REPORTS FROM SENIOR IT MANAGERS ON STRATEGIC PROJECTS


BIT REPORT

» Reported by
Julie Lavallee

Good News for Independent Employees

Independence can obviously have a price, but apparently not in the salary department, according to the 2000 Rate Survey conducted by Contract Professional, the magazine for IT contractors and consultants. The study found that contractors in most cases earn significantly more than permanent workers. For example, the average yearly income for contractors specializing in Java is $112, 934, vs. $64,000 for permanent workers.

The survey also found that gender does matter. In the rate comparison of 17 job titles by gender, female contractors earned more than male contractors. However, permanent female workers still lag behind males in terms of pay. The comparison included contractors and permanent employees in positions including CEO/president, systems architect, technical writer, and consultant. The survey based the results on skills including Java, Visual C++, XML, and scripting languages.

In most cases, the average income of contractors exceeded that of permanent workers, with Connecticut having the highest average salary of $65,000.

The name of the game is those with the most experience take home the prize. The survey found that contractors with 15-plus years experience topped the chart with an average hourly rate of $81.18. Those contractors with 10 to 15 years experience received $54.09, followed by a rate of $62.07 for five to nine years experience. The average earning power for contractors peaks at ages 55 to 59, with a rate of $66.69. For those 50 to 54, the average rate is $66.38. Permanent employees top out at ages 60 to 65, with an average salary of $81,000.

According to Contract Professional, on average, the bigger the company, the better the money. Within the largest companies (Fortune 500), the average contract rate is $41.51, and an average permanent salary is $59,000. In large companies, the contract rate is $38.11, and the average salary for a permanent employee is $56,000.

Other categories evaluated were pay satisfaction, the average pay rate by certification, and the top 10 paying positions.

The survey is ongoing. You can take part in it at CPUniverse.com by clicking on salary survey.

—Julie Lavallee