Salary pressure as IT execs command higher pay

IT job candidates are taking advantage of the skills shortage and commanding higher pay, placing pressure on salaries across the board, the latest Micheal Page Salary Survey found.

Stuart Packham associate director for Michael Page’s technology division said candidates were taking advantage of the skills shortage situation and demanding better access to resources and negotiating higher salaries.

“We expect to see salaries pushed up as much as 15 to 20 per cent for those jobs in highest demand.”

These highs were most likely to occur in areas where there is a lot of movement, such as the executive level where candidates are being lured by overseas opportunities.

“As organisations expand into Asia-Pacific, many senior IT professionals were being posted off shore creating a drain on the already shrinking talent pool.

The fact that 74 percent of employee respondents said they would consider working overseas, indicates this will be an ongoing problem as more opportunities arise,” said Packham.

The move towards recruiting permanent staff also placed pressure on salaries, the survey found.

Around 80 percent of respondents to the survey said staff retention was a key focus for 2006.

Training and development and flexible working arrangements were the most preferred incentives for retaining staff.

However a growing number of companies were increasing investment in technology and upgrading systems to support growth, following years of unchanged infrastructure.

Packham said it wasn't all bad news, the recruitment surge experienced in the first half of 2006 will continue to grow over the next 12 months.

“While companies were investing in their IT infrastructure and staff, they are finding it difficult to acquire and retain quality candidates,” he said.

The survey showed activity is strong in all sectors, the public sector is proving an attractive proposition for candidates because of competitive salaries and the opportunity to work with leading edge technology, said Packham.

The main drive in activity in the IT&T sector was consolidations and acquisitions and it was an exciting time for IT professionals who want access to the latest technologies and the flexibility to seek new challenges and opportunities, he said.

“Permanent recruitment has also reached new highs as employers bring IT functions in-house, further reducing reliance on external vendors and consultants.”

Michael Page surveyed 30,000 employers and 25,000 employees Australia-wide, from its customer database.