Study: Department Shuffles Boost IT SalariesStudy: Department Shuffles Boost IT Salaries

IT department reorganizations are leading to higher salaries on average at many companies, reversing a nationwide trend of declining IT compensation, according to a new survey conducted by Janco Associates.

The mean IT salary for all positions at large companies has increased nearly $5,000, to $78,687, largely because many businesses have retained more senior, experienced workers during staff reductions, according to the IT consulting firm.

While IT salaries on average aren't showing the decline that occurred last year, the trend doesn't bode well for entry-level workers, Janco CEO Victor Janulaitis says. Some companies surveyed say they plan to fill open IT positions in the coming months, but few are reporting a strong need for workers with less than five years experience. Instead, he says, companies continue to seek and hire experienced workers.

Those in the top IT position, meanwhile, aren't getting the salaries awarded a few years ago. The mean compensation for a CIO for 2003, including bonuses, stock options, and fringe benefits, is just over $350,000, a level not seen since 1998. CIOs made the most money in early 2001, when the mean compensation was nearly $450,000, according to Janco.

The firm also found that many IT organizations have eliminated training, planning, and change-management positions and have restructured to focus primarily on their ongoing operations, a trend that could put companies at risk, Janulaitis says. What's more, CIOs and senior IT managers have more people reporting to them because of cuts in midlevel management. For staffers, companies have increased salaries in hot areas such as voice/wireless communications and security, and in some cases have elevated those jobs to senior-level status.