TechTarget's IT Salary Survey Results 2012

IT SALARY SURVEY 2012:
PAYCHECKS, PRIDE AND
PEACE OF MIND
TechTarget’s annual IT Salary Survey delves into executive and staff salary
trends, pay by industry and the factors that contribute to job satisfaction.

n The State of
n Salary Statistics
n Information

IT Careers Reveal Modest Technology Costs
Growth in IT Must Consider
Sector in 2012 the Human Factor

$$$ Gap Among
IT leader and CIO
n n

Industries in Salaries for Women
Average Salary Don’t Measure up
for Senior IT to Male Peers
is Considerable

80

70

60 $
50

40

30
$$
20

10

0%

EDITOR’S LETTER

THE STATE OF IT CAREERS

“IT’S NOT ABOUT THE MONEY” is common partmentalized, and IT departments
EDITOR’S LETTER refrain we hear from highly paid compete for resources,” he said. “I’ve
athletes when we know that, really, done the risk vs. rewards, and right
it’s all about “show me the money.” In now I like stability.”
SALARY
STATISTICS other professions—such as informa- Also in this study is data about
REVEAL MODEST
GROWTH IN IT
tion technology or teaching or jour- how salaries break down by industry.
SECTOR IN 2012 nalism—a modest salary is some- We found that in certain industries,
times enough. That’s not to say that like financial services, there are large
IT pros don’t want to make as much gaps between what rank-and-file IT
GAP AMONG
INDUSTRIES IN as possible, but many other factors pros make vs. their bosses. That is
AVERAGE SALARY
FOR SENIOR IT IS
play into career choices: The stability not surprising. But there’s a whole
CONSIDERABLE of the company, the co-workers, the other group—which includes govern-
quality of the work and so on. ment, education, retail and health
When TechTarget sets out to sur- care—where the gap is much small-
INFORMATION
TECHNOLOGY vey IT salaries every year, we are er. Also be sure to look at our story
COSTS MUST
CONSIDER THE
careful to not only ask about the dol- on what women in IT are making,
HUMAN FACTOR lars but also about job and workplace and keep in mind that even though
satisfaction, and the results can IT is a great job, it can also be a great
be illuminating, as SearchCIO.com career, and the opportunities are out
IT LEADER AND
CIO SALARIES FOR News Director Linda Tucci writes as there—if you know where to look. n
WOMEN DON’T
MEASURE UP TO
part of this series of articles. A sys-
MALE PEERS tems engineer at a two-year college
makes $70,000 and knows he could Scot Petersen
make more somewhere else but Editorial Director,
likes where he is because “four-year CIO/IT Strategy
institutions tend to be more com- TechTarget

IT SALARY SURVEY 2012: PAYCHECKS, PRIDE AND PEACE OF MIND 2

SALARY STATISTICS REVEAL MODEST
GROWTH IN IT SECTOR IN 2012
TechTarget’s latest salary statistics show average pay raises and
salary rates for the most frequently found roles in IT organizations.
By Wendy Schuchart

I
EDITOR’S LETTER

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
N THE IT industry, it’s no sur- executive. Participants in the salary
SECTOR IN 2012 prise that the big money survey reported having specialties
comes from the coffers of in 40 areas of IT, and they hailed
larger companies. TechTar- from all 50 U.S. states, Canada and
GAP AMONG
INDUSTRIES IN get’s IT Salary Survey 2012 Mexico.
AVERAGE SALARY
FOR SENIOR IT IS
looks at the latest salary statistics Salary averages were in direct
CONSIDERABLE and delves into the differences correlation with the role the survey
between the average salaries of respondents played in the IT orga-
senior IT leaders and IT talent at nization. Respondents who held
INFORMATION
TECHNOLOGY enterprise organizations, as well as senior IT leadership positions—vice
COSTS MUST
CONSIDER THE
between CIO and CTO average sal- president or CIO—or who reported
HUMAN FACTOR ary rates. If 2012 was any indication, to a C-level executive reported sala-
typical IT staffers shouldn’t hold ries that were on average about 15%
their breath waiting for an average higher than those of the profession-
IT LEADER AND
CIO SALARIES FOR yearly raise greater than 4% in als who reported to them.
WOMEN DON’T
MEASURE UP TO
2013. On average, senior IT leaders
MALE PEERS The salary survey, conducted reported an average salary of
among readers across TechTarget’s $104,589, compared to the $88,763
network of sites, gathered 2,277 average salary that was reported by
responses from IT professionals in general IT staff and subject matter
North America, including 778 senior experts. This delta remained consis-
IT leaders who were vice presidents tent in all companies with fewer than
or CIOs or who reported to a C-level 1,000 employees. But for enterprise


SALARY STATISTICS REVEAL MODEST GROWTH IN IT SECTOR IN 2012

Table 1: SALARIES BY POSITION

Survey data shows that average salaries among
IT professionals differ greatly according to position.

TITLE ENTERPRISE MIDMARKET SMB OVERALL AVERAGE
Analyst (internal) $79,445 $71,480 $75,708 $76,747
Architect (any technology) $122,419 $113,248 $105,615 $119,279
CIO $164,750 $139,866 $85,600 $126,827
CSO/CISO $110,382 $83,086 $128,333 $106,445
CTO $231,667 $137,750 $144,636 $155,625
Data Center Manager/Architect $117,458 $112,000 $79,000 $103,607
Database Administrator $94,688 $86,465 $68,500 $91,523
Developer $93,935 $83,164 $82,619 $88,004
EDITOR’S LETTER
Director of Business Applications $130,479 $110,444 $110,200 $119,491
Director of IS/MIS/IT $135,852 $97,478 $117,422 $117,625
SALARY EVP/SVP/VP of Business Applications $193,833 $162,000 $118,000 $167,900
STATISTICS
EVP/SVP/VP of IT/MS/IT $148,444 $148,818 $109,778 $141,582
REVEAL MODEST
GROWTH IN IT IT Manager $109,538 $82,519 $78,568 $93,640
SECTOR IN 2012
IT Staff $77,985 $67,893 $47,787 $72,717
Network Manager/Administrator/Engineer $82,327 $71,520 $55,486 $73,934

GAP AMONG
Programmer/Developer $95,073 $81,838 $80,525 $88,149
INDUSTRIES IN Project Manager $108,403 $93,567 $93,735 $102,912
AVERAGE SALARY
FOR SENIOR IT IS
Risk Manager/Compliance/Privacy Officer $100,279 $125,500 $173,143 $117,281
CONSIDERABLE Security Manager $109,195 $93,743 $102,912 $104,287
Systems Manager/Administrator $81,962 $75,987 $61,970 $77,226
Telecommunications Manager $81,962 $75,987 $61,970 $79,700
INFORMATION
TECHNOLOGY SOURCE: TECHTARGET’S IT SALARY SURVEY 2012
COSTS MUST
CONSIDER THE
HUMAN FACTOR

companies, senior IT leaders made with fewer than 100 employees
IT LEADER AND
CIO SALARIES FOR an average of 25% more than their actually receive lower pay, on aver-
WOMEN DON’T
MEASURE UP TO
reports. age, than general IT staff and subject
MALE PEERS Across the board, company size matter experts at companies with
was a predictor of salary—profes- more than 1,000 employees. The
sionals at smaller companies made average salary for senior IT lead-
significantly lower average salaries ers at small companies is $92,303,
than professionals at larger ones. compared with $93,165 for general
The salary statistics suggest that IT staff members at enterprise com-
senior IT leaders at organizations panies.



Figure 1: AVERAGE PAY RAISES FROM 2010 TO 2012

The majority of respondents received an average yearly raise of 2% to 4.9% in 2012.

n RAISE OF
0.01-1.9%
2010 2011 2012

n RAISE OF
2-4.9%

7+65+15+4+5+1+3+1
7+63+14+5+4+2+3+1+1
10+61+10+4+7+3+3+1

n RAISE OF
5-6.9% 7.2% 7.5% 10%
65.3% 62.9% 61.3%

n RAISE OF raise of raise of raise of
7-9.9% 2-4.9% 2-4.9% 2-4.9%
n AISE OF
R
10-14.9%

n RAISE OF 13.9% 9.8%
15-19.9% 15.2%
3.7% 5.1% 4.3%
n AISE OF
R
20-49.9% 2.6% 2.9% 3.6%
EDITOR’S LETTER
4.9% 4.4% 7.1%

n RAISE OF
50-99%
0.9% 0.2% 2.4% 0.7% 0.2% 3.2% 0.7%
n AISE OF
R
SALARY 100% OR
STATISTICS MORE
REVEAL MODEST
SOURCE: TECHTARGET’S IT SALARY SURVEY 2012
GROWTH IN IT
SECTOR IN 2012

GAP AMONG
INDUSTRIES IN SALARY STATISTICS BY JOB TITLE to $275,000. Meanwhile, CIOs
AVERAGE SALARY
FOR SENIOR IT IS
Across the salary survey, the average reported an average salary that was
CONSIDERABLE highest-paying IT position was the $30,000 less than the average sala-
position the survey titled EVP/SVP/ ry reported by CTOs, and CIOs’ base
VP of Business Applications (see salaries varied more, ranging from
INFORMATION
TECHNOLOGY Table 1, page 4). Survey respondents $45,000 to $360,000.
COSTS MUST
CONSIDER THE
who identified themselves as an In general, CTOs reported larger
HUMAN FACTOR executive vice president, senior vice average salaries: Among CTOs,
president or vice president of busi- 85% reported earning more than
ness applications reported an aver- $110,000, while 58% of CIOs report-
IT LEADER AND
CIO SALARIES FOR age salary of $167,900. Their individ- ed the same income marker. CIOs in
WOMEN DON’T
MEASURE UP TO
ual base salaries were widely spread larger, enterprise-level companies
MALE PEERS between $56,000 and $300,000 tended to earn average salaries that
annually. were larger than CTOs’ average
Survey respondents who identi- salaries—$164,750 was the average
fied themselves as chief technology salary reported by CIOs in enterprise
officer (CTO) reported an aver- organizations—but similarly, CTOs
age salary of $155,625, and CTOs’ in enterprise-level organizations also
base salaries ranged from $80,000 reported a higher average salary



Figure 2: IS YOUR IT DEPARTMENT FULLY STAFFED?

The recession is still having an impact on IT departments, with most
respondents reporting that they are not hiring.

28+41+16141s
1%
Staff shortage/Not hiring

14%
Shrinking/Not hiring
28%
Fully staffed, not hiring
16%
Hiring freeze

EDITOR’S LETTER 41%
Growing/Hiring

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
SECTOR IN 2012

GAP AMONG
INDUSTRIES IN ($231,667 average salary). but professionals in those roles in
AVERAGE SALARY
FOR SENIOR IT IS
“In my mind, the ‘right’ salary for a organizations with fewer than 100
CONSIDERABLE CIO depends on the size of the insti- employees reported the lowest aver-
tution, its complexity and your nego- age salaries of any group in the sur-
tiation skills,” said Jaime Manriquez, vey ($47,787 and $55,486, respec-
INFORMATION
TECHNOLOGY CTO at the Santa Cruz County Bank tively).
COSTS MUST
CONSIDER THE
in California. “A CIO touches every
HUMAN FACTOR corner of the institution and feels
he or she should be under the same INSIGHT INTO THE AVERAGE
compensation as the business exec- YEARLY RAISE
IT LEADER AND
CIO SALARIES FOR utives.” If 2012 is any indication, the aver-
WOMEN DON’T
MEASURE UP TO
The lowest average salary rates age pay raise for 2013 is going to
MALE PEERS were reported by respondents who be modest. By far the majority of
identified themselves as being in the respondents (61%) received an aver-
survey categories of IT Staff and Net- age yearly raise of 2.0% to 4.9%
work Manager/Administrator. The (see Figure 1, page 5) with another
average salaries across the board for 10% of respondents receiving an
those individuals were the lowest, at average pay raise of 0.01% to 1.9%.
$72,717 and $73,934 respectively, Although the number of respon-



dents receiving an average pay another area of the business. Only
raise of.01% to 1.9% has climbed 17% said they were interested
over the last three years of Tech- in leaving their current organiza-
Target’s IT salary surveys (up from tion.
7.2% in 2010), so has the number of
respondents receiving more than a nIT staff working in larger compa-
7% average raise. In 2010, 12.4% of nies were more likely to report
survey takers reported receiving an being contacted by recruiters.
average pay raise of 7.0% or higher. More than 70% of respondents in
In 2011, the percentage of survey enterprise organizations had been
takers in that group rose to 15.7%; tapped by executive headhunters,
and in 2012, about one in five survey compared to 57% of respondents
takers reported average raises higher in companies with fewer than 100
EDITOR’S LETTER than 7.0%. employees.
Here are a few more takeaways
from TechTarget’s IT Salary Survey About half (57%) of the salary
SALARY
STATISTICS 2012: survey respondents said their over-
REVEAL MODEST
GROWTH IN IT
all compensation had improved or
SECTOR IN 2012 n The majority (47%) of respon-
increased compared to 2011, while
dents had been in their current 17% said that it had declined or
roles for one to five years. About taken a negative turn. In TechTar-
GAP AMONG
INDUSTRIES IN one-quarter (24%) had been in get’s 2011 salary survey data, the
AVERAGE SALARY
FOR SENIOR IT IS
their roles for six to 10 years. And statistics were nearly identical, with
CONSIDERABLE although the average time spent in 56% reporting a positive trend com-
any given role is usually less than pared to 2010.
10 years, the majority of respon- There are strong indicators that
INFORMATION
TECHNOLOGY dents had been in the IT field from the recession is still having an impact
COSTS MUST
CONSIDER THE
11 to 20 years (42%), and more on IT departments, but an optimistic
HUMAN FACTOR than one-third (36%) of respon- 41% of survey respondents reported
dents had been in the IT field for that their IT departments are grow-
more than 21 years. ing or are actively hiring (see Figure
IT LEADER AND
CIO SALARIES FOR 2, page 6). Almost one-third (30%),
WOMEN DON’T
MEASURE UP TO
n One-fifth (22%) of respondents however, reported their departments
MALE PEERS said they were happy in their !!!
are shrinking or under a hiring
current roles, while almost half freeze, while 1% reported
(47%) had their eyes on inter- they currently have a staff
nal advancement in the next shortage but are not able to
three to five years in either IT or fill the positions. n


GAP AMONG INDUSTRIES IN
AVERAGE SALARY FOR SENIOR IT
IS CONSIDERABLE
When senior IT leaders want to bulk up their salaries, choosing
the right industry is important. By Linda Tucci

D
EDITOR’S LETTER

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
OES IT MATTER to which pay well and those that don’t will
SECTOR IN 2012 industry senior IT take some teasing out. The senior
leaders take their tal- IT pay-by-industry pecking order,
ents? For those who however, does show a clear trend
GAP AMONG
INDUSTRIES IN measure their success when the average salary data from
AVERAGE SALARY
FOR SENIOR IT IS
in dollars, the answer is an unam- 1,499 general IT staff people is also
CONSIDERABLE biguous “yes.” considered. The disparity in pay
According to TechTarget’s IT Sal- between senior and junior people
ary Survey 2012, the average salary is much more pronounced in the
INFORMATION
TECHNOLOGY of survey respondents in senior IT highest-paying industries. Not only
COSTS MUST
CONSIDER THE
roles, including CIO, chief technol- do the haves have more than their
HUMAN FACTOR ogy officer (CTO) and IT positions peers, but they also have much
reporting to the C-suite, differed by more than junior folks in their own
as much as 80% by industry. industries.
IT LEADER AND
CIO SALARIES FOR Average salaries for senior IT General IT people employed by
WOMEN DON’T
MEASURE UP TO
ranged from $146,000 in the manu- industries ranking in the top one-
MALE PEERS facturing (IT-related) industry to third in senior IT pay earn, on aver-
a low of $80,991 in the education age, only 74% of what their senior
industry (see Table 2, page 10). The IT peers make per year. The biggest
data is based on responses from gap is in top-ranked IT-related man-
778 senior IT leaders working in 22 ufacturing, where the rank and file
industries. makes only 68% of what senior IT
The linkages among industries that is paid:


GAP AMONG INDUSTRIES IN AVERAGE SALARY FOR SENIOR IT IS CONSIDERABLE

n Manufacturing (IT-related)
n Energy/utilities

n Financial
n Education

n Computer and data processing/

consulting
n Research and development
AVERAGE SALARY AND
n Telecommunications/
THE EASTERLIN PARADOX
communications carrier Given the significant salary gap
n Business services/consulting
between high- and low-paying indus-
n Entertainment
tries for senior IT leaders, one might
expect these professionals to be
In contrast, general IT staff people jockeying to land jobs in sectors that
working in the second tier of indus- pay the highest average salaries—or
tries earn 85% of what their bosses at least be unhappy that industries
EDITOR’S LETTER make: limit how much money they can
make. However, this proved not to
n Technology service provider
be the case for the senior IT survey
SALARY
STATISTICS (ISP/application service provider/ respondents. Instead, they are more
REVEAL MODEST
GROWTH IN IT
manufacturing service provider) likely to embody the Easterlin Para-
SECTOR IN 2012 n Legal/insurance/real estate
dox, which argues that once people
n Media/marketing/advertising
attain a certain level of economic
n Manufacturing (non-IT)
stability in their own domain (the
GAP AMONG
INDUSTRIES IN
n Value-added reseller/value-added
original data looked at countries),
AVERAGE SALARY
FOR SENIOR IT IS
distribution/systems and network money no longer matters quite as
CONSIDERABLE integrator much and is trumped by factors such
n IT-related services
as job satisfaction, quality of life and
n Aerospace/defense
stability.
INFORMATION
TECHNOLOGY Job satisfaction is the main rea-
COSTS MUST
CONSIDER THE
The bottom one-third of industries son Tim Stockton plans to stay put.
HUMAN FACTOR boasts the smallest gap between the A systems engineer who reports to
upper echelon and the rank and file, the CIO at Virginia Western Com-
with general IT staff making 94% of munity College in Roanoke, Va., he
IT LEADER AND
CIO SALARIES FOR what their superiors earn: is measured on systems uptime
WOMEN DON’T
MEASURE UP TO
and innovation. A recent effort is
MALE PEERS n Medical/health care/
his work on the school’s move away
pharmaceutical/biotech from computer labs to a virtualized
n Wholesale/retail/trade (non-IT)
infrastructure that offers students
n Construction/mining/agriculture
anywhere, anytime access from their
n Government
own devices.
n Nonprofit/trade association
Stockton said he could earn
n Automotive/transportation
more—his salary is in the $70,000



range—at a four-year institution but pay him more, he added, but in a
finds the environment at his two- down economy where companies
year college less bureaucratic. “Four- get downsized or bought, he prefers
year institutions tend to be more the stability of an institution that is
compartmentalized, and IT depart- one of the largest community col-
ments compete for resources,” he leges in the state and “isn’t going
said. A private industry would also anywhere,” he said. The likelihood of

Table 2: IT SALARIES BY INDUSTRY

EDITOR’S LETTER
The average salary of survey respondents in senior IT roles, including CIO, chief technology
officer and IT positions reporting to the C-suite, differed by as much as 80% by industry.

SALARY SALARY BY INDUSTRY GENERAL IT STAFF SENIOR IT LEADERS SALARY AVERAGE
STATISTICS
REVEAL MODEST Aerospace/defense $94,167 $98,548 $94,996
GROWTH IN IT
SECTOR IN 2012
Automotive/transportation $83,014 $84,208 $83,351
Business services/consulting (non-IT) $97,670 $127,537 $113,178
Computer and data processing/consulting $116,042 $131,861 $120,994
GAP AMONG Construction, mining and agriculture $83,591 $91,429 $87,980
INDUSTRIES IN
AVERAGE SALARY Education $73,313 $80,991 $76,286
FOR SENIOR IT IS Energy/utilities $93,145 $83,800 $90,972
CONSIDERABLE
Entertainment $85,483 $118,875 $98,840
Financial $96,459 $139,009 $112,971
INFORMATION Government $83,128 $89,969 $84,904
TECHNOLOGY
IT-related services $84,430 $101,156 $89,951
COSTS MUST
CONSIDER THE Legal/insurance/real estate $84,810 $115,765 $95,865
HUMAN FACTOR
Manufacturing (IT-related) $99,653 $146,200 $110,678
Manufacturing (non-IT) $93,511 $104,481 $98,201
Media/marketing/advertising $89,631 $106,903 $97,482
IT LEADER AND
CIO SALARIES FOR Medical/health care/pharmaceutical/biotech $86,913 $92,844 $88,899
WOMEN DON’T
MEASURE UP TO
Non-profit/trade association $70,771 $86,521 $80,943
MALE PEERS Other $85,676 $92,687 $87,954
Research and development $90,313 $130,800 $99,952
Technology service provider (ISP/ASP/MSP) $89,107 $117,500 $98,110
Telecommunications/communications carrier $93,788 $130,600 $100,362
VAR/VAD/sys/net integrator $98,333 $103,000 $100,667
Wholesale/retail/trade (non-IT) $85,087 $92,404 $88,063




a college closing is small. “I’ve done put many startups out of business.
the risk vs. rewards, and right now I The last time he worked at a large
like stability.” company was during the dot-com
Also not driven by money is Jeff bust, by way of an acquisition made
Swiney, director of IS and distribu- just before the economy went sour.
tion at a small, fast-growing wom-
en’s apparel chain. About 15 years
older than Stockton, Swiney took “I’VE DONE THE RISK VS.

a “significant cut in pay” to work
in a business that not only taps his
REWARDS, AND RIGHT
expertise in both IT and logistics but NOW I LIKE STABILITY.”
is also located in his beloved Tennes- —Tim Stockton
see, where he has family and grand- systems engineer, Virginia Western
EDITOR’S LETTER children. In fact, his pay is under the Community College
retail industry’s average salary of
$92,000 in the TechTarget survey,
SALARY
STATISTICS but he stands to make considerably “Large companies weather the storm
REVEAL MODEST
GROWTH IN IT
more if the company goes public. better,” he said. As a senior profes-
SECTOR IN 2012 “The quality of life made up for the sional in the provider’s research and
pay,” he said. development arm, Jim is measured
on his ability to innovate, work cre-
GAP AMONG
INDUSTRIES IN atively and bring projects to comple-
AVERAGE SALARY
FOR SENIOR IT IS
ALREADY ON TOP, WITH tion. He is open to making a move
CONSIDERABLE NOWHERE TO GROW and is often contacted by recruiters,
“Jim,” a senior software architect at but he’s finding that his salary is pric-
a large IT services provider on the ing him out of contention.
INFORMATION
TECHNOLOGY East Coast, who needed to remain “They’ll say, ‘Oh, that is out of our
COSTS MUST
CONSIDER THE
anonymous to discuss salary details, range,’ ” he said, adding that this
HUMAN FACTOR is in the top echelon of pay. An expe- past downturn has been hard for IT
rienced IT professional in his mid- professionals at the upper end of the
40s with a master’s degree in elec- scale. “Companies are not investing
IT LEADER AND
CIO SALARIES FOR tronics and telecommunications, he in expensive senior people.” People
WOMEN DON’T
MEASURE UP TO
earns $220,000 in salary and earned like him used to be able to demand
MALE PEERS a $6,000 bonus in 2011. For him, signing bonuses and were offered
career development must focus on lucrative stock options. “You might
parameters other than just pay. still get those perks when you come
Jim joined his company in 2007 aboard, especially in an acquisition,
through an acquisition and considers but once you’re there, for sure they
himself fortunate to have made the dry up,” he said.
leap at the cusp of a recession that For all these reasons, Jim’s



employment is dictated by three The big question going forward is
questions: Is the division he’s in whether the pay disparity between
growing, and can he grow with it? industries and the pay disparities
What other divisions offer oppor- between IT leaders and IT staff
tunities to grow? If advancement people remain stable. If IT folks in an
isn’t possible, is it prudent to go to industry are focused on how they are
another startup? Some of his friends doing relative to others in the same
in Silicon Valley are making the industry, according to current
leap now, but his sense is that trends in TechTarget’s IT Sal-
the tech economy on the East $$$ ary Survey 2012, these dis-
Coast is not robust enough to parities are likely to be with us
warrant a move. for some time. n

EDITOR’S LETTER

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
SECTOR IN 2012

GAP AMONG
INDUSTRIES IN
AVERAGE SALARY
FOR SENIOR IT IS
CONSIDERABLE

INFORMATION
TECHNOLOGY
COSTS MUST
CONSIDER THE
HUMAN FACTOR

IT LEADER AND
CIO SALARIES FOR
WOMEN DON’T
MEASURE UP TO
MALE PEERS


INFORMATION TECHNOLOGY
COSTS MUST CONSIDER
THE HUMAN FACTOR
Exact costs vary by industry and company size, but the bottom
line is clear: Businesses generally spend the most on employee
compensation. By Scot Petersen

A
EDITOR’S LETTER

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
LTHOUGH SPECIFIC COSTS 2012 examined IT careers, salaries,
SECTOR IN 2012 vary by industry and job satisfaction and drivers for pro-
company size, busi- ductivity. The survey data showed
nesses typically spend what motivates IT workers and how
GAP AMONG
INDUSTRIES IN more on labor or different levels of IT employees are
AVERAGE SALARY
FOR SENIOR IT IS
employee compensation than on treated when it comes to compensa-
CONSIDERABLE anything else. One notable excep- tion.
tion is the airline industry, whose For instance, senior IT leaders are
expense for fuel averages about even nearly four times more likely to leave
INFORMATION
TECHNOLOGY with labor costs, with each at their jobs because they need a new
COSTS MUST
CONSIDER THE
Information technology costs are challenge (26%) than because they
HUMAN FACTOR a big chunk of business expenses want higher pay (see Figure 3, page
too—between 2% and 4% of rev- 14). Leaving for a new challenge is
enue, according to Gartner Inc. also important to IT staffers (21%),
IT LEADER AND
CIO SALARIES FOR But because much of IT costs also but leaving for more money is a big-
WOMEN DON’T
MEASURE UP TO
consist of human capital, it quickly ger issue for them (12%) than for
MALE PEERS becomes obvious why the role of their bosses (7%).
IT and the transformation of the IT Also, IT staffers (6%) are more
department for the future should be likely than their senior IT leaders
core strategic functions for CIOs— (2%) to leave because of business
as much if not more so than which uncertainty. This makes sense if
technology to buy and deploy. you consider that senior IT leaders
TechTarget’s IT Salary Survey have more insight into what’s being


INFORMATION TECHNOLOGY COSTS MUST CONSIDER THE HUMAN FACTOR

Figure 3: WHY IT TALENT LEFT PREVIOUS POSITIONS

Senior IT leaders are more likely to leave their jobs in search of new challenges
than for bigger paychecks..

2
Business uncertainty 6

9
General dissatisfaction n SENIOR IT LEADERS
10
n GENERAL IT STAFF

New boss or management 4
2

24
Other
21

Position eliminated 7
due to merger or acquisition 5

EDITOR’S LETTER Previous position was evolving 6
in a way that didn’t interest me 6

Previous position was evolving in 2
SALARY a way that no longer fit my skills 2
STATISTICS
REVEAL MODEST Wanted a new challenge 26
21
GROWTH IN IT
SECTOR IN 2012
7
Wanted more money
12

GAP AMONG
Was fired 1
INDUSTRIES IN
AVERAGE SALARY Was laid off 13
FOR SENIOR IT IS (or would have been laid off) 14
CONSIDERABLE
0% 5% 10% 15% 20% 25% 30% 35% 40%

INFORMATION SOURCE: TECHTARGET’S IT SALARY SURVEY 2012
TECHNOLOGY
COSTS MUST
CONSIDER THE
HUMAN FACTOR
done in the business to address the 2012, ranging from 2% to 5%. For
changing climate and are better raises ranging from 20% to 50%,
IT LEADER AND
CIO SALARIES FOR able to gauge optimism about those however, the parity no longer exists:
WOMEN DON’T
MEASURE UP TO
changes. Senior IT leaders were much more
MALE PEERS The survey data also showed that likely (8%) than their IT staff (2%)
the higher ranking the IT executive, to be awarded big raises. This could
the higher his or her salary increase be related to the fact that senior IT
is likely to be (see Table 3, page executives have compensation tied
15). In short, a majority of IT staff to the completion of a big project or
(64%) and senior IT employees for hitting ROI.
(56%) received modest raises in Clearly, general IT staff cannot


INFORMATION TECHNOLOGY COSTS MUST CONSIDER THE HUMAN FACTOR

Table 3: SALARIES OF GENERAL IT STAFF

VS. SENIOR IT LEADERS
The majority of both IT staff and senior IT employees
received modest raises in 2012.

SALARY INCREASES GENERAL IT STAFF SENIOR IT LEADERS
0.01 - 1.9% 12% 6%
2 - 4.9% 64% 56%
5 - 6.9% 10% 9%
7 - 9.9% 3% 7%
10 - 14.9% 6% 9%
15 - 19.9% 2% 5%
EDITOR’S LETTER 20 - 49.9% 2% 8%
50 - 100% 1% 1%

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
SECTOR IN 2012

make these types of big increases, of giving incentives to certain low or
GAP AMONG
INDUSTRIES IN but this should be considered when mid-level workers to get retrained
AVERAGE SALARY
FOR SENIOR IT IS
a company tries to find skilled IT per- in needed areas will enable compa-
CONSIDERABLE sonnel for the types of IT specialties nies to retain workers rather than go
that will emerge over the next few through the time and expense
years—in services management, of finding new ones. n
INFORMATION
TECHNOLOGY collaboration and data analysis, Additional reporting by
COSTS MUST
CONSIDER THE
among others. Perhaps a strategy Wendy Schuchart.
HUMAN FACTOR

IT LEADER AND
CIO SALARIES FOR
WOMEN DON’T
MEASURE UP TO
MALE PEERS


IT LEADER AND CIO SALARIES
FOR WOMEN DON’T MEASURE
UP TO MALE PEERS
What’s behind the lagging CIO pay for women IT leaders?
By Karen Goulart

G
EDITOR’S LETTER

SALARY
STATISTICS
REVEAL MODEST
GROWTH IN IT
ENDER MATTERS WHEN it in salary averages between genders
SECTOR IN 2012 comes to IT leader continues to occur across industries,
and CIO salaries. but it is disproportionately present
Data from TechTar- among higher-level jobs, said Cath-
GAP AMONG
INDUSTRIES IN get’s IT Salary Survey erine Hill, research director at the
AVERAGE SALARY
FOR SENIOR IT IS
2012 shows that, in general, women American Association of University
CONSIDERABLE CIOs and IT leaders are making less Women (AAUW), a Washington,
money annually than their male D.C.-based women’s equity advo-
peers. cacy organization. TechTarget’s find-
INFORMATION
TECHNOLOGY Of the 778 senior IT leaders sur- ings reflect national trends, including
COSTS MUST
CONSIDER THE
veyed, 138 female respondents who those found in the AAUW’s 2012
HUMAN FACTOR were either a vice president or CIO study, The Simple Truth About the
or reported into a C-level execu- Gender Pay Gap.
tive reported an average salary of “Some of the biggest pay gaps are
IT LEADER AND
CIO SALARIES FOR $86,294. The salary average for their among the most highly educated
WOMEN DON’T
MEASURE UP TO
631 male peers was $108,741. More- women at leadership levels,” Hill
MALE PEERS over, a surprising 60% of female said. “Often we’ll hear there’s such
executives reported earning less great equality in a particular field
than $89,000 annually, compared to because there are so many women
just 40% of their male peers report- in senior positions, but when you
ing similar salary averages. drill down you often find bigger pay
Women in IT are not alone when inequality at the top.”
it comes to pay inequality. Disparity According to 2011 U.S. Census


IT LEADER AND CIO SALARIES FOR WOMEN DON’T MEASURE UP TO MALE PEERS

Bureau data, about 6% of all women
workers earned $100,000 or more,
WHILE MORE THAN
compared to 15% of male workers. 5% OF MEN IT LEADERS
Put another way, Hill said, “Women REPORTED SALARIES
make up about a quarter of workers
earning $100,000 or more annually
OF $190,000 OR
but make up nearly half of the overall HIGHER, ONLY 1.5%
workforce.” OF WOMEN MATCHED
The TechTarget IT Salary Survey
2012 reflected a similar gap in the
THOSE EARNINGS.
upper ranks of CIO salaries. While
more than 5% of men IT leaders In her current role, “Nancy,” vice
reported salaries of $190,000 or president of project management at
EDITOR’S LETTER higher, only 1.5% of women matched a Seattle digital marketing company,
those earnings. In fact, women earn- said she is being fairly compensated,
ing average salaries higher than but this wasn’t always the case.
SALARY
STATISTICS $130,000 were a rarity (14%) com- “Early on I approached my boss and
REVEAL MODEST
GROWTH IN IT
pared with their male counterparts provided him with examples of work
SECTOR IN 2012 earning that rate (27.2%). I’d done and ended up getting a pro-
motion as a result of that conversa-
tion, which I don’t think would’ve
GAP AMONG
INDUSTRIES IN CIO SALARIES: SELF-ASSESSMENT KEY happened otherwise,” Nancy said. At
AVERAGE SALARY
FOR SENIOR IT IS
IN CORRECTING A PAY INEQUALITY first she didn’t feel this was a gender
CONSIDERABLE A few of the women who took Tech- issue, but upon further reflection, she
Target’s IT Salary Survey 2012 said saw a link. “It could be that men are
they were not surprised by the sal- more vocal about self-appraisal ver-
INFORMATION
TECHNOLOGY ary survey findings, although they sus women,” Nancy said.
COSTS MUST
CONSIDER THE
weren’t immediately willing to pin Vocalizing her self-worth also
HUMAN FACTOR the disparity solely on gender. Their made a big difference for “Paula.”
names have been changed, but their Today she is the IT manager at an
job titles and locations are real. Oregon-based direct marketing
IT LEADER AND
CIO SALARIES FOR All of the female IT profession- company. During the course of more
WOMEN DON’T
MEASURE UP TO
als who were interviewed maintain than 20 years in the industry, her
MALE PEERS leadership positions that put them jobs have included programmer and
in charge of determining salaries of manager of a business intelligence
their team members, and they are team. On average she makes about
acutely aware of sticking to metrics as much as her male counterparts
and keeping pay fair. It is sometimes but only after realizing that she had
a different story when it comes to sold herself short, she said.
their own pay. When Paula took her current posi-



tion, she assumed her company needed to negotiate her salary,
could not afford to pay her more which is in the average range of the
because it was a smaller business, TechTarget survey’s IT leader and
she said. After being on the job for CIO salaries. However, she added
about a year, she learned that the that with her experience, advanced
previous CIO had earned signifi- degree and certifications, she ought
cantly more. Despite having a sub- to be making more. But because of
C-level title, Paula was doing the the specialized nature of her job over
same work but was earning a lower the years, her position isn’t easily
salary. She put together a case for categorized, making it difficult to
why she should be paid more and attach it to an industry standard or
did get a sizable raise that put her fight for pay equality.
on par with her predecessor. “If I had
EDITOR’S LETTER known about the previous CIO soon-
er, I would have been able to nego- IT’S NOT UNUSUAL FOR
SALARY
tiate for a higher salary in the first
place, leading back to the thought
JOB SATISFACTION TO
TRUMP THE DESIRE
STATISTICS
REVEAL MODEST that we don’t ask for enough,” Paula
FOR HIGHER SALARIES.
GROWTH IN IT
SECTOR IN 2012 said.
Paula is still earning slightly less
than the previous CIO, but the gap
GAP AMONG
INDUSTRIES IN is now smaller. That works for her “Personally, I have viewed my
AVERAGE SALARY
FOR SENIOR IT IS
for now because her job satisfaction salary as the secondary salary in
CONSIDERABLE is high. “I love my job, and having a our household, and I still feel very
sane place to work is priceless,” she blessed to be earning a ‘secondary’
said. salary that is more than the com-
INFORMATION
TECHNOLOGY Indeed, it’s not unusual for job bined salary of some households,”
COSTS MUST
CONSIDER THE
satisfaction to trump the desire Cynthia said.
HUMAN FACTOR for higher salaries. “Cynthia,” IT The underestimation of one’s
director at a Pennsylvania univer- worth is not uncommon among
sity, said she agrees completely working women in general, Hill said.
IT LEADER AND
CIO SALARIES FOR with the notion that women tend to But it is particularly high among
WOMEN DON’T
MEASURE UP TO
have lower salary expectations and better-educated women in what are
MALE PEERS demands. She said she views this as considered historically male indus-
unfortunate, but at the same time tries like science and medicine.
she is satisfied with what she makes, Although both women and men
despite suspecting she may be get- are loath to admit it, gender bias still
ting shortchanged. exists and it comes from both sides,
Cynthia said that during her Hill said. She pointed to a recent Yale
30-year IT career she has never University study in which male and



Figure 4: CIO SALARIES BY GENDER

Salary gaps still exist between men and women CIOs.

25

20 n FEMALE
n MALE

15

10

EDITOR’S LETTER
5

SALARY
STATISTICS 0%
$30K $30- $50- $70- $90- $110- $130- $150- $170- $190- $210- $230- $250- $300- $500-
REVEAL MODEST 49K 69K 89K 109K 129K 149K 169K 189K 209K 229K 249K 299K 499K 999K
GROWTH IN IT
SECTOR IN 2012

GAP AMONG
INDUSTRIES IN
AVERAGE SALARY
FOR SENIOR IT IS
female candidates for a chemistry dence that our biases are simply a
CONSIDERABLE lab manager job were presented to part of how we perceive things; we
male and female scientists. Both the don’t hold these stereotypes con-
male and female scientists offered sciously, and somehow that makes
INFORMATION
TECHNOLOGY lower average salaries to the candi- them even more dangerous, so we
COSTS MUST
CONSIDER THE
dates with female-sounding names have to pay attention to them,” Hill
HUMAN FACTOR on the resumes. said. “Certainly there have been
$$$ $
When it comes to CIO sala- enormous gains for women in
ries and pay inequality (see the workplace over the last 50
IT LEADER AND
CIO SALARIES FOR Figure 4), there are no easy years, but there are still stereo-
WOMEN DON’T
MEASURE UP TO
answers. “There is a lot of evi- types that inform us.” n
MALE PEERS


ABOUT THE AUTHORS

Wendy Schuchart is
site editor for SearchCIO-
Midmarket.com. Before
joining TechTarget, she was
a technology and process analyst at
The Nielsen Co., and a section editor IT Salary Survey 2012:
Paychecks, Pride and Peace of Mind
for Network Computing and Secure is a TechTarget e-publication.
Enterprise magazines. Write to her at
wschuchart@techtarget.com.
Mark Schlack
Senior Vice President of Editorial
Linda Tucci is news direc-
tor for SearchCIO.com and
Cathleen A. Gagne
EDITOR’S LETTER SearchCIO-Midmarket.com. Senior Editorial Director
She covers CIO strategies
for business intelligence, big data, off-
SALARY Christine Casatelli
STATISTICS shoring, mobile computing and social Senior Managing Editor of E-products
REVEAL MODEST
GROWTH IN IT
media. She also writes frequently about
SECTOR IN 2012 the CIO role and CIO careers. Write her
Linda Koury
at ltucci@techtarget.com. Director of Online Design
GAP AMONG
INDUSTRIES IN
AVERAGE SALARY Karen Goulart is features Neva Maniscalco
FOR SENIOR IT IS Graphic Designer
CONSIDERABLE writer for SearchCIO.com
and SearchCIO-Midmarket.
com. She covers CIO strate-
INFORMATION TechTarget
TECHNOLOGY gies for cloud computing and virtualiza-
275 Grove Street
COSTS MUST
CONSIDER THE
tion, the data center and business appli- Newton, MA 02466
HUMAN FACTOR cation trends. Write her at kgoulart@ www.techtarget.com
techtarget.com.
© 2013 TechTarget Inc. No part of this publication
IT LEADER AND may be transmitted or reproduced in any form or
CIO SALARIES FOR by any means without written permission from the
WOMEN DON’T publisher. TechTarget reprints are available through
MEASURE UP TO The YGS Group.
MALE PEERS

About TechTarget: TechTarget publishes media for
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TechTarget's IT Salary Survey Results 2012

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