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JM Index reveals IT salaries have flat lined over the last year

JM Index reveals IT salaries have flat lined over the last year

The JM Group, one of the premier IT recruiters within the industry, has released its market report for the Investment Banking sector, the JM Index, and the findings show permanent IT professionals’ salaries have flat lined over the last year, following previous increases.

Between 2008 and 2010 permanent IT salaries for senior IT roles (VP/Director) saw a 14% increase whilst less senior IT roles (Analysts/Associates) experienced a 5% increase.

Celebrating its 30th birthday this year, JM is a niche provider of IT and business change specialists to clients in the consultancy, financial services, infrastructure and digital sectors. 

Dave Pye, CEO of JM, commented: “We believe these increases can be attributed to the restructuring of banks’ compensation schemes following the collapse of Lehman Brothers in 2008. Banks needed to find ways to still attract the top talent whilst removing the headline grabbing bonuses. As a result, we saw a number of banks top load their salaries as a means of counterbalancing the smaller bonuses.”

Over the last year the JM Index has shown a rebalance in salaries for less senior IT roles (Analysts/Associates) with a 4% dip whilst the salaries of more senior IT roles (VP/Directors) have remained static.

Dave continued: “We believe these figures reflect the increased number of banks monitoring their cost lines more closely. We’ve noticed a definite push towards the recruitment of staff at the lower end of their defined salary brackets and in contrast to before, the refusal to exceed these brackets no matter what the circumstances.”

Martin Rennison, Head of Investment Banking for IT, added: “We also believe the slight dip in salaries for less senior IT roles does not necessarily mean that people are moving for pay cuts. Instead we’re finding that when an organisation is unable to develop or promote their staff internally, candidates will now move for less significant salary increases if they can see how it will benefit their long-term career.”

To download JM’s quarterly market report, please go to www.thejmgroup.com

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