Service Leadership Inc., a ConnectWise solution, today announced the early findings from its highly anticipated 11th Annual IT Solution Provider Compensation (Remuneration) Report™ to be released in early March 2024. The report, which focuses on over 50 positions common to IT solution providers (TSPs), provides an unparalleled wealth of high-level information on TSP-specific compensation to help TSP leaders better understand and utilize industry best practices when making compensation decisions for their TSPs.
A record number of TSPs participated in the survey for the report and provided valuable insight on target annual earnings (TAE), projected raises, bonuses, and more for various positions, from management and sales and marketing to technical roles such as service desk, field technicians, and security, project, and network/systems engineers. This data offers insight into market pay rates for each role and measures the impact that inflation has had on said rates. Early findings from the upcoming report suggests that wage inflation peaked in 2022, with TAE increases decreasing year over year since then. 2024 TAE increases are planned to be lower than 2023 actual increases, suggesting a return to historical norms.
“Our findings from the compensation survey show a material improvement in wage inflation for TSPs in all regions worldwide,” says Peter Kujawa, VP & GM, Service Leadership, Inc. “In 2023, we saw less top-level increases (those over 6%) than in 2022 and in 2024, providers are planning on roughly half as many top-level increases as in 2023.”
Additional key findings on wage inflation and TAE worldwide, include:
- Best-in-class TSPs (top 25% most profitable) had roughly half as many employees (20.5%) receive top increases of over 6% as the bottom quartile TSPs, who gave top increases to approximately 39% of employees.
- Value Added Resellers (VARs) are anticipating even lower increases than MSPs. Best-in-class VARs are planning on nearly 50% of employees receiving increases of 3% or less.
- Europe stands out as the only region planning more increases over 4% in 2024 versus that of 2023. Most of those increases will be in the 4 -6% range. Top-level raises over 6% are anticipated to decrease from nearly 38% in 2023 to 19% in 2024.
- Canada stands out as the region with the lowest planned increases of any region, with only 10% of employees receiving increases of 6% or more and 40% receiving 3% or less increases.
As a resource for TSPs to remain competitive and foster transparency across the industry, the full report will also shed light on the staff-to-management ratio of top profitability of TSPs by business model, the allocation of incentive pay for each position and seniority level, and the earnings of owners based on specific business models and company sizes. In addition, new for the 2024 report will be details included on remote work arrangements, including 100% in-office, 100% remote, and two hybrid models. Also included is the amount of paid time off (PTO) given by position and experience level. These additions were made as remote work arrangements continue to evolve.
The Service Leadership Index® Annual IT Solution Provider Compensation (Remuneration) Report is widely recognized as the leading source for TSP-specific compensation data and compensation strategies of top-performing TSPs. The final report will be available for purchase at a price of US$1,999 in early 2024, but as a token of appreciation, those who took part in the survey will be the first to receive a complimentary copy upon its release.
