2. 1. ICT remuneration trends
2. What drives ICT remuneration trends?
3. Perspective from ICT professionals
4. “Shift in the balance of power”
5. ICT Recruitment Trends
6. Case Study
7. Conclusions
9. All sectors are not equal ‐ % increase in IT
Salary by sectors
Insurance 5.8%
Consulting 5.3%
Other non‐Manufacturing 5.3%
Education 4.7%
Software Development 4.7%
Other Manufacturing 4.6%
Banking/Finance 4.5%
Defence 4.4%
Public Sector 4.3%
Computer Services 3.7%
Source: ACS Salary survey 2007
11. Switzerland $150,945
Denmark $131,798 How does
Belgium $129,753
Australian IT
UK $126,562
salaries
compare
Ireland $115,896
globally?
USA $115,115
Germany $114,290
Canada $100,509
Hong Kong $96,739 IT Manager Salary
Australia $95,144
Source: Mercer 2007 IT Pay Around the World Survey
12. Average salary of IT managers in
Australia
$145,000
$125,000 $130,000
$120,000
$95,000 $100,000
2002 2003 2004 2005 2006 2007
Median Salary of IT Manager : $118,087 (ACS)
Source: Greythorn Salary Index 2007/2008
13. Female IT staff earns 20% less than
their male counterparts
$98,684
$81,906
Women Men
Note: Women represent just 15% of workers in the ICT
industry Source: Computerworld salary survey
14. Female/Male pay disparity is a
national trend. Average weekly
pay is higher for men.
$1,158
per week
$968 per week
Source: ABS, AUSSTATS
15. Median Salary of Computer
Science graduates in 2007
$43,200
$49,488*
Source: GraduateCarreers.com.au
* Data from MyCareer.com.au real‐time data
16. How IT graduates fare against other
industry
Dentistry $70,000
Engineering $50,000
Computer Science $43,200
Education $43,000
Nursing $42,000
Life Science $41,000
Law $41,000
Business $40,000
Architecture $36,200
Source: GraduateCarreers.com.au , 2007 Average graduate (median) Salary is $43,000
17. Female graduates still paid
lesser than male counterparts.
$45,000
$43,000
$42,000
Male National Female
Source: GraduateCarreers.com.au , 2007
22. ICT is everywhere, accounts for
4.6% of GDP
Contributes more to GDP
than the agriculture,
forestry, fishing, defence and
education sectors.
Drives 85% of productivity
growth in the manufacturing
sector and up to 78% in the
services sector.
25. 5. Human capital cost: 40% of IT
budgets spent on Salaries &
Benefits.
Computer &
Peripheral
equiptment, 20.0%
Salary and
Benefits,
Communication 40.0%
Equiptment, 10.0%
Software,
10.0%
IT Services &
Outsourcing , 20.0%
Source: Forrester Research.
29. IT Jobs Galore
29,252
vacant IT jobs on SEEK
• 7,955 jobs on
mycareer.com.au
• 4,406 IT jobs on CareerOne
• 3,726 jobs on Jobserve
• 100,01 jobs on IT2
Source: Job boards; Data collated in May 2008
37. Example: Open Source
industry grows quickly,
$ 500 million in
revenue each year
32
21
17
4
1993‐95 1996‐99 2000‐03 2004‐07
Source: Waugh Partners, Census Report 2008
40. Changing work arrangement: Rapid
growth of contracting work is
pushing up salaries.
21455
7132
Contract Jobs Full‐Time Jobs
Source: Seek, 22 April
41. 8. Globalisation
Global Outsourcing to grow by 8% in 2008
No Impact 67%
Gotten Expanded/New
… 58%
Lost my job 6%
Had to be retrained 5%
Impact of outsourcing on
Taken a pay cut 5% IT professionals
Been promoted 4%
Relocated to new city 3%
Been Demoted 1%
Source:informationweek.com
43. Experience/Skills
• Industry experience
• Technology skills
• Sector experience
• Years in IT
44. Education/
Certifications
MBA degree is worth as
much as 10 years of IT
workforce experience.
An IT professional with an
MBA degree earns 46%
more than one with just a
bachelor’s degree
Source: Management Science, March 2008
55. “ Workers today aren’t as interested as
they used to be in hefty compensation
packages and fancy retirement plans.
What they really want – more than
anything else – is direct and personal
control over when, where, and how they
work”
Deloittes, Competing for Talent
A survey of talent trends in technology and telecommunications, 2008
56. 1. Pay and Salaries
Base Salary
Bonuses
Short‐term incentives
Long‐term incentives
Profit sharing
Annual lump sum payments
Source: Mercer 2006 : Measuring the Returns on Total Rewards
57. 2. Benefits
Retirement
Health & group benefits
Vacation
Flexi time
Company services
Facilities
Salary sacrifice
LAFA
Source: Mercer 2006 : Measuring the Returns on Total Rewards
58. 3. Career Growth
Training and development
Career opportunities
Lateral careers moves
Learning new skills
Performance management
Source: Mercer 2006 : Measuring the Returns on Total Rewards
59. Work‐life balance
Recognition
Responsibility
4. Intrinsic factors Team work
Leadership
Culture
Company image
Source: Mercer 2006 : Measuring the Returns on Total Rewards
60. Pay,
5%
Only a minority
5% of companies
in Asia‐Pac define
Pay & benefits, Pay, benefits, rewards as strictly
22% careers & intrinsic
factor, 43% financial.
Focus on intrinsic
Pay, benefits, as well as extrinsic
careers, 30%
rewards
Source: Mercer 2006 : Measuring the Returns on Total Rewards
61. 2/3 of companies are looking at
total reward strategies.
9% 5% 5%
24% 29% 30%
Pay, benfits, careers,
12%
intrinsic factors 22%
26%
Pay, benfits, careers,
Pay, benfits 55%
40% 43%
Pay
USA & Canada Europe Asia‐Pacific
Source: Mercer 2006 : Measuring the Returns on Total Rewards
63. “ I have no loyalty whatsoever. I'm loyal
to whomever wants to pay me……..
companies have NO loyalty at all for
employees. I figured, fine...if that's
the case, then I'll treat them the same
way. If I'm just a body....then they are
just a paycheck, and I'll go wherever
the biggest paycheck comes from.
”
Cayanne8, Forum participant, Slashdot.org
64. Only 37% of IT
professionals are
satisfied with their
current role*
Note: SEEK’s survey put the figure at 56% (but
survey data bands together technology and
Science professionals together)
Source: Hudson - Candidate buying behaviour 2008
65. ICT professionals – prolific job searchers.
66% are either actively or passively
searching for a job.
IT 66%
Sales 61%
Legal 60%
Accounting & Finance 58%
Banking 57%
Marketing & Communications 57%
Financial Service 56%
Government 54%
HR 53%
Supply Chain 53%
Support 52%
Engineering 49%
Telecom 45%
Property 43%
Source: Hudson - Candidate buying behaviour 2008
66. 63%
of IT professionals will
change jobs because of
financial reasons
Source: Hudson - Candidate buying behaviour 2008
68. Top 8 – ‘Nice to haves’ for IT professionals
Work/Life Balance 63%
Better Salary 52%
Good Standard Benefits 50%
Appealing industry 45%
Company reputation 44%
Advancement Opportunities 43%
Good cultural fit 38%
Work with latest technology 23%
Source: Hudson - Candidate buying behaviour 2008
70. Loyal IT staff are a minority
Loyalist,
Seekers, 13%
13%
Approachables,
33%
Explorers,
41%
Source: Networkworld, salary Survey 2007
71. 19.7%
Attrition rate among IT professionals (AIIA) or
20.6% (AHRI)
Source: AHRI , AIIA
72. Source of IT candidates
…
Promotions/lateral transfers within 71.7%
Corporate website 68.4%
Internet job boards 67.1%
Employee Referrals 61.8%
Contractor Conversions 50.0%
Search Firms 41.4%
Internal dedicated IT recruiter 40.1%
…
Promotions/lateral transfers from 38.2%
Internships 19.7%
College/Campuses 18.4%
Job Fairs 17.8%
Newspapers 12.5%
Hire back outsourced staff 9.9%
http://www.gartner.com/hcm/pdf/ITCMS_Overview.pdf
73. Golden age for ICT
professionals?
1. IT Skills are in demand
2. Salaries/reward growing & more
flexible
3. Employment in a growth and critical
industry
4. Career choices/options abounds
5. Unprecedented access to job and
salary information
6. Little geographic barriers to jobs
opportunities
7. Always a ‘sellers market’ for
talented professionals
8. Attempts to win IT talent is driving
remuneration and recruitment
innovations
74. “When land was the scarce
resource,
nations battled over it.
The same is happening now
for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH