas changing how we live and work in the 21st century. He's co-author of the upcoming book, Follow the Geeks (bit.ly/ftgeeks).

19 comments
Systems Magician
Systems Magician

If the IT market is flooded with available workers, then why are we still having debates about H-1 Visa caps and technology companies not finding people to fill jobs. Maybe it is out there already, the job title should be revised with the right descriptions and detailed job functions, now that roles are overlapping into other areas because of layoffs.

mwebster
mwebster

There should be a graph showing the number of IT Professionals who have lost jobs, and opened small IT Consulting Companies.

Kam Guerra
Kam Guerra

Ever since the dot-com bomb days IT salaries have been on the decline. Surveys, like the Robert Half one mentioned, have little to do with reality. Ms Cleo is more accurate. The days of the 6-figure IT person are long, long gone.

jkameleon
jkameleon

Another globally trumpeted looming talent shortage crisis failed to materialize. As usual, kids shunning computer science knew best.

david.valdez
david.valdez

It is interesting that this doesn't correspond to the Robert Half salary survey they publish each year. While they have shown a shallowing of the compensation growth, they sill show year over year compensation growth.

Kam Guerra
Kam Guerra

@ Systems Magician Simple - companies want to drive the salary down even lower. Why pay the American guy $25/hr, if the H1 guy will take $15/hr. The argument isn't availability, it's salary. The American guy will be repaying college loans until he's 50. If the average cost to feed the H1 guy is 50cents/day like the charities claim, then college cost is what - maybe $100/yr. Of course he'll settle for less.

jkameleon
jkameleon

... except the talent, of course.

chidubemba
chidubemba

"The days of the 6-figure IT person are long, long gone." You're joking right? The average salary for a mid to senior level IT security guy in the DC metro area (DC, VA and MD) is around $100K. And I'm not joking.

jck
jck

Here and everywhere else I want to move eventually. I hope the market gets better by the time I learn all the new skills at the job I'm at. Of course, my "HTML" and "Novell" skills will be outdated by then probably. Hopefully I can get moved to the Carolinas within a year or two.

Kam Guerra
Kam Guerra

The average salary for a mid level software engineer (5-7 years) with TS/SCI/FSP is around $50K. Senior engineer should grab another $15K on top of that. For security (senior + certs + clearances) look around maybe $80K. Maybe.

chidubemba
chidubemba

In the recent past, I've read some of your posts regarding this same topic. I'm not interested in going back and forth with you on this topic. Kam, with your attitude I'm sure not going to give up the name of my employer. Like I said, stay underpaid.

Kam Guerra
Kam Guerra

It's not difficult. What have you got to lose? Better yet, why are you hiding the company name?

chidubemba
chidubemba

Well, believe what you want to believe. It's your choice to stay underpaid and negative. As for me, I'll stay positive and happy with my compensation package. Good luck to you Mr. Kam Guerra.

Kam Guerra
Kam Guerra

A lot of companies post false or misleading information. Just give me the name of the company, and I'll verify the salary through GSA.

chidubemba
chidubemba

My employer's positions and salary information for these positions are posted all over the below websites: computerjobs.com washingtonpost.com/wl/jobs/home If you meet the experience and security requirements, please do apply.

Kam Guerra
Kam Guerra

Ante up the company name so I can pull their GSA schedule.

chidubemba
chidubemba

"For security (senior + certs + clearances) look around maybe $80K. Maybe." We must live in two different DC metro areas then. My current employer has several job openings for mid to senior level Software engineers and IT security guys with security clearances. The average salary for these positions is $100k. I know these rates because I'm one of the hiring managers. Two co-workers of mine that just left my current employer for two different employers both received 20 - 30 percent pay increases. For IT Security (senior + cert + clearance + degree) look around $100K

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