Dot.com Jobs Lose Their Luster Yet Technology Salaries Soar
FRAMINGHAM, MA –SEPTEMBER 8, 2000 –Technology employers are willing to pay out the big bucks but seasoned experience is the key to snagging a six-figure salary, according to the 14th Annual Salary Survey, featured this week on Computerworld.com.
For its 14th Annual Salary Survey, Computerworld, an information services company for the IT Leader community, polled over 700 IT managers and senior executives, employing more than 700,000 IT professionals to provide the average IT salaries for this year.
This year's survey uncovered the lengths that many companies will go to attract talent. For example at Lisle, Ill.-based Tellabs Operations Inc., which designs, manufactures and supports telecommunications equipment, a $1.8 million program gives employees a chance to win $4,500 if a referral gets hired. Just for submitting a resume, applicants can win a DVD player or new car.
As the Computerworld report reveals, while many companies are making a major effort to attract and retain talent, including offering double-digit salary increases and ever-more-generous bonus plans, many employers are refusing to pay high salaries to candidates with limited experience. This change is attributed to the dot-com shakeout, which has left many companies without the funds to provide highly competitive compensation.
Another result of this year's dot.com fallout is a shift in the type of compensation that candidates are looking for. Stock options are starting to lose their luster and instead, companies are turning to innovative bonus plans, which pose a number of advantages: They can attract, retain or motivate workers and – because they are variable – can help maintain payrolls through good and bad times. For example, Foote Partners LLC in New Canaan, Conn., has developed a program that gives bonuses for performance over two or three years, not just annually, with a big bump in stock and cash.
The Computerworld report discovered that many job seekers are beginning to look beyond the monetary compensation and ask themselves whether the work looks interesting and exciting in the short term and how well the job positions them for the next job they take.
According to one hiring expert that Computerworld spoke to, job candidates will begin to look at their jobs more closely due in part to the dot.com shakeout. The reason for this is that many of these companies do not have the drawing power with stock options they used to have. In addition these companies are unable to offer bonuses based on earnings because they do not have earnings in their early plans.
"As we've observed from past salary surveys, shifts in hiring trends are often directly related to changes in the market," said Maryfran Johnson, editor-in-chief of Computerworld. "It's clear that technology salaries are on the rise, but this year, many job seekers are more weary of the hazards of dot.coms. As a result the brick and mortar companies have a greater advantage in locating quality talent."
The 14th Annual Survey, including a breakdown of salaries by industry, company size and job title is currently online at www.computerworld.com and in this week's print edition of Computerworld.
Computerworld, Inc. is a complete information services company for the IT Leader community, providing print and online publications, books, conferences and research services. The company's flagship weekly newspaper for IT Leaders has been recognized numerous times by Folio: Magazine and the Computer Press Association as the best computer newspaper. Computerworld, with a circulation of 250,000, is read by more senior-level managers than any other ITnewsweekly, according to IntelliQuest CIMS v.6.0. News and resources for the IT Leader community are available through Computerworld's Web site at www.computerworld.com. Computerworld is based in Framingham, MA. Computerworld is a business unit of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 300 magazines and newspapers and 4,000 book titles and offers online users the largest network of technology-specific sites around the world through IDG.net (http://www.idg.net), which comprises more than 270 targeted Web sites in 70 countries.
IDG is also a leading producer of 168 computer-related expositions worldwide, and provides IT market analysis through 50 offices in 43 countries worldwide. Company information is available at http://www.idg.com.