European IT staff will get a bumper pay rise next year with increases of between 10 and 20 per cent in the offing.
According to a recent European IT staffing survey by US market researcher Meta Group, 50 per cent of companies polled will be "forced" to offer huge salary increases thanks to the ubiquitous skills shortage. This compares sharply with the five per cent pay rises given out this year.
Oddly though, Meta believes European firms have yet to feel the full impact of the IT expertise drought and have so far resisted paying premiums for project management, electronic commerce and enterprise resource management.
Said Maria Shafer,a senior research analyst with Meta Group: "Most European companies have not had to explore the more creative employee incentive and reward programmes that US firms have been accustomed to offering. Consequently many European firms are ill prepared to manage a global IT staffing market and shortage that will inevitably catch up with them in 1999."
Offering bonuses to staff with specific experience is a popular incentive with 88 per cent of the 100 companies surveyed offering this as part of base salaries. However employers should think twice about this scheme, suggests Shafer.
"Most often, skill premiums incorporated into base pay will continue to be paid long after demand for a skill has subsided," she warned.
In the survey, more than half of the respondents claimed a staff turnover rate of less than two per cent, while a quarter reported rates of between six and 20 per cent. UK employees were the richest in stock options, with 33 per cent of firms offering these, compared to fewer than 10 per cent of German companies.
Addison Lee is working on autonomous taxis for commuting and pleasure
IBM and Technical University of Munich team demonstrate how Shor's algorithm, which can't be cracked by conventional computers, can be solved quickly with quantum computing
Hubble Space Telescope finds superflares from young red dwarfs could strip away planetary atmosphere
Younger stars are 100 to 1,000 times more energetic than when they're older
Two of the big four supermarkets will use the system to control sales of restricted products