September 2005

What a difference a year makes. The average salary increase reported by the nearly 1,700 readers responding to our 10th Annual Salary Survey was 5.3 percent from 2004 to 2005. While that may not be a tremendously impressive number, it becomes more so when juxtaposed against last year, when readers reported an increase that amounted to a mere 0.3 percent -- essentially no increase at all.

But what is impressive indeed is comparing the average annual salary of this year's respondent pool --$68,535-- with that of last year's, which was $61,400. That's a difference of $7,135, or slightly more than 12 percent (see "2005 Compensation").

More Salary Survey

The PDF format of this article boasts over 30 charts, including average salary by state, by certification and job title, salaries by certification for over 40 metropolitan areas, certifications impact on employability -- and much more. Free registration is required to get the PDF. Get it here.

But our readership has been evolving over the years, none more so than this past year, and in large part it's due to the influence wielded by our sibling/spin-off magazine, Redmond, which has influenced the demographic we canvassed to take this survey (see "Methodology"). Our reader base was clearly taking on new responsibilities and, with them, assuming management titles -- and salaries. This year, management-level folks made up 30 percent of all survey respondents -- and reported average salaries of more than $83,000 per year.

In other words, you're progressing up the IT ladder, taking on new responsibilities, and getting paid accordingly.

He's the Boss of Him

Christopher Dow Consultant, Trainer OdysseyNetworks, The Computer Trainers Mobile, Alabama Salary: $65,000 Years in IT: 15 Certifications: MCDST, MCSA, MCSE, MCT, Microsoft Office Specialist, CIW Certified Instructor/Security Analyst, Cisco CCNA, CompTIA A+, Network+, Security+ The idea of being a small-business owner appeals to many folks: the ability to set your own schedule, call the shots and make big money if your business is successful sounds like a fast boat to happiness. Well, as the immortal Meat Loaf sang, two out of three ain't bad. Christopher Dow of Mobile, Alabama owns a network consulting firm. Although he sets his own hours and calls the shots, the big money part has yet to happen. It's not that he's starving, but working 80 hours per week for $65,000 per year means that, with vacation, he earns somewhere in the vicinity of $16-$17 per hour. On the other hand, how do you put a price on a job you love? Dow says one of the best things about his job is "Change. I didn't want a job that would [always] have to do the same thing the next day. In IT things are always being updated, and new technologies appear every day, so I am never bored." Dow's consulting firm is called Odyssey Networking, and includes a training division called The Computer Trainers. The company has 10 employees, including Dow. He's been in the biz for 15 years now, after stints as a search-and-rescue helicopter crewman, soldier in the U.S. Army, lifeguard and farm hand. Now Dow is his own boss, and although his life is hectic, Dow says he made the right choices. "Salary is very important, but not as important as being able to wake up every morning wanting to go to work." --Keith Ward

The Department of Labor Web site also points to positive evidence of job opportunities in the non-farm sectors, which includes IT. You only need to go as far as the July employment data, which shows, over the year, professional and technical services jobs up by 22,900, computer systems and design services up another 2,200, and management and technical consulting services higher by 6,200 jobs (see http://bls.gov/news.release/ empsit.t14.htm).

Accounting for job losses, an additional 23,000 jobs were tacked on that month, which adds to the 188,000 jobs in the overall sector that were added in the previous six months. (See the July 2005 Employment Situation Summary at http://bls.gov/news.release/ empsit.nr0.htm for the hard numbers.) That, along with the positive outlook that the BLS cites above for computer job growth to 2012, makes for some powerful evidence that companies are keen to invest in updating their software and hardware technology while there's money to spend.

What this all means is that IT workers are once again in demand, enabling you to potentially gain an upper hand in salary negotiations.

The Measure of Happiness
If you think that's wishful thinking, talk to David Glenz, an MCSE and lead systems administrator for a retail company in Mount Laurel, N.J. The 12 percent increase we saw compared to last year is in line with the salary bump he received this year. "I think management at my company is well aware of the tendency for technology professionals to job hop," he says, "and they are willing to do what they can to hold on to the right people."

The $68,535 overall average salary among the 1,675 valid respondents to our survey is also more than 4 percent higher than the average salary figure reported by the BLS: For computer and mathematical occupations, its number is $65,510. Our result is more on the money when compared to the BLS's result for computer systems analysts, at $68,370. (See http://bls.gov/oes/current/oes_15Co.htm.)

And while the mean salary increase of $3,472 is above 5 percent year-to-year, the news is even better for the 18 percent of you who reported raises of $5,000 or more. (For more on this, see "Increase in Salary.")

On top of rising salaries, more than half of all respondents -- 55 percent -- expect to receive a bonus this year, with 20 percent of them totaling $5,000 or more (see "Expected Bonuses"). That's down a bit from the 59 percent who expected bonuses last year, but still adds up to a pretty good year to be working in IT.

Certification's Impact
Historically, this survey has focused on the impact of certification on salary. But increasingly, that impact seems to be muted. This year, more than half of you -- 51 percent -- either weren't sure certification made a difference in salary or flat-out said that it didn't (33 percent).

Dave, Your Friendly IT Guy

David Guibord Network Administrator Shufelt. Inc Farmington Hills, Mich. Salary: $74,500 Years in IT: 8 Certifications: MCSA: Security, MCSE, CCSA Dave Guibord is living proof that soft skills, particularly people skills, can not only help your long-term career, they can very directly affect your pocketbook. A few years back, his reputation as a friendly, helpful IT guy got him a significant raise at Shufelt -- without him even having to ask. "I fell onto the radar of the owner -- he had an IT problem and I helped him out, so he started asking around about me," he explained. Because the managers all came back with such positive feedback about how genial and willing to help he is, Guibord said that soon after the owner pulled him into his office and gave him a 14 percent raise on the spot to put him on equal footing with another IT coworker: "I didn't even know [it was coming]." It doesn't hurt that Guibord genuinely likes people. He said a main reason he enjoys his current job so much is the opportunity it gives him to interact with so many employees on a regular basis: "I support a fairly large-sized building, and we're always out fixing something, helping a user . We cover almost the entire building once a week. I couldn't get that kind of interaction if I was in accounting." He also gets satisfaction from helping users. "You can call it a hero complex if you want to," he laughed. But he said what really drives him is the technology and doing something different every day. He's currently working on numerous projects, and while sometimes putting out the day-to-day fires can get frustrating, "that's what I like about the job too, so I can't complain." --Becky Nagel

Guibord says he tacked on other certs since 2001, such as an MCSA: Security and a Check Point CCSA, but those are ones he hangs out on a shingle for more personal reasons. "Unfortunately, now it's more for my knowledge and for my market value, as management does not seem to care what my certifications are," he adds.

Certifying beyond the boundaries of Microsoft technology is not just smart, it's a good way to expand one's marketability, and that notion's never been lost on our readership. "Many [companies] require Microsoft and Cisco certifications, which is a definite plus to get an interview," says Casey Wood, a systems administrator with VistaCare in Scottsdale, Ariz. His goals lean toward Cisco titles. The same goes for Lee Ann Swanson, a network engineer in Watertown, S.D.: "My certification goals are to upgrade my MCSE and to obtain the Cisco CCNA."

Wood's and Swanson's goals, if met, will place them among the 52 percent of respondents to this year's survey who count at least one other certification besides an MCP. Specialization dictates the best salaries, as Chart 5 on p. 50 shows, with IBM's WebSphere and Hewlett Packard's Master ASE breaking six figures, followed by the Project Management Professional in the third spot. Those possessing a Cisco CCNA, which is a goal for Swanson, reported making $68,730 on average. Based on popularity among non-Microsoft certifications, the Computer Technology Industry Association's A+ and Network+ rank first and third, Cisco's CCNA is second, and Novell's CNA and CNE round out fourth and fifth.

As "Base Salary by Microsoft Certification" shows, all certifications, with the exception of the MCSA: Windows 2003 and MCSD: Visual Studio 6.0 titles, ticked upward. MCDBA: SQL 7 holders experienced the highest increase, up $12,509 from last year.

Nearly half the respondents believe that obtaining a certification has improved or enhanced their chances of finding or keeping a job (shown in "The Reasons for Certification").

2005 Compensation

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Overall, a view of the respondents demographic averages looks like this chart. Details for each can be found elsewhere in this article or on the PDF version

Expected Bonuses for 2005

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How Bonuses Are Calculated

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When Bonuses Are Paid

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Click here to see all charts relating to bonuses.

Only 55 percent of readers expect a bonus this year; it was slightly higher last year, at 59 percent. Of the half expecting a bonus, 23 percent predict bonuses will be within $1,000 to $5,000.

Base Salary by Microsoft Certification

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All respondents provided their current annual income before taxes. Only those salaries for MCSA-Windows 2003 and MCSD: VS6 titleholders took slight hits this year. Those holding the MCDBA: SQL 7 realized better than average gains, with an increase of $12,509 over last year. (*Includes Win2K and Win2003 versions.)

The Reasons for Certification

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We asked the respondents to list all the reasons they achieved their most recent credential.

Certification's Fringe Benefits
A correlation can be made between certification and salary -- if you get one and see a boost in salary, it can't get any more obvious -- but it's not all about salary, says Bill O'Sullivan, an IT specialist with a federal agency in Springfield, Illinois. "I can organize, plan and troubleshoot much better than I believe I could without certification," he explains, "and I believe employers understand this and compensate accordingly."

Tech Experts and Specialists
Technological expertise can factor in strongly with salary; the more specialized, the higher the salary (see "Salary by Skill"). Outsourcing experts topped the list this year, at $84,139. This was followed by those in research and development, at $78,438. Those possessing strategic planning, extranet and software design skills rounded out the top five positions.

The BLS cites security as a hot area of employment in the next seven years. In our survey, those with security expertise indeed made out nicely, averaging $70,268. But security fell into the middle of the salary pack, among those with Web site development ($70,992), telephony ($70,810), database administration ($69,593) and systems management ($69,601).

The highest paying industries, ranked by salary of its IT professionals, are topped by aerospace companies ($88,571), followed by ISP/ASP ($77,778), marketing/entertainment ($75,288) and computer-related manufacturing ($75,139). The defense/military industry is another hot area, as more federal money is poured into programs to maintain a tech-driven U.S. armed forces.

In terms of which Microsoft product skills pay best, at the top of this year's list is Identity Integration Server, at $93,333, followed closely BizTalk Server, at $90,441. Content Management and Windows Server 2003 Datacenter follow, at $85,385 and $84,938, respectively. Rounding out the top five is Host Integration Server, at $82,321. What's evident here is that, with more highly-specialized expertise, salary is commensurate. Less than 1 percent claimed expertise with Identity Integration Server. BizTalk, Content Management Server and Host Integration Server ranged from 1 to 2 percent. Four percent claimed expertise with Datacenter Server.

Bringing up the rear are those who deploy Small Business Server, at $62,212. Just above that are those with Windows client skills, at $64,442, which is still a touch lower than this survey's overall salary average.

Education adds another ingredient. According to this year's results, respondents who earned a four-year degree or lower have averaged no more than $67,340. Those who've gone on to post-graduate study and beyond, though, fared better on salaries, to the tune of $73,024. Almost 22 percent have claimed the latter, a slightly higher percentage than last year. (See "Salary by Education Level".)
 

Salary by Skill

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Specialists enjoy greater compensation, and those whose expertise extends beyond the bounds of Microsoft technology tend to make more.

Salary by Education Level

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The correlation between formal education and compensation is obvious, although it's simply one variable among many. More than half of the respondents hold at least a four-year degree.

Michael Domingo is the editor of MCPmag.com, a sister site to Redmondmag.com, as well as co-editor of RCP mag.com. You can reach him via e-mail about "10th Annual Salary Survey: Moving On Up" at mdomingo@redmondmag.com.