Business activity and headcounts in IT aren’t translating into salary increases in Australia

Business activity and headcounts in IT aren’t translating into salary increases in Australia

Hays IT Salary guide finds employers are unwilling to loosen the purse strings

Business activity and permanent headcounts may be rising, but according to the 2016 Hays Information Technology Salary Guide, they are not translating into salary increases.

According to the guide, 17 per cent of IT and telecommunications employees can expect a salary increase of between three and six per cent in their next review, while five per cent can expect a six to 10 per cent raise.

Just three per cent of employees can expect an increase above 10 per cent.

But more than half of Australia’s IT and telecommunications workers (56 per cent) will receive an increase of less than three per cent while 19 per cent will receive no increase.

The Hays Salary Guide is based on a survey of 2752 organisations, representing more than 2.6 million employees.

Hays IT senior regional director, Peter Noblet, said employers are reluctant to offer substantial increases unless absolutely necessary. He mentioned IT recruitment is expected to be buoyant over the year ahead, but for the most part salaries are not increasing dramatically.

“We have seen some movement in salaries in the development areas as companies look to invest heavily in systems and the rise in digital has seen demand, and therefore salaries, increasing in the UX/UI and front end areas. The prevalence of Big Data and analytics has also seen salary growth, with Data Science roles paying more as organisations look to attract talent,” he said.

According to Hays, over the last year, 21 per cent of IT and telecommunications employers offered no salary increases. Those who did receive a salary increase, had minimal wage rises.

Noblet said employers for the most part unwilling to loosen the purse strings, there is a possibility that employees will start to take matters into their own hands.

“41 per cent of employees say they’ll ask for a pay rise in their next review. Another 25 per cent are as yet undecided about popping the salary question Meanwhile staff turnover has already increased in 29 per cent of organisations,” he added.

Other key findings include:

  • 64 per cent of employers experienced increased business activity over the past 12 months, with 70 per cent expecting further increased activity in the year ahead;
  • 39 per cent of businesses said they are increased permanent headcount during the last 12 months. This outstrips the 21 per cent that decreased it;
  • 40 per cent said they intend to increase their permanent headcount in the year ahead, far exceeding the 13 per cent that expect to decrease it;
  • The use of temporary or contract staff will also increase for 21 per cent of employers, exceeding the 12 per cent that expect their use of such resources to fall;
  • 32 per cent of employers say salary and benefits have a major impact on their employer brand, up from 25 per cent last year;
  • 60 per cent of respondents said skill shortages will impact the effective operation of their business or department.

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