Temporary Ebb in ICT Salaries

21 September 2011

Temporary Ebb in ICT Salaries

A minimal drop in median base salary rates in New Zealand’s ICT sector over the past 9 months reflects a short-term hiatus in spending as new initiatives are rolled out slowly in the face of reduced funding, pressure on head-count and election-year uncertainty.

Data from the six-monthly absoluteIT Salary Report Nov 2010 to Aug 2011 (for copy visit www.absoluteit.co.nz) shows the base median salary has decreased marginally by -2% in the past 9 months, down from $76,500 to $75,000. The total value of overall employment packages has decreased by 3.1% down from $80,000 to $77,500

“With current political and ongoing economic uncertainty, we’re seeing more organisations focusing on maintenance, improvement and fine-tuning rather than investing in new projects, which is reflected in the increased remuneration rates for these types of skill sets,” says absoluteIT Director Grant Burley.

“There are some pockets of increased recruitment activity, especially in the public sector with certain Government agencies requiring extra staff to support the role out of new systems and services.”

However, the current hiatus in ICT sector spending, following major growth and extremely high talent demand over the past decade, is only temporary, says Burley.

“We expect to see a gradual rise in recruitment activity following the election and into the next three years alongside continued industry growth and a new round of public sector investment in infrastructure and platforms. The demand for skilled IT talent will continue to outstrip supply over this period.”

Auckland leads New Zealand with the highest levels of recruitment activity across IT sectors, especially in permanent employment which Burley says may reflect a more confident view of the economy.

“In turn, we expect this will add pressure to remuneration rates in the coming 6 months.”

Wellington has a preference for contract employment as uncertainty continues with Government realignment.

But, when it comes to pay parity, New Zealand’s ICT sector still shows a significant gap. Salaried men earn an average of 7.8% more than women while the average contract hourly rate for men is 12.5% higher than women.

“However, we are seeing a higher proportion of women to men enjoying flexible working hours which perhaps indicates that employers are making an effort to cater for needs around working mothers.”

Drawing on data from the more than 20,500 anonymous responses in www.itsalaries.co.nz; the absoluteIT Salary Survey is the only sector report providing real-time salary and contract rates in the New Zealand ICT industry.

ENDS

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