Turnover rate for Information Technology
workers holds steady

The turnover rate for information technology workers dipped slightly last year, but some say that technical workers are starting to grumble about being underpaid and are ready to start job shopping once the economy rebounds.

Maria Schafer, an analyst for research and consulting firm META Group (www.metagroup.com), said that skilled, experienced IT people were largely unaffected by the slowdown, and many still have their pick of jobs.

"For people who have been around four- or five-plus years and you've demonstrated your value, you can move to a different job," said Ms. Schafer. "If anything, you have a situation where if a company is not doing well, people will bail faster. There is no loyalty anymore."

META Group's recent 2002 IT Staffing and Compensation Guide reports that IT turnover this year is hovering around 10 percent, compared with 11 percent last year.

The group found that although 58 percent of companies reported their IT turnover in 2001 as being between 11 percent and 20 percent, this year 54 percent of companies say turnover is between 5 percent and 10 percent.

However, while the IT workforce is stabilizing, some sectors such as transportation, health care and publishing are still struggling, with turnover rates close to 20 percent.

But Debbie Trevino, president of recruiting firm Delta Dallas Cos. (www.deltadallas.com), said IT workers in Dallas who have jobs seem reluctant to test the waters just yet.

"I definitely see the trend that it is still a very tentative market," she said. "I do not see a lot of employed technical candidates wanting to jump ship. Most of the applicants we hear from are unemployed and are frustrated with the opportunities that are out there."

But, she added, those IT professionals who still have jobs aren't necessarily feeling thankful.

"I think that they're really willing to put up with a lot right now, and later, when the market turns, if their company has not treated them well, they will leave," she said.

In fact, many tech workers are already mentally packing their bags, some say.

"I've talked to people who made no bones about it," said Jon Davis, director of Matrix Resources Inc.'s Dallas recruiting office (www.matrixresources.com). "They're telling me, `I'm getting $50 an hour now. On my last job I was getting paid $80. I'm only doing this because it's the only thing I can find, but as soon as something better comes along, I'm gone.'"

Mr. Davis said one telecom executive recently approached him with this fear.

"He was clearly concerned that when things turn, he's going to lose some of his top-tier staff," Mr. Davis said.

Mr. Davis recommends to employers that they not cut back on their training budgets and that they keep investing in new technology because technical workers like to keep their skills up to date and enjoy working with the latest technology.

Companies that skimp heavily on those areas will find their best workers leaving for cutting-edge opportunities once the job market recovers, Mr. Davis said.

But Ms. Trevino said that IT workers need to understand that many employers are paying less and cutting budgets right now because they don't have any other choice.

"I don't really think companies are taking advantage of them," she said. "I think sometimes the employees feel that way because they're being asked to work harder and for less money. So that's putting some burden on employees. ...

"I think companies are just trying to make a profit."