Janco Associates has just released its January 2009 IT Salary Survey for the US, and prospects look grim for IT professionals.
The recent worldwide economic downturn, company closures, lay-offs, cost cutting and outsourcing has created a surplus of IT talent. The situation has been made worse by retirees returning to the job market because their investment portfolios have lost value.
Janco Associates CEO Victor Janulaitis said: "The job market for IT professionals is one of the worst that I have seen since the late 1970s. There is a surplus of IT talent and companies are in a cost-cutting mode. The dot.com bubble was a cake walk compared to this job market."
The mean compensation for CIOs in large enterprises is now $168,839 (a 6.11% decrease) and $163,211 (a 4.97% decrease) in mid-sized enterprises. Much of this is due to the loss or reduction of bonuses and fringe benefits.
The mean compensation (including bonuses) for all IT executive positions surveyed is now $142,914 (a decrease of 1.2%) in large enterprises and $126,021 (a 4.57% decrease) in mid-sized enterprises.
The January 2009 IT salary survey shows:
Companies have reduced benefits to IT professionals. Though benefits such as healthcare are available, IT professionals are now paying a greater portion of the cost.
Flexible hours and work schedules are less common since economic conditions changed.
For the second time in less than ten years, retirements are being put off because of the downturn in the stock market and the reduction in savings available to support IT professionals as they retire.
Hiring demand is down for IT executives (especially in mid-sized enterprises), while proven CIOs are in high demand in large enterprises.