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Idea of youngsters with fat salaries is false, survey finds Information Technology Editor
PERCEPTIONS that the information technology sector is dominated by whiz kids do not hold true as companies are showing more respect for greybeards with experience.
An annual survey of IT workers' salaries in SA found little truth in the belief that the industry is dominated by youngsters whose salaries are spiralling in a bid to attract new talent.
The research was carried out by P3 Management Consultants, a specialist in organisational effectiveness and remuneration.
Director Willem Verwey says SA corporations would rather pay top money for skills and experience than take a risk with promising youngsters with no track record. Close to 60% of IT staff are 31 or older.
"It is notable that entry level salaries are reported as being lower this year." A decline has also been seen in the average pay rise: 8% last year, compared with 12% the previous year.
In 1999 companies needed to ensure that all their technology was Y2K-compliant. The skills required for much of that work were low but vital, so starting salaries spiked dramatically. Now normality has returned and companies no longer need to pay high salaries to secure low-level skills, particularly as these are not in short supply. This has translated into declining entry level salaries, Verwey says.
A 1999 matriculant could enter the market for an annual wage of R60000, while someone with a masters' degree could expect R111900. Salaries at these levels have increased to R72384 and R123000 respectively, rising more modestly than in previous years.
Helping keep starting salaries down is the disillusionment with all things internet, which saw many dotcom companies retrench staff or close, putting more young workers back into the job market.
Younger people can still earn good money as senior systems analysts aged 20 to 25. Verwey suggests they are probably being rewarded for working night shifts, which older employees with families are reluctant to do.
The survey shows that employees older than 31 dominate the senior positions of network manager, technical specialist, senior project manager and IT services director. No one younger than 26 was entrusted with project management or higher levels of responsibility; employees aged 26 to 30 were earning almost R100000 a year less than employees older than 40 who were in the same position. A project manager aged 26 to 30 typically earns R238680, while counterparts older than 40 notch up R338951.
There has also been a shift in the most sought-after skills. A few years ago the greatest demand was for computer programmers. Now project managers and analysts are the cream of the crop. Verwey says 53% of the companies surveyed considered these skills scarce enough to justify paying a premium.
Higher up the scale, the availability of experienced staff is tighter. Since their skills are in demand around the world, IT specialists are among those most likely to emigrate from SA. If the local skills shortfall continues to grow, salaries paid to core IT employees will maintain the steep increase seen during the past few years, says Verwey. Jan 24 2002 12:00:00:000AM Lesley Stones Business Day 1st Edition
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===== Kevin Dean Buffalo, NY ICQ: 8616001 http://www.yaysoft.com
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