ICT salaries on the march upwards

Stan Beer
Monday, 07 August 2006 17:40

IT Industry - Market

IT salaries in Australia jumped 10% in May, as a shortfall in local technology skills continues to put upward pressure on pay rates, according to a new report. Areas and skills most in demand include project management, application development and J2SE.

Increases in remuneration paid to ICT professionals across the twelve month period totalled 4.3% and were felt across all sectors, according to the 2006 Australian Computer Society Remuneration Survey. The Survey reported a 4.5% increase for those employed in the private sector, 3.8% amongst those in the public sector and education sector employees reported an average increase of 4.7%.    

According to the study, the rebound of the ICT sector over the past year is highlighted by the pattern of difference in rates charged by independent contractors, compared to the previous year. Although rates charged by independent contractors generally fell in a range of $50 to $100 per hour (depending on nature of work undertaken), 53% of independent contractor respondents had increased their rates during the course of the year.

Other key findings of the 2006 Remuneration Survey conducted by the Association of Professional Engineers, Scientists and Managers, Australia (APESMA) included:

In real terms, the salaries of most ICT professionals have increased slightly given cost of living increases. The Australian Bureau of Statistics reported an increase in the Consumer Price Index (CPI) of 3.0% over the corresponding period.

In relative terms, the incomes of ICT professionals were keeping pace with most other technical professional employees who reported increases over a corresponding period in the order of 4-5%.

In the twelve months to February 2006, the Australian Bureau of Statistics reported Australian Average Weekly Earnings increasing by 4.4%, being just under the rate of increase reported by ICT professionals in the ACS Remuneration Survey.

Industries related to resources and infrastructure generally performed better than average, as shown by the following:

-   Banking & Finance 5%

-   Insurance 5.1%

-   Mining 5.2%

-   Electricity/gas supply 5.4%

-   Communications 5.2%

-   Transport & Storage 4.8%

-   Manufacturing 4.5%

-   Education 4.5%

Industries with below average increases were as follows:

-   Defence 4.2%

-   Computer software manufacture 4.1%

-   Health 4%

-   Consulting 3.7%

-   Public Administration 3.8%

-   Retail 3%

Survey respondents reported a discernible improvement in the perception of levels of demand for employer goods and services, with demand levels over the preceding year were described as being much stronger or stronger by 44.2% of respondents - strong levels of demand were reported in the mining and infrastructure support sectors whilst levels of demand, whilst still robust, were comparatively lower in the education and manufacturing sectors.

General Management was reported to be the most lucrative position based on the median value of total remuneration packages, where a total package is defined as comprising the sum of the value of base salary, bonuses, superannuation and the value of fringe benefits such as motor vehicles.

ACS President Philip Argy said “The results of this year’s survey indicates that the level of salaries for the majority of ICT job functions has steadily increased over a three year period, which bottomed out at 3.1% in 2003. Whilst factors such as skills shortages, resources boom, increased spending on infrastructure and an ageing workforce are affecting the industry and will do so for some time, for those considering entering into an ICT career, the current salary climate is positive."

“Employment demand in the ICT industry is shifting towards jobs that support the competitive drivers of an organisation and soft skills like project management, people management, negotiation and business case (ROI) development. To ensure their continued value and position in the workforce, it is critical for all ICT professionals to stay on top of training and skills development in their chosen profession."

“The ACS will also make this year’s Survey Report freely available to members online as another value-added benefit," said Mr Argy.

---

When did your salary "Jump"?

Don't miss out on your slice of the 10% salary rise, our jobs section has exclusive opportunities for project managers, application developers and J2SE developers. As well as hundreds of jobs for ERP consultants, storage and security professionals. Don't spend another day getting under paid find your next on job iTWire >>JOBS