Connecting to LinkedIn...


Pay prospects for IT staff hit highest level since winter 2007

Pay prospects for IT staff hit highest level since winter 2007

Follows pay freezes at 45% of businesses

The pay prospects for IT staff are the brightest since the run on Northern Rock and the start of the credit crunch, reveals research by ReThink Recruitment (ReThink), the business and technology staffing company.

According to the ReThink IT Directors’ survey, 59% of UK IT Directors expect salaries for IT staff to rise in the year ahead. This compares with 47% expecting pay rises in last year’s research and 55% of IT Directors in December 2007.

43% of IT Directors expect to increase headcounts over the next year up from 36% last year.

Michael Bennett, Director, of ReThink, comments: “This is the first really positive outlook that we have had from IT directors since the credit crunch began.”

“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 UKs largest employers, the purse strings for their IT departments might finally be loosened.”

According to ReThink’s research, last year 45% of employers imposed pay freezes on their IT staff.

Says Michael Bennett: “Increases in pay, however modest, will be welcomed in many IT departments. Some IT directors have become worried that their staff would become demoralised from having to face too many back-to-back pay freezes.”

“We would expect particularly strong pay growth for IT staff in areas such as mobile and e-commerce and in those niche areas of the financial services sector that deal with risk and regulatory capital – like Solvency II.”

“When you consider the almost universal acceptance of the importance of IT investment in keeping a corporate’s competitive edge sharp, it is good to see that pay rises are back on the agenda.”

Tougher market forecast for IT contractors

The research amongst IT directors suggests that the increase in salaries for permanent IT staff is unlikely to be matched by contractors. 93% of IT Directors surveyed said that they expected contractor rates to either stay the same or fall in the year ahead.

Adds Michael Bennett: “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.”

“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.”


Articles similar to

Articles similar to