IT Staff Turnover Rates at Very Low Levels

IT Staff Turnover Rates at Very Low Levels

In a recent level news story in ComputerWorld it was reported that the Society for Information Management has reported that the current staff turnover rates is 5.23%. Janco reviewed it data and found that the staff turnover rates agree with the data that it has.

IT Staff Turnover Rates
In a given year only one in twenty IT pros change jobs

The SIM study, according to ComputerWorld, also found.

  • 60% of IT departments increased salaries, 29% kept pay levels unchanged and salaries declined at 11%.
  • The average CIO tenure reached nearly 6 years in 2012, up from an average of 4.5 years in prior years, the survey found.
  • IT analysts have reduced spending projections in recent years .
  • 48% of IT departments surveyed said their budgets increased from the prior year.
    • 46% of respondents expect budgets to increase next year
    • 54% said their budgets will remain stable or be reduced.
    • 36% of IT budgets, on average, were spent on outsourcing, up from an average of 28% last year.
    • The percentage of IT budgets spent on outsourcing is expected to remain at 36% next year, but the share of outsourced work done offshore will rise from 5% to 7% next year.
    • 4% of IT budgets this year are being spent on external cloud and 5% on internal clouds

The data from SIM is interesting in that is shows the same trends that we have had at Janco for the past few years.  What is important from this set of information is that the economy has not recovered as of yet.

This is all driven by the uncertainty in the the world.  Everything from Europe and EU issues, to political conflicts between China and Japan, and to the Middle East.

Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA's Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.