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Shakers & Breakers Europe leads the US on IT salaries, Australia now comparable
Shakers & Breakers Europe leads the US on IT salaries, Australia now comparable | Europe leads the US on IT salaries, Australia now comparable |
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| Written by Stan Beer | |
| Monday, 22 October 2007 | |
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Mercer’s 2007 IT Pay around the World survey compared the total annual cash compensation and total remuneration information for IT staff in 6,545 companies in 35 different countries. Multinational companies use the survey to benchmark salaries, bonuses, and other forms of pay, and to allocate global IT budgets. The good news for Australian workers is that they now don't have to necessarily leave home to get paid well. Australia is now in the top 10 behind 8th placed Canada and 9th placed Hong Kong. “Australia, which is facing a growing skills shortage of IT professionals, has seen IT salaries increasing steadily in recent years, and it is now comparable with other major Western countries,” Mr Ken Gilbert, Head of Human Capital at Mercer, said. IT Manager: 10 top-paying countries (various currencies) Local USD EUR GBP 1 Switzerland 176,920 140,960 110,990 74,150 2 Denmark 722,310 123,080 96,890 64,750 3 Belgium 95,380 121,170 95,380 63,760 4 UK 62,180 118,190 93,090 62,180 5 Ireland 85,200 108,230 85,200 56,950 6 US 107,500 107,500 84,650 56,550 7 Germany 84,020 106,730 84,020 56,160 8 Canada 106,000 93,860 73,870 49,370 9 Hong Kong 702,720 90,340 71,120 47,530 10 Australia 115,480 88,850 69,950 46,740 Average total cash compensation includes base pay and annual bonus. Foreign exchange conversions were made as of November 2006. In the United States, the average IT manager earns US$107,500 a year compared with Canada (8) at US$106,000. By comparison, Indian IT managers earn an average of US$25,000. According to Mr Gilbert, the disparities between the top and bottom countries reflect the globalisation of the IT workforce. “The more senior, strategic roles are remaining in head offices, while many of the lower-end roles can be outsourced to offshore locations. Although, while the pay in these offshore locations may seem low, they are often quite competitive in the local market, and also in part reflect cost of living differentials geographically,” Mr Gilbert said. “This reflects a lack of hierarchy in western IT functions. In these countries, companies need to be more creative to attract staff. There is more focus on variable factors to attract staff, such as bonus schemes, while in lower-paying countries, the emphasis remains on cash compensation. “This reiterates our message to all employers, and in this case particularly in the IT sector, that simply throwing money at the problem of attraction and retention of staff is not necessarily the best solution. “Employers simply have to become more strategic with how they attract, and retain, key staff to win the war for talent that clearly crosses geographical boundaries,” he said. Mr David Conroy, a principal in Mercer’s London office, said, “The globalisation of the IT function continues to develop. Companies in Europe and the US continue to be more imaginative in their remuneration strategies to ensure that they keep the best talent. Employers understand local markets and look to developing successful staff attraction and retention strategies to remain competitive.”
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