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Perspectives on the SAGE Salary Survey

schafer_peg

by Peg Schafer
<peg@usenix.org>
SAGE Treasurer

As I sit down to write this article on the 1999 SAGE System Administrator Salary Profile, Judge Jackson is sticking it to Microsoft, the stock market (i.e., my retirement fund) is bouncing like a ball, and another student of mine has just accepted a job offer that has a better compensation package than my own. Rarely does such daily news affect my personal life to such a degree!

The motivation of the SAGE Salary Profile was to give form to what we already knew: systems managers are in short supply and getting decent pay. But how much do they make? Are there differences among industries? Prospective systems managers would like to know if experience is worth more, in the long run, than an advanced degree. Beyond the obvious we knew very little about compensation for system administrators. As a result of this year's SAGE Salary Profile, we now know more, but, as with most research, new questions arise. Working with the Human Resources Research Organization (HumRRO), we now have some solid information.

Here are a few of the headlines from the report:

  • The salary numbers themselves are astounding. The median U.S. salary for technical occupations was $27,849 for women and $40,546 for men. Our median (for system administrators) is $62,500!
  • Finance, insurance, real estate, and entertainment industries are the highest paying for sysadmins, but such traditionally low-paying institutions as education are now closing the gap.
  • Years of experience have a stronger relationship to higher compensation levels than a college degree. While any college degree helped get the $$, a computer degree did not get you more $$.
  • 80% of all respondents expect to be systems managers five years from now!
  • Sysadmins are people on the move! 40% of all respondents significantly changed what they did within the last year.
  • There is no such thing as a simple site anymore. The average number of operating systems supported was 4.7. This means interoperability is key. Are you listening, Microsoft?
  • You do not have to be a spreadsheet-wielding manager to earn the bucks. Redefining "career advancement" is on the agenda of many systems managers.

    Working at a university, I normally see a few of the better students apply to graduate school. This year, none of my students is applying to graduate school. Rather, a sizable number of students (undergraduate and graduate) are delaying their schooling to enter the work force, to take advantage of opportunities before the bubble bursts. Systems managers are being pulled along with this tide of money. Competition for the smart, bright, motivated, and skilled person is intense. Toys are tossed in our paths to entice us to another "opportunity." It's industry, trolling for minds. Startups are not the sole cause of this vacuum. Long-standing industries are reengineering their computing infrastructure; all commerce is being channeled to the Web. It is not surprising that some of the highest-paid individuals run Web farms.

    The complete report of the 1999 SAGE System Administrator Salary Profile is now available to anyone for the asking at <http://www.usenix.org/sage/jobs/ salary_survey/>. I urge everyone to download a copy. It has much more information than could be presented here, including salary information by zip code, industry, and SAGE job categories. Read it, and let us know what you think. I look forward to active discussion on the <sage-members> mailing list!

    The salary profile evolved from a spontaneous paper-based "sysadmin profile" at the LISA conferences. This year's results are based on our new Web-based questionnaire, which will continue to evolve each year. The 2000 Salary Profile will be refined and expanded to consider the international aspects of our membership and professional responsibilities. I feel the sample size of 2,314 is too small and would like to grow that number tremendously with the next iteration.

    I'd like to take a moment to thank all the respondents. The SAGE Executive Committee hopes this information will improve your daily working life and give more form to the fine art of systems management!

    Report on the SAGE System Administrator Profile Survey

    As part of its ongoing effort to gain recognition and advancement for system administrators, SAGE annually conducts a System Administrator Profile Survey. This report is based on results of the 1999 profile that was administered at the LISA Conference and on the USENIX/ SAGE Web site during November and December 1999.

    The 2,314 respondents to the 1999 survey worked in 48 different countries. The majority (81.6%) worked in the U.S. The other most common countries were Canada (5.0%), Australia (3.8%), and the United Kingdom (1.9%). Most analyses of salary, bonuses, and total cash (total cash is salary, wages, bonuses, and other nondeferred cash payments) were based on only the U.S. respondents, because of the small sample sizes for other countries.

    Most respondents were salaried workers (90.1%), working for a single employer (90.9%), male (87.3%), and had a bachelor's degree (46.0%) or some college (21.5%) as their highest level of education. Most worked with Solaris (77.7%), Windows NT (63.7%), Linux (55.9%), and/or Windows 95/98 (47.8%). On average, respondents worked with 4.7 operating systems. The majority did not supervise any subordinates (72.0%) and were not certified on any operating system (65.4%). They averaged 11.3 days of travel per year, 47.0 hours of work per week, 7.9 years of experience in the field, 2.8 different employers while in the field, and 34 years of age. Half had worked for their current employer two years or less. The majority (89.1%) indicated that system administration was their primary line of work. Over one-fourth of respondents were in the computer/software/ Internet industry, over 15% worked in university or college education, and over 10% were in consulting/business services.

    For U.S. system administrators, mean salary was $64,271 and the median was $62,500; the mean total cash was $70,565 and the median was $65,200; the mean bonus was $3,464 and the median was zero. Mean and median salaries were lower in other countries and areas of the world than in the U.S., particularly in Eastern Europe/Western Asia. Mean salaries were over $75,000 for two New York City zip codes (10 and 11), one North Carolina zip (28), and the Sacramento and San Francisco area (94 and 95) zip codes.

    For those in the U.S., the average 1999 pay increase from the same employer for the same job was 7.9%; from the same employer for a promotion, 14.9%; and from changing employers, 23.3%. Over 61% had received an increase from the same employer for the same job. More than one in six had received an increase from changing employers, and more than one in ten had received a promotional increase.

    salary1

    Figure 1: Income ranges, 1998 and 1999

    Figure 1 shows the percentage of respondents for each of the two years who had income in the ranges shown. The percentage with salary less than $41,000 was the same in 1999 (15%) as in 1998 (15%), because the sample included a higher proportion of respondents from outside the US (29.0% in 1999 compared with 14.4% in 1998), where salaries are lower, on average. Percentages in the middle salary ranges decreased, while the percentage making $76,000 or more increased in 1999 (31%) compared to 1998 (22%), which demonstrates the trend of increasing salaries for system administrators.

    Over half (52.1%) of the system administrators in the total sample did not receive a bonus. For those who did, Figure 2 shows the percentage of the sample who received each type of bonus. Over 22% received a bonus for individual performance; 17.1% received a bonus for organizational performance, 10.1% for group or unit performance, and 6.7% for a special project. The median bonus for individual and organizational performance was $3,000, for group/unit performance it was $2,000, and for a special project it was $1,500. Of the 21 respondents who reported a bonus related to stock, the median was $27,000.

    salary2

    Figure 2: Types of bonuses

    Eight percent of the system administrators in the sample said they were contractors, and 1.9% said they were independent, self-employed consultants. Mean salary was lower for salaried ($62,152) than contractor ($77,307) or consultant ($96,121) system administrators in the U.S. The same pattern was found for mean total cash, as shown in Table 1.

    Table 1. Total Cash in 1999 by Type of Primary Job
    (U.S. System Administrators)
    Job Type# of RespondentsMean Total Cash in U.S. $
    Salaried 1,470$68,742
    Contractor 13$78,346
    Independent,
    self-employed
    consultant 24$106,746

    Mean salary for those who "assist in the administration of a systems facility" and "perform routine tasks under the direct supervision of a more experienced system administrator" (Level 1 of the four SAGE Job Description Levels) was $47,847. For those at Level 2, who "work under the general supervision of a computer system manager, carrying out more complex tasks with some independence," the mean was $54,765. For those at Level 3, who "initiate some new responsibilities and help to plan for the future of the facility," "manage the work of novice system administrators," and "evaluate and/or recommend purchases," the mean was $61,703. And for those at Level 4, who "design and manage the computing infrastructure," "work under general direction from senior management," and "establish or recommend policies on system use and services," the mean was $71,725. The same pattern of relationship between increasing level and increasing pay is seen for total cash in the Table 2.

    Table 2. Total Cash in 1999 by SAGE Job Description Level
    (U.S. System Administrators)
    Job Level# of RespondentsMean Total Cash in U.S. $
    Level 143$50,766
    Level 2181$57,806
    Level 3851$66,578
    Level 4554$81,021
    Mean for All Levels1,629$70,098

    In the U.S., supervision of subordinates was related to the following average salaries: no subordinates, $62,448; 1 to 2, $63,297; 3 to 5, $67,779; 6 to 10, $70,044; and 11 or more, $78,168.

    For U.S. system administrators, salary also tended to increase with hours worked (e.g., $41,848 average for 0­19 hours; $54,449 for 20­34 hours; $62,900 for 41­45 hours; $66,156 for 51­60 hours).

    For U.S. system administrator respondents, 15.4% reported receiving overtime pay, 0.1% shift pay, and 15.9% on-call/pager pay. Overtime pay for U.S. system administrators was most prevalent in aerospace, government, and the military. Shift pay was most prevalent in the aerospace industry and federal government (nonmilitary). Over one-quarter of U.S. respondents in health care, state/local government, and transportation organizations said they get paid for being on call or wearing a pager.

    The number of operating systems supported was not related to the amount of pay, but those who worked with Solaris, BSDI, and HP-UX tended to have significantly higher salaries, while those who worked with FreeBSD, MacOS (non-UNIX), OpenBSD, or DOS/Win 3.1 tended to have lower salaries, on average. About a third of the sample (34.5%) had a certification for an operating system. Those with certifications for HP-UX, Solaris, and SunOS tended to earn higher salaries or more total cash. Other operating systems and certifications, including Linux and Windows NT, did not have a statistically significant relationship with the amount of salary or total cash earned.

    Table 3. 1999 Salary by Level of Education (U.S. system administrators)
    Level of Education# of RespondentsMean Salary in U.S. $
    Certificate 6$46,050
    High School44 $58,055
    Some Technical School77$60,533
    Some College383$61,076
    Associate's Degree123$61,585
    Bachelor's Degree770$64,641
    Master's Degree237$67,998
    Ph.D.20$72,160

    As shown in Table 3, U.S. system administrators with high school as their highest level of education averaged $58,055 in salary, while those with increasingly higher levels of education made increasingly higher average salaries. The number of certifications one had earned was related to salary in the U.S.: those with no certifications averaged $62,992 in salary; those with one certification averaged $64,116; and those with six or more averaged $71,322. Members of SAGE tended to receive higher salaries ($65,818, on average) and more total cash ($73,990, on average) than those who were not members of a professional organization (average $61,637 in salary and $65,226 in total cash). As shown in Table 4, male system administrators reported higher average salary and total cash than the female system administrator respondents from the U.S. Regression equations including variables such as education, years of experience, and job level along with sex indicated that females make lower salaries but higher bonuses, on average, and do not have significantly lower total cash when the other variables are taken into account.

    Table 4. 1999 Salary and Total Cash by Sex (U.S. System Administrators) Sex of Respondent # of Respondents Mean Salary in U.S. $ Mean Total Cash in U.S. $

    Male 1,435 $64,883 $71,214

    Female 225 $57,777 $62,863

    The number of years of experience as a system administrator (or in similar work) was positively related to higher salaries and total cash (see Table 5), but the number of years with one's current employer was not. Those with two years or less of experience averaged less than $50,000 salary; those with three to ten years averaged between $50,000 and $60,000; those with 11 to 14 years averaged between $70,000 and $75,000; and those with over 15 years averaged more than $76,000. Age was also positively related to compensation, although the relationship was not as strong as that between years of experience and compensation.

    Table 5. Salary by Years of Experience
    (U.S. System Administrators)
    Years of Experience# of RespondentsMean Salary in U.S. $
    1 or less58$38,163
    290$46,178
    3138$54,288
    4159$55,508
    5204$60,246
    6145$63,643
    7-8224$67,814
    9-10196$67,510
    11-12142$72,167
    13-1483$74,749
    15-16109$76,958
    17-2073$76,934
    21-2529$77,950
    26 or more8$77,780

    Table 6. 1999 Salary and Total Cash by Number of Employers (U.S. system administrators)
    # of Employers# of RespondentsMean Salary in U.S. $ Mean Total Cash in U.S. $
    1291 $55,338$58,460
    2445 $58,925$62,537
    3419 $65,002$68,901
    4243 $70,397$77,853
    5123 $74,876$83,240
    655 $71,836$92,523
    726 $78,595$137,815
    8 or more26 $87,667$108,536

    Table 6 illustrates how U.S. system administrators' compensation was positively related to the number of employers they had had during their career. This was not because those who had had more employers also had more experience; nor was it due to the fact that those with more employers were more likely to be contractors or consultants. In addition, those who worked for more than one employer at the time of the survey (i.e., more than one at the same time) averaged about $5,000 more salary ($68,573 vs. $63,463) and about $6,000 more total cash ($75,622 vs. $69,589) than those with one employer.

    Compensation varied considerably by industry for U.S. system administrators. The median salary was lowest in state or local government ($49,000) and colleges or universities ($50,000) and highest in finance, insurance, and real estate ($71,500) and entertainment ($80,000). These were also the industries with the lowest and highest median total cash, respectively. State/local government, entertainment, and utilities were among the most generous in providing fully paid insurance, although this varied somewhat by type of insurance.

    The numbers of computers supported, users supported, and system administrators employed where one worked were not related to pay levels. The number of computers or users per administrator in one's facility was also not related to compensation.

    Table 7. 1999 Salary by Organization Size (U.S. system administrators)
    Number of Employees Percent of ResponsesMean Salary in U.S. $
    10.5% $58,788
    2­10 1.8%$48,032
    11­50 7.1%$61,356
    51­500 25.9%$64,174
    501­10,000 37.2%$62,478
    10,001 or more27.5% $67,941

    The number of employees in one's organization, worldwide, was significantly related to salary (see Table 7). Salary tended to go up with the number of employees. The mean number of paid holidays, vacation days, and training days, and the percentage with a retirement plan, childcare assistance, or tuition assistance also tended to increase with the number of employees in an organization. The percentage who could telecommute or use flextime was lower for those in organizations with 51 to 2,500 employees than in either smaller or larger organizations.

    U.S. system administrators averaged 15.4 days of paid vacation, 11.1 days of paid sick leave, 8.8 paid holidays, and 8.3 days of paid training per year. Paid time off tended to be highest in government, college/university, military, and not-for-profit organizations. Paid training days were highest in the military. The only industry for which U.S. respondents reported a higher percentage of defined benefit (i.e., pension) than defined contribution (e.g., 401k, 403b) retirement plans was state/local government.

    The majority (71.9%) of U.S. respondents said "yes," their organization does have difficulty filling all of the system administrator positions it would like to fill; 17.9% said "no" and 10.2% said "not sure" to this question. The industries with percentages above 75% were retail and wholesale trade, consulting and business services, federal government­nonmilitary, aerospace, college/university education, and advertising/public relations/ communication/marketing. Geographi-cal areas with the highest percentages were San Diego, the Research Triangle of North Carolina, and the San Francisco area.

    Over half of the respondents said the factors that would be most important in making them think seriously about switching jobs were pay (83.1%), location (76.4%), and benefits (60.0%). Over one-third marked organizational stability (38.9%), hours (38.6%), and organizational reputation (38.3%). (Respondents could mark more than one category.) The majority of respondents (80.1%) said they expect still to be a system administrator in five years.

    Respondents were asked to note any special benefits or working conditions they particularly liked and the most problematic or bothersome aspects of their jobs. The following are ranked according to the number of responses (e.g., #1 had the most respondents).

    Regression analysis was used to determine which of the various job, organizational, and personal background characteristics on the survey were most highly related to compensation. Over half (52.0%) of the variance in salary, 23.4% of the variance in total cash, and 8% of the variance in bonuses were accounted for by the equations. Thus, there were more systematic relationships between survey topics and salary than between survey topics and total cash or bonuses. The most significant factors associated with salary were being a consultant or contractor, location, industry, operating systems used, job level, education, number of employers, and experience.

    More detailed versions of these data and analyses are available from USENIX/SAGE upon request.

    Benefits/Working Conditions That Were Liked

    1. Flexible work schedules

    2. Jobs that provide challenge, autonomy, variety,
    learning

    3. Organizational cultures that are university-like,
    noncorporate, friendly, or nonbureaucratic

    4. Good managers, co-workers, and users

    5. Equipment for home offices provided by employers

    6. Casual dress or lack of a dress code

    7. Free beverages and/or food

    8. Telecommuting

    9. Working with new technology and good resources

    10. Good pay, special awards, stock/options,
    or paid overtime

    Most Problematic/Bothersome Aspects of Jobs

    1. Poor management

    2. Long hours, heavy workloads, or being on call

    3. Office politics and bureaucracy

    4. Low pay or lack of pay for overtime or on-call time

    5. Poor resources, low budgets, or lack of help desk support

    6. Routine, unchallenging, menial, or administrative tasks

    7. Users not using resources to solve problems themselves

    8. Lack of training, career development, and career paths

    9. Understaffing, recruiting, and retention problems

    10. Long commutes, extensive travel, or travel without notice

 

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