IT Skills, Certification Pay Volatility Highest Since 2012, Signals New Era
Foote Partners, Monday, October 21st, 2024
This news release is a summary extract of content from the 4th Quarter 2024 editions Foote Partners' IT Skills Demand and Pay Trends Report and IT Skills and Certification Pay Volatility Index, two market intelligence trend reports updated every 3 months from data contributed by HR departments at 4,480 U.S. and Canadian employers.
The report contains IT jobs, skills and certifications data trends published in the firm's IT Skills and Certifications Pay Index and deep-dive supply/demand benchmark analysis from Foote Partners'research group.
Extra pay awarded by employers to talented tech professionals for 710 non-certified IT skills -- also known as cash pay premiums -- increased slightly in 3rd Quarter 2024 for the fourth consecutive quarter following three consecutive quarterly declines in 2023.
Despite lackluster performance last year in which average pay premiums declined one-half percent overall, the current average cash pay premium bonus for a single skill in Q3 is the equivalent of 9.6 percent of base salary, well above the average for IT certifications in the IT Skills and Certifications Pay Index.
Speaking of the 638 IT certifications reported in the ITSCPI, their average market value declined in 3Q 2024, down almost one percent. This, following a strong showing in 2Q 2024 but a substantial 1.3 percent decline in Q1-the largest quarterly drop since the last quarter of 2020. Notable market value increases in the past six months include these categories: Applications Development/Programming Languages, Data/Data Management, Networking. The average cash pay premium bonus for a single certification in 3Q was the equivalent of 6.5 percent of base salary.