TAMPA, Fla., March 06, 2024 (GLOBE NEWSWIRE) -- Service Leadership Inc.®, a ConnectWise solution, is excited to announce the release of the highly anticipated 2024 Annual IT Solution Provider Compensation Report™. This report serves as the industry's leading resource for compensation data and best practices among top-performing IT solution providers (TSPs).
While TSPs balance heightened demand for IT solutions with the limited resources at their disposal, the 2024 Annual IT Solution Provider Compensation Report plays a vital role in their success by providing valuable insights into TSP specific compensation data as well as appropriate compensation structures and mutually beneficial incentive strategies.
Unlike other compensation reports that include positions only tangentially related to the TSP business model, this 11th edition focuses exclusively on TSPs. The report has 400+ pages of data and analysis broken down by position and experience level. The survey received record participation from all four geographic regions: Australia and New Zealand, Canada, Europe (primarily Ireland and the UK), and the United States (US).
In addition to its comprehensive coverage of W2 (T4 in Canada, P60 in the U.K., Income Statement in Australia, and Gross Earnings in New Zealand) compensation for over 50 billable, sales, and management positions commonly found in TSPs, the 2024 report offers valuable insights into variable incentive compensation, average bill rates, and annual earnings percentage increases. The data is thoughtfully broken down by region, city tier, and, where possible, by metro area.
One of the unique aspects of the Service Leadership report is its ability to correlate compensation data with TSP profitability performance. This allows for an in-depth analysis of how top-performing companies differ in their compensation practices compared to lower-performing ones.
Key highlights from the 2024 compensation report include:
- Wage inflation peaked in 2022 for TSPs worldwide and has shown significant improvement since, with roughly one-third as many employees projected to receive top-level increases in 2024 as 2022.
- In 2023, top-performing TSPs provided lower compensation increases compared to the bottom quartile TSPs, indicating a difference in compensation strategies.
- Remote work remains relatively low in the TSP industry, with only 8.7% of employees working 100% remotely, while 42.8% work exclusively in the office. Most TSP employees (73%) spend at least three days or more working in the office.
- Best-in-class managed service providers (MSPs) and value-added resellers (VARs) were less likely to offer unlimited paid time off (PTO), while the bottom quartile MSPs and VARs were more likely to provide this benefit. Outside the US, unlimited PTO remains virtually nonexistent.
Peter Kujawa, VP & GM of Service Leadership, expressed the immense value of the report, emphasizing its significance for any TSP aiming to maintain competitiveness in the marketplace. He stated, "This report is an invaluable resource that provides TSPs with the actual costs required to recruit and retain employees, which is crucial for achieving success."
Additionally, Kujawa highlighted the positive trend in wage inflation, noting that after reaching its peak in 2022, there has been a consistent downward trend extending into 2024. He further explained that the projected TAE increases for 2024 are expected to be significantly lower than those of 2023. This development is seen as promising news for TSPs, as it is likely to have a positive impact on their bottom-line profitability.
Kujawa will share more of his thoughts on the findings and impact on the industry during the Channel Partners Conference & Expo and MSP Summit on March 11-14, where he will be headlining three keynote sessions, including "Hot Data: More Profit Through AI."
To receive a complimentary executive summary and learn how to purchase a full copy of the 2024 Annual IT Solution Provider Compensation Report, please click here.
About Service Leadership
Service Leadership Inc.®, a ConnectWise solution, is dedicated to providing total profit solutions for IT solution providers (TSPs). The company publishes the leading vendor-neutral, TSP financial and operational benchmark: Service Leadership Index®. In addition, Service Leadership offers private diagnostic benchmarks for individual IT solution providers and their business coaches and consultants. The company also provides SLIQ™, an exclusive web application designed for TSP owners and executives to confidentially assess and drive their Operational Maturity Level™, thereby enabling financial improvements. For more information, visit Service Leadership.
Media Contact:
Amanda Lee
VP, Corporate Communications
Amanda.lee@connectwise.com
