IT pay dives during recession
Published:25-June-2009
By Steve Evans
Is now the time to jump ship?
New figures released by executive jobs website Experteer.co.uk has revealed that despite the recession, pay for senior execs is rising – with the exception of those in the IT sector.
Over the last six months salaries in the public sector rose by 6%, consulting was up by 7% and financial services also saw a rise of 6%. IT, in comparison, was down by 4%. Average salaries for senior executives in management roles also rose at a greater rate than the national average over the last six months – 3.25% compared to 2.7%.
The survey looked at average salaries in different departments within the four key industry sectors. In the financial services sector pay for specialists, such as project managers, rose 8% to £62,000; pay for managers rose 4% to £61,000; and salaries for business unit leaders, those with multiple teams reporting to them, increased 6% to £91,000.
It was a similar scene in the consulting sector. Pay for specialist workers increased 4% to £65,000; salaries for managers went up to £73,000, an increase of 6%; and business unit leaders saw their pay shoot up 11% to £101,000.
Those in specialist roles in the financial services sector witnessed a 6% pay increase to £74,000; managers saw their pay go up 7% to £79,000; and salaries for business unit leaders went up by 4% to £104,000.
However, the IT sector was not so fortunate. Specialists saw their pay fall 6% to £62,000; pay for those in management roles dipped 4% to £77,000; and business unit leaders witnessed a 3% reduction to £115,000.
Experteer believes that this fall in pay for senior IT execs is likely due to a decline in the number of jobs available. Torsten Muth, managing director, Experteer.co.uk, said that maybe it is time for those in senior roles in the IT industry to look at another sector for their next job.
“Ambitious IT executives facing a fall in reward for their next step on the career ladder should consider whether their experience might be relevant to other industries in which salaries continue to rise, such as consulting and financial services,” he said.
“Senior executives should not be discouraged by gloomy market conditions. Our research shows that wage inflation by role continues in most sectors despite wide-spread pay and promotion freezes for individuals,” Muth said. “Those willing to embrace the risk inherent in moving jobs should not undersell themselves and ensure they are appropriately rewarded.”
