Raises Making a Comeback
Along with what we've been hearing about an uptick in IT hiring for 2011 and the rise of contracting that's expected to become part of the "new normal," IT salaries are expected to go up this year, according to the 2011 Salary Survey from Janco Associates.
Amid the reports of rampant worker dissatisfaction, clearly companies are worried about keeping their workers. The New York Post quotes Catherine Hartmann, a principal with consultancy Mercer, saying:
Workers have made it abundantly clear that they are expecting raises this year, and companies are concerned that if they don't provide them, they will lose talent as soon as the market improves.
Laurie Bienstock of talent-management agency Towers Watson also is quoted, saying that raises for high performers – those most likely to get snapped up elsewhere – will be as much as 200 percent higher than the average worker.
The article then goes into how to ask for a raise, quoting Gary Burgess, a labor economist at the Brookings Institute, saying:
For almost everybody, there is a job elsewhere that will pay more. That doesn't mean that the market as a whole will pay more.
Beyond the Silicon Valley talent wars, IT employers are finding they're having to sweeten their offers to attract the skilled workers they need.
Janco reports that in IT, however, cost reduction is still the rule of the day. Its survey found the mean compensation, including bonuses, for all IT executive positions in large enterprises surveyed is $140,960, up slightly from $140,267 in 2010, and $123,378 ($123,301 in 2010) at mid-sized enterprises.
Compensation for IT pros overall rose from $77,604 to $77,873. The study found, though, a 5 percent decrease in the number of workers receiving personal performance bonuses, but a 5 percent increase in those receiving enterprise-based performance bonuses.
Information Management quotes Janco CEO Victor Janulaitis, saying:
Bonuses are showing that companies are looking for enterprise revenue improvements, and want to motivate employees to focus on improving the company's bottom line over and above everything else.
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