A recruitment crisis looms for the UK technology industry as average earnings fall and resignations rise, according to research by the Chartered Management Institute (CMI) and specialist salary survey company Remuneration Economics.

The 2007 National Management Salary Survey found that pay rises in the IT sector have fallen well below the national average, bottoming out at 3.1%. Only the transport and logistics sector is worse off, mustering an average earnings increase of just 2.6%, the survey found.

Overall, the average salary increase across all industry sectors for 2007 was 5.3%, down on 5.7% in 2006.

Bonuses within the IT sector are also set to disappoint, says the survey. The number of executives awarded bonuses fell a chunky 25%, from 59% in 2006 to 34.7% in 2007. The average bonus payment in the IT industry was £5,189.

The sector’s poor financial showing was reflected in its resignation rates, which have grown 1.5% on last year. Staffing problems also extended to recruitment the survey found, with a staggering 81% of employers reporting problems sourcing qualified candidates.

In another survey released on Wednesday by industry forum CIO Connect, 73% of CIOs responded that the progress of change management programmes within their organisations is being impeded by a lack of qualified IT staff.

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