A career in IT can take many paths, but for those with leadership ambitions, moving into an IT management role can be both fulfilling and financially rewarding. So, what can IT managers expect in terms of salary, and how do industry and location impact their earnings?
The Role of an IT Manager
IT managers are responsible for overseeing an organization’s technology infrastructure, managing teams, and guiding computer-related projects to success. According to the U.S. Bureau of Labor Statistics (BLS), there were around 592,600 IT managers employed in the U.S. in 2023. The job requires a mix of technical knowledge, problem-solving skills, and strong leadership abilities. Employers typically look for candidates with a college degree and several years of experience in the IT field.
IT Manager Salaries: How Much Do They Make?
The median salary for IT managers in the U.S., as of May 2023, was $169,500 per year, or roughly $81.50 per hour. Of course, this figure can vary widely based on factors such as industry, region, and individual experience. For instance, IT managers working in industries like information and manufacturing typically earn higher-than-average salaries, while those in sectors such as healthcare and education may see slightly lower figures.
Here’s a breakdown of IT manager median salaries by industry in 2023:
- Information: $183,370
- Manufacturing: $175,540
- Retail Trade: $165,550
- Government: $169,510
- Healthcare: $139,350
- Education: $123,880
Pay Ranges for IT Managers
Salary distribution also varies by experience level. The BLS provides percentile wage estimates to highlight the pay range for IT managers:
- 10th percentile: $101,590
- 25th percentile: $131,770
- Median (50th percentile): $169,510
- 75th percentile: $214,050
- 90th percentile: $239,200
At the high end, IT managers in the 90th percentile earn upwards of $239,200 annually, while even those at the lower end can expect to make over $100K per year.
How Location Affects IT Manager Salaries
Geography plays a significant role in determining salary. For example, IT managers in metropolitan areas like San Francisco or Seattle tend to command higher wages due to the demand for tech talent and higher cost of living. In San Francisco, the median salary for an IT manager is $220,980, compared to just $99,470 in Hot Springs, Arkansas. Even within the same state, differences between metro and non-metro areas are notable. For example, IT managers in Austin, Texas, earn a median of $169,930, while those in the surrounding rural areas make closer to $130,670.
Balancing Salary with Cost of Living
While high salaries in cities like San Francisco or Seattle are tempting, it’s crucial to consider the cost of living in those regions. For instance, while IT managers in Seattle earn about 24% more than those in Atlanta, the cost of living in Seattle is estimated to be 47% higher. So, before making any big career moves, it’s essential to weigh salary against living expenses.
Final Thoughts
If you’re on a path to IT management or considering a transition, it’s important to keep these salary insights in mind. With a solid combination of technical skills, leadership ability, and the right experience, IT management can be a highly rewarding career both personally and financially.