MEDIA RELEASE

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IT Salaries Continue to Outstrip CPI

2000 ACS Remuneration Survey Records Average Salary Rise of 5.1 Per Cent But Education Sector Lags Behind in Rewarding IT Professionals

Friday 30 June 2000 - IT professionals achieved average salary increases well above those recorded in other sectors of the Australian economy, according to the results of the 2000 Australian Computer Society (ACS) Remuneration Survey Report.

The report showed that IT salaries rose an average 5.1 per cent during the 12 months to April 2000, well above the 3.6 per cent increase in Average Weekly Earnings (AWE) recorded by the Australian Bureau of Statistics during the 12 months to February. The Consumer Price Index (CPI) rose by 2.8 per cent.

Conducted on behalf of the ACS by the Association of Professional Engineers, Scientists and Managers, Australia, the survey questioned 2,000 ACS Members employed across all industries and job functions.

Private Sector Leads the Way

According to the survey, the strong growth was fuelled by IT professionals working in the private sector, who earned average increases of 6 per cent, compared to the 3.6 per cent increases gained by those employed in the public sector.

"IT professionals in the private sector continue to command salary increases well above those experienced in other industries," said ACS President John Ridge, attributing the wage rises to factors such as Y2K, the growth of e-commerce and the demand for Internet and networking skills."

The survey revealed that IT professionals in the private sector earned an average total package of $103,460, compared to an average total package of $95,279 across all sectors.

The most lucrative positions within the private sector were in sales and marketing, with management roles also attracting substantial rewards.

Job Function	Average Package	Job Function	Average Package
Sales & Marketing	$164,263	Research and Teaching	$79,599
General Management	$142,125	Research & Development	$78,019
IT Management	$110,462	Analysis & Testing	$72,076
Project Management	$103,486	Programmer/Analyst	$65,436
Consulting	$102,453	LAN Manager	$62,354
Systems Management	$84,559	Teaching/Training Only	$61,408
Database Administrator	$84,558	Computer Support	$61,105
Project Leader	$79,723

 

Education Salaries Lag Rest of Industry

By contrast, the average total package of IT professionals working in the education sector was a full $30,000 below the private sector figure at $73,282, and education salaries increased by just 2.4 per cent, well below CPI and AWE figures.

Mr Ridge said these results highlighted the Society's concerns about the education sector's ability to attract and retain experienced and qualified professionals.

"One of the things that has come out of the IT skills crisis is the need for our universities to produce the best students possible - people equipped with the knowledge, technical and social skills to move straight into the vacant positions within industry and commerce," he said.

"To achieve this, we need the best possible educators and academics to shape our IT students, but these figures show we aren't prepared to pay the money that will attract them into the universities. Recent funding cuts mean we are demanding more of our academics while paying them considerably less than the industry average.

"If this trend is allowed to continue, we could eventually see our young people forced to study overseas in order to obtain recognised qualifications," he said.

Career Earnings

The 2000 ACS Remuneration Survey also showed the rate at which increases were achieved was clearly influenced by experience and job function. Commencing salaries were generally around $40,000 per annum, and, consistent with previous survey results, average IT industry incomes would be achieved after eight to ten years.

Non-core benefits such as performance bonuses and motor vehicles clearly become more common with experience and progression to higher level positions.

This media release is available on the ACS Web site at http://www.acs.org.au/news/300600.htm

ENDS

The Australian Computer Society is the recognised association for information technology (IT) professionals, attracting a large and active membership from all levels of the IT industry and providing a wide range of services to its members. It is the public voice of the IT profession, the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT. See the ACS Home Page for more information.

Media Enquiries:

John Ridge, ACS President, Email: jridge@mra.com.au,Tel: (02) 9223 9499 or (0407) 913 992

Caroline New, Caroline New PR, Tel: (02) 9980 8060 or (0411) 889 456, Email: cnew@acslink.net.au