IT salaries lose out to hardware spend

UK companies are spending three times more on buying hardware than on IT salaries, according to an investigation into the skills shortage in Europe.

US research firm Meta Group published an IT staffing report last week which revealed that half of the European firms surveyed said they would offer between 10 per cent and 20 per cent salary hikes because of the skills drought. Two-thirds of the 100 companies polled said they would continue offering increases of only five per cent.

Among the skills most in demand are e-commerce, ERP, project management and network management, as well as year 2000 and the euro.

The report's author, Maria Shafer, urged European companies to invest in their staff before it is too late. Italy and the UK respectively spend 50 per cent and 33 per cent more on buying equipment than investing in people.

However, in Switzerland, the Netherlands, France and Germany, salary budgets are growing faster than IT spend.

Shafer criticised European firms for not offering employees enough recognition and said they should offer regular prizes, awards, organise training courses and create leadership roles.

'Compensation is the fifth most important requirement for employees.

First is to have a sense of belonging, with the second being the development of skills,' she said.

Shafer added the survey also suggested firms had yet to feel the full force of the IT skills shortage, mainly because of low staff turnover.

However, the urgency of year 2000 and euro projects have made companies aware of the problem.