COMPENSATION TRENDS IN I.T.
BY BRIAN MARGARITA

   IT has become the most critical component of every business sector in the 21st century. Whether you sell retail merchandise or insurance, or own a construction company, the formula for success lies greatly in the efficiencies of this department. Although overall job growth in America has wavered since the infamous dot-com bust of the late 1990s, the IT sector has seen consistent growth since 2004 with no signs of slowing.

While IT hiring has picked up the pace, the overall terrain has changed. A major misconception HR managers must overcome is that good technical candidates are easy to come by and are desperate to take any job offer that comes their way.

On the contrary, it’s the talented ones who hold the cards. With complicated technology solutions becoming more necessary in day-to-day operations, and an increased demand for knowledgeable personnel to maintain the systems, IT placement has shifted to a candidates’ market. Leading prospects are looking for bigger base salaries, increased vacation time, and the flexibility to juggle between their jobs and personal lives.

Taking a page from the European life-work balance philosophy, Americans are valuing their time more than ever. Having the option to cart the kids to practice, visit the beach in the afternoon, or cutting out early to avoid traffic congestion is becoming more important than working an 80-hour week for a larger paycheck. In fact, many IT professionals won’t consider a better opportunity if it’s farther than 20 miles from their home, especially in high-density urban areas.

Compensation packages have also evolved. Due to lost confidence in the stock market, very few candidates are accepting stock options as a source of near-term wealth. In the recent past, candidates would say yes to one million shares of company stock as a signing bonus without even questioning how many shares were outstanding. Everyone knows at least one person who was burned by this dangling- carrot tactic. Today, offerings must be tangible, and hard cash is still the most coveted asset a company can propose.

This new climate has affected the overall hiring process. Because of the increase in demand, it now takes HR managers an average of two to three weeks to fill an IT position. Candidates are learning to line up as many job offers as possible and then match opportunities with their own long-term goals and objectives.

Many in the HR community are lulled into comparing today’s current situation with the tech bubble burst of just a few years back, when elite programmers were taking anything just to pay the mortgage.

Often overlooked is the fact that today’s tech job market is twice as productive in terms of growth as it was before the dotcom boom. As global dependence on technology rises, increased pressure will be put on HR departments to manage IT’s benefit and compensation requests. By recognizing and adjusting to the current playing field, companies will be in a better position to attract and retain the most qualified talent while keeping their own economic constraints in mind.

Brian Margarita is the founder and CEO of TalentFuse. Headquartered in San Diego, TalentFuse is a privately held full-service staffing company focused exclusively on the IT industry niche. TalentFuse matches elite technology professionals with top positions in their field. For more information, visit www.talentfuse.com.