What is it really costing your business to hire IT professionals? Where have IT salaries been headed (hint: it’s not down) and what do those dollars mean for employee satisfaction and retention (hint: not as much as you might think). A recent study by InformationWeek reveals some interesting statistics around IT professionals, based on responses from 500 information technology professionals employed full-time in the U.S., and it inspires this week’s Five on Friday…
Let’s take a look at the numbers from the InformationWeek study:
3.6% Increase in the median salary for IT professionals in the U.S. in 2023
$145,000 Median salary for IT professionals in the U.S. last year.
58% Number of U.S. IT professionals who say they are unlikely to seek employment in the next year
59% Number of IT professionals who say they are satisfied with their overall job—a decrease from 62% the year prior
And now a fifth number we’ve calculated:
$205,900 Estimated actual cost of that IT professional
Wait, wasn’t that $145,000 only a few lines ago? At this moment you may be asking, “How did you get that?” Let’s take a look:
Salary = $145,000
Employer Share of Taxes = $17,400
Benefits (30%) = $43,50
Total = $205,900
“Salary isn’t the only place employers have to spend money says ECLARO Co-Founder Paul Sheridan. “Medical benefits, retirement contributions and tuition reimbursement programs have the potential to make up 20% to 40% of your annual expense. Beyond that base salary, there are other things to consider that may increase your annual expense.
“As an hourly rate, that’s $112.39 per hour,” he continues. “When you compare that to a median rate of $32 an hour for IT professionals in the Philippines—and we’re talking about comparable levels of talent, no matter what the role is, the skills, the experience—it’s understandable why so many businesses decide they can benefit from an offshore engagement.”
We aren’t talking about just any offshore services, of course. We’re talking about ECAPTIVE, our Custom Outsourcing & Offshoring services in the Philippines. And we aren’t talking about cost in a vacuum, but rather cost for comparable levels of top talent—no matter what, you always want the Right People.
Whether it’s Fortune 50 companies or midsize businesses looking to scale or innovative start-ups, our clients find the talent that ECLARO recruits and manages for them in the Philippines means world-class additions to their teams at a cost that’s up to 75% less than onshore rates in the U.S.
READ MORE: TOP OUTSOURCING RISKS AND HOW ECLARO TACKLES THEM
“It also can’t be forgotten that the U.S. salary number in that example does not include other expenses such as office costs or computer costs, employee engagement activities and so on,” adds ECLARO Co-Founder Tom Sheridan. “Our ECAPTIVE services encompass that—the hourly rate our clients pay for their Philippines talent includes those overhead costs, and we take on the associated risk of having to manage physical facilities, legal and government compliance issues and other factors.”
Clients also benefit from the fact that their talent in the Philippines is an actual extension of their business and team, not a “shared resource” working for anyone else. And when the Information Week study mentioned that decrease in job satisfaction, we proudly pointed to ECLARO’s 93% employee retention rate, noting that the Right People have the right skills and experience, but we also make sure they are the right fit for each role and each client’s culture—that helps increase satisfaction and success all around.
“It’s also important to note that the Information Week study did not focus on IT professionals in any one particular role or industry,” Tom adds, pointing out that the survey includes responses from across more than 33 industries including consulting, financial services, banking, manufacturing, healthcare, IT services, education and government. “We recruit and hire talent for all IT roles across all industries and functions, so we understand the challenges and work with clients to help deliver solutions.
”No matter what industry you’re in, your business likely has IT staffing needs and questions you’re trying to answer. Helping clients find those answers is our passion. We know that your needs will always be unique to your business, but we also know a universal truth…the Right People are the Answer.”
