Our 2016 Salary Survey projects average salary increases of 9% for Twin Cities IT Professionals in 2016. In 2015, Minnesota’s average IT base salary reached six digits for the first time ever, increasing to $100,379.
The skills in highest demand in the Twin Cities this year are digital marketing, cloud computing, mobile development, UX, and security. Low unemployment makes the competition fierce for companies looking to hire. Minnesota’s unemployment rate of 3.7% is well below the national average of 4.9% and the IT unemployment rate is 2.5% nationally. Many areas of IT have even lower unemployment rates: Information Security Analysts:1.4%, IT managers:1.8%, DBAs and Computers Systems Admins: 2%, and Software Developers: 2.5% Retaining talent is continuing to prove to be difficult and expensive: about 40% of tech employees intend to move to a new company in 2016, according to a Dice survey of over 16,000 people. Earlier this year, a study found that 25% of an organization's IT staff turns over every year. Compensating above market value may be essential to getting the skilled workers needed for your projects. In addition, small to mid-size companies in particular will need to differentiate themselves to retain and hire new IT professionals in competition with larger companies which have greater resources for high compensation.
Data has shown that for every IT-based job opening, there are only 7 full-time candidates available, but there are 114 contract candidates available. Many IT pros recognizing the high value of their skills in this market and appreciating the flexibility and opportunity to use the latest technologies have moved to consulting gigs. For those wanting the best, considering adding IT consultants to your team, rather than competing for the few full-time employees out there, could be a good strategy.
Our annual salary survey presents data compiled from ESP’s recent placements, market observations from our recruitment team, and national and local research. Our salary ranges assume a minimum of 3 years of experience for each job title, and a minimum of 6 years of experience for senior level or lead roles. Salaries reflect base pay for full time employees. They do not account for discretionary bonuses or other compensation. We monitor and analyze hiring trends, including compensation and benefits in order to best serve you.