Techie starting salaries to remain stable

Starting salaries for information technology professionals overall are projected to increase an average of 0.5 percent in 2005, according to a report Thursday from staffing firm Robert Half Technology. This projected modest rise compares to the 1.6 percent decline in base compensation that was projected this time last year, the firm said. Larger increases are expected in high-demand specialties such as information security and quality assurance, according to Robert Half.

The firm said network security administrators can expect base compensation in the range of $63,750 to $90,500, an increase of 2.3 percent over 2004 starting salaries. On the other hand, the firm said, base compensation for desktop support analysts will drop 3.8 percent, with starting salaries in the range of $44,500 to $63,250. The study comes amid mixed signals about whether the job market is improving for tech professionals.

Pondering

I have to wonder if at least some of the decrease in starting salaries doesn't come from the decrease in direct hire, and the increase in the percentage amount that contracting and placement firms take for their services.

From my own experience and that of others I have spoken to, the percentage taken by contracting and placement firms has gone from 20-25% of the total billable to 30-33% and I have heard that there are a cases of even higher percentages.

This means that a "contractor" who is billed to the client at $30/hr used to receive $23-25/hr can now expect to receive only about $20/hr, and sometimes less.

It is apparent that this is the way that these firms respond to the lowered demand and wages. Rather than share the burdens of our financial with the workers that provide their sole profit, they instead do what is necessary to ascertain that *their* profits are untouched.