Channel Partners

FAL 2016

For 25 years, Channel Partners has been a resource for indirect sales channels, such as agents, VARs and dealers, that provide network-based communications and computing services, associated CPE and applications, and managed and professional services

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COVER STORY TOP TAKEAWAYS 23% REPORT MORE THAN $150,000 IN BASE SALARY. W When Channel Partners and the 451 Alliance, a W division of 451 Research, set out to delve into the state W of the channel, we had some goals: Help partners make W sure their own compensation — and the salaries of W key staff — are competitive. Explore personnel costs W for new skills, job titles and geographies to gauge the W feasibility of expanding to new technologies or regions. W And see whether our community has the expertise to take W advantage of emerging digital services opportunities. W The big picture for technical employment is mixed. W Numbers-watcher Janco Associates says 2016 could show W a net decrease in the overall size of the IT job market, with W an estimated 76,500 new positions being created, compared W with 112,500 in 2015, and many companies cutting back W on contractors and consultants. Most growth is in the W application development sector — not a historic strong point for the channel. The average salary across all IT specialties: $82,775, according to Janco, up just .64% over 2015. So how does the channel compare? Here are seven top findings from the 260 channel pros responding to our survey. We limited participation to those currently working for a U.S.-based agent, VAR, MSP, systems integrator, technology or strategic consultant or other solutions provider. The top 5: agent, 25%; MSP, 19%; VAR, 15%; cloud service provider, 12%; consultant, 10%. SIs, distributors and other providers comprise the remaining 19%. Find full survey results at and hear firsthand analysis of the data from Sean Riley, Lynn Haber and Women in the Channel on Tuesday, Aug. 16, on the Evolution Theater stage. Please join us. CHANNEL SALARIES: HEALTHY FOR MOST BY SHERRY HUBBARD-BEDNASZ Let's get right to the bottom line: For 2016, respondent salaries exclusive of bonuses and benefits, across all occupations, averaged $126,572, with a median of $95,000. That's well above the $82,775 average within the technology sector overall. As for distribution of salaries, it's diverse, with 22% earning $60,000 or less, 30% reporting $61,000 to $100,000, 25% earning $101,000 to $150,000, and 23% reporting more than $150,000. Unsurprisingly, respondents who own or co-own a company or hold an executive management role, while not a large percentage of our base, reported salaries 1.9 to 2.6 times higher than staff or supervisors. What's less expected is the flat or declining salaries reported by staff, supervisors and executives — the average exec's pay shrank by about 2.1% since last year. Fortunately, bonuses were healthy, ranging from 14% for staff to 38% for executive management as a percent of average salary. Staff Supervisor Exec. Management Owner/Co-owner $79,654 $65,000 14.3% $79,348 $67,334 $90,196 $82,500 16.9% $89,719 $83,500 $174,260 $132,500 37.9% $170,679 $135,000 $188,317 $120,000 21.8% $207,950 $122,500 2015 Average Salary 2015 Median Salary 2015 Bonus (% of Average Salary) 2016 Average Salary 2016 Median Salary 2016 U.S. CHANNEL COMPENSATION SURVEY 12 CHANNEL PARTNERS FALL 2016 Data: Channel Partners and 451 Research

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