Individuals working in Australia’s IT and telecommunications industry are more likely to receive generous salary increases this year than any other sector, a survey suggests.
A fifth of IT and telco employers intend to award wage increases of 6 per cent or more in their next reviews, compared to the only 5 per cent of employers across all industries planning pay hikes of that scale.
According to the annual Hays Salary Guide, which is based on a survey of 2950 organisations, 28 per cent of IT&T employers will be giving salary increases between 3 and 6 per cent (compared with the average 19 per cent across all industries). Some 45 per cent will be giving increases of less than three per cent (compared with 65 per cent across all industries).
“Technology skills are critical in our digital economy and employers are acknowledging this by doing what they can to ensure relevant skills are retained in the long run,” said Adam Shapley, a senior regional director at the recruitment group.
Those working in IT and telecommunications can consider themselves fortunate. Across Australia wages, not including bonuses, rose just 1.9 per cent over the year ending March, according to the Australian Bureau of Statistics.
The bureau’s Wage Price Index, shows that in real terms wages are shrinking after adjusting for inflation. The cost of purchasing goods and services has increased by 2.1 per cent over the year to March.
Among the individuals surveyed by Hays, over the last 12 months 15 per cent had asked for a pay rise but were declined while 17 per cent had asked and been successful.
Some 45 per cent said they intended to ask for more in their wage packet at their next review. A quarter was as yet unsure.
Contract killing
Nearly a quarter (23 per cent) of the companies surveyed said they expected to increase their use of temporary and contract staff, exceeding the nine per cent who anticipate decreasing the number of contractors.
A similar percentage said they employed temporary and contract staff on a regular, ongoing basis while 44 per cent employ them for special projects or workloads.
“Hiring practices have been mainly affected by the shift towards IT contracting with organisations looking to bring on expertise in a non-permanent capacity to deliver projects and add technical skills in areas where a team is falling short,” Shapley added.
Hays released its first Contracting Recruitment & Rates Guide late last month.
The guide found the best paid IT contractors in Australia were program managers working in Canberra, who are able to command pay of $1,800 a day.