Bonuses and benefits still a powerful lure in IT
Bonuses and benefits still a powerful lure in IT job negotiations across New Zealand – but gender disparity in bonuses
(10 September) Bonuses and benefits to attract and keep key IT staff is still prevalent in New Zealand with about 28 per cent of professionals getting cash rewards according to a survey by one of the country’s leading IT recruitment agencies.
The survey by Candle of 3,200 professionals reveals over the past year a quarter of people say they received an average cash bonus/commission of $11,700 with the highest single recipient reaping $195,000.
According to the data drawn from the Candle MySalaryPortal (http://www.mysalaryportal.co.nz) there is a disparity in gender with males averaging $1,300 more in bonuses/commissions than female colleagues. The average bonus is $11,900 and $10,600 respectively. Similar research in Australia showed the gap was almost triple at about $3,500 ($AUD 3,000) in favour of the male pay packet.
It also showed 58 per cent of respondents received one or more benefits - with car park and health care subsidies topping the list. Mobile phones and car allowances were also sort after perks. Only 44 per cent of Australian ICT professionals received some kind of benefit.
Candle CEO, Kym Quick, said despite unemployment increasing from 6.2 per cent in the March quarter to 6.4 per cent in the June quarter, and the general job market favouring hirers over candidates, inducements remain popular to snare and keep top candidates.
She said New Zealand’s ICT industry was an economic ‘bright spot’ carving an international reputation with bonus payments for professionals comparable with Australian bonuses for ICT workers.
“The New Zealand tech scene is producing some outstanding results particularly in development and in start-ups so it’s no surprise we’re seeing some heavy weight bonus payments,” Ms Quick said.
"Contrary to Australia, job advertising in New Zealand has been increasing in the last four months driven by strong growth, mainly in white collar roles, in Auckland and Wellington.
“It’s encouraging to see business confidence is continuing to grow which will have a positive flow on effect to candidate confidence. Strong inducements remain key to attract good people but equally they’re being used to retain high performers and those who have skills that are in shortage.”
Among the largest bonus/commission revealed by the Candle MySalaryPortal was $195,000 received by an Auckland-based regional sales executive. The lowest included $500 by a senior systems administrator, also working in Auckland, in the health care sector with more than a decade of experience.
Auckland paid the best average bonus/commission of $12,200. And outside of management positions, Project Managers or Team Leaders were more likely to receive a bonus.
In terms of benefit trends, Ms Quick said car parks headed the list but health and work/life balance were playing a greater role and increasingly people were asking for health care subsidies, following the US model of salary packaging, and flexible hours.
Top 10 benefits across New Zealand
· Car park
505 (27 per cent)
· Health care subsidies 378 (20 per cent)
· Mobile phone/mobile allowance 311 (16.6 per cent)
· Car and/or car allowance 218 (11.6 per cent)
· Extra annual leave 165 (8.8 per cent)
· Flexible working hours 151 (8 per cent)
· Additional superannuation 51 (2.7 per cent)
· Company paid training 30 (1.6 per cent)
· Overtime payments 29 (1.5 per cent)
· Gym/health club membership 13 (0.7 per cent)
In Australia, mobile phones topped the list followed by a car park and then car allowances.