Question:

I am an IT professional working for a company that provides sales and service solutions. The company has 100 employees, divided into office, service, and warehouse/driver roles. Most of the employees use laptops, cellphones, and tablets, and we rely on cloud-based applications and services for our operations. I am the only in-house IT staff, supported by a managed service provider (MSP). I want to know if this IT staffing ratio is adequate for our company size and needs. Do we need to hire more IT staff or can we manage with the current setup? How does my salary compare to the industry average for my role and location? We also have a new marketing employee who has some IT skills and is willing to help with IT tasks. Is this a good idea or a potential risk?

Answer:

How to Determine the Optimal IT Staffing Ratio for Your Company

IT is an essential function for any modern business, especially for those that rely on cloud-based applications and services for their operations. However, finding the right balance between in-house IT staff and outsourced IT support can be challenging. How do you know if you have enough IT staff for your company size and needs? How do you compare your salary to the industry average for your role and location? And how do you leverage the IT skills of other employees without compromising security and efficiency?

In this article, we will try to answer these questions and provide some guidelines and best practices for determining the optimal IT staffing ratio for your company.

The IT staffing ratio is a metric that measures the number of IT staff per employee or per revenue unit in a company. It can be calculated by dividing the total number of IT staff by the total number of employees or by the total revenue of the company.

For example, if a company has 100 employees and 2 IT staff, the IT staffing ratio is 2/100 = 0.02. If the same company has a revenue of $10 million and 2 IT staff, the IT staffing ratio is 2/10,000,000 = 0.0002.

The IT staffing ratio can vary depending on the industry, the size, the complexity, and the IT maturity of the company. There is no one-size-fits-all formula for determining the ideal IT staffing ratio, but there are some benchmarks and averages that can be used as references.

According to a 2020 report by Computer Economics, the median IT staffing ratio across all industries was 0.012, or 1.2 IT staff per 100 employees. The report also found that the median IT staffing ratio by revenue was 0.002, or 2 IT staff per $1 million of revenue.

However, these numbers can vary significantly by industry. For example, the report found that the IT staffing ratio for manufacturing was 0.007, or 0.7 IT staff per 100 employees, while the IT staffing ratio for financial services was 0.019, or 1.9 IT staff per 100 employees.

The report also found that the IT staffing ratio can vary by company size. For example, the report found that the IT staffing ratio for small companies (less than $50 million in revenue) was 0.005, or 5 IT staff per $1 million of revenue, while the IT staffing ratio for large companies (more than $2 billion in revenue) was 0.001, or 1 IT staff per $1 million of revenue.

The report also found that the IT staffing ratio can vary by the IT maturity of the company. For example, the report found that the IT staffing ratio for companies with low IT maturity (low IT spending, low IT alignment, low IT effectiveness) was 0.008, or 0.8 IT staff per 100 employees, while the IT staffing ratio for companies with high IT maturity (high IT spending, high IT alignment, high IT effectiveness) was 0.016, or 1.6 IT staff per 100 employees.

How to determine the optimal IT staffing ratio for your company?

As you can see, there is no simple answer to the question of how many IT staff you need for your company. The optimal IT staffing ratio depends on many factors, such as your industry, your size, your complexity, your IT maturity, your IT strategy, your IT budget, your IT service level agreements, your IT outsourcing model, and your IT talent pool.

However, there are some steps you can take to determine the optimal IT staffing ratio for your company. Here are some suggestions:

• Benchmark your current IT staffing ratio against your industry and size peers. You can use the report by Computer Economics or other sources to compare your current IT staffing ratio with the median or average IT staffing ratio for your industry and size. This can give you a sense of how you are performing relative to your competitors and peers, and identify any gaps or opportunities for improvement.
• Assess your current IT needs and challenges. You can conduct a SWOT analysis (strengths, weaknesses, opportunities, threats) of your current IT function, and identify your current IT needs and challenges. For example, you can ask yourself questions such as: What are the main IT services and processes that support your business operations and goals? How satisfied are your internal and external customers with your IT service quality and delivery? What are the main IT risks and issues that you face? How well are you managing your IT costs and resources? How well are you aligning your IT strategy and objectives with your business strategy and objectives? How well are you leveraging your IT capabilities and innovations to create value and competitive advantage for your business?
• Define your desired IT outcomes and goals. You can define your desired IT outcomes and goals, and align them with your business outcomes and goals. For example, you can ask yourself questions such as: What are the main IT services and processes that you want to improve or optimize? How do you want to measure your IT service quality and delivery? What are the main IT risks and issues that you want to mitigate or resolve? How do you want to optimize your IT costs and resources? How do you want to align your IT strategy and objectives with your business strategy and objectives? How do you want to leverage your IT capabilities and innovations to create value and competitive advantage for your business?
• Determine your IT staffing requirements and gaps. You can determine your IT staffing requirements and gaps, based on your current and desired IT outcomes and goals. For example, you can ask yourself questions such as: How many IT staff do you need to deliver your IT services and processes effectively and efficiently? What are the skills, competencies, and qualifications that you need for your IT staff? How do you recruit, train, retain, and motivate your IT staff? How do you distribute and delegate your IT tasks and responsibilities among your IT staff? How do you manage and evaluate your IT staff performance and productivity? How do you communicate and collaborate with your IT staff and other stakeholders? How do you fill any IT staffing gaps or shortages that you have?
• Evaluate your IT outsourcing options and alternatives. You can evaluate your IT outsourcing options and alternatives, and decide whether to keep your IT functions in-house or outsource them to a third-party provider. For example, you can ask yourself questions such as: What are the benefits and drawbacks of outsourcing your IT functions? What are the costs and risks of outsourcing your IT functions? What are the criteria and standards that you use to select and evaluate your IT outsourcing provider? How do you manage and monitor your IT outsourcing contract and relationship? How do you ensure the quality and security of your IT outsourcing services and deliverables? How do you integrate and coordinate your IT outsourcing activities with your in-house IT activities?
• Adjust your IT staffing ratio accordingly. You can adjust your IT staffing ratio accordingly, based on your IT staffing requirements and gaps, and your IT outsourcing options and alternatives. You can also monitor and review your IT staffing ratio periodically, and make any necessary changes or improvements as your IT needs and challenges evolve.

How to compare your salary to the industry average for your role and location?

Another question that you may have as an IT professional is how to compare your salary to the industry average for your role and location. This can help you understand your market value and negotiate your compensation and benefits accordingly.

There

are several sources and methods that you can use to compare your salary to the industry average for your role and location. Here are some suggestions:

– Use online salary calculators and surveys. You can use online salary calculators and surveys, such as [Glassdoor](https://www.glassdoor.com/Salaries/index.htm), [PayScale](https://www.payscale.com/), [Indeed](https://www.indeed.com/salaries), [Salary.com](https://www.salary.com/), [ZipRecruiter](https://www.ziprecruiter.com/Salaries), and [Robert Half](https://www.roberthalf.com/salary-guide), to compare your salary to the industry average for your role and location. These tools can provide you with salary ranges, medians, percentiles, and distributions for various IT roles and locations, based on data from employers, employees, and job postings. You can also filter and adjust the results by factors such as experience, education, certification, skills, industry, company size, and performance.

– Use professional associations and publications. You can use professional associations and publications, such as [CompTIA](https://www.comptia.org/), [IEEE](https://www.ieee.org/), [ACM](https://www.acm.org/), [AITP](https://www.aitp.org/), [CIO](https://www.cio.com/), [InformationWeek](https://www.informationweek.com/), and [Computerworld](https://www.computerworld.com/), to compare your salary to the industry average for your role and location. These sources can provide you with salary reports, surveys, and articles that cover various IT roles and locations, based on data from industry experts, analysts, and researchers. You can also access and participate in forums, webinars, podcasts, and events that discuss and share salary trends and insights for IT professionals.

– Use your network and contacts. You can use your network and contacts, such as your colleagues, peers, mentors, managers, recruiters, and consultants, to compare your salary to the industry average for your role and location. These people can provide you with firsthand information and feedback on the salary levels and expectations for various IT roles and locations, based on their experience, knowledge, and perspective. You can also ask them for