11 February 2014 · Absolute IT
There have been notable improvements since the June 2013 Remuneration Report, including a 6.7% increase in the national base median salary, which now sits at $80,000 – the first notable increase we’ve seen since 2010 and the highest median salary we have recorded since 2009!
The national base median hourly rate has also increased 6.3% to $85.00.
This is in line with the increase in confidence shown in both our annual Job Seeker Intentions & Employer Insight reports. However the increase in the median IT salary is in contrast with the wider economy where pay increases have shown a rise but not as strongly as the IT sector in the past year- Mercer and Seek both reported an average salary increase of approx. 3% across New Zealand in the past 12 months.
While the national median IT remuneration rates have improved and our reports show a significant amount of employees are happy in their current place of work, 67% are still considering a move to a new work place in the next 12 months. This shows the effect that the improved economy has had on the confidence of both job seekers and employers. Our Employer Insights & Job Seeker Intentions reports due for release in February identify that with an improving economy employers can afford to pay their staff more and staff have more options to consider.
With this clear shift in confidence the report highlights the key areas of change as focusing around salary increases and additional bonuses being offered to employees.
While the median bonus remains at $6,000, less staff are receiving additional benefits as part of their remuneration package, which is down from 55% to 48%, perhaps in response to the increased base salaries. Previous reports compiled by Absolute IT show that although your average IT employee places the most value on remuneration, it’s followed closely by career development opportunities and more challenging work.
With the improving economy meaning there are more and more opportunities opening up in the NZ ICT Industry, allowing your staff more room and training to grow, can make all the difference when attracting and retaining talent.
The median base remuneration in the Public sector has increased by 2.5% and is now sitting on $82,000 just shy of the top spot held by the Private sector (100+ staff), whose median base remuneration is $83,000. However the smaller Private Sector (1-99 Staff) was the only sector whose increase was equal to the national median increase, and is currently sitting on $70,000, 7% up from June 2013. Perhaps a reflection of the growing industry confidence with a recent boom in New Zealand IT start ups making waves internationally.
Regionally, Aucklanders are receiving the most benefits and bonuses and have had the largest increase in median base remuneration, up 6.7% to $80,000 while Wellington still holds the highest median base remuneration at $85,000. Christchurch and Waikato/BOP are seeing steady increases in their median base remuneration at 1% & 2% respectively and are now sitting third equal on $70,500. Waikato is a close second for offering additional benefits and Christchurch is second for bonuses.
The Industries offering the highest remuneration nationally for IT professionals are utilities, telecommunications, financial services, transport & storage, agriculture and legal. All of which are earning above the national IT median base remuneration.
We know that remuneration is important when attracting the best IT talent, however it is also clear that this can be off-set by the additional training, benefits and bonuses an employer can offer.