Salary survey: IT pay rises, but could soon slip back

Pay levels for IT positions in financial services have remained strong over the past year, with some roles winning large increases, according to a survey by the remuneration consultancy Monks Partnership.

Systems development managers saw a 20% rise in median salary from 50,000 (€78,500) to 60,000 - though this was partly offset by a drop in median bonus to 11% of salary from 13% a year ago.

Project leaders on the systems development side recorded salary rises from 47,000 to 53,000, with bonuses rising slightly, the survey of small and medium-sized firms in central London shows.

At the senior end, heads of European IT also won rises, with median salary rising from 96,000 to 109,000 and bonuses up from 26% to 29%.

Most other positions in the survey recorded smaller increases.

But headhunters said continued staff cuts over the past year were now creating downward pressure on pay, as there was a glut of talented candidates.

Torquil Warren, a senior consultant in the asset management division at Project Partners, said: "Salaries are decreasing due to people who have suffered redundancies moving into new positions at a reduced rate of pay."

He said there were a few exceptions, especially in the fixed

income sector, which have been the life support of many financial services firms for months.

"There will always be key pockets of expertise that are in demand," Warren said.

Headhunters also say the nomadic career paths of many IT staff are beginning to be frowned upon by hiring managers in financial services.

They are more reluctant to hire staff on short-term contracts, which have been an industry norm for many years. Accordingly they now place far greater emphasis on long-term stability in a candidate's employment history.