Contract jobs, pay expected to rise: survey

Growth in both contract and permanent work in IT is expected over the next 12 months, as well as increases in pay, according to a Candle New Zealand survey. A market expectation survey conducted by Candle in June found 58% of those surveyed believed their use of contract staff would increase in the next 12 months.

Growth in both contract and permanent work in IT is expected over the next 12 months, as well as increases in pay, according to a Candle New Zealand survey.

A market expectation survey conducted by Candle in June found 58% of those surveyed believed their use of contract staff would increase in the next 12 months, while almost a quarter felt it would stay the same. Just 11% thought it would decrease, and 8% did not respond.

Use of permanent staff was also predicted to rise by almost half of those surveyed, while a third believed it would stay the same. Another 15% believed it would decrease, while 3% didn’t respond.

Candle HR services consultant Trevor Woodburn says he did the survey to establish whether contracting was increasing as a way to resource IT needs.

“But the results point to an overall growth in IT as a job market.”

He says it seems that most organisations see IT as being something they need to pay attention to, “to keep current”.

The survey also found that 38% expected contract rates to increase by up to 5%, and another 31% expected them to increase by 5% to 10%. Another 8% expected rates to go up 10% to 15%, while 7% felt the rates would rise by more than 15%. The remaining 16% felt they couldn’t answer the question as the rates would depend on what skill set the people had.

Woodburn says the anticipated increase for permanent staff had similar results, showing evidence that contract rates are becoming more reasonable relative to permanent rates. Forty-one percent of organisations believe permanent rates will rise from 0% to 5%, and 38% believe they will increase by 5% to 10%. Another 11% believe they will increase by 10% to 15%, and just 3% believe they will go up by more than 15%. Seven percent didn’t respond.

Pressure on New Zealand pay rates in response to local talent leaving to work overseas was also evident. However, Woodburn says viewpoints changed depending on whether organisations took a local or a more global view.

Woodburn says that one surprising result was that 59% of organisations weren’t worried about losing staff during the next 12 months because of year 2000 work.

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