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But money is apparently not what matters most to IT managers and staffers. Two-thirds of the survey respondents said the challenging nature of their work and having responsibility are most important. Other factors are having a flexible work schedule (52 percent), job stability (42 percent), vacation time or paid time off (35 percent), and having their opinions and knowledge valued by their company (35 percent); base pay was rated highest by 40 percent of all respondents.

Other factors are the financial stability of their company, prestige or reputation of the company, potential for promotion, location, corporate culture, effectiveness of immediate supervisor, understanding the company's business strategy, bonus opportunities, and regular coaching and feedback on performance.

Managers and staff generally gave similar answers to what matters most about their jobs. But more managers said they value business-oriented factors like seeing how their jobs help achieve company goals, understanding the companies' business strategies, corporate culture and values, and setting company strategy and determining goals. Staffers, on the other hand, favored skills development and educational and training opportunities.

Most IT staffers (56 percent) said they are satisfied or very satisfied with all aspects of their jobs, including compensation and benefits. About 25 percent were neutral in their job satisfaction, and only 4 percent said they are very dissatisfied. IT managers gave similar answers, with 57 percent saying they are satisfied or very satisfied and only 4 percent said they are very dissatisfied.

Still, a large number of respondents -- 54 percent of the staffers and about one-half the managers -- said they are looking for work elsewhere.

This is where money becomes more of an issue, too. When these IT managers and staffers were asked why they were looking for new jobs, the most common answer (77 percent) was to get higher compensation. Other factors are a dislike of their present companies' management or culture, the desire to find more interesting work, and the desire for more responsibility on the job.

Internet company failures have clearly had an impact on what IT professionals think about their future. Only 3 percent of IT managers and staffers said they would like to work for dot-coms in their next jobs, and 6 percent for start-ups. Far more would rather work for commercial enterprises (38 percent), and somewhat more for consultancies (20 percent), their own businesses (15 percent) or service providers (8 percent).

Seventy-seven percent said they are willing to relocate. The factors that would most entice IT workers to move are an increase in compensation, a new job and paid moving expenses. About one-quarter of the respondents said nothing could entice them to move. When asked which factors would influence their decision to accept a lesser position or title, six in 10 IT professionals said to get more job satisfaction. Other factors are location, working for a better company and flexibility.

Hotter than Ever

IT workers are still hot commodities. Even as many companies resort to layoffs, including cutting some technology jobs, there's still a shortfall of tech workers. The ITAA estimates that 425,000 positions will go unfilled this year (see "Star Search," page 32). This labor shortage -- coupled with strong demand for skills in Internet, e-business, networking and other technologies -- is keeping pay for technology jobs on the rise, albeit at a slower rate than in past years.

"There are occasional anomalies in demand, but unless we continually increase the supply, I believe there will be a perennial shortage of computer workers," says Volgenau. "Supply is not keeping up with demand."

Volgenau, who also serves on a National Academy of Sciences committee that's studying IT work-force needs in the United States, predicts an "insatiable demand" for new applications on the Web and in areas such as embedded computing and car electronics, which will keep IT jobs hot.

The Network Computing salary survey illustrates how IT talent is still in demand. About six out of 10 IT staffers and two-thirds of managers said they have been contacted by recruiters about jobs with other companies in the past 12 months. Both staffers and managers said they were contacted on average three times each about jobs at other companies during that time period.

Meta Group's annual IT "Staffing and Compensation Guide" study of 500 large U.S. companies, meanwhile, shows that U.S. companies are struggling to fill even more IT positions this year than ITAA projects, about 600,000. The report, released in June by the IT research and advisory firm of Stamford, Conn., says the IT skills in greatest demand include networking, Internet and extranet development, Java, databases, wireless systems, and telecommuter and remote-worker support.

The shortfall has increased the value of these skills. More than two-thirds of the companies in the Meta study said they pay IT workers 10 percent to 20 percent more than those workers' non-IT counterparts. A year ago, only 42 percent said that.

IT managers say it's a constant balancing act with recruiting and spending. "We value hiring great employees and want to be competitive with the marketplace, but we do have a budget," Dahl says.

Meantime, respondents to the Network Computing survey generally gave less than stellar marks for their company's ability to attract IT employees compared with that of competitors. More than one-third said their company's efforts were either poor or totally unsatisfactory, and one-third rated them as fair, one-quarter as good and only 5 percent as excellent.

Companies got even lower marks when it came to their ability to retain their IT workers. Forty-eight percent of the respondents rated their companies as either poor or unsatisfactory in keeping IT employees, 29 percent as fair, 19 percent as good and just 4 percent as excellent. And IT people gave their companies low scores for building employee loyalty, too. Fewer than 20 percent of the survey respondents said their companies are successful at building loyalty, 30 percent said their companies make noble efforts, 36 percent said their companies make feeble efforts, and 17 percent said their companies don't seem to care about loyalty.

But companies had better start improving their ability to hire and retain workers because the IT labor shortage is expected to continue (see "Keep Talent From Taking Flight"). Meta Group predicts that the modest relief in demand caused by the softening economy is only short-term. By the beginning of next year, according to Meta Group, demand for skills will be strong in areas such as networking, B2B marketplaces, and supply-chain and commerce-chain management.

Meanwhile, many companies have been dealing with the IT labor shortage by outsourcing data centers, helpdesks, application development and other technology functions. Analysts expect companies to continue relying on outside expertise, particularly for hard-to-find skills. Despite this, IT professionals are not concerned about being displaced by outsourcing, according to the Network Computing survey. Only six percent of managers and 14 percent of staffers said they have such concerns. That may be because IT professionals sometimes end up working for these outsourcing companies when they take over.

An Uneasy Feeling

Yet despite the continued demand for IT talent, a surprisingly high number of IT workers don't feel secure in their jobs. Only 18 percent of IT staffers said they agree, strongly agree or somewhat agree with the statement "I have a strong sense of job security." Nearly one-quarter of them said they strongly disagree with it. Managers are less confident than staffers, with 15 percent saying they agree with the statement to any extent and about 30 percent strongly disagreeing.

The economy is likely adding to the feelings of insecurity. When IT professionals were asked if their current employers are capable of providing stable, long-term employment, only 17 percent of staffers and 18 percent of managers agreed. This outlook was common among all age groups, skill sets, regions and company sizes.

But technology chiefs say IT professionals should be more upbeat about the future, despite the current economic woes in many industries.

"In today's business economy, everyone is a little nervous," says Seltzer of Office Depot. "But I'd encourage people in IT to lighten up a little. IT positions will remain strategic and will continue to grow exponentially."