28 June 2012
Media release

IT Salaries Stabilise

IT sector salaries have stabilised over the last six months following a slight drop off last year, according to the latest sector salary report.

Data from the six-monthly absoluteIT Salary Survey June 2012 shows an overall 0% growth in both the median base salary ($75,000) and the hourly rate ($80) - a positive turnaround from the 2% decline in 2011.

“Given the prevailing economic uncertainty, achieving 0% growth is a very positive result. In context with the slight ebb reported in the last survey, we can see it as a sign of growth,” says absoluteIT Director Grant Burley.

The median total salary package, including cash bonuses, has also remained the same at $77,500.

“This reflects the robustness of the industry and the value it offers as organisations look to do more with less and find competitive edge. While employers are still being conservative about spending, with high demand for new recruits we expect to see continued growth over the next three years.”

Wellington again heads the regional base median salary ($80,000) compared with Auckland ($75,000), Christchurch and South Island/Other ($70,000) and Hamilton and North Island/Other ($63,000).

“With the Capital still leading regional median salaries, we’re seeing the impact of ongoing changes in public sector hiring practices shifting from permanent roles to contract over this period.

“There is a huge amount of work and demand for talent. Public sector organisations face meeting significant deliverables on lower budgets and bringing in specialist skills in the short-term is the most fast and cost-effective way to do this.”

Overall, key changes in remuneration include software architects and developers reporting significant increases while business analysts, technical writers, testers, systems administrators and web/multimedia designers have all seen a drop – reflecting both supply and demand and market needs.

“We’re seeing an increasing trend away from IT simply as a support function to that of an enabler and an integral contributor to growth. While this is not new thinking, it is encouraging to see IT becoming progressively embedded in strategic planning as organisations understand the opportunities of investing in technology to gain competitive edge and develop new markets.”

Mr Burley is concerned about a decrease in the number of permanent employees receiving benefits as part of their employment packages. In most cases all benefits on offer have been reduced, car allowance by 3%, flexible working hours and gym memberships by 2%.

“This is a clear indicator that trading conditions in most regions remain tough and employers continue cutting costs where they can.

“However, the belt tightening can’t continue. Benefits offer a point of difference; they’re crucial to attracting and retaining good people and, importantly, to competing with Australia where salaries are significantly higher while benefits on offer here are better.”

The absoluteIT Salary Survey is the only sector report providing real-time salary and contract rates in the New Zealand ICT industry, drawing on data from the more than 19,000 anonymous responses into www.itsalaries.co.nz. An additional 1,420 permanent employees and 417 contractors participated in the survey during the last six months.

ENDS