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April 24, 2000

Behind The Numbers:
IT Compensates Beyond Pay

he stock market may no longer be the symbol of prosperity on Wall Street-now it's the electronically deposited paycheck. As companies continue to struggle with the need to attract and retain talent, many are responding by pumping up pay packages with higher salaries, cash bonuses, and company-paid benefits. It's enough to make even the most savvy investors envious-even more so in light of recent market fluctuations.

Overall, most people working in IT are pleased with their total pay package, according to this year's InformationWeek National IT Salary Report, released this week. Among the 16,900 IT professionals, only 22% are dissatisfied with their current arrangement.

If you want to earn the most money in IT, consider an Internet- or intranet-related position. IT workers with jobs in these areas will receive the biggest raises in base pay and total compensation this year, according the survey results. On average, staffers will boost their base income by 9% and total cash compensation by 11%, while managers will see a jump of 11% in base salary and 13% in total cash payments.

What counts most when its come to IT bonuses? Although company profit sharing plays a major role in such awards, personal performance counts above all. Health insurance and a 401(k) match are the two most common noncash or indirect cash rewards offered to those in technology.

While one in four IT workers has been granted stock options, you won't find a large number of millionaires in the group. The majority of those with benefits say that their stock has yet to take off. Among those whose options are generating revenue, the median value of all stock held is $16,000 among IT staff and $35,000 among IT managers.

Despite the abundance of financial compensation, money isn't what matters most to IT professionals when it comes to their careers. Flexibility in work schedule is much more important, as is job stability.

How satisfied are you with your pay package? Let us know at the address below, and by taking part in the yearlong survey at informationweek.com/salary.

Own the data behind InformationWeek Research. See our available reports at informationweek.com/reports
Helen D'Antoni
Research Manager
hdantoni@cmp.com

This week in Behind The Numbers:

Bonus Rewards
Few IT professionals will work the entire year without becoming eligible for some sort of cash award. Monetary incentives are commonplace in the technology industry. Of the 16,900 IT workers who completed InformationWeek Research's online salary survey, only 2,003 work for companies that have yet to implement bonus programs.

Those in the running for rewards are more likely to benefit from company profit sharing or profit from their personal performance. Few will see cash bonuses on completion of a training course or certification session. Despite the need for IT talent, only one in 20 companies offers staff incentives based on continued education.

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Job Scanners
The IT industry continues to chafe under its need for talent. Vacancies are prompting headhunter calls and packing classified sections. Demand has even spurred a flood of online job sites.

Yet amid the barrage of opportunity, few IT professionals are actually looking for something new. Less than 10% are actively seeking greener pastures.

Although the consensus is to stay put, few IT professionals are ignoring the job market. Two in five IT workers regularly scan job postings to keep in tune with what jobs are available.

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Personal Returns
The right salary can make any situation bearable for a while. Yet when personal needs start to suffer, even the most lucrative positions can loose their appeal. What matters the most to IT workers professionally? Well, it isn't money. Although the right salary does ensure a certain level of contentment, it won't keep every staff member happy. For some, the ability to work with leading-edge technology is more important. Others prefer to know their opinions and knowledge are valued. But more frequently, it is the challenge and responsibility of the job that matters most to those working in IT.

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Basic Needs Met
Company cars and travel allowances are more the perks of sales folk and company executives than of IT workers. Although businesses expect some IT professionals to be available around the clock-outfitting them with beepers and cell phones-few companies subsidize the travel expenses of their IT workforce.

Only 6% of those working in the industry appear to have use of a company vehicle or are reimbursed for their trips to the office. IT benefits tend to be much more basic. Health care and 401(k) matches are the most-common arrangements available to IT workers.

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