ICT organisations remain controlled in their salary spending, contradicting claims that the ICT jobs market is in dire straits.

Results from AIIA’s latest Survey of Salaries and Remuneration Packaging in the Australian ICT Industry showed salary increases of 4.0 percent over the period August 2004 to August 2005, a small increase which challenges the predictions of a sharp surge in wages to meet skills shortages across the sector.

The survey’s forecast of the pool of funds available for salary increases in the next financial year also points to a stable ICT sector, with a modest 4.0 percent predicted. “All indicators suggest that salaries will remain at a similar level for the remainder of the financial year, with no extravagant spending on salaries indicated,” Mr Durie says.

AIIA’s previous survey also revealed steady salary increases: total salary packages averaged a 3.9 percent increase in the period March 2004 – March 2005.

“The stability of these statistics demonstrates that ICT organisations are focused on profitability, with salary spending kept under control,” says AIIA’s Chief Executive Officer, Rob Durie.

“While there is persistent talk of skills shortages in Australia, a tightening labour market and record low unemployment rates, the survey results suggest the ICT labour market is in balance.”

According to Mr Durie, the circumspect results bode well for ICT businesses. “Careful monitoring of salary spending will ensure we don’t again witness the cycle of boom and bust we experienced in the late ‘90s,” Mr Durie says.

“While industry scaremongers would have us believe that Australia’s ICT industry is in decline, our survey results show otherwise. There are opportunities out there for talented senior executives – again, the results show a stable 4.0 percent increase in salary packages for high-end executive positions,” Mr Durie says.

The August 2005 Salary Survey is AIIA’s thirty-sixth remuneration review of the ICT industry’s leading companies. Findings are based on the salaries and benefits information of 30,021 individual employees in more than 200 individual job roles.

“Unlike other surveys, which may monitor print or internet job advertisements, AIIA’s Salary Survey captures information on new, existing and departing employees across the breadth of the ICT industry,” Mr Durie explains.

The comprehensive survey, conducted twice yearly in March and August, is used by AIIA member companies to develop their recruitment and remuneration strategies. It is also used in many government contracts as the basis for rate variations during the life of a contract, making the survey the most trusted source of up-to-date salary information.

“No other survey in Australia captures as much comprehensive information on ICT industry salaries,” Mr Durie adds. “AIIA’s Salary Survey is a vital tool for employers in the ICT industry – providing the information to assist Australian companies to balance the dual goals of rewarding employees while achieving strategic business targets.”

For more information on how your company can participate in AIIA’s Salary Survey, visit AIIA’s website.

Each year, AIIA hosts the popular ICT Corporate Golf Day at the Terrey Hills Golf and Country Club.

Contributed by Tony Iams, VP and Senior Analyst, System Software Research
Ideas International Limited