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Salary survey 2002

IDG News Service, Information Age

10/08/2002 17:13:28

Rate of salary increases slow for IT professionalsThe rate of increase in salaries paid to IT professionals has slowed appreciably according to the results of the latest survey of members of the Australian Computer Society.

The 2002 Australian Computer Society Remuneration Survey, conducted by the Association of Professional Engineers, Scientists and Managers, Australia, showed that average salaries paid to employee IT professionals rose by an average of 4 per cent over the 12 months to May 2002.

The annual survey of IT professionals received nearly 1500 responses from members of the Australian Computer Society, employed across all industries and job functions. The survey report has been published since 1995.

Demand factors

The decline in the rate of increase provides further evidence of the substantial decline in the overall performance of the IT sector since its most buoyant period 3-4 years ago.

The result reflects a general reduction in the demand for IT professionals and the weakened bargaining positions flowing from a constrained job market, affecting both existing and prospective employees.

Comparative increases in salary

Increases in remuneration paid to those IT professionals working in the private sector were 4.2 per cent, compared to a 3.5 per cent increase recorded for those IT professionals working in the public sector. Education sector respondents reported an average increase of 4.1 per cent.

By comparison, the Australian Bureau of Statistics recorded an annual increase of 5.9 per cent in Average Weekly Earnings (AWE) for the 12 months to February 2002, whilst the Consumer Price Index (CPI) rose by 2.9 per cent in the twelve months to March 2002.

Level of incomes

The typical total remuneration package earned by IT professionals performing management functions in Australia exceeds $100,000 per annum.

General Management and Sales and Marketing positions were reported to be the most lucrative positions based on the mean value of total remuneration packages where a total package is defined as comprising the sum of the value of base salary, bonuses, superannuation and the value of fringe benefits such as motor vehicles.

JOB FUNCTION MEAN TOTAL PACKAGE

Sales & Marketing $160,717

General Management $160,782

Research & Development $119,853

Consulting $117,994

Project Management $111,498

IT Management $118,590

Project Management $111,498

Project Leader $97,834

Systems Management $85,674

Database Administrator $83,399

Research & Teaching $79,706

Analysis & Testing $77,625

Programmer/Analyst $73,060

Computer Support $68,982

LAN Manager $64,468

Teaching/Training only $61,405

Programmer/Analysts skill sets

Most Programmers and Analysts possessed programming skills in a variety of applications. Nearly two-thirds held skills in at least five major applications. The two most commonly held skills reported by Programmer/Analyst respondents continue to be SQL (66 per cent) and Windows NT (64 per cent).

Of the major applications, those possessing skills in COBOL reported the highest mean income packages at $80,534 per annum, whilst those programmers skilled in HTML were least well rewarded reporting a mean total remuneration package of $67.791 per annum.

Independent contractors

Approximately one in six survey respondents were earning principal incomes as independent contractors. Rates charged varied considerably, though generally fell in a range of $60 to $100 per hour, depending on nature of work undertaken.

Two-thirds of independent contractors were engaged in roles as either Consultants, Project Managers or Programmer/Analysts.

Future salary expectations

Technology stocks, particularly those related to the Internet, suffered a major decline over the last year and demand for skilled and experienced IT professionals has declined as a consequence. The effect on salaries has been to slow the relatively high rate of increase which IT professionals had enjoyed in the preceding years. At 4 per cent, the average rate of increase in IT salaries has been brought back the be at or below the rates of annual salary growth achieved by other comparable professional groups such as engineers and scientists, groups which had been significantly outperformed by IT professions in the recent past.

In the absence of any major upturn in the fortunes of the IT sector, IT professionals can expect to see salaries increasing at only a modest pace in the foreseeable future.

The Australian Computer Society Remuneration Survey Report is published annually by the Association of Professional Engineers, Scientists & Managers, Australia.

The 110-page report details earnings across a wide range of factors such as experience, industry, job function and qualification based on responses from around 1500 computer professionals.

Order forms are available from the APESMA Web site at www.apesma.asn.au/surveys/acs/. All subscribers receive access to the online interactive version of the report at no extra cost.