HUMAN CAPITAL MANAGEMENT

Meanwhile, it is the revenue or the profit of an organization which determine whether a salary increase can be granted to deserving employees or not. If a company is not doing very well financially, it has the reason not to implement salary increases but if it's earning well, it may hike compensation. Since the year just passed is not quite financially rosy for many firms, majority of respondents did not implement a salary increase in their IT personnel. In contrast, 41% did which was the reason for the increase in their IT budget and in labor and operating costs. On the other hand, despite having budget constraints, 75% of respondents said they have not reduced their IT manpower in the past, as against 25% who have tried to trim the number of personnel. Last year, the bulk of respondents or 36% disclosed total IT budget ranging from P1 million to P5 million while those with investments averaging from P6 million to P20 million comprised 21%. Those with budget ranging from P21 million to P40 million represented four percent. While 34% revealed total spending below P1 million, four percent claimed technology budget of more than P40 million. IT budget was spent in operations (hardware, software, services, trainings, etc.), staff (operations and development), and overhead, supplies and miscellaneous. Most respondents or 48% said they spent 40% to 50% of their IT budget in operations (hardware, software, services, training, etc.) last year. On the other hand, majority or 33% of IT executives claimed they allocated 30% of their budget for wages and salaries, while 29% and 25% of respondents spent 20% and 30% of their budget for overhead and supplies.