The results are in, and it's good news for everyone working in the high tech industry. According to an annual survey by Dice, salaries in the high tech industry increased an average of 5.2 percent in 2006. Specifically, the average salary grew to $73,308 in 2006 from $69,700 in 2005. The increase beats the 2006 annual inflation rate, which is good news for IT Professionals.
The good news extends to System i professionals their salaries seem to be following the trend.
According to Nate Viall, a System i recruiter and analyst and president of Nate Viall and Associates, the increase is occuring because managers increasingly realize that "good talent" is a finite resource, and in order to attract the best talent, they are willing to pay higher salaries.
Scot Melland, president and CEO of Dice, concurs with this rationale. "We've found that salaries are generally on the rise because of a tightening in the tech job market. Demand has been increasing steadily over the last few years, and employers are offering more competitive salaries in order to attract and retain tech employees," he says. "As long as demand continues to rise, it's likely that salaries also will increase."
Frank Lazzara, the director of technology at the D. Abbott Turner College of Business at Columbus State University, says that the overall salary trend for administrator and analyst positions has turned back upward as openings have increased. Consequently, individuals can demand higher starting salaries again.
Average starting salaries for these positions increased an impressive 13.1 percent over 2005 levels to $42,414 in 2006.
The Dice survey also addresses the controversial topic of the "gender gap" in the IT technology workforce.
Although the gap is higher among individuals working in the medical/pharmaceutical and telecommunications industries, women in the IT industry in 2006 earned an average of $67,542 or 9.7 percent less than men who work in technology.
It is important to note that there is virtually no difference in the salaries of women and men entering the IT workforce when they are in their 20s; however, there are gaps of at least 10 percent on the average (with exceptions) between men and women's salaries after the age of 30.
Although it may be easy to draw conclusions from this difference in pay, there are other variables involved. "Generally, the gap in pay between men and women often occurs because women will take a break in the prime of their careers to concentrate on family," Dice's Melland says.
Viall agrees with the assessment that women are generally the primary caregivers for children and that the situation may indeed be one of the variables in the gender-gap equation.
In the System i market, it appears that salaries among System i professionals are following the growth trend and could even be surpassing the average increase.
"The rate of salary growth is poised to likely grow more rapidly [for System i professionals]," Viall says.
Can System i professionals do anything to further increase their salaries? Traditionally, individuals with a background in a particular skill set were more likely to be hired and/or earn more than individuals who did not possess the specific skills.
Today, companies are recognizing that the quality of an individual person may override a "good resume," Viall says. "It's less and less about skills and more about the quality of a particular individual. Before, there was too much of a focus on nouns [skills] and not enough on verbs."
This "new-found mentality" is undoubtedly music to the ears of individuals who possess the unique ability to learn, grow, and adapt to an ever-changing work environment.
In all likelihood, System i professional salaries will continue to rise as there continues to be more demand for IT workers.
"[System i Professionals] will be successful due to possessing unique skill sets for the business community," Lazzara says. "With increasing demand, their salaries will continue to increase."