13 July 2015 · Absolute IT
“Tech professionals heading into pay negotiations this month might be surprised when they don’t come out with the increases they’ve received in the last couple of years”, says Absolute IT Director Grant Burley.
New Zealand tech pay packages have been on the up since June 2013, rising over 10%. However, the latest Absolute IT Remuneration Report shows a market correction, the last six months have seen a 2.4% decrease in tech median base salaries and a 6% decline in those receiving additional benefits as part of their pay package.
The earning potential of NZ tech professionals are back to early 2014 levels, with the median base salary currently sitting at $80,500 and the median hourly rate at $85/hour.
The biggest decreases were seen in the Public Sector, down 7% and Private Sector (100+ staff), down 6%. While the Private Sector (1-99 staff) saw an increase of 7%, evening out the earning potential of each sector to a median base salary of $80,500.
“These latest figures could be a reflection of the drop in business confidence we have been hearing about in the media, but certainly aren’t a reflection of the demand for skilled IT professionals dropping,” says Burley.
The June ANZ Business Outlook report showed business confidence in New Zealand has slipped into the red for the first time since February 2011.
However, demand for tech professionals is as strong as ever, the Absolute IT Employer Insight Report showed 79% of tech employers are planning to recruit additional staff/contractors throughout the year and 28% are finding it harder to source the talent they need, compared with last year.
“Since April 2015, we have seen an increase of 13% in job vacancies, so while pay levels might be down, the tech sector continues to demand top tech talent,” says Burley.
Regionally, the median base salary in Wellington didn’t see any drop and remains at $90,000, and Auckland saw aslight drop of 1.2%, down to $81,500. Hamilton/Bay of Plenty and Christchurch took the biggest hit, dropping 2.2% and 4% respectively to $68,500 and $72,000.
The number of tech professionals who are receiving bonuses is also down across New Zealand. The median bonus paid in Auckland remained strong at $6,000, while Hamilton/Bay of Plenty saw a decrease from $5,000 down to $3,500 and Wellington dropped from being the top bonus earning region at $7,000, down to $5,500. Christchurch saw an increase of $1,000, up to $6,000, equal to what tech professionals are earning as a bonus in Auckland.
The 6% drop in tech professionals receiving additional benefits is predominantly reflected in the benefits of healthcare, down 5% and mobile phone/allowances, down 3%. Company paid training and car parking also saw a decrease of 2%.