According to the latest annual survey of IT directors from ReThink Recruitment, 59% of IT departments will be increasing salaries and contractor rates in the coming 12 months.
Over the past 12 months, 54% of directors increased the salaries of IT workers by an average 4.3%. The average increase for general workers was just 2.3% according to data from the ONS.
Although IT staff are likely to see higher increases than other employees, runway inflation will continue to erode actual take-home pay.
Michael Bennett from ReThink said IT workers have seen their salaries decrease by £360 in real terms over the past 12 months. He based his figure on 5.2% RPI inflation. However, IT salaries are still ahead when compared with average workers in the UK and there have not been any major decreases during the first quarter of this year.
mCommerce specialists can get as much as 20% more than traditional eCommerce staff and in the financial services sector, IT staff can command high rates from insurers who need to invest in new compliance systems.
By the middle of next year, insurers will have to produce their plans for implementing Solvency II and this will mean several will need to invest heavily in their IT systems. There is a shortage of people with skills in Solvency II modelling and therefore salary rates have rocketed. Senior specialists are earning more than £150,000 a year, or £1,000 a day and there are no signs that these rates will decrease.
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