Despite rising labor costs, economic inflation and companies making an effort to cut back, the salary outlook for IT professionals is positive, according to the “InformationWeek 2023 US IT Salary Report: Rising Salaries and Closing the Gender Pay Gap” report.
More than three-quarters of IT professionals, 77%, reported an increase in base salary in 2022. The median salary rose by 12%, going to $140,000 from $125,000 in 2021.
Moreover, 61% of IT professionals expressed satisfaction with their total compensation, and 62% reported satisfaction with their overall job.
While the gender pay gap persists, both men and women experienced salary increases. Women saw a 28% increase in their annual salaries, rising to a median of $135,000 in 2022. On the other hand, men’s pay rose by 9% to $140,000 this year.
The report also found more than half, 58%, of IT professionals are unlikely to seek employment at another organization next year. However, for those considering a job change in 2023, higher pay was identified as the driving force by 70%.
“In spite of the unknowns in the market, the IT pay outlook is rosy for now,” said Sara Peters, Informationweek editor in chief. “Companies are increasing pay as the cost of living increases, and they are committed to advances in pay parity and diversity hiring.”
Peters said despite witnessing a string of layoffs at tech companies, the majority of IT professionals report positive overall job satisfaction and nearly nine out of 10 feel confident with their present job security.
“It’s difficult to predict what impact generative AI and other new automation technologies will have on IT salaries and hiring patterns. We’ll have to see what next year’s survey results tell us about that,” Peters said.
The survey includes responses from 456 IT professionals employed full time in the US. Respondents come from more than 35 industries, including healthcare, financial services, banking, consulting, IT services, manufacturing, education and government.