On the live show today, I noted it was a day of data reports. I covered the Kaseya 2024 MSP Benchmark on the live show (and podcast listeners. You’ll get that on Saturday). There are two more.
First, let’s look at the Service Leadership 2024 Annual IT Solution Provider Compensation Report.
- 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 than 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.
- A service desk Level 3 costs as much as 59.6% more than a Level One
Nuanced compensation strategies that reward performance and contribution to business goals for the win. This approach can help manage wage inflation while incentivizing high performance and aligning employee compensation with business outcomes. I get it – compensation isn’t easy. But skill here is rewarded.
I discuss remote work as a strategic advantage, like a broken record on this show. Seems like it’s still an advantage. Providers may need to reassess their remote work policies to align with broader workforce trends and employee expectations. Offering flexible work arrangements can be a competitive advantage in attracting and retaining talent.