Business confidence hits IT pay packets, bonuses
Tech sector pay packages have decreased in 2015 – the first drop recorded since June 2013.
Absolute IT’s July 2015 Remuneration Report, shows what the recruitment company is calling a ‘market correction’ of 2.4% in tech median base salaries, and a 6% decline in those receiving additional benefits as part of their pay package.
Those changes put the earning potential of New Zealand tech professionals back to early 2014 levels, with the median base salary now sitting at $80,500 and the median hourly rate at $85/hour.
The public sector saw the biggest decreases, dropping 7%, followed by private sector, 100+ staff, which was down 6%. Those working in the private sector in organisations with 1-99 staff however, saw an increase of 7%.
Grant Burley, Absolute IT director, says the figures could be a reflection of the drop in business confidence, ‘but certainly aren’t a reflection of the demand for skilled IT professionals dropping’.
He says demand for tech professionals is as strong as ever, with February’s Absolute IT Employer Insight Report showing 79% of tech employers were planning to recruit more staff or contractors throughout the year, with 28% saying they are finding it harder to source the talent they need, compared with last year.
When it comes to regional breakdown, the Remuneration Report shows Wellington is still tops for tech with the median base salary remaining at $90,000. Auckland saw a 1.2% drop to $81,500, Hamilton/Bay of Plenty and Christchurch took the biggest hits, dropping 2.2% and 4% respectively to $68,500 and $72,000.
The number of tech professionals receiving bonuses is also down across New Zealand. The median Auckland bonus remained strong at $6000, while Hamilton/Bay of Plenty dropped from $5000 to $3500 and Wellington dropped from top bonus region at $7000 to $5500. Christchurch bucked the trend to increase $1000 to $6000 to equal their Auckland counterparts.
Absolute IT says 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 dropped 2%.