IT worker pay more likely to increase this year

Almost 60% of IT directors expect their staff to get pay rises this year as purse strings are loosened and pay freezes are lifted.

Almost 60% of IT directors expect their staff to receive pay rises this year as purse strings are loosened and pay freezes are lifted - but IT contractors are unlikely to get the same increase.

Research by ReThink Recruitment revealed that 59% of IT directors expect workers at their company to receive a pay rise this year. The same research last year revealed that just 47% expected their staff to get a rise.

Other positive news from the survey is that 43% of IT directors expect to increase staff numbers over the next year up, compared to 36% last year.

“This is the first really positive outlook that we have had from IT directors since the credit crunch began,” said Michael Bennett, director at ReThink.

“IT departments have had to endure a tough time over the last few years. IT directors have been continually asked to do more with fewer staff but it may be that this is finally coming to an end. From the feedback that we are getting from many of the UK's largest employers, the purse strings for their IT departments might finally be loosened.”

The ReThink research presents a more positive picture than other studies though - just over half of the UK companies surveyed by Computer Weekly revealed their IT department is either under a hiring freeze or reducing in size.

But contractors face a tough time. The ReThink research revealed that 93% of IT directors expect contractor rates to either stay the same or fall in the year ahead.

“Contractors have had as tough a recession as permanent staff with some contractors in some specific sectors such as banking being subject to cuts in their contract rates,” said Bennett.

“Unless contractors have very specific, in-demand skills or experience they can expect the first half of 2012 to continue to see little or no increase in contract rates.”

Earlier this month ReThink research revealed that most IT directors will struggle to retain staff and attract new IT talent in the coming year as the job market improves.

As the job market continues to pick up the survey reports that 85% of IT directors are concerned or very concerned about staff retention in 2011.

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