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TechTarget's IT Salary Survey Results 2012


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TechTarget’s latest salary statistics show average pay raises and salary rates for the most frequently found roles in IT organizations.

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TechTarget's IT Salary Survey Results 2012

  1. 1. IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND TechTarget’s annual IT Salary Survey delves into executive and staff salary trends, pay by industry and the factors that contribute to job satisfaction. n The State of n Salary Statistics n Information IT Careers Reveal Modest Technology Costs Growth in IT Must Consider Sector in 2012 the Human Factor $$$ Gap Among IT leader and CIO n n Industries in Salaries for Women Average Salary Don’t Measure up for Senior IT to Male Peers is Considerable807060 $504030 $$20100%
  2. 2. EDITOR’S LETTER THE STATE OF IT CAREERS “IT’S NOT ABOUT THE MONEY” is common partmentalized, and IT departmentsEDITOR’S LETTER refrain we hear from highly paid compete for resources,” he said. “I’ve athletes when we know that, really, done the risk vs. rewards, and right it’s all about “show me the money.” In now I like stability.”SALARYSTATISTICS other professions—such as informa- Also in this study is data aboutREVEAL MODESTGROWTH IN IT tion technology or teaching or jour- how salaries break down by industry.SECTOR IN 2012 nalism—a modest salary is some- We found that in certain industries, times enough. That’s not to say that like financial services, there are large IT pros don’t want to make as much gaps between what rank-and-file ITGAP AMONGINDUSTRIES IN as possible, but many other factors pros make vs. their bosses. That isAVERAGE SALARYFOR SENIOR IT IS play into career choices: The stability not surprising. But there’s a wholeCONSIDERABLE of the company, the co-workers, the other group—which includes govern- quality of the work and so on. ment, education, retail and health When TechTarget sets out to sur- care—where the gap is much small-INFORMATIONTECHNOLOGY vey IT salaries every year, we are er. Also be sure to look at our storyCOSTS MUSTCONSIDER THE careful to not only ask about the dol- on what women in IT are making,HUMAN FACTOR lars but also about job and workplace and keep in mind that even though satisfaction, and the results can IT is a great job, it can also be a great be illuminating, as career, and the opportunities are outIT LEADER ANDCIO SALARIES FOR News Director Linda Tucci writes as there—if you know where to look. nWOMEN DON’TMEASURE UP TO part of this series of articles. A sys-MALE PEERS tems engineer at a two-year college makes $70,000 and knows he could Scot Petersen make more somewhere else but Editorial Director, likes where he is because “four-year CIO/IT Strategy institutions tend to be more com- TechTarget IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 2
  3. 3. SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012 TechTarget’s latest salary statistics show average pay raises and salary rates for the most frequently found roles in IT organizations. By Wendy Schuchart IEDITOR’S LETTERSALARYSTATISTICSREVEAL MODESTGROWTH IN IT N THE IT industry, it’s no sur- executive. Participants in the salarySECTOR IN 2012 prise that the big money survey reported having specialties comes from the coffers of in 40 areas of IT, and they hailed larger companies. TechTar- from all 50 U.S. states, Canada andGAP AMONGINDUSTRIES IN get’s IT Salary Survey 2012 Mexico.AVERAGE SALARYFOR SENIOR IT IS looks at the latest salary statistics Salary averages were in directCONSIDERABLE and delves into the differences correlation with the role the survey between the average salaries of respondents played in the IT orga- senior IT leaders and IT talent at nization. Respondents who heldINFORMATIONTECHNOLOGY enterprise organizations, as well as senior IT leadership positions—viceCOSTS MUSTCONSIDER THE between CIO and CTO average sal- president or CIO—or who reportedHUMAN FACTOR ary rates. If 2012 was any indication, to a C-level executive reported sala- typical IT staffers shouldn’t hold ries that were on average about 15% their breath waiting for an average higher than those of the profession-IT LEADER ANDCIO SALARIES FOR yearly raise greater than 4% in als who reported to them.WOMEN DON’TMEASURE UP TO 2013. On average, senior IT leadersMALE PEERS The salary survey, conducted reported an average salary of among readers across TechTarget’s $104,589, compared to the $88,763 network of sites, gathered 2,277 average salary that was reported by responses from IT professionals in general IT staff and subject matter North America, including 778 senior experts. This delta remained consis- IT leaders who were vice presidents tent in all companies with fewer than or CIOs or who reported to a C-level 1,000 employees. But for enterprise IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 3
  4. 4. SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012 Table 1: SALARIES BY POSITION Survey data shows that average salaries among IT professionals differ greatly according to position. TITLE ENTERPRISE MIDMARKET SMB OVERALL AVERAGE Analyst (internal) $79,445 $71,480 $75,708 $76,747 Architect (any technology) $122,419 $113,248 $105,615 $119,279 CIO $164,750 $139,866 $85,600 $126,827 CSO/CISO $110,382 $83,086 $128,333 $106,445 CTO $231,667 $137,750 $144,636 $155,625 Data Center Manager/Architect $117,458 $112,000 $79,000 $103,607 Database Administrator $94,688 $86,465 $68,500 $91,523 Developer $93,935 $83,164 $82,619 $88,004EDITOR’S LETTER Director of Business Applications $130,479 $110,444 $110,200 $119,491 Director of IS/MIS/IT $135,852 $97,478 $117,422 $117,625SALARY EVP/SVP/VP of Business Applications $193,833 $162,000 $118,000 $167,900STATISTICS EVP/SVP/VP of IT/MS/IT $148,444 $148,818 $109,778 $141,582REVEAL MODESTGROWTH IN IT IT Manager $109,538 $82,519 $78,568 $93,640SECTOR IN 2012 IT Staff $77,985 $67,893 $47,787 $72,717 Network Manager/Administrator/Engineer $82,327 $71,520 $55,486 $73,934GAP AMONG Programmer/Developer $95,073 $81,838 $80,525 $88,149INDUSTRIES IN Project Manager $108,403 $93,567 $93,735 $102,912AVERAGE SALARYFOR SENIOR IT IS Risk Manager/Compliance/Privacy Officer $100,279 $125,500 $173,143 $117,281CONSIDERABLE Security Manager $109,195 $93,743 $102,912 $104,287 Systems Manager/Administrator $81,962 $75,987 $61,970 $77,226 Telecommunications Manager $81,962 $75,987 $61,970 $79,700INFORMATIONTECHNOLOGY SOURCE: TECHTARGET’S IT SALARY SURVEY 2012COSTS MUSTCONSIDER THEHUMAN FACTOR companies, senior IT leaders made with fewer than 100 employeesIT LEADER ANDCIO SALARIES FOR an average of 25% more than their actually receive lower pay, on aver-WOMEN DON’TMEASURE UP TO reports. age, than general IT staff and subjectMALE PEERS Across the board, company size matter experts at companies with was a predictor of salary—profes- more than 1,000 employees. The sionals at smaller companies made average salary for senior IT lead- significantly lower average salaries ers at small companies is $92,303, than professionals at larger ones. compared with $93,165 for general The salary statistics suggest that IT staff members at enterprise com- senior IT leaders at organizations panies. IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 4
  5. 5. SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012 Figure 1: AVERAGE PAY RAISES FROM 2010 TO 2012 The majority of respondents received an average yearly raise of 2% to 4.9% in 2012. n RAISE OF 0.01-1.9% 2010 2011 2012 n RAISE OF 2-4.9% 7+65+15+4+5+1+3+1 7+63+14+5+4+2+3+1+1 10+61+10+4+7+3+3+1 n RAISE OF 5-6.9% 7.2% 7.5% 10% 65.3% 62.9% 61.3% n RAISE OF raise of raise of raise of 7-9.9% 2-4.9% 2-4.9% 2-4.9% n AISE OF R 10-14.9% n RAISE OF 13.9% 9.8% 15-19.9% 15.2% 3.7% 5.1% 4.3% n AISE OF R 20-49.9% 2.6% 2.9% 3.6%EDITOR’S LETTER 4.9% 4.4% 7.1% n RAISE OF 50-99% 0.9% 0.2% 2.4% 0.7% 0.2% 3.2% 0.7% n AISE OF RSALARY 100% ORSTATISTICS MOREREVEAL MODEST SOURCE: TECHTARGET’S IT SALARY SURVEY 2012GROWTH IN ITSECTOR IN 2012GAP AMONGINDUSTRIES IN SALARY STATISTICS BY JOB TITLE to $275,000. Meanwhile, CIOsAVERAGE SALARYFOR SENIOR IT IS Across the salary survey, the average reported an average salary that wasCONSIDERABLE highest-paying IT position was the $30,000 less than the average sala- position the survey titled EVP/SVP/ ry reported by CTOs, and CIOs’ base VP of Business Applications (see salaries varied more, ranging fromINFORMATIONTECHNOLOGY Table 1, page 4). Survey respondents $45,000 to $360,000.COSTS MUSTCONSIDER THE who identified themselves as an In general, CTOs reported largerHUMAN FACTOR executive vice president, senior vice average salaries: Among CTOs, president or vice president of busi- 85% reported earning more than ness applications reported an aver- $110,000, while 58% of CIOs report-IT LEADER ANDCIO SALARIES FOR age salary of $167,900. Their individ- ed the same income marker. CIOs inWOMEN DON’TMEASURE UP TO ual base salaries were widely spread larger, enterprise-level companiesMALE PEERS between $56,000 and $300,000 tended to earn average salaries that annually. were larger than CTOs’ average Survey respondents who identi- salaries—$164,750 was the average fied themselves as chief technology salary reported by CIOs in enterprise officer (CTO) reported an aver- organizations—but similarly, CTOs age salary of $155,625, and CTOs’ in enterprise-level organizations also base salaries ranged from $80,000 reported a higher average salary IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 5
  6. 6. SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012 Figure 2: IS YOUR IT DEPARTMENT FULLY STAFFED? The recession is still having an impact on IT departments, with most respondents reporting that they are not hiring. 28+41+16141s 1% Staff shortage/Not hiring 14% Shrinking/Not hiring 28% Fully staffed, not hiring 16% Hiring freezeEDITOR’S LETTER 41% Growing/HiringSALARYSTATISTICSREVEAL MODEST SOURCE: TECHTARGET’S IT SALARY SURVEY 2012GROWTH IN ITSECTOR IN 2012GAP AMONGINDUSTRIES IN ($231,667 average salary). but professionals in those roles inAVERAGE SALARYFOR SENIOR IT IS “In my mind, the ‘right’ salary for a organizations with fewer than 100CONSIDERABLE CIO depends on the size of the insti- employees reported the lowest aver- tution, its complexity and your nego- age salaries of any group in the sur- tiation skills,” said Jaime Manriquez, vey ($47,787 and $55,486, respec-INFORMATIONTECHNOLOGY CTO at the Santa Cruz County Bank tively).COSTS MUSTCONSIDER THE in California. “A CIO touches everyHUMAN FACTOR corner of the institution and feels he or she should be under the same INSIGHT INTO THE AVERAGE compensation as the business exec- YEARLY RAISEIT LEADER ANDCIO SALARIES FOR utives.” If 2012 is any indication, the aver-WOMEN DON’TMEASURE UP TO The lowest average salary rates age pay raise for 2013 is going toMALE PEERS were reported by respondents who be modest. By far the majority of identified themselves as being in the respondents (61%) received an aver- survey categories of IT Staff and Net- age yearly raise of 2.0% to 4.9% work Manager/Administrator. The (see Figure 1, page 5) with another average salaries across the board for 10% of respondents receiving an those individuals were the lowest, at average pay raise of 0.01% to 1.9%. $72,717 and $73,934 respectively, Although the number of respon- IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 6
  7. 7. SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012 dents receiving an average pay another area of the business. Only raise of.01% to 1.9% has climbed 17% said they were interested over the last three years of Tech- in leaving their current organiza- Target’s IT salary surveys (up from tion. 7.2% in 2010), so has the number of respondents receiving more than a nIT staff working in larger compa- 7% average raise. In 2010, 12.4% of nies were more likely to report survey takers reported receiving an being contacted by recruiters. average pay raise of 7.0% or higher. More than 70% of respondents in In 2011, the percentage of survey enterprise organizations had been takers in that group rose to 15.7%; tapped by executive headhunters, and in 2012, about one in five survey compared to 57% of respondents takers reported average raises higher in companies with fewer than 100EDITOR’S LETTER than 7.0%. employees. Here are a few more takeaways from TechTarget’s IT Salary Survey About half (57%) of the salarySALARYSTATISTICS 2012: survey respondents said their over-REVEAL MODESTGROWTH IN IT all compensation had improved orSECTOR IN 2012 n The majority (47%) of respon- increased compared to 2011, while dents had been in their current 17% said that it had declined or roles for one to five years. About taken a negative turn. In TechTar-GAP AMONGINDUSTRIES IN one-quarter (24%) had been in get’s 2011 salary survey data, theAVERAGE SALARYFOR SENIOR IT IS their roles for six to 10 years. And statistics were nearly identical, withCONSIDERABLE although the average time spent in 56% reporting a positive trend com- any given role is usually less than pared to 2010. 10 years, the majority of respon- There are strong indicators thatINFORMATIONTECHNOLOGY dents had been in the IT field from the recession is still having an impactCOSTS MUSTCONSIDER THE 11 to 20 years (42%), and more on IT departments, but an optimisticHUMAN FACTOR than one-third (36%) of respon- 41% of survey respondents reported dents had been in the IT field for that their IT departments are grow- more than 21 years. ing or are actively hiring (see FigureIT LEADER ANDCIO SALARIES FOR 2, page 6). Almost one-third (30%),WOMEN DON’TMEASURE UP TO n One-fifth (22%) of respondents however, reported their departmentsMALE PEERS said they were happy in their !!! are shrinking or under a hiring current roles, while almost half freeze, while 1% reported (47%) had their eyes on inter- they currently have a staff nal advancement in the next shortage but are not able to three to five years in either IT or fill the positions. n IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 7
  8. 8. GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE When senior IT leaders want to bulk up their salaries, choosing the right industry is important. By Linda Tucci DEDITOR’S LETTERSALARYSTATISTICSREVEAL MODESTGROWTH IN IT OES IT MATTER to which pay well and those that don’t willSECTOR IN 2012 industry senior IT take some teasing out. The senior leaders take their tal- IT pay-by-industry pecking order, ents? For those who however, does show a clear trendGAP AMONGINDUSTRIES IN measure their success when the average salary data fromAVERAGE SALARYFOR SENIOR IT IS in dollars, the answer is an unam- 1,499 general IT staff people is alsoCONSIDERABLE biguous “yes.” considered. The disparity in pay According to TechTarget’s IT Sal- between senior and junior people ary Survey 2012, the average salary is much more pronounced in theINFORMATIONTECHNOLOGY of survey respondents in senior IT highest-paying industries. Not onlyCOSTS MUSTCONSIDER THE roles, including CIO, chief technol- do the haves have more than theirHUMAN FACTOR ogy officer (CTO) and IT positions peers, but they also have much reporting to the C-suite, differed by more than junior folks in their own as much as 80% by industry. industries.IT LEADER ANDCIO SALARIES FOR Average salaries for senior IT General IT people employed byWOMEN DON’TMEASURE UP TO ranged from $146,000 in the manu- industries ranking in the top one-MALE PEERS facturing (IT-related) industry to third in senior IT pay earn, on aver- a low of $80,991 in the education age, only 74% of what their senior industry (see Table 2, page 10). The IT peers make per year. The biggest data is based on responses from gap is in top-ranked IT-related man- 778 senior IT leaders working in 22 ufacturing, where the rank and file industries. makes only 68% of what senior IT The linkages among industries that is paid: IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 8
  9. 9. GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE n Manufacturing (IT-related) n Energy/utilities n Financial n Education n Computer and data processing/ consulting n Research and development AVERAGE SALARY AND n Telecommunications/ THE EASTERLIN PARADOX communications carrier Given the significant salary gap n Business services/consulting between high- and low-paying indus- n Entertainment tries for senior IT leaders, one might expect these professionals to be In contrast, general IT staff people jockeying to land jobs in sectors that working in the second tier of indus- pay the highest average salaries—or tries earn 85% of what their bosses at least be unhappy that industriesEDITOR’S LETTER make: limit how much money they can make. However, this proved not to n Technology service provider be the case for the senior IT surveySALARYSTATISTICS (ISP/application service provider/ respondents. Instead, they are moreREVEAL MODESTGROWTH IN IT manufacturing service provider) likely to embody the Easterlin Para-SECTOR IN 2012 n Legal/insurance/real estate dox, which argues that once people n Media/marketing/advertising attain a certain level of economic n Manufacturing (non-IT) stability in their own domain (theGAP AMONGINDUSTRIES IN n Value-added reseller/value-added original data looked at countries),AVERAGE SALARYFOR SENIOR IT IS distribution/systems and network money no longer matters quite asCONSIDERABLE integrator much and is trumped by factors such n IT-related services as job satisfaction, quality of life and n Aerospace/defense stability.INFORMATIONTECHNOLOGY Job satisfaction is the main rea-COSTS MUSTCONSIDER THE The bottom one-third of industries son Tim Stockton plans to stay put.HUMAN FACTOR boasts the smallest gap between the A systems engineer who reports to upper echelon and the rank and file, the CIO at Virginia Western Com- with general IT staff making 94% of munity College in Roanoke, Va., heIT LEADER ANDCIO SALARIES FOR what their superiors earn: is measured on systems uptimeWOMEN DON’TMEASURE UP TO and innovation. A recent effort isMALE PEERS n Medical/health care/ his work on the school’s move away pharmaceutical/biotech from computer labs to a virtualized n Wholesale/retail/trade (non-IT) infrastructure that offers students n Construction/mining/agriculture anywhere, anytime access from their n Government own devices. n Nonprofit/trade association Stockton said he could earn n Automotive/transportation more—his salary is in the $70,000 IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 9
  10. 10. GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE range—at a four-year institution but pay him more, he added, but in a finds the environment at his two- down economy where companies year college less bureaucratic. “Four- get downsized or bought, he prefers year institutions tend to be more the stability of an institution that is compartmentalized, and IT depart- one of the largest community col- ments compete for resources,” he leges in the state and “isn’t going said. A private industry would also anywhere,” he said. The likelihood of Table 2: IT SALARIES BY INDUSTRY EDITOR’S LETTER The average salary of survey respondents in senior IT roles, including CIO, chief technology officer and IT positions reporting to the C-suite, differed by as much as 80% by industry.SALARY SALARY BY INDUSTRY GENERAL IT STAFF SENIOR IT LEADERS SALARY AVERAGESTATISTICSREVEAL MODEST Aerospace/defense $94,167 $98,548 $94,996GROWTH IN ITSECTOR IN 2012 Automotive/transportation $83,014 $84,208 $83,351 Business services/consulting (non-IT) $97,670 $127,537 $113,178 Computer and data processing/consulting $116,042 $131,861 $120,994GAP AMONG Construction, mining and agriculture $83,591 $91,429 $87,980INDUSTRIES INAVERAGE SALARY Education $73,313 $80,991 $76,286FOR SENIOR IT IS Energy/utilities $93,145 $83,800 $90,972CONSIDERABLE Entertainment $85,483 $118,875 $98,840 Financial $96,459 $139,009 $112,971INFORMATION Government $83,128 $89,969 $84,904TECHNOLOGY IT-related services $84,430 $101,156 $89,951COSTS MUSTCONSIDER THE Legal/insurance/real estate $84,810 $115,765 $95,865HUMAN FACTOR Manufacturing (IT-related) $99,653 $146,200 $110,678 Manufacturing (non-IT) $93,511 $104,481 $98,201 Media/marketing/advertising $89,631 $106,903 $97,482IT LEADER ANDCIO SALARIES FOR Medical/health care/pharmaceutical/biotech $86,913 $92,844 $88,899WOMEN DON’TMEASURE UP TO Non-profit/trade association $70,771 $86,521 $80,943MALE PEERS Other $85,676 $92,687 $87,954 Research and development $90,313 $130,800 $99,952 Technology service provider (ISP/ASP/MSP) $89,107 $117,500 $98,110 Telecommunications/communications carrier $93,788 $130,600 $100,362 VAR/VAD/sys/net integrator $98,333 $103,000 $100,667 Wholesale/retail/trade (non-IT) $85,087 $92,404 $88,063 SOURCE: TECHTARGET’S IT SALARY SURVEY 2012 IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 10
  11. 11. GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE a college closing is small. “I’ve done put many startups out of business. the risk vs. rewards, and right now I The last time he worked at a large like stability.” company was during the dot-com Also not driven by money is Jeff bust, by way of an acquisition made Swiney, director of IS and distribu- just before the economy went sour. tion at a small, fast-growing wom- en’s apparel chain. About 15 years older than Stockton, Swiney took “I’VE DONE THE RISK VS. a “significant cut in pay” to work in a business that not only taps his REWARDS, AND RIGHT expertise in both IT and logistics but NOW I LIKE STABILITY.” is also located in his beloved Tennes- —Tim Stockton see, where he has family and grand- systems engineer, Virginia WesternEDITOR’S LETTER children. In fact, his pay is under the Community College retail industry’s average salary of $92,000 in the TechTarget survey,SALARYSTATISTICS but he stands to make considerably “Large companies weather the stormREVEAL MODESTGROWTH IN IT more if the company goes public. better,” he said. As a senior profes-SECTOR IN 2012 “The quality of life made up for the sional in the provider’s research and pay,” he said. development arm, Jim is measured on his ability to innovate, work cre-GAP AMONGINDUSTRIES IN atively and bring projects to comple-AVERAGE SALARYFOR SENIOR IT IS ALREADY ON TOP, WITH tion. He is open to making a moveCONSIDERABLE NOWHERE TO GROW and is often contacted by recruiters, “Jim,” a senior software architect at but he’s finding that his salary is pric- a large IT services provider on the ing him out of contention.INFORMATIONTECHNOLOGY East Coast, who needed to remain “They’ll say, ‘Oh, that is out of ourCOSTS MUSTCONSIDER THE anonymous to discuss salary details, range,’ ” he said, adding that thisHUMAN FACTOR is in the top echelon of pay. An expe- past downturn has been hard for IT rienced IT professional in his mid- professionals at the upper end of the 40s with a master’s degree in elec- scale. “Companies are not investingIT LEADER ANDCIO SALARIES FOR tronics and telecommunications, he in expensive senior people.” PeopleWOMEN DON’TMEASURE UP TO earns $220,000 in salary and earned like him used to be able to demandMALE PEERS a $6,000 bonus in 2011. For him, signing bonuses and were offered career development must focus on lucrative stock options. “You might parameters other than just pay. still get those perks when you come Jim joined his company in 2007 aboard, especially in an acquisition, through an acquisition and considers but once you’re there, for sure they himself fortunate to have made the dry up,” he said. leap at the cusp of a recession that For all these reasons, Jim’s IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 11
  12. 12. GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE employment is dictated by three The big question going forward is questions: Is the division he’s in whether the pay disparity between growing, and can he grow with it? industries and the pay disparities What other divisions offer oppor- between IT leaders and IT staff tunities to grow? If advancement people remain stable. If IT folks in an isn’t possible, is it prudent to go to industry are focused on how they are another startup? Some of his friends doing relative to others in the same in Silicon Valley are making the industry, according to current leap now, but his sense is that trends in TechTarget’s IT Sal- the tech economy on the East $$$ ary Survey 2012, these dis- Coast is not robust enough to parities are likely to be with us warrant a move. for some time. nEDITOR’S LETTERSALARYSTATISTICSREVEAL MODESTGROWTH IN ITSECTOR IN 2012GAP AMONGINDUSTRIES INAVERAGE SALARYFOR SENIOR IT ISCONSIDERABLEINFORMATIONTECHNOLOGYCOSTS MUSTCONSIDER THEHUMAN FACTORIT LEADER ANDCIO SALARIES FORWOMEN DON’TMEASURE UP TOMALE PEERS IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 12
  13. 13. INFORMATION TECHNOLOGY COSTS MUST CONSIDER THE HUMAN FACTOR Exact costs vary by industry and company size, but the bottom line is clear: Businesses generally spend the most on employee compensation. By Scot Petersen AEDITOR’S LETTERSALARYSTATISTICSREVEAL MODESTGROWTH IN IT LTHOUGH SPECIFIC COSTS 2012 examined IT careers, salaries,SECTOR IN 2012 vary by industry and job satisfaction and drivers for pro- company size, busi- ductivity. The survey data showed nesses typically spend what motivates IT workers and howGAP AMONGINDUSTRIES IN more on labor or different levels of IT employees areAVERAGE SALARYFOR SENIOR IT IS employee compensation than on treated when it comes to compensa-CONSIDERABLE anything else. One notable excep- tion. tion is the airline industry, whose For instance, senior IT leaders are expense for fuel averages about even nearly four times more likely to leaveINFORMATIONTECHNOLOGY with labor costs, with each at their jobs because they need a newCOSTS MUSTCONSIDER THE Information technology costs are challenge (26%) than because theyHUMAN FACTOR a big chunk of business expenses want higher pay (see Figure 3, page too—between 2% and 4% of rev- 14). Leaving for a new challenge is enue, according to Gartner Inc. also important to IT staffers (21%),IT LEADER ANDCIO SALARIES FOR But because much of IT costs also but leaving for more money is a big-WOMEN DON’TMEASURE UP TO consist of human capital, it quickly ger issue for them (12%) than forMALE PEERS becomes obvious why the role of their bosses (7%). IT and the transformation of the IT Also, IT staffers (6%) are more department for the future should be likely than their senior IT leaders core strategic functions for CIOs— (2%) to leave because of business as much if not more so than which uncertainty. This makes sense if technology to buy and deploy. you consider that senior IT leaders TechTarget’s IT Salary Survey have more insight into what’s being IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 13
  14. 14. INFORMATION TECHNOLOGY COSTS MUST CONSIDER THE HUMAN FACTOR Figure 3: WHY IT TALENT LEFT PREVIOUS POSITIONS Senior IT leaders are more likely to leave their jobs in search of new challenges than for bigger paychecks.. 2 Business uncertainty 6 9 General dissatisfaction n SENIOR IT LEADERS 10 n GENERAL IT STAFF New boss or management 4 2 24 Other 21 Position eliminated 7 due to merger or acquisition 5EDITOR’S LETTER Previous position was evolving 6 in a way that didn’t interest me 6 Previous position was evolving in 2SALARY a way that no longer fit my skills 2STATISTICSREVEAL MODEST Wanted a new challenge 26 21GROWTH IN ITSECTOR IN 2012 7 Wanted more money 12GAP AMONG Was fired 1INDUSTRIES INAVERAGE SALARY Was laid off 13FOR SENIOR IT IS (or would have been laid off) 14CONSIDERABLE 0% 5% 10% 15% 20% 25% 30% 35% 40%INFORMATION SOURCE: TECHTARGET’S IT SALARY SURVEY 2012TECHNOLOGYCOSTS MUSTCONSIDER THEHUMAN FACTOR done in the business to address the 2012, ranging from 2% to 5%. For changing climate and are better raises ranging from 20% to 50%,IT LEADER ANDCIO SALARIES FOR able to gauge optimism about those however, the parity no longer exists:WOMEN DON’TMEASURE UP TO changes. Senior IT leaders were much moreMALE PEERS The survey data also showed that likely (8%) than their IT staff (2%) the higher ranking the IT executive, to be awarded big raises. This could the higher his or her salary increase be related to the fact that senior IT is likely to be (see Table 3, page executives have compensation tied 15). In short, a majority of IT staff to the completion of a big project or (64%) and senior IT employees for hitting ROI. (56%) received modest raises in Clearly, general IT staff cannot IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 14
  15. 15. INFORMATION TECHNOLOGY COSTS MUST CONSIDER THE HUMAN FACTOR Table 3: SALARIES OF GENERAL IT STAFF VS. SENIOR IT LEADERS The majority of both IT staff and senior IT employees received modest raises in 2012. SALARY INCREASES GENERAL IT STAFF SENIOR IT LEADERS 0.01 - 1.9% 12% 6% 2 - 4.9% 64% 56% 5 - 6.9% 10% 9% 7 - 9.9% 3% 7% 10 - 14.9% 6% 9% 15 - 19.9% 2% 5%EDITOR’S LETTER 20 - 49.9% 2% 8% 50 - 100% 1% 1%SALARY SOURCE: TECHTARGET’S IT SALARY SURVEY 2012STATISTICSREVEAL MODESTGROWTH IN ITSECTOR IN 2012 make these types of big increases, of giving incentives to certain low orGAP AMONGINDUSTRIES IN but this should be considered when mid-level workers to get retrainedAVERAGE SALARYFOR SENIOR IT IS a company tries to find skilled IT per- in needed areas will enable compa-CONSIDERABLE sonnel for the types of IT specialties nies to retain workers rather than go that will emerge over the next few through the time and expense years—in services management, of finding new ones. nINFORMATIONTECHNOLOGY collaboration and data analysis, Additional reporting byCOSTS MUSTCONSIDER THE among others. Perhaps a strategy Wendy Schuchart.HUMAN FACTORIT LEADER ANDCIO SALARIES FORWOMEN DON’TMEASURE UP TOMALE PEERS IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 15
  16. 16. IT LEADER AND CIO SALARIES FOR WOMEN DON’T MEASURE UP TO MALE PEERS What’s behind the lagging CIO pay for women IT leaders? By Karen Goulart GEDITOR’S LETTERSALARYSTATISTICSREVEAL MODESTGROWTH IN IT ENDER MATTERS WHEN it in salary averages between gendersSECTOR IN 2012 comes to IT leader continues to occur across industries, and CIO salaries. but it is disproportionately present Data from TechTar- among higher-level jobs, said Cath-GAP AMONGINDUSTRIES IN get’s IT Salary Survey erine Hill, research director at theAVERAGE SALARYFOR SENIOR IT IS 2012 shows that, in general, women American Association of UniversityCONSIDERABLE CIOs and IT leaders are making less Women (AAUW), a Washington, money annually than their male D.C.-based women’s equity advo- peers. cacy organization. TechTarget’s find-INFORMATIONTECHNOLOGY Of the 778 senior IT leaders sur- ings reflect national trends, includingCOSTS MUSTCONSIDER THE veyed, 138 female respondents who those found in the AAUW’s 2012HUMAN FACTOR were either a vice president or CIO study, The Simple Truth About the or reported into a C-level execu- Gender Pay Gap. tive reported an average salary of “Some of the biggest pay gaps areIT LEADER ANDCIO SALARIES FOR $86,294. The salary average for their among the most highly educatedWOMEN DON’TMEASURE UP TO 631 male peers was $108,741. More- women at leadership levels,” HillMALE PEERS over, a surprising 60% of female said. “Often we’ll hear there’s such executives reported earning less great equality in a particular field than $89,000 annually, compared to because there are so many women just 40% of their male peers report- in senior positions, but when you ing similar salary averages. drill down you often find bigger pay Women in IT are not alone when inequality at the top.” it comes to pay inequality. Disparity According to 2011 U.S. Census IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 16
  17. 17. IT LEADER AND CIO SALARIES FOR WOMEN DON’T MEASURE UP TO MALE PEERS Bureau data, about 6% of all women workers earned $100,000 or more, WHILE MORE THAN compared to 15% of male workers. 5% OF MEN IT LEADERS Put another way, Hill said, “Women REPORTED SALARIES make up about a quarter of workers earning $100,000 or more annually OF $190,000 OR but make up nearly half of the overall HIGHER, ONLY 1.5% workforce.” OF WOMEN MATCHED The TechTarget IT Salary Survey 2012 reflected a similar gap in the THOSE EARNINGS. upper ranks of CIO salaries. While more than 5% of men IT leaders In her current role, “Nancy,” vice reported salaries of $190,000 or president of project management atEDITOR’S LETTER higher, only 1.5% of women matched a Seattle digital marketing company, those earnings. In fact, women earn- said she is being fairly compensated, ing average salaries higher than but this wasn’t always the case.SALARYSTATISTICS $130,000 were a rarity (14%) com- “Early on I approached my boss andREVEAL MODESTGROWTH IN IT pared with their male counterparts provided him with examples of workSECTOR IN 2012 earning that rate (27.2%). I’d done and ended up getting a pro- motion as a result of that conversa- tion, which I don’t think would’veGAP AMONGINDUSTRIES IN CIO SALARIES: SELF-ASSESSMENT KEY happened otherwise,” Nancy said. AtAVERAGE SALARYFOR SENIOR IT IS IN CORRECTING A PAY INEQUALITY first she didn’t feel this was a genderCONSIDERABLE A few of the women who took Tech- issue, but upon further reflection, she Target’s IT Salary Survey 2012 said saw a link. “It could be that men are they were not surprised by the sal- more vocal about self-appraisal ver-INFORMATIONTECHNOLOGY ary survey findings, although they sus women,” Nancy said.COSTS MUSTCONSIDER THE weren’t immediately willing to pin Vocalizing her self-worth alsoHUMAN FACTOR the disparity solely on gender. Their made a big difference for “Paula.” names have been changed, but their Today she is the IT manager at an job titles and locations are real. Oregon-based direct marketingIT LEADER ANDCIO SALARIES FOR All of the female IT profession- company. During the course of moreWOMEN DON’TMEASURE UP TO als who were interviewed maintain than 20 years in the industry, herMALE PEERS leadership positions that put them jobs have included programmer and in charge of determining salaries of manager of a business intelligence their team members, and they are team. On average she makes about acutely aware of sticking to metrics as much as her male counterparts and keeping pay fair. It is sometimes but only after realizing that she had a different story when it comes to sold herself short, she said. their own pay. When Paula took her current posi- IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 17
  18. 18. IT LEADER AND CIO SALARIES FOR WOMEN DON’T MEASURE UP TO MALE PEERS tion, she assumed her company needed to negotiate her salary, could not afford to pay her more which is in the average range of the because it was a smaller business, TechTarget survey’s IT leader and she said. After being on the job for CIO salaries. However, she added about a year, she learned that the that with her experience, advanced previous CIO had earned signifi- degree and certifications, she ought cantly more. Despite having a sub- to be making more. But because of C-level title, Paula was doing the the specialized nature of her job over same work but was earning a lower the years, her position isn’t easily salary. She put together a case for categorized, making it difficult to why she should be paid more and attach it to an industry standard or did get a sizable raise that put her fight for pay equality. on par with her predecessor. “If I hadEDITOR’S LETTER known about the previous CIO soon- er, I would have been able to nego- IT’S NOT UNUSUAL FORSALARY tiate for a higher salary in the first place, leading back to the thought JOB SATISFACTION TO TRUMP THE DESIRESTATISTICSREVEAL MODEST that we don’t ask for enough,” Paula FOR HIGHER SALARIES.GROWTH IN ITSECTOR IN 2012 said. Paula is still earning slightly less than the previous CIO, but the gapGAP AMONGINDUSTRIES IN is now smaller. That works for her “Personally, I have viewed myAVERAGE SALARYFOR SENIOR IT IS for now because her job satisfaction salary as the secondary salary inCONSIDERABLE is high. “I love my job, and having a our household, and I still feel very sane place to work is priceless,” she blessed to be earning a ‘secondary’ said. salary that is more than the com-INFORMATIONTECHNOLOGY Indeed, it’s not unusual for job bined salary of some households,”COSTS MUSTCONSIDER THE satisfaction to trump the desire Cynthia said.HUMAN FACTOR for higher salaries. “Cynthia,” IT The underestimation of one’s director at a Pennsylvania univer- worth is not uncommon among sity, said she agrees completely working women in general, Hill said.IT LEADER ANDCIO SALARIES FOR with the notion that women tend to But it is particularly high amongWOMEN DON’TMEASURE UP TO have lower salary expectations and better-educated women in what areMALE PEERS demands. She said she views this as considered historically male indus- unfortunate, but at the same time tries like science and medicine. she is satisfied with what she makes, Although both women and men despite suspecting she may be get- are loath to admit it, gender bias still ting shortchanged. exists and it comes from both sides, Cynthia said that during her Hill said. She pointed to a recent Yale 30-year IT career she has never University study in which male and IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 18
  19. 19. IT LEADER AND CIO SALARIES FOR WOMEN DON’T MEASURE UP TO MALE PEERS Figure 4: CIO SALARIES BY GENDER Salary gaps still exist between men and women CIOs. 25 20 n FEMALE n MALE 15 10EDITOR’S LETTER 5SALARYSTATISTICS 0% $30K $30- $50- $70- $90- $110- $130- $150- $170- $190- $210- $230- $250- $300- $500-REVEAL MODEST 49K 69K 89K 109K 129K 149K 169K 189K 209K 229K 249K 299K 499K 999KGROWTH IN ITSECTOR IN 2012 SOURCE: TECHTARGET’S IT SALARY SURVEY 2012GAP AMONGINDUSTRIES INAVERAGE SALARYFOR SENIOR IT IS female candidates for a chemistry dence that our biases are simply aCONSIDERABLE lab manager job were presented to part of how we perceive things; we male and female scientists. Both the don’t hold these stereotypes con- male and female scientists offered sciously, and somehow that makesINFORMATIONTECHNOLOGY lower average salaries to the candi- them even more dangerous, so weCOSTS MUSTCONSIDER THE dates with female-sounding names have to pay attention to them,” HillHUMAN FACTOR on the resumes. said. “Certainly there have been $$$ $ When it comes to CIO sala- enormous gains for women in ries and pay inequality (see the workplace over the last 50IT LEADER ANDCIO SALARIES FOR Figure 4), there are no easy years, but there are still stereo-WOMEN DON’TMEASURE UP TO answers. “There is a lot of evi- types that inform us.” nMALE PEERS IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 19
  20. 20. ABOUT THE AUTHORS Wendy Schuchart is site editor for SearchCIO- Before joining TechTarget, she was a technology and process analyst at The Nielsen Co., and a section editor IT Salary Survey 2012: Paychecks, Pride and Peace of Mind for Network Computing and Secure is a TechTarget e-publication. Enterprise magazines. Write to her at Mark Schlack Senior Vice President of Editorial Linda Tucci is news direc- tor for and Cathleen A. GagneEDITOR’S LETTER Senior Editorial Director She covers CIO strategies for business intelligence, big data, off-SALARY Christine CasatelliSTATISTICS shoring, mobile computing and social Senior Managing Editor of E-productsREVEAL MODESTGROWTH IN IT media. She also writes frequently aboutSECTOR IN 2012 the CIO role and CIO careers. Write her Linda Koury at Director of Online DesignGAP AMONGINDUSTRIES INAVERAGE SALARY Karen Goulart is features Neva ManiscalcoFOR SENIOR IT IS Graphic DesignerCONSIDERABLE writer for and SearchCIO-Midmarket. com. She covers CIO strate-INFORMATION TechTargetTECHNOLOGY gies for cloud computing and virtualiza- 275 Grove StreetCOSTS MUSTCONSIDER THE tion, the data center and business appli- Newton, MA 02466HUMAN FACTOR cation trends. Write her at kgoulart@ © 2013 TechTarget Inc. No part of this publicationIT LEADER AND may be transmitted or reproduced in any form orCIO SALARIES FOR by any means without written permission from theWOMEN DON’T publisher. TechTarget reprints are available throughMEASURE UP TO The YGS Group.MALE PEERS About TechTarget: TechTarget publishes media for information technology professionals. More than 100 focused websites enable quick access to a deep store of news, advice and analysis about the technologies, prod- ucts and processes crucial to your job. Our live and virtual events give you direct access to independent expert com- mentary and advice. At IT Knowledge Exchange, our social community, you can get advice and share solutions with peers and experts. IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 20