New research from the National Computing Centre reveals that the IT labour market was fairly stable last year with both staff turnover and perceived shortages being only marginally down on the previous year. However, there has been a slight increase in respondents’ predictions for growth in IT employment over the next two years, up by 2%. The research, published in the NCC Benchmark of IT Salaries and Employment Trends 2007 provides detailed breakdowns of IT salaries across 36 job roles, industry sectors, department size and geographical region. Key findings include:
48% of respondents expect the total number of IT staff to increase over the next two years (up 7% on last year’s results), with systems developers showing the highest growth rate.
Overall, respondents report an average total increase in salary of 3.6% over the last year, which is in-line with the rest of the economy – Government statistics for the period show overall average earnings excluding bonuses increasing by 3.6%. An IT Manager can now typically expect to earn a median salary of £46,515, whilst a graduate trainee working in systems development would typically receive £17,888.
Regional differences are quite marked. The Greater London weighting typically adds 22% to average salary levels. Those working in Wales, the North and Scotland typically earn less than the average – a Scottish based IT Manager would typically earn a median salary of £43,847.
As in previous years the finance sector reported the highest average salary (across all IT roles) of £39,019, closely followed by the IT services sector at £36,133. At the other end of the scale, public sector respondents from local and central government, education and health tend to report lower than average salaries. The average IT salary in the health sector is just £27,237.
Public sector employees also tended to receive the lowest levels of total salary increase, typically 3.2%. The finance sector reported the highest increases at 4.4%. No surprise that the Government sector was the most likely to report recruitment/retention problems (47%).
The picture looks brighter for public sector employees when it comes to bonuses – last year saw a significant increase in the number of authorities offering bonuses – up by 29% since the 2006 Benchmark. This is likely to be due to staff outsourcing to private companies, compensation for a deteriorating pension provision and general marketplace competition for skills.
The amount of IT workers benefiting from flexible working arrangements continues to increase, whilst only 9% of respondents reported any shiftworking, down from 14% last year.
Stefan Foster, Managing Director of NCC said, “Although there are fundamental changes in the way IT is delivered, the IT profession not only remains stable but is evolving to meet changing business demands. Employers need to be aware of what they need to pay to attract and retain crucial IT staff and skills.”
Almost half of the respondents expect the total number of IT staff employed at their installation to increase over the next year. Browser based technologies head up the list of skills most in demand, with Microsoft .Net, Java and Microsoft SharePoint skills being particularly sought after. Employers will also be fighting to attract IT staff with Oracle and SAP skills, with the consequent effect of these people attracting above average salary packages.
“Interestingly, soft skills have not been explicitly identified as in demand. There has been much industry talk about the rounded IT professional having both technical, soft and entrepreneurial skills, but other than project management skills, our survey reveals that technical skills requirements still come first”, said Stefan.
Employers can use the Benchmark to establish appropriate remuneration packages for IT staff (including shiftworking, contract and callout staff) and identify where future skills shortages may lie. The benchmark is available from the National Computing Centre online shop (www.nccshop.co.uk) or by calling NCC on 0161 242 2121.
Notes to Editors
About The National Computing Centre (NCC)
The National Computing Centre (NCC) is the UK's leading independent IT membership organisation, serving corporate, vendor and government communities.
We champion the effective use of IT to help maximise the competitiveness of our members' businesses. We deliver demonstrable value via a portfolio of distinct membership services, comprising; research, education, accreditation, development, and networking. We influence the evolution of IT in the UK marketplace on behalf of our members. We are a social enterprise.
The Benchmark of Salaries and Employment Trends in IT 2007 is delivered through NCC’s Principia service. Principia is a membership programme for IS and IT decision makers and helps IT directors and managers, functional specialists and individuals to grow their skills, knowledge, contacts and careers in IT by providing independent advice, guidance, best practice and research.
The NCC Benchmark of Salaries and Employment Trends in IT 2007 is based on the responses of 291 responding organisations and is available for purchase from NCC’s online shop (www.nccshop.co.uk) for £330 for the full report. Discounts to National Computing Centre members apply. Alternatively customers can call NCC on 0161 242 2121 to place their order.
The Benchmark of IT Salaries and Employment Trends in IT 2007 is a key component of NCC’s annual portfolio of IT decision maker surveys, which also includes:
- The Benchmark of IT Spending
- The Benchmark of IT Strategy
Press Contact
Michael Dean
National Computing Centre
Oxford House, Oxford Road
Manchester M1 7ED
