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META Group Finds Low IT Employee Morale Reaching Critical Level

  • 10 June, 2004 14:31

<p>SYDNEY, Australia. (June 10 2004) - Among the many areas of high concern to IT organizations this year, few are as evident as employee morale, according to the 2004 IT Staffing and Compensation Guide, an annual study released by META Group, Inc. (Nasdaq: METG). In fact, among the more than 650 companies surveyed, more than 72 percent indicate that low IT employee morale is currently a serious issue in their organizations — a problem that could spell longer-range turnover, lower productivity, and less overall shareholder value to the organization as a whole if not addressed.</p>
<p>“Working through this prolonged recession, which has seen budget cuts across the enterprise, numerous staff cutbacks, and general sector uncertainty, has definitely taken its toll on IT employee morale,” said Maria Schafer, senior program director with Executive Directions at META Group, and author of the annual IT Staffing and Compensation Guide. “The combination of these factors creates a difficult situation for the IT organization: productivity is hurt by having fewer people, fewer investment dollars for projects, and a perception that companies do not focus on retention.”</p>
<p>META Group recommends proactively addressing these issues to avoid a loss of productivity. “The IT organization needs to take a broader view of these issues, and turn them into challenges that ultimately can inspire new behaviors and better business performance,” said Schafer. “This approach will also help develop essential experience and a knowledgebase within the IT group.”</p>
<p>About 45 percent of companies surveyed have begun implementing employee recognition programs as a means to boost morale, while 40 percent have increased skill development opportunities. According to surveyed IT managers, career and professional development programs are used as a means to improve employee morale in 23 percent and 10 percent respectively, while only 4 percent are offering spot monetary incentives.</p>
<p>At a minimum, the majority of organizations are at least taking steps to assess the degree of employee dissatisfaction, with 68 percent indicating they conduct employee satisfaction surveys, while another 38 percent use the performance review process to obtain employee feedback, and 14 percent use suggestion boxes to keep the lines of communication with employees open.</p>
<p>About the Report</p>
<p>META Group’s 2004 IT Staffing and Compensation Guide is the industry’s most definitive source of IT staffing and retention-related research, containing the latest facts, figures, and guidance required for attracting, compensating, and retaining business-critical IT talent. The 900+ page report provides an exhaustive analysis of the most current best practices in human capital management, plus detailed models, illustrations, and recommendations. The report is offered with an online, keyword-driven navigation tool that enables customized queries of the compensation data, based on industry, geographic location, organization size, and number of IT personnel. For more information about the 2004 IT Staffing and Compensation Guide, visit or call (800) 498-META [6382] or (203) 973-6700.</p>
<p>About META Group</p>
<p>META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group’s experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit for more details on our high-value approach.</p>
<p>Jessie Shepherd
Markom Marketing
<p>Peter Carr, Vice President, Director Operations
META Group

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