SALARY ON THE RISE — BUT IS IT ALL POSITIVE?
As an employee, it's only natural to have inquiries about your pay. Are you being adequately compensated for your skills and efforts? Is there potential for higher earnings with a different employer or in a different role, perhaps with more experience?
On the flip side, employers are grappling with their salary-related questions. Are they attracting top talent with the right salary structures? What about salary increases and bonuses? Is the current compensation satisfactory for skilled employees, or could they be enticed by better financial opportunities elsewhere?
Table of Contents
KEY FINDINGS
Workers aspire to receive compensation that aligns with their perceived value, while employers must gauge if they are presenting enticing packages to attract and retain top-tier talent.
The Report
We’ve compiled data and looked at multiple factors that contribute to salary and compensation packages, including:
Education
Responsibility Level
Career Experience
Specific Functional Job
Role Bonuses
2023 IT professionals witnessed a notable increase in earnings compared to the previous year, with an average annual salary of $96,185, marking a substantial rise from the reported average of $77,684 in 2022. Factors contributing to this significant surge included strong job performance, standard company increments, and promotions.
The average annual salary is $126,411 this year. Further breakdown reveals that IT decision-makers earned $138,591, while IT staff earned $114,676.
Encouragingly, for IT professionals globally, all regions experienced a salary increase from 2023. On a global scale, IT decision-makers generally earn more than IT staff.
RESPONSIBILITY LEVEL
Our research encompasses salary data across a spectrum of IT professionals, from non-management staff positions to decision-makers, directors, and individuals occupying executive roles.
Non-management IT staff (those who do not lead a team) represent 52% of the respondents for this report. | Mid-level professionals (managers and team leaders) represent 36% of our respondents. |
Mid-level job roles: •Cloud Architect  IT Auditor  •Network Engineer/Technician  •Software Engineer  •Technical Support | Common job roles: •Information Security  •Infrastructure Manager  •Project Manager  •Solutions Architect  •IT Audit Manager |
Senior-level professionals (vice presidents, directors) account for 10% of our respondents. | Executives (C-suite) account for 2% of our report. |
Common job roles: •Director, Vice President •Program Manager  •Enterprise Architect  •Security Manager  •IT Compliance Manager | Common job roles: •Chief Executive Officer (CEO)  •Chief Information Officer (CIO) •Chief Security Officer (CSO)/Chief      •Information Security Officer (CISO) •Chief Technology Officer (CTO) |
CAREER EXPERIENCE
Most of our survey participants for this year’s report had one to five years of experience. Roughly half of those in our survey are at the start of their careers, having between one and ten years of experience.
In previous years, IT staff and decision-makers earned more money as they accumulated more experience. This was still the case where we saw a steady increase as years of experience increased.
This year, salaries dipped slightly in the 16-20 year range, went back up in the 21-25 year range, and then dipped again at 26+.
JOB FUNCTION
The top three highest-paid functions in 2023 are as follows:
IT Executives ($168,027)
Cloud ($165,056)
IT Architecture and Design ($142,689)
The previous year, service desk/IT support emerged as the lowest-paying job function. Globally, other parts falling among the lowest-paying roles include infrastructure, networking, and telecommunications.
INDUSTRY
There's positive news for IT professionals in the system integrator and Value-Added Reseller (VAR) integrator field—the industry boasts the highest average salary at $170,517.
The natural resources sector increased to $119,543. IT software, plus hospitality, travel, and recreation, showed significant increases, too.
U.S. SALARIES
IT professionals in the United States, covering all 50 states, the District of Columbia, and Puerto Rico, command an average annual salary of $124,931. Delving deeper reveals significant variations in wages among states.
Consistent with trends observed in recent years, the states with the highest-paying salaries exhibit slight variations annually. Generally, states with elevated living costs and intense competition offer higher wages. This year, the East Coast emerges as a region with some of the highest salaries, with notable entries from unexpected states.
While it's expected that states like New Jersey, Maryland, and Massachusetts rank among the top five, what sets this year apart is Montana claiming the number one position. However, it's essential to consider that Montana had one of the smallest respondent groups in our survey.
RAISES
For IT workers who experienced a salary increase in 2023, the average amount was lower than in previous years. Notably, decision-makers received the highest average raise at $7,576, while the lowest raise amount was reported, where IT staff observed a $1,774 increase in their salaries.
In the broader context, IT professionals, on average, received a three percentage point lower raise than the previous year.
Those who witnessed a salary increase attributed it to factors such as job performance, standard company raises, and the development of new skills, ranking these as the top three reasons for the upward trajectory in pay.
BONUSES
In the previous year, there was an overall decline in earned bonuses. Globally, in 2021, 57-69% of eligible decision-makers and 43-55% of eligible staff received a bonus. By 2022, the figures slightly decreased to 53-62% for decision-makers, although they remained unchanged for staff. In the current year, a significant portion of IT professionals, 61%, were eligible for bonuses.
POSITIVE OUTLOOK: CONTINUED PROSPERITY IN TECH
Our findings indicate that IT professionals are enjoying the fruits of their expertise, with salary trends showing an upward trajectory. This suggests a growing demand for IT skills, with companies showing a willingness to invest in tech talent to stay abreast of digital and business transformation demands.
Despite this, decision-makers grapple with persistent skills gaps, with 66% reporting such challenges in their teams in 2023, a scenario reminiscent of the previous year. The primary culprit is the rapid pace of technological change, which is unlikely to abate. Addressing this requires providing opportunities for reskilling and upskilling and fostering a culture of continuous learning. Consequently, 45% of IT decision-makers plan to bridge skills gaps by training their existing teams.
Anticipating a positive trend, 56% of IT decision-makers expect their budgets to increase, with only 12% anticipating a decrease. This expectation aligns with the reality that virtually every business across sectors relies on technology, and as new technologies are adopted, this dependence is poised to grow. This realization drives a surge in IT investment across industries, spurring innovation and efficiency.
IT professionals, therefore, find themselves in a pivotal role, not only shaping the trajectory of their careers but also influencing the growth of the organizations they serve.
Chauster is dedicated to advancing the technology workforce for organizations globally. We understand that the most challenging aspect of building a business extends beyond software and technology development—it involves nurturing the individuals who contribute to your business growth. As your exclusive partner, we specialize in assisting leaders in
simultaneously enhancing their teams and products.
Our upskilling and cloud transformation solutions empower you to cultivate the talent you require precisely when needed. Through collaborations with Chauster and Skilldacity, we offer courses authored by experts in the latest technologies and certification preparation.
By upskilling your teams with our comprehensive set of skills, we enable your team to execute strategic objectives that drive innovation, automation, and efficiency. Chauster is committed to supporting your organization in concurrently building better teams and products.
