Pay rises as skills shortage worsens: salary survey

Candidate shortfall driving salary increases, recruitmnt firm says

IT salaries continue to rise and the skills shortage remains a problem, according to recruitment firm absoluteIT’s latest salary survey.

The survey, which was completed at the end of last year, shows that salaries were up in most jobs from the previous survey, released in June.

A shortage of candidates continues to be a headache and is the main driver of the salary rises, the new survey shows.

Demand for staff is very strong, says absoluteIT’s Auckland branch manager Martin Barry.

“We expect there will be more pressure regarding filling vacancies this year,” he says.

The much-predicted economic slowdown, while it may be affecting sectors such as manufacturing, isn’t having any effect on IT, he says.

“I think that’s because there is longer-term decision-making on IT projects going on and that won’t change because of a small dip in overall business confidence.”

The main winners in terms of getting pay rises are developers, senior testers, systems architects, business analysts, project managers and general managers.

While technical staff such as developers and architects have gained significantly, sales and marketing specialists have also had pay rises, according to the survey.

“There’s good demand for sales and marketing people,” Barry says.

“Companies are projecting good OTEs (on-target earnings) based on potential earnings and that gives confidence to salespeople looking to move jobs.”

While .Net and Java skills continue to earn their practitioners a premium, there is still some demand for expertise in older, legacy programming languages, he says.

Wellington’s rate of salary increase was found to be slightly higher than that of Auckland, but both cities are experiencing strong demand for IT staff, Barry says.

There was a slight drop in vacancies in Wellington during the election period, but demand for skilled IT professionals in the capital remains strong, he says.

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