Higher IT salaries unlikely in 2010
- 11 January, 2010 12:55
- Comments 5
ICT workers shouldn't expect pay rises in 2010 according to a recruiting agency.
Employees and job seekers have been urged to think twice before demanding higher salaries in 2010, despite a recovery in the IT job market.
Although there will be some niche areas within IT with the flexibility to demand higher salaries and contract rates, regional director of Hays IT, Peter Noblet, said it won’t be a case of job seekers being able to demand top level prices again just yet.
“If candidates can prove that they can make a difference to the organisation, then yes they probably will be able to ask for – not demand – higher salaries, but I don’t think it’s going to be massive across all of IT,” Noblet said.
The niche roles with the ability to leverage include senior level project management, strategic architects, .Net and Java developers, and roles within the infrastructure and networking space.
Noblet said the IT job market saw unusually high recruitment activity at Christmas time, as employers sensed new optimism in the market.
“The general feeling is that there is a sense of recovery taking place,” he said. “Companies are thinking of long-term strategies to strengthen their business and this includes planning for recruitment during 2010.”
Hays has already seen increased movement within the IT market with more vacancies and employers willing to look at more resumes.
“That flexibility and movement in the marketplace then creates other roles and once that starts happening, then the whole market starts moving,” Noblet said.
Another good prospect for the jobs market in 2010 is the National Broadband Network (NBN) and other new technologies, which will require jobs with new skills. Noblet expects companies will take quick advantage of what the NBN and other new technologies can offer.
Vendors and service providers are also expected to have a rosy 2010, as Hays predicts companies to go after niche vendors instead of looking at large outsourcing type arrangements.
In November, the Olivier Job Index reported a resurgent job market, with job ads growing 11.75 percent.
And in October, Computerworld reported Australia's IT services market was on the rebound with some of Australia’s top IT service providers signalling their intentions to significantly increase local headcount. Logica, UXC, Fujitsu, Capgemini and CSC have all told Computerworld that positions are up for grabs.
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Comments
Enigmatic
Irrespective of time it should always be fair.
This is something that has always been a concern to me. It shoudln't matter whether we are in a crisis or whether we are in a boom, the salary of any IT position should always be what is "fair and appropriate" for the given marketplace.
If only employees would stick to this, we would reduce the up/down cycle that seems to repeat itself every 7-10 years. When candidates are many, companies use that as an excuse to pay a pittance for quality skills, which invariably puts many candidates into holding the view "Well they did it to us before, now its our turn", in order to recoup their losses from previous years and to create a buffer to protect against future cuts.
It is a vicious cycle and it is destined to repeat itself until those who actually make the decisions on what is being paid (A candidate may ask, but that doesn't mean they should be accepted) choose to be fairer in their approach and not take advantage of down times like these.
Enigmatic
In my previous comment I meant "employers" not "employees"
Headspace
So it's OK for companies and execs to earn the big bucks on the way up of a recovering economy but not OK for Joe Blogs (me) to ask more money? As always it's the supply/demand curve, not for companies or recruiters to determine pay. I work for money, no other reason. No loyalty here with any employer: Show ME the money.
Enigmatic
Headspace,
I agree with you there, but unfortunately IT suffers from an interesting conundrum. Managers don't like paying developers MORE than them, it makes them feel as if their contribution is less than that of the people under them. Which means the whole "supply/demand" curve doesn't come into play unless in EXTREMES.
You can ask for more money, the recruiters are not saying not to (as the article pointed out that if you have a niche then by all means ask), but you are less likely to get. This would be based on their statistics of jobs filled and the mental headspace (pun intended) of the employers.
For some reason (I call it BAD management skills), employers believe that they always get what they pay for and that getting a skill for less money is a SAVING. What they continually fail to realise is that two $25/hr people do NOT do twice the work of one $50/hr person. The difference in skill sets and experience alone means that while the "productivity" of the two people will be higher, the quality and the risk in not achieving certain goals will be lower. You get what you pay for, and employers who simply try to pay the least they can get the lowest skill sets in exchange... then they bitterly complain about the poor work that is done and blame the developers THEY hired (isn't that an error in their judgement in hiring them?)
Supply and Demand obviously plays a part, but at the end of the day who gets hired and fired and for how much is all down to the insecurities, perceptions and foibles of the managers who hire them.... and they are HUMAN and prone to every malady under the sun.
Patel
I just came on this article while searching for Computer Networking job market in Sydney. Believe me my dear friends, job market is looking real poor. Australian University engineering qualifications doesn't have any values here in Market. Employers doesn't care about employees, they do care only about cheap engineers so that they can ask for higher salaries to company board and they are the one who are making market worse, recession come along every decade. money needs to be rotated in any market, it is very simple concept. I believe, real recession in Australia is coming now. In 2009, I got good job and early 2009 i was getting at least enough calls from employers, today in 2010, not even half of last year and forget about pay. It looks good to be doing labor job (atleast pays same as Engineers are getting paid here) and have less stressfull life.
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