Service Leadership Inc. has released early findings from its 11th Annual IT Solution Provider Compensation Report. Best-in-class TSPs (top 25% most profitable) had roughly half as many employees (20.5%) receive top increases of over 6% as the bottom quartile TSPs, who gave top increases to approximately 39% of employees. The findings suggest a decrease in top-level increases and a return to historical norms in 2024. The full report, available for purchase in early 2024, will also cover staff-to-management ratios, incentive pay, remote work arrangements, and more.
The fact that best-in-class TSPs have fewer employees compared to bottom-quartile TSPs is telling. This disparity suggests that the most profitable are more strategic and more restrained in compensation increases. This could be due to several factors, including a focus on maintaining profitability through controlled payroll expenses or a strategy that involves investing more in other areas like technology, training, or customer acquisition. We’ll be waiting for that full report to learn more.