Information Technology Field Has Top Incomes Over $500,000

Compensation in the Information Technology Field, 15th Edition

PUBLISHED: January 2001

Summary of the 593-page Compensation in the Information Technology Field, 15th Edition survey report of 83 benchmark jobs from Abbott, Langer & Associates, Inc.  The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 25 benchmark jobs, and the factors affecting salary (Geographic Area, Type of Employer, Fiscal Size of Organization, Operating System Used, Level of Education, Length of Experience, and Supervisory Responsibility).

The composite Information Technology practitioner with the highest annual income (salary plus cash bonus and cash profit sharing) is an Information Technology Director with 5 or more years of experience in the field, who has a bachelor or graduate degree, and oversees 10 or more programmers and systems analysts. He or she holds a position with a programming/systems analysis consulting firm, a service firm, a chemical & allied products manufacturer, a merchandising firm, an aerospace & aircraft products manufacturer, or an educational institution.

The organization probably has an annual revenue of $250 million or more and an annual IT budget of $2,500,000 or more. He or she is headquartered in Boston, San Francisco, New York City, Newark/Jersey City, Los Angeles, St. Louis, Nassau/Suffolk Counties (NY), Oklahoma City, or Washington, DC.

While the median IT Director makes $90,000 per year, the highest-paid individuals reported in the group make well over $500,000 annually.

Far to the other end of the income spectrum, data entry clerks have a median salary of $24,520. Making as little as $7,614, the composite lowest-paid data entry clerk works for an educational institution, fabricated metal products manufacturer, a health care organization, a programming/systems analysis consulting firm, or a merchandising firm with a professional IT staff of under 5 people and a total annual IT budget of $1 million to $2.49 million. The organization is headquartered in or near Allentown/Bethlehem (PA), Savannah, Macon, Seattle/Everett, or outside the metropolitan areas studied in Florida or New Jersey.

This composite represents the briefest possible "boil-down" of the voluminous data provided by 229 organizations regarding the current salary, salary ranges, bonuses & profit-sharing, and numerous demographic variables for over 2,800 individuals in 83 jobs in the Information Technology field. These organizations took part in the fifteenth annual survey of the IT field, sponsored by Deloitte & Touche LLP. Copies of the complete, 593-page report, Compensation in the Information Technology Field, 15th Edition, are available for $995.00 through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete IL 60417 (telephone 708/672-4200; fax 708/672-4674).

It would be an exercise in futility to attempt more than a superficial overview of the survey results in this summary. However, some overall data can be presented herein and some comments on the relationship of the various demographic variables to income in the IT field can be made.

In addition to the income of the job already discussed, the median total cash compensation of some of the other 81 jobs included in the survey report are:

Most IT jobs are compensated best in the northeastern and midwestern states; least well in the Rocky Mountain and southern states; with the southwestern, Pacific, and north central states falling between.

Of the metropolitan areas studied, most IT jobs are compensated best, in descending order, in Nassau/Suffolk Counties (NY), Boston, Sacramento, Philadelphia, Dallas/Ft. Worth, San Francisco, Minneapolis/St. Paul, and Hartford (CT). The lowest incomes tend to be found in the Kansas City, Amarillo, Lincoln (NE), Scranton/Wilkes-Barre, Little Rock, Birmingham, Bangor, Allentown/Bethlehem, and Savannah metropolitan areas.

The highest-paying employers tend to include manufacturers of chemical/pharmaceutical/plastic/rubber products, primary metal products, automobiles/trucks/automotive parts & accessories, food, beverage & tobacco products, fabricated metal products, and electrical/electronics/aerospace/aircraft products. The lowest-paying employers, in ascending order, usually include the following types of organization: educational institutions; hospitality organizations; non-profit organizations; state & local governments; merchandising firms (Internet/resale/wholesale); transportation services; insurance companies; and health care organizations.

This factor is an excellent predictor of compensation in the Information Technology field. Median income rises regularly with increasing fiscal size of the organization, whether it is annual sales of manufacturing/extractive organizations or annual sales of merchandising firms.

The highest median annual income is found when multiple mid-range systems are used. The lowest income is reported when a single mid-range operating system is used.

Higher educational attainment is generally rewarded by higher income in IT jobs. Overall income rises regularly with increased education (rising 338% from the median income of those with no college to the median income of those with a doctoral degree, and 169% from the median income of those with a bachelor degree to the median income of those with a doctoral degree).

As could be expected, length of experience is usually directly related to the income of IT employees, regardless of the job level. The median income of those with 25 years of experience or more is 97% higher than those with little or no experience.

This factor is an excellent predictor of compensation in the Information Technology field. Median income increases regularly with increasing supervisory/managerial responsibility over professional employees (programmers, systems analysts, etc.). Overall, the income of those directing the activities of 10 or more professional subordinates is 54% higher than that of those who supervise the work of only one or two such subordinates, and 111% higher than those with no supervisory responsibility.

Even supervision of only sub-professional employees (clerical and machine operation personnel) results in a higher overall income. Those who supervise five or more such employees have a median income of $48,100 compared to $47,399 for those who supervise only one or two such employees, and $45,678 with no supervisory responsibility.

the 593-page survey report, Compensation in the Information Technology Field, 15th Edition, described on this page for $995, with charges for shipping & handling (and IL sales tax, if applicable). The report is IN STOCK and can be shipped out within two business days. The mean, median, 1st and 3rd quartile, and 1st and 9th decile data for base salary, bonus/commission/profit sharing, and total annual cash compensation are reported for many demographic variables, including education, experience, geographic location, type and size of employer, etc. To purchase the report, use our On-Line Order Form, call 708/672-4200, email, fax, or write per the information at the bottom of this page.