Guest Author - Sandra Eggers

Information technology is the foundation of corporate America, and the IT professional is a necessary commodity for these organizations to be successful. The law of supply and demand is one factor driving salaries of high-tech workers, because there are more key positions available than can be filled with the current workforce. This leads to a continuing increase in compensation for skilled workers, as companies struggle to attract and retain the best talent.

The main factors which influence compensation for high-tech workers are company type, industry, geography, job type and education. It is important to note that compensation is not just a base salary, but may also include benefits, stock options and other incentives provided by the company.

Company Type
Generally, start-ups and internet companies pay the most because there is more risk associated with working at a young company that isn't yet established. You don't know how long they will be in business, whether they'll get the next round of funding, or if they will be forced into layoffs to make ends meet. These companies also run at a fast pace, trying to beat the competiton to market with a new product or service. This often results in high expectations on the workers, which means long hours and weekends that generally adds up to more than a 40-hour work week.

Industry
There is a distinct difference in salaries paid to high-tech workers depending on the industry they are working in. Typically, engineering and computer industries pay top dollar, while retail and financial services are at the bottom. A recent trend finds the highest compensation in the business and consulting services industries, though it is often a combination of base salary with incentive bonuses. It is important to remember when comparing salary that compensation includes base salary, benefits, stock options and bonuses - all of which varies by industry.

Geography
Most salary surveys show that Silicon Valley (San Jose and San Francisco) is THE place to be for top dollar paid for high-tech professionals. Silicon Valley is also home to major investors and Venture Capitalists, which is the reason so many start-ups are founded there. After Northern California, other metropolitan regions paying the high salaries for technology workers include Southern California, Boston, Chicago and Dallas/Ft. Worth. The areas of Pacific Northwest, New York, Houston and Minneapolis/St. Paul offer slightly lower salaries, but are still above the national average.

Job Title
Both high-tech and non-tech careers offer the higest pay to those in senior management, and the lowest to staff personnel. The computer and internet industry is no different, but there is a distinction for core competencies in specific disciplines. Within the IT organization, those working with the latest technology are generally paid more than those in traditional or support roles. From senior and middle management through staff positions, workers in internet and e-commerce jobs tend to earn more than their counterparts in MIS. Positions associated with application and database development using web technology are among the highest.

Education
You can definitely get into a high-tech career without having an advanced degree, though most everyone requires a high school diploma. Higher paying jobs are generally offered to those with at least an Associate's degree, but candidates with a Bachelor's degree earn substantially more. A Master's degree is also rewarded with a higher salary and additional opportunities to advance into senior management. On average, there is a 10%-20% increase in salary for each degree earned.


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