11 June 2013 · Absolute IT
More than half of the ICT professionals currently working in New Zealand participated in our annual Remuneration Report. It draws on data from the more than 27,500 anonymous entries into our IT salary website itsalaries.co.nz and explores remuneration by skill-set, industry and sector.
The 2013 report reflects no change in the national base median salary, which remains at $75k, and national base rate per hour at $80, despite the fact that a more lucrative salary would be the thing that most ICT professionals would appreciate from their employer. Yet, 86% of ICT professionals already consider their place of work to be a good one.
The national base median remuneration from the report reflects the state we already know the economy to be in, it’s stabilising itself after the GFC.
The fact that the national median remuneration remains unchanged, yet a significant amount of employees are happy in their place of work can be put down to the fact that companies are thinking progressively and finding new ways to invest in their teams when they cannot offer higher remuneration.
This shift in thinking can be seen in the Absolute IT Remuneration Report, which shows the key areas where change can be seen is in the additional benefits offered to employees.
The report shows an increase in flexible working hours, company paid training, extra annual leave, health care subsidies, phone allowances, car allowances and stock options. 55% of all ICT staff now receive additional benefits as part of their remuneration package.
This is perhaps most important for smaller private sector companies to note (1-99 staff) because the median remuneration is up to 18% less in this sector, compared with others. The industry insiders at Absolute IT believe that part of the reason for this is because smaller businesses in the start-up phase are unable to compete with larger private companies and the public sector remuneration offers.
Our Remuneration Report suggests a host of other options that could be offered to ICT employees if your company is in the start-up phase, most of which may be easier for smaller companies to supply – such as; flexible working hours, additional annual leave and stock options.
The average remuneration in the public sector has decreased, but much less noticeably so (-3%). This can be seen as a reflection of recent government changes. Larger private sector companies (100 + staff) is unchanged, but the not-for-profit sector has seen a 7% increase in its median salary. The increase is a sure sign that this sector is now another competitor for the ICT skills New Zealand is already short on.
Wellington still offers the highest median base remuneration, $81,000 against Auckland’s $75,000 with both Hamilton / Bay of Plenty and the Christchurch /South Island regions lower than this again ($69,000 and $70,000 respectively). The Industries offering the highest remuneration nationally for ICT professionals are utilities, financial services, legal, defence, telecommunications, transport & storage and professional services.
Regionally, Hamilton/Bay of Plenty has seen significant increases in its median base salary, up 6.9% since June 2012. Hamilton city is driving this increase, as the region cements itself as one of New Zealand’s fastest growing business centres and demand of ICT talent in the region grows.
We know that remuneration is important when attracting the best ICT talent, however it is also clear that this can be off-set by the additional benefits an employer can offer.
Previous reports we have compiled show that although your average ICT employee places the most value on remuneration, additional benefits follows at a close second. Allowing your staff more freedom with working hours, annual leave and other benefits, can make all the difference when it comes to attracting and retaining talent.