News last week suggested that salaries in the information and communications technology (ICT) sector were up 12 per cent across the board for the six months to December 2006.

But AIIA’s Survey of Salaries and Remuneration Packaging in the Australian ICT Industry, which captures information on new, existing and departing employees across the breadth of the ICT industry, forecasts a budget of 4.1 per cent for 2006-2007 across the ICT sector.

According to AIIA’s Chief Executive Officer, Sheryle Moon, AIIA’s August 2006 Salary Survey revealed total salary increases of 5.8 per cent on average for existing employees.

“Our research shows that only star performers would be receiving increases of 12 per cent,” Ms Moon says. 

“There are certainly ‘hot skills’ which are more in demand, and therefore commanding higher salaries, but companies appear to be paying less for static or more traditional roles, enabling them to balance their salary budgets,” Ms Moon says.

“In a buoyant economy, there will always be certain roles in every industry that are difficult to fill – and niche job roles where shortages exist will command a premium,” Ms Moon adds.

“CEOs have long memories and are well aware of the negative outcomes resulting from skyrocketing salaries before the Tech Wreck of 2001.  Rather than offering reactive pay increases, CEOs and their HR managers are utilising a fuller suite of approaches to retain critical ICT talent,” Ms Moon says.

These include promoting internally, hiring people with non-traditional skill sets (such as TAFE graduates in addition to computer scientists/engineers), leaving roles vacant or selling the broader career opportunities within their companies.

Companies are also paying less for skills that aren’t as strategically important to the business to compensate for higher salaries in those niche areas of need.

According to Jairus Ashworth, Managing Director of leading remuneration consultants, CSi, which compiles AIIA’s Salary Survey, recruitment salaries do not always represent remuneration across the breadth of the industry.

“There is always a difference between increases in recruitment salaries and those for existing staff.  Recruiters are often dealing with the ‘transient’ labour market – those who are moving about and generally speaking are the ‘cream’ of the industry’s talent.

“Conversely, existing staff represent the majority of employees within an ICT company, with average staff attrition making up only 19.0 per cent of the employee population.”

“It is important for business leaders to carefully assess the source they are reviewing, ascertain what the reported figures represent and decide how to accurately apply them within their businesses,” Sheryle Moon adds.

“While ICT companies are dealing with a somewhat tight labour market, this is reflective of the economy in general, not just the ICT industry,” Ms Moon concludes.

AIIA’s Survey of Salaries and Remuneration Packaging in the Australian ICT Industry is an authoritative source of data on ICT salaries.  Findings are based on the salaries and benefits information of more than 33,000 individual employees.  The comprehensive survey, conducted twice yearly in March and August, is used by AIIA member companies to develop their recruitment and remuneration strategies. 

AIIA and the Australian Computer Society (ACS) have signed a Memorandum of Understanding (MoU) which outlines their commitment to lead and coordinate efforts to address ICT skills shortages.

AIIA remains committed to developing an industry-driven recycling scheme, despite the recent announcement that governments across Australia are looking to introduce regulations in 2007.

AIIA has welcomed the federal government’s decision, announced last week, to cease its requirement that ICT suppliers be endorsed under the Endorsed Supplier Arrangement (ESA) if they enter into contracts for government business.

The Bracks Government has reinforced its commitment to the ICT industry by appointing a new ICT Minister for Victoria, says AIIA.

Each week, AIIA’s Bulletin profiles one of the members of our influential Board of Directors.