Computer Economics said IT businesses would need to take steps to retain key workers due to the rise in voluntary turnover rates.
Despite generally healthy
growth in the overall IT jobs market, IT workers hoping to improve their
standard of living in 2012 will not likely find relief through annual salary
raises, according to the Computer Economics "2012 IT Salary Report,"
which found IT organizations are planning to hand out average raises of 2.8
percent this year.
Employment by technology companies grew more than 2 percent
last year, while the unemployment rate for all workers stood at 8.5 percent at
year's end, according to the report whose findings are based on a
fourth-quarter survey of more than 130 U.S.-based IT organizations.
The report said that even
organizations at the 75th percentile are budgeting for only a 3 percent wage
increase for employees, which lags well behind the 3.4 percent rise in the
Consumer Price Index for the 12-month period through November 2011. On a
positive note, most IT workers will get some measure of increase. Even
organizations at the 25th percentile are increasing salaries for existing
employees by 1.8 percent, which was deemed an improvement over the no-raise
policy that prevailed last year in the bottom quartile. Still, the typical raises planned for 2012 are somewhat compressed across all
quartiles and show little variation by job function or level, according to the study's findings.
"Developers with skills in
mobile app development will remain in tight supply, as will those with
experience in supporting infrastructure virtualization," the report said. "In
the IT world, there are always skill shortages in the growth technologies, and
many IT organizations have no choice but pay up for those skills or turn to
service providers for in-demand expertise-and pay a premium."
"Although there are modest
improvements in the general employment picture, our research indicates hiring
by IT organizations across all sectors will remain weak in 2012, especially
among large organizations," the report said. "If the domestic economy continues
to improve, we anticipate some upward pressure on wages, however."
The organization said IT
businesses would need to take steps to retain key workers due to the rise in
voluntary turnover rates. Voluntary turnover rate for IT organizations, after
dropping to nearly 2 percent in 2010, is on track to return to normal levels in
2012. Turnover rose to 4 percent to 2011, and Computer Economics said it
anticipates the rate returning to the 5 percent level, which was typical during
the period prior to the 2008 recession. "As such, IT organizations will face
demands for higher pay from some workers," the report noted.
In the full study,
available for purchase via
the company's Website, Computer Economics projected total
salary (base pay plus incentive pay) for 65 IT job functions. The study
estimated total salaries for 20 sectors and more than 400 metropolitan and non-metropolitan
areas. The company publishes salary tables in a searchable Excel workbook,
where the first worksheet provides salaries by metropolitan area and the second
The latest IT jobs report
from online job site Dice suggested tech hiring managers are resolute in their
staffing priorities for 2012; they need innovative professionals who design,
code, build and operate. The report found that developers dominate the new year's
most pressing hiring needs for a second straight year, although ops
professionals made their list debut. According to data compiled from nearly
1,200 tech-focused hiring managers and recruiters, Java developers are the top
priority. Demand for tech professionals with Java know-how has grown year-over-year
for more than two years as measured by job postings on Dice.