(November 6, 2023) Although the Great Resignation has given way to the Big Stay, IT staff turnover remains problematic. According to data from Robert Half, 64 percent of technical workers are looking or planning to look for a new job. This attrition is exacerbating the persistent IT staffing shortage.
At the same time, organizations in many industry sectors are moving forward with critical technology projects. IT infrastructure upgrades, digital transformation, artificial intelligence, and automation are among the initiatives driving today’s IT strategies. Organizations need expertise in cloud, security, software development, and other high-demand skills. Robert Half notes that 61 percent of IT managers are looking to expand their teams.
Some organizations are bringing in contractors to complete projects, but competition for these professionals remains high. Furthermore, short-term contractors don’t always bring the continuity organizations need to ensure project success.
The High Cost of Hiring IT Professionals
Even if organizations can find the right IT pros, budgetary limitations may prohibit them from hiring additional staff. According to Glassdoor, the average annual salary for an in-house network support technician in the U.S. is $66,000. Top candidates can command more than $100,000. However, salary only represents about 70 percent of the true annual compensation for a full-time employee. Here are some of the other costs the Bureau of Labor Statistics says you can expect to incur for someone with a $70,000 annual salary:
- Insurance. Health, disability, and life insurance benefits will add about $8,000 per year to the compensation package.
- Legally required benefits. Unemployment insurance, Social Security, Medicare, and workers’ compensation expenses add another $7,600 per year.
- Paid leave. Vacation days, holidays, sick days, and personal days account for $7,300 per year.
- Supplemental pay. Overtime pay, shift differentials, and bonuses can add another $3,500 per year.
- Retirement and savings. 401(k) contributions, administrative fees, and miscellaneous fees for investment advice and consulting will cost about $3,600 per year.
There are other expenses as well. For example, you can expect to spend more than $1,500 per employee on training and onboarding. Additionally, there is ongoing training and professional development. Testing for common IT certifications can range from about $100 to several thousand dollars, although instructor-led classes and study guides will up the price.
How Managed Services Can Help
Outsourcing IT functions to a managed services provider (MSP) is a proven way to gain the IT expertise you need while addressing cost and complexity concerns. Qualified providers have the engineering resources, advanced tools, and vendor connections to support almost any IT initiative. MSPs can also take on day-to-day maintenance and management, freeing IT staff to work on more fulfilling projects.
Surveys consistently show that companies can reduce their annual IT expenses with managed services. Here are some of the ways an MSP can impact your bottom line:
- Rein in staffing costs. Working with a provider relieves you of the need to recruit, screen, interview, and onboard new IT employees while eliminating expenses for salaries, benefits, training, and tools.
- Reduce downtime. An MSP can minimize business interruptions with around-the-clock monitoring services, regular maintenance, and rapid problem resolution.
- Enhance operations. An MSP can help you leverage the latest technologies to increase productivity, improve efficiency, and create a competitive advantage.
- Discount pricing. Through established relationships with leading tech vendors, MSPs can often procure hardware and software at substantial discounts.
Even if money were no object, skills gaps are practically inevitable due to the pace of IT innovation. Changes occur so rapidly that busy in-house IT teams can struggle to keep up with the latest processes, systems, and solutions. By partnering with Mainstream, you can relieve budget pressures while leveraging our investments in technologies, tools and expertise. Contact us to learn more.
ABOUT MAINSTREAM TECHNOLOGIES
Mainstream Technologies delivers a full range of technology services in Arkansas and the surrounding region including managed technology services and consulting, custom software development, and cybersecurity services. We also offer industry-leading data center services in our Little Rock facilities. Established in 1996, Mainstream has earned a reputation for delivering quality, reliable, and professional technology services for public and private-sector customers across the United States.
Jeff Pracht
IT Business Development Manager
(479) 715-8629 Office
(501) 529-0008 Mobile
