Jobs back on offer in rejuvenated market



By David Crosling   
 
The IT employment sector is enjoying a “honeymoon” period with realistic rates making business inclined to hire, a new survey shows.

Peoplebank Australia’s quarterly salary survey, released today, finds it is a good climate for businesses to hire, with salaries remaining steady in the past three months.

Peoplebank chief executive officer Peter Acheson said IT hiring continued to accelerate, with the two major states of NSW and Victoria predicted to be in a “candidate-tight” market by Christmas.

“By this time next year, we would be starting to see salary increases flowing through,” Mr Acheson said.

“Typically, they will be in the 4 to 5 per cent annual range, but will be more in particular skills that are acutely short such as SAP, business analysts and some J2EE project architect-type environments.”

Since November last year, most of the demand in IT has come from the major banks, utilities, the National Broadband Network and insurance sector, Mr Acheson said.

The survey, which tracks rates and salaries being paid in more than 50 IT roles in Australian capital cities, found the strongest demand had been for SAP skills, project managers, project directors, business analysts and project architects.

Victoria had seen a rise of 200 per cent in the number of jobs available, in both Queensland and NSW it was 30 per cent, and there had been a dramatic resurgence in Western Australia.

The exception was the ACT, where a hiring freeze took effect once the election was called.

“Right now, if you are in IT you can get as good a pay rate in Victoria as you can in NSW,” Mr Acheson said.

Taylor Coulter director Penny Coulter said permanent salaries had held firm, with not much change in the past few months due to the uncertainty of market conditions.

“Confidence on a firm footing has not returned and hiring decisions are well considered and cautious,” Ms Coulter said.

“In the latter part of last year, we were anticipating a 4 per cent increase in permanent salaries. What has transpired is less.”

Ms Coulter said NSW had seen salary increases of between 2.5 and 3 per cent.
In Queensland, Victoria and Western Australia it was closer to 3.5 to 4 per cent, depending on the sector and how the organisation had emerged from the global financial crisis.

She said the outlook would be similar for the rest of the year, but there would be increases to permanent salaries and contract rates early next year.

Michael Page technology national manager Simon Meyer said there was a move back to supply and demand issues for strong candidates.

He said salaries had risen 8-10 per cent for IT professionals earning between $100,000 and $200,000 this year. Those earning up to $85,000 had seen a rise of 4-6 per cent.

“Contracting candidates are starting to get two or three offers so they are bargaining more aggressively on their contract rate,” Mr Meyer said. He said there was typically a big movement in salaries at the end of each calendar year, which was when more senior professionals received their incentive pay.

“I think for professionals between $70,000 and $200,000 there is probably more to consider out there in the employment market than at any other point in the past 18 months.”

Some salary packages included childcare subsidies, further education support and a “mental health day” program, which granted workers an extra seven days of annual leave.

PETER ACHESON, PEOPLEBANK CHIEF EXECUTIVE OFFICER:
‘By this time next year, we would be starting to see salary increases flowing through. Typically, they will be in the 4 to 5 per cent annual range, but will be more in particular skills that are acutely short such as SAP, business analysts and some J2EE project architect-type environments’.

TAYLOR COULTER, DIRECTOR PENNY COULTER:
‘Confidence on a firm footing has not returned and hiring decisions are well considered and cautious. In the latter part of last year, we were anticipating a 4 per cent increase in permanent salaries.
What has transpired is less’

STATIC SALARIES (Source: Peoplebank Australia Salary Survey)