National IT Market Update: April 2010
Peoplebank's salary data for Q1 2010 reveals that significant salary increases (the first sign of increased competition among employers for IT skills) are evident in Perth, while spot increases support mounting anecdotal evidence of a shrinking talent pool along Australia's east coast - including NSW, VIC, the ACT and QLD.
Peoplebank's surveys - of salaries paid in more than 50 IT job categories in Australia's six largest capital cities during the first three months of 2010 - shows that more than 40 percent of job categories in Perth have enjoyed salary or contract rate rises in the past three months.
While the east coast states have seen pay rises in fewer categories (these occurring more in contract than permanent roles), Peoplebank is observing a continued increase in the number of roles available as businesses continue to invest in new IT capabilities.
Jeff Knowles, Acting CEO of Peoplebank comments, "Steady growth in the number of roles available turned into strong growth in March - giving us a marked increase in the number of roles on our books in the first quarter of 2010. For instance, in Victoria alone, the number of jobs available has probably grown by 100 percent in the past three months.
"Tellingly, we're also finding that candidates have several options in front of them. Where, a year ago, each candidate would have had one role or assignment offered at a time, candidates today are often choosing between two or more options, or are dropping out from the selection process because they've taken a job elsewhere.
"We have even had cases of losing candidates while an employer prevaricates about making a job offer - so we are advising employers to act quickly to secure the strong candidates with in-demand skillsets such as Java, .NET and ERP skills," Knowles says.
Knowles comments that the skills shortage will become markedly evident in the next quarter, leading to a period of volatility especially for contract workers with expertise in banking projects, and/or with business analysis, project management and Web 2.0 skills.
"Peoplebank anticipates that as the skills shortage becomes apparent, pay rates - especially for contact roles - will rise markedly.
"As this transpires, many who are now in permanent roles will be tempted in to contract work - especially those who feel they were poorly treated in the GFC. Peoplebank is already fielding calls from many such workers, and we are acutely aware that it won't take much of a pay increase to tempt many of them from their current, permanent roles."
"Many IT workers have not had a pay review for at least 12 or 18 months, and so what companies do now to reward and acknowledge their IT staff will be a key component in each worker's decision to commit to a business or move to another job, or contract role, for increased remuneration."
"In short, Peoplebank is anticipating a period of market volatility ahead, as large companies - those with the deep pockets - or companies with cutting-edge projects will be best placed to secure skilled IT workers, while other companies will have to work harder to attract to key IT skills" Knowles concludes.
NSW
Across the board, permanent salaries have - on average - remained flat, while contract rates have increased by approx 3-5 percent over November 2009 figures.
The number of roles available has grown by 30 percent for permanent opportunities and 20 percent for contract roles
Within the contract sector, average hours are trending upwards - although increases are currently significant across-the-board
Increased demand is being driven by industry-wide increase in hiring: including Government, telco, banking, utilities, manufacturing, SME and services
In-demand skills continue to be project managers, and those with Java and .NET skills
VIC
Permanent salaries have also remained flat, while contract rates have increased by approx 5 percent over November 2009 figures
The number of roles available has increased by 100 percent since January (a total of a 200 percent increase on levels recorded in July 2009)
Within the contract sector, average hours are trending upwards - although increases are currently significant across-the-board
In demand skills continue to be for business analysts and testers, ERP skills (both Oracle and SAP) and Java and .NET developers
ACT
There has been a significant rise in the number of roles available, especially for contract roles
The IT skills pool is becoming tight - with Peoplebank seeking contract workers from other states to supplement the local talent base for key contract roles. While there may be some additional contractors becoming available in July (as short-term contracts conclude), the ACT market is likely to be characterised by continuing skills shortage for 2010
In demand skills include project managers, .NET developers, Java developers and Architects.
QLD
While conditions remain patchy, QLD has seen a significant improvement in the number of IT roles available - an increase of around 30 percent compared with April 2009
Salaries have increased in certain sectors - most notably for Snr IT Consultants - Technical (rising to $95,000 from $70,000 in Nov 09); and other roles have had more marginal increases - eg Test Analyst and Web Managers now attracting $85,000, compared with $80,000 in Nov 09)
In demand roles are project managers and business analysts.
WA
Perth market is beginning to experience a skills shortage in key areas - from IT Managers to program managers, engineers, application development managers and in a number of other areas
In response, salaries and contract rates for these roles are rising
Increased demand is being experienced from both the resources sector, and from the broader spectrum of financial services, manufacturing and other sectors who support WA's resources industry
SA
There has been a dramatic month on month increase in the number of roles available across both permanent and contracting
The IT skills pool is becoming tighter with an increase number of candidates having more than one offer on the table and candidates being counter offered by employers trying to retain key talent
Increase in demand for Helpdesk and Desktop Support, .Net Developers and starting to see Business Analyst and Project Managers demand grow.
