ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE TABLE OF CONTENTS From the Chairman Understanding the Salary Data IT Employment Outlook Skills in Demand Areas of Investment The Role of Certification in Hiring IT Salaries ­ United States Regional Hiring Trends ­ United States IT Salaries ­ Canada Regional Hiring Trends ­ Canada Staffing for Success The Leading Resource Office Directory 1 2 3 4 5 7 9 12 17 20 22 24 inside back cover Robert Half Technology is a registered trademark of Robert Half International Inc. All other trademarks used in this booklet are registered in the names of their respective owners. ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE FROM THE CHAIRMAN Dear Colleague: Businesses today must make judicious hiring decisions while at the same time enhancing their ability to retain top talent at every level of the organization. This is especially important in the information technology (IT) field as the economy gains momentum and demand for technical expertise increases. Firms with access to the most current salary and employment trend information will be in the best position to recruit and hire the talent they need to meet new challenges and pursue growth opportunities. To help companies make informed hiring decisions, Robert Half Technology is pleased to provide the Robert Half Technology 2006 Salary Guide for North America. The guide is based on extensive research conducted in our offices, our company's ongoing surveys of chief information officers (CIOs) and the accumulated expertise of our account executives. Our 2006 Salary Guide is one of the many resources we offer to the businesses and professionals we serve. We look forward to assisting you with your project and fulltime staffing needs through our more than 100 locations in North America and Europe. For more information about our services, please visit our website, www.rht.com. Sincerely, Max Messmer Chairman and CEO PAGE 1 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE UNDERSTANDING THE SALARY DATA Organizations of all sizes and in all industries use the Robert Half Technology Salary Guide to help them determine appropriate compensation levels for IT staff and to prepare annual budgets and business plans. In addition, educational institutions and government agencies, such as the U.S. Department of Labor's Bureau of Labor Statistics, refer to the guide for research purposes. Salary ranges reflect compensation at the time of hire only and do not take into account other aspects of an employee's compensation package, such as bonuses and incentives. The Salary Guide does not report on continuing or ongoing salary ranges since seniority, performance, work ethic and other hard-to-measure factors can affect pay as individual work histories develop. COMPILING THE DATA The following pages provide comprehensive data on average starting salaries for IT professionals, as well as a review of trends and developments that are expected to impact the field. Information for the Salary Guide is derived from a wide range of sources, including: · The thousands of project and full-time placements made by Robert Half Technology professionals throughout North America · The expected demand for certain positions and skill sets · An analysis of last year's projections · A review of actual starting salaries in 2005 · An extrapolation of current trends into 2006 ADJUSTING SALARIES FOR LOCAL MARKETS The salaries listed in the guide are national averages and can be localized for more than 75 markets across North America by referring to the Regional Hiring Trends sections beginning on Page 12 for the United States and Page 20 for Canada. Please speak with your Robert Half Technology representative for further assistance in determining starting salary ranges for your area. PAGE 2 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE IT EMPLOYMENT OUTLOOK Business leaders continue to view information technology as a means to increase productivity and gain a competitive advantage. During the recent recession, however, firms also looked to their IT departments for cost savings and additional efficiencies. Spending levels were reduced, and many hiring managers were forced to cut staff. Today, businesses across North America are upgrading systems, developing new products and restarting projects. To successfully move forward with these initiatives, technology executives are once again hiring ­ in many cases filling positions for the first time since the end of the dot-com boom. Managers are carefully evaluating their key requirements and adding full-time staff only when they identify a continuing need. Short-term initiatives and workload spikes are being addressed with the help of project professionals. HOTTEST TECHNOLOGY JOBS CIOs were asked, "Within your IT department, which single job area is experiencing the most growth?" Their responses: 17% NETWORKING 17% HELP DESK/ END-USER SUPPORT 6% PROJECT MANAGEMENT 8% INTERNET/INTRANET DEVELOPMENT 10% INFORMATION SECURITY 19% OTHER/DON'T KNOW 11% DATA/DATABASE MANAGEMENT 12% APPLICATIONS DEVELOPMENT Source: Robert Half Technology IT Hiring Index and Skills Report, June 9, 2005 PAGE 3 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE IT EMPLOYMENT OUTLOOK As a result of this renewed employment activity, job candidates with in-demand skill sets are receiving multiple offers, and companies are accelerating the hiring process to avoid losing the best people to competing firms. This trend is expected to continue throughout 2006. To further enhance their recruitment and retention efforts, many businesses are reassessing their compensation packages. As a result, starting salaries in the United States are projected to increase an average of 3 percent over last year. High-demand positions, such as business systems analyst and IT auditor, will see base compensation increases of up to 11 percent. SKILLS IN DEMAND According to Robert Half Technology's IT Hiring Index and Skills Report, which includes responses from more than 1,400 chief information officers, networking and help desk/end-user support consistently rank as the job categories experiencing the most growth within IT departments. Windows administration (2000, 2003, XP) is the skill set most in demand among CIOs, research shows. HOTTEST TECHNOLOGY SKILLS CIOs were asked, "Which of the following technical skill sets are most in demand within your IT department?" Their responses: 77% 48% 47% 43% 29% WINDOWS ADMINISTRATION WIRELESS NETWORK MANAGEMENT SQL SERVER MANAGEMENT CISCO NETWORK ADMINISTRATION CHECK POINT FIREWALL ADMINISTRATION Source: Robert Half Technology IT Hiring Index and Skills Report, June 9, 2005. CIOs were allowed multiple responses. PAGE 4 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE IT EMPLOYMENT OUTLOOK While technical expertise remains an important criterion when evaluating candidates, CIOs also are placing greater weight on nontechnical skills. With companies' increasing reliance on technology to support and drive their businesses, the role of IT professionals has become much more prominent, and they are frequently looked to for strategic guidance. It's common, for example, for those in technology to be asked to make a case for or against a particular upgrade or hardware purchase, which requires excellent communication skills and a fundamental Capital expenditures ­ Firms across all industries are replacing desktop systems and software to avoid the cost of maintenance and support of older systems. Launches of new versions of popular Microsoft products in 2006 also may impact IT spending. Development of web applications ­ The Web is being woven into every aspect of business and providing for enhanced levels of collaboration, customer service, customization, streamlining and management. As a result of renewed employment activity, job candidates with in-demand skill sets are receiving multiple offers. understanding of the firm's business needs. These skills are an important factor in ensuring that the IT department meets the diverse requirements of the individuals and business units it serves. Business intelligence ­ This broad category of applications and technologies is growing rapidly as organizations seek to collect, store, analyze and provide access to data that assists systems users in making better business decisions. Wireless communication ­ IT executives are increasing their investment in wireless applications as they recognize the potential benefits of mobile solutions. As a result, their departments are charged with supporting users of tablet computers, portable e-mail devices, smart phones and other tools. AREAS OF INVESTMENT The following initiatives are among those driving information technology hiring: Network security ­ The safeguarding of internal systems remains critical for companies of all sizes. CIOs seek individuals who can manage an enterprisewide security strategy, including the assessment of network vulnerabilities, virus protection and intrusion detection. PAGE 5 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE IT EMPLOYMENT OUTLOOK Regulatory requirements ­ The Sarbanes-Oxley Act of 2002 has had a significant impact on technology departments within publicly traded companies as well as nonpublic firms. IT professionals are required to assess information systems for potential vulnerabilities and help implement and manage procedures that contribute to achieving sound internal control over financial reporting. Additional regulations affecting IT departments in various industries include the Health Insurance Portability and Accountability Act (HIPAA), the USA PATRIOT Act and the Graham-Leach-Bliley Act, among others. IT PRIORITIES of the following initiatives are the highest priorities for your IT department in the next 12 months?" Their responses: 35% 16% 15% 15% 13% 11% 10% 8% 6% 8% NETWORK SECURITY IMPROVEMENTS CIOs were asked "Which OPERATING-SYSTEM UPGRADE/INSTALLATION DATABASE UPGRADE/INSTALLATION CUSTOMER RELATIONSHIP MANAGEMENT DATA STORAGE AND BACKUP HARDWARE PURCHASES WIRELESS COMMUNICATIONS ERP UPGRADE/INSTALLATION DEVELOPMENT OF E-BUSINESS APPLICATIONS OTHER/DON'T KNOW Source: Robert Half Technology survey of more than 1,400 CIOs from companies with more than 100 employees. CIOs were allowed multiple responses. PAGE 6 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE THE ROLE OF CERTIFICATION IN HIRING For managers hiring technology professionals, certification is an important consideration. But how much value should be placed on it? The answer isn't always clear and frequently depends on the needs of the IT department. THE ROLE OF EXPERIENCE Certification is of greatest value when it is accompanied by practical work experience. For example, a job candidate who possesses a Microsoft Certified Database Administrator designation is highly marketable, but one who also has spent five years working with Microsoft systems and has a track record of completing projects on time and under budget is eminently more desirable to prospective employers. CIOs want to hire individuals with a track record of successful projects. Consequently, they seek candidates who not only possess the right technological skills but also know how to put those skills to practical use to deliver timely, quality results. THE CERTIFICATION ADVANTAGE Certification provides an employer clear evidence of an individual's familiarity with a particular technology or practice. Certification also demonstrates initiative on the part of the applicant because he or she has invested the extra effort to obtain it. In addition, some employers view certification as essential to a lifelong learning process. PAGE 7 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE THE ROLE OF CERTIFICATION IN HIRING VENDOR NEUTRAL VS. VENDOR SPECIFIC Employers often inquire about the difference between vendor-neutral and vendorspecific certification. The answer is best described as a depth-versus-breadth issue. If the position requires someone will be the best fit. On the other hand, businesses that need an IT professional who knows a variety of programs and technologies would seek to hire someone who possesses a vendor-neutral certification, such as CompTIA's Network+ designation. certification is of greatest value when it is accompanied by practical work experience. who possesses an intricate knowledge of a particular program or technology, then a candidate who either has years of experience with that program or has a vendor-specific designation supporting it In the end, certification should play a role in hiring, but it is only one of many factors. There is no substitute for a candidate's actual work experience and a record of success on past projects. PAGE 8 ROBERT HALF TECHNOLOGY 2006 SALARY GUIDE IT SALARIES ­ UNITED STATES Job Title ADMINISTRATION Chief Information Officer (CIO) Chief Technology Officer (CTO) Chief Security Officer (CSO) Vice President of Inform ...