It's More Than Just Money
It's More Than Just Money<@VM>Pay for Top Execs*
Quality-of-life issues are becoming more important to retention among federal information technology companies than just simply increasing a worker's pay, according to a survey by the accounting and management consulting company Grant Thornton of Chicago.
The company surveyed 100 government contractors on issues that included compensation, fringe benefits, contract types and business practices. The survey covers company data from 1998.
Of the companies surveyed, 75 percent said they had difficulty filling positions. They also said 12 percent of IT jobs go unfilled. The annual turnover rate is 15 percent. Amid a very tight labor market, the average salary increase was 5.1 percent.
"Instead of salaries, companies are trying to differentiate themselves with fringe benefits and quality-of-life issues," said Calvin Hackeman, a partner and director of Grant Thornton's technology services practice. "A lot of people already make a lot of money, so another $5,000 or $10,000 is not that important."
The survey found more companies are using flexible time, telecommuting and training opportunities as ways to attract and retain employees, he said.
But while pay may be taking lesser importance in the pantheon of federal IT worker priorities, people still make plenty at the top. The survey found that compensation for top executives ranges from $139,690 for companies under $5 million to $448,444 for companies worth more than $100 million. The average salary for the top executive for all companies was $262,478.
|Annual Revenue||Average Salaries|
|Under $5 million||$139,690|
|$5 million to $10 million||$172,231|
|$10 million to $15 million||$175,506|
|$15 million to $20 million||$228,674|
|$20 million to $30 million||$323,218|
|$30 million to $60 million||$383,936|
|$60 million to $100 million||$355,419|
|More than $100 million||$448,444|
|*The top executives include the president and chief executive|
Source: Grant Thornton LLP