IT+Salary+Survey+E Guide

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IT Salary Survey 2012

Examining job satisfaction and salary trends


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IT Salary Survey 2012: Examining josatisfaction and salary trend

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 intoexecutive and staff salary trends, pay by industryand the factors that contribute to job satisfaction.

TechTarget's IT Salary Survey 2012, conducted amongreaders across TechTarget's network of sites, polled 2,277 IT

professionals in North America boasting specialties in 40areas of IT. We conducted a comprehensive analysis of theirresponses, hoping to gain insights into salary trends indifferent industries and at various levels of the organization,

as well as to gauge the factors that drive job satisfactionamong IT managers and staff. Review our IT Salary Survey2012 findings below to learn how your salary and careeroutlook 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


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leadership positions -- vice president or CIO -- or who reported to a C-levelexecutive -- reported salaries that were on average about 15% higher than

the professionals who reported to them. On average, senior IT leaders

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. Thesalary statisticssuggest 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.
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Salary statistics by job titleAcross the salary survey, the average highest-paying IT position was the

position the survey titled EVP/SVP/VP of Business Applications. Survey

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 thatwas $30,000 less than the average salary reported by CTOs, and CIOs base

salaries varied more, ranging from $45,000 to $360,000.


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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

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 ahigher 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 CruzCounty 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%.
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Annual salary increases 2010 2011 20120.01% to 1.9% 7.2% 7.5% 10.0%

2.0% to 4.9% 65.3% 62.9% 61.3%

5.0% to 6.9% 15.2% 13.9% 9.8%

7.0% to 9.9% 3.7% 5.1% 4.3%

10% to 14.9% 4.9% 4.4% 7.1%

15% to 19.9% 0.9% 2.4% 3.2%

20% to 49.9% 2.6% 2.9% 3.6%

50% to 99% 0.0% 0.7% 0.7%

100% or more 0.2% 0.2% 0.0%

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 werehappy 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
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respondents reported that their IT department is growing or isactively hiring. Almost one-third (30%), however, reported their

departments are shrinking or under a hiring freeze, while 1%

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, industryand gender, as well as the secret to retaining IT talent

in 2013 and beyond.

Gap among industries in average salary for senior IT isconsiderable

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!"
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The average salary of survey respondents in seniorIT 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

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, doesreveal 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 thehighest-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
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Media/marketing/advertising Manufacturing (non-IT)

Value-added reseller/value-added distribution/systems and network

integrator

IT-related services

Aerospace/defense

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 thehighest 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 theEasterlin

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
http://searchhealthit.techtarget.com/news/2240173992/Health-IT-salary-data-spurs-optimism-about-2013http://searchhealthit.techtarget.com/news/2240173992/Health-IT-salary-data-spurs-optimism-about-2013http://searchcio.techtarget.com/news/2240114232/IT-salary-survey-Highest-earners-are-cozy-with-business-hard-on-IThttp://searchcio.techtarget.com/news/2240114232/IT-salary-survey-Highest-earners-are-cozy-with-business-hard-on-IThttp://searchcio.techtarget.com/news/2240114232/IT-salary-survey-Highest-earners-are-cozy-with-business-hard-on-IThttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://www.boston.com/bostonglobe/ideas/brainiac/2011/07/easterlins_para.htmlhttp://searchcio.techtarget.com/news/2240114232/IT-salary-survey-Highest-earners-are-cozy-with-business-hard-on-IThttp://searchhealthit.techtarget.com/news/2240173992/Health-IT-salary-data-spurs-optimism-about-2013


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virtualized infrastructurethat offers students anywhere, anytime access fromtheir own devices.

Stockton said he could earn more (his salary is in the $70,000 range) at a

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 thecusp of a recessionthat 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 hisability to innovate, work creatively and bring
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projects to completion. He is open to making a move and is often contactedby recruiters, but he's finding that his salary is pricing him out of contention.

"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 thedivision 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 theygo

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


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of the 691 senior IT executives who answered the question of why theystayed said they did so for three reasons: because their job was intellectually

challenging (38%), because they enjoyed the working environment and co-

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 theaverage salary

for senior IT leadersemployed by non-IT related manufacturers, who on

average make $98,201.

"The salary is great, but I rate myjob satisfactionpretty 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 iscompany 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
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head down, stay under the radar to hold onto your job. The environment ispretty toxic," he said.

Job satisfaction and theculture 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 theprivate 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 German-

based 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
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those "devices" call for setting up laptops or high-end responsibilities, suchas managing the network or implementing an ERP system.

And what is going to keep him there? The opportunity togrow 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.
http://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-positionhttp://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-positionhttp://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-positionhttp://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-positionhttp://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-positionhttp://searchcio.techtarget.com/news/2240157835/The-CIO-job-Ten-skills-needed-to-land-the-top-position


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Contents


modest growth in IT

sector in 2012



senior IT is

considerable



and why they go

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