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| New Compensation Study Reveals That More Than Half of IT Professionals Leave Their Employers Within Three Years |
| Research shows that competitive pay ranks only fourth in effective retention practices |
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BRIDGEWATER, N.J., July 31, 2001 — A new study by people3, a Gartner, Inc. (NYSE: IT and ITB) company, reveals that the average tenure for an IT professional is less than three years, and that more than half of IT professionals leave their employers within that time.
According to people3's 2001 IT Market Compensation Study, three factors -- the use of new technologies, offering learning and training initiatives, and providing a challenging technical environment -- ranked higher than competitive, market-based salaries as effective retention practices. "While turnover in IT organizations is generally lower across the board, the workload of the IT function is expected to increase 50 percent by 2005," said Linda M. Pittenger, president and CEO of people3. "It is absolutely essential for IT and human resource leaders to have the right programs and policies in place to attract and retain IT staff during the next few critical years." Other findings from the study, which was released today, include: Of the 104 IT jobs analyzed, the position that takes the longest average time to fill is network architect (4.2 months), with database administrator coming in second (3.7 months). Of the 25 IT job families analyzed, the largest average base salary increase (7.1 percent) and total cash compensation increase (8.1 percent) was found within the system-programming job family. The median base salary for the IT jobs surveyed was $62,100 (an increase of 1.8 percent over last year), and median total cash compensation was $64,200. The study, published annually by people3, is a comprehensive guide to human capital issues within the IT industry. It includes strategic information on issues such as recruitment, retention, rewards, recognition and career development, along with tactical compensation information in areas such as base pay, "hot skills" pay, project milestone pay, and other short- and long-term incentives. The study uses market data and replacement cost data from recruitment firms to determine how much it will cost to replace an employee who leaves one company to join another. About people3 people3, the world's leading authority on IT human capital, provides "people solutions" for IT organizations. Supported by seasoned human resources and IT consultants who understand the unique languages and issues of both the HR and IT communities, people3 help its clients to accelerate the achievement of their goals by maximizing their human capital. Along with its custom consulting services, people3 also delivers solutions through an IT workforce management software tool called peoplepower(TM), and an annual compensation study that focuses solely on the IT industry. people3, a Gartner company, was founded in October 1998 and is headquartered in Bridgewater, N.J. For more information on people3, please call us at 1-888-PEOPLE3 or visit our Web site at www.people3.com. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $859 million. For more information, visit www.gartner.com. |
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Contact: Kevin Punsky Dalton Agency 1-904-398-5222 |
