Employees in large Australian IT companies are set to see pay increases during the next 12 months, according to the Australian Institute of Management (AIM) National Salary Survey 2011.
Large IT company workers recorded an average salary increase of 4.05 per cent in 2010/11, and this is forecast to rise to 4.12 per cent in the next 12 months, placing the IT industry in third spot behind other sectors such as construction and engineering and distribution, the survey said.
Workers in small Australian IT companies recorded the highest average pay increase of about 4.4 per cent in any industry sector throughout 2010/11, but this down from the average 4.5 per cent increase in 2009/10, and is set to decline to 3.5 per cent in 2011/12, the survey indicated.
The average salary increase for IT jobs across all sectors was 3.8 per cent and migrant workers were being recruited for about 16.3 per cent of IT jobs in large companies.
It indicated about 65.5 per cent of large companies would consider hiring from overseas to help overcome skills shortage issues.
Difficulties in finding and retaining staff lead more organisations to train and develop existing employees, with 63.2 per cent of large companies maintaining a training policy. This has gone up from 58.2 per cent in the previous 2010 survey.
In order to attract and retain employees, large companies are offering more flexible work arrangements.
“A tightening labour market, skills shortages and the likelihood of a rate rise all point to a wages blow out if employers can’t find ways to keep good people without big wage hikes,” AIM NSW/ICT chief executive, David Wakeley, said in the report.
“Many staff that stayed put during the downturn are now on the hunt for new opportunities and bigger pay packets. Many employers will have big cost pressures, so savvier employers are seeking creative ways to motivate people without offering big salary hikes.”
Even though pay remains an important factor, Wakeley said developing and implementing effective training, career development and succession plans at all levels of the organisation was key to attracting and retaining good staff.
The survey, which is based on responses from 506 companies throughout Australia, covered more than 250 job positions.