Show me the money

Actual salary increases have outstripped predictions for the last 3 years – will 2013 be the same?

Clicks has monitored salaries for IT professionals over the last 10 years with our annual IT Recruitment and Retention Report. Each year we ask respondents for the average % salary increase paid over the past 12 months and what’s expected to be paid over the following 12 months. Not surprisingly there’s usually a small difference between what people expect the increase to be, and what they end up actually paying.

In 2009, the actual increase was less than expected due to the GFC. The following year, with the Government pumping money into the economy and interest rates very low, the opposite occurred.

So, what’s in store for 2013?

Clearly 2012 was a tough year, with the actual average increase coming in at 2.86%. With this mindset present at the time we asked our clients for their 2013 prediction, it came in at 2.08%, the lowest since the series began. However, we have good reason to believe the reality will be higher. Our report shows that hiring demand has turned a corner with fewer respondents planning to reduce headcount in 2013 compared with 2012.

When we look at our internal business health measures (fill rate, order flow, time to fill etc) these too are improving. So… we’re predicting that demand will steadily pick up during the year and with that pressure salaries will build. Nothing spectacular, but the actual average should be about 3%.

Ben Wood, Managing Director

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2 thoughts on “Show me the money

  1. So with 2.8% expected and with 3% by the end of the year and the CPI in the same range of 2-3%, perhaps flatline is a more apt description of the real world increase in IT pay scales, meaning the graphic atop this entry is a little misleading.

    Its a tough industry at present but then the rest of the world is also doing it tough and if the current Australian Budget forecast is a good indicator, then Govt roles will thin out, leaving commercial industry roles with a glut of applicants.

  2. Hi Rod
    Thanks for your comment. We’re certainly all awaiting the detail of the federal budget and it would seem some reduction in staffing numbers in the Public Sector is likely. In terms of the graphic, I think we’re just past the woman’s left hand – a slight improvement in 2013, with better things to come beyond. But then again, my glass is usually half full.

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