paxus.com.au | paxus.co.nz Across Australia and New Zealand SALARY GUIDE TRENDS REPORT 2019 TECH + DIGITAL MARKET
paxus.com.au | paxus.co.nz
Across Australia and New Zealand
SALARYGUIDE
TRENDSREPORT
2019TECH + DIGITAL
MARKET
FOREWORD
The recruitment industry is moving faster than ever before, with artificial intelligence, new interviewing tools and diverse recruiting practices shaping the way we source talent. With the niche candidate market tightening, we are seeing these practices used more and more to create tailored candidate experiences - improving how we
2
interact and communicate, the level that we engage with each candidate, and the diversity of our talent pools.
New interviewing tools and technologies however are rendered ineffective if your Employee Value Proposition (EVP) is not engaging and persuasive, particularly in the current candidate tight market. Reviewing your EVP and how it positions you to candidates will be paramount over the next 12 months, as competition increases between employers for top tech talent.
Our 2019 Tech + Digital Salary Guide and Market Trends Report covers tips and tricks for perfecting your EVP, the latest industry trends, market developments and much more. We have summarised key trends and compiled research from across the market, to help you learn more about technologies that are trending, what skills are in demand and how you can position yourself to attract the best talent. We have also included a salary and rate guide to give you an idea of market rates of particular resources, to help you plan your 2019 workforce.
Jason TrevethickPaxus Managing Executive
Paxus 2019 Tech and Digital Salary Guide and Market Trends Report
MARKET TRENDS + INFORMATION
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LOCATION OF ENGAGEMENTS
According to APSCo’s September Professional Staffing Trends Report, we have seen the misalignment of ICT job advertisements and engagements in some states across the country.
QLD has seen the greatest change, with jobs advertised outweighing engagements by 7.2%, followed by ACT and NSW, indicating candidate shortages.
With a variance of 8.1%, VIC saw the highest number of engagements outweighing jobs advertised, followed by WA and SA. Some unadvertised jobs in these regions can partly explain the variance, however a slightly looser candidate market is also a contributing factor.
Advertisements
Engagements
4.1% 8.1%
3.3%
17.4%
36.5%
24.8%13.5%
35.2%
32.9%
10.2%
4.8%
8.9%
DAYS TO FILL
The 2018 end of financial year saw the average days to fill a contract role drop to just 9 days, as organisations rushed to fill positions and extend contracts before financial year end. We then saw this figure rise steadily month on month, landing at 16 days towards the end of 2018.
Contract days to fill however are still relatively low compared to this time last year, as are permanent days to fill, which are down 14%. The decrease can likely be tied to improvements in recruitment efficiencies, as recruiters employ new interviewing tools and techniques, and artificial intelligence to speed up the sourcing and selection process.
30PERMANENTDAYS TO FILL
16DAYS TO FILL
CONTRACT
TOP SKILLS IN DEMAND
Tech roles have dominated LinkedIn’s latest Emerging Jobs Report, as the most critically in demand by Australian businesses. Based on millions of user-input job titles over the past five years, Customer Success Manager, Data Scientist, Full Stack Engineer, Cyber Security Specialist and Experience Designer have all been identified as the top five roles in demand by organisations in Australia – across all industries.
Candidates in these areas have also been tight, particularly cyber security professionals, with a recent study by Frost & Sullivan stating there will be a global shortage of 1.8 million cyber security professionals over the next 5 years. We have also found key shortages in the Australian market of Data Scientists, Full Stack Engineers and Experience Designers – all niche and emerging areas.
With the increase in demand for these skillsets, many organisations are facing difficulty sourcing suitable experienced candidates.
To combat this, partnering with specialist technology and digital recruiters can facilitate the hire of these rare skills. Being a technology and digital specialist, Paxus already house qualified pools of candidates in the in-demand areas outlined by the report.
The report also identifies the importance of being innovative when sourcing candidates, targeting versatile candidates with the capacity for upskilling.
Emerging Jobs Report, LinkedIn
“THE TOP FIVE EMERGING JOBS ARE ALL IN EXTREMELY HIGH DEMAND AND WHEN TALENT IS THIN ON THE GROUND, THE ‘PERFECT CANDIDATE’ WILL BE HIGHLY DISCERNING AND VERY EXPENSIVE”
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TOP SKILLS FOR EMERGING JOBS IDENTIFIED BY LINKEDIN
CUSTOMER SUCCESS MANAGER
DATA SCIENTIST
FULL STACK ENGINEER
CYBER SECURITY
EXPERIENCE DESIGNER
Enterprise software managementCustomer relationship management
Consulting
Machine learningAnalytics
Data miningBig data
.net frameworkJavaScript
JavaSoftware engineering
AngularJS
Computer securityConsulting
Security managementNetwork security
Information security
DesignCustomer experience
User experienceExperience design
User research
TECH + DIGITAL SALARY GUIDE
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2019 SALARY GUIDE
We have compiled detailed data from roles placed to bring you our 2019 Salary Guide. Salaries cover some of the most common roles requested by our clients, and represent the estimated market value of each role.
Please note - salaries and rates are based on a national average inclusive of super and are in AUD. Daily rate is based on a 7.5 hour day. Due to the nature of the market, salaries are subject to change and are updated regularly in accordance with market movement.
Position Average Perm Salary
Architect $160,000 - $200,000
Agile Coach $200,000 - $250,000
Art Director $101,000 - $150,000
Automation Tester $140,000 - $160,000
BI $120,000 - $150,000
Business Analyst $120,000 - $150,000
Customer Experience Designer $120,000 - $180,000
CRM Specialist $120,000 - $140,000
Data Scientist $160,000 - $200,000
DBA / Database Developer $120,000 - $150,000
DevOps Consultant $120,000 - $150,000
Digital Content Editor $64,000 - $90,000
Digital Strategist $150,000 - $200,000
ERP $110,000 - $130,000
Hardware Engineer $70,000 - $110,000
Head of Customer Experience $200,000 – 300,000
Head of Development $180,000 - $250,000
Head of Digital $250,000 - $350,000
Head of Digital Channels $200,000 - $300,000
Head of eCommerce $200,000 - 300,000
Head of Omnichannel $200,000 - $300,000
Help Desk / Support $50,000 - $70,000
Security Administration $90,000 - $120,000
Cyber Security $150,000 - $200,000
Network Engineer $70,000 - $100,000
Network Designer $90,000 - $130,000
Principal Cloud Consultant $150,000 - $200,000
Project Management $150,000 - $200,000
Sales Account Manager $90,000 - $110,000 (Base)
Salesforce Consultant $150,000 - $200,000
Scrum Master $130,000 - $170,000
Senior Producer $120,000 - $150,000
Software Developer $120,000 - $150,000
System Engineer $100,000 - $130,000
Systems Analyst $110,000 - $130,000
Systems Integration $120,000 - $140,000
Technical Writer / Documenter $80,000 - $110,000
Manual Tester $70,000 - $100,000
Trainer $70,000 - $110,000
UI Developer $130,000 - $150,000
UX Developer $130,000 - $150,000
TRENDS TO WATCH IN 2019
DIVERSITYDiversity is considered the biggest industry game changer and is already widely embraced - particularly in Australia. In fact, 78% of companies have harnessed diversity to improve company culture, while a further 62% have expanded their inclusive culture to enhance financial performance. Despite the drive towards diversity, many companies are still finding it relatively difficult to expand the diversity of their workforce - with LinkedIn’s research highlighting that finding diverse candidates to interview and retaining diverse employees the biggest challenge.
Lack of gender diversity is particularly prevalent across the technology sector, where only 30% of technology and digital jobs are held by women. The lack of women in the technology sector poses both social and economic issues, with one study by Deloitte reporting that global costs due to lack of diversity may be in the tens of billions of dollars. Industry associations such as Females in Information Technology and Telecommunications (FITT) have helped advocate gender diversity across the sector in Australia, however organisations need to ramp up their diversity initiatives if we are to make significant changes across the sector.
Published in their annual industry report, LinkedIn has drawn on insights from more than 8,800 Hiring Managers and Recruiters across 39 countries, to identify the trends that will have the most impact on how we source and hire candidates globally. Here are the top four to watch:
Use diverse photos in marketing material
Use inclusive language in job descriptions
Create a culture that embraces differences
Use interviewers who are trained in unconscious bias
Focus diversity efforts on hiring employees with disabilities.
TOP TIPS FOR DIVERSE RECRUITMENT
10Paxus 2019 Tech and Digital Salary Guide and Market Trends Report
By partnering with Paxus who employ a wide range of diversity sourcing techniques, you can increase your reach to diverse candidate pools - and realise the benefits that a diverse workforce brings.
DATA
Although using data in talent acquisition is not a new concept, the emergence of more comprehensive and readily available data is revolutionising the industry.
The LinkedIn research revealed however, that issues relating to poor data quality, expense, and uncertainty around how to access or read data stand in the way – with these needing to be tackled head on first before any real benefits can be realised.
BENEFITS OF USING DATA IN TALENT ACQUISITION
UNDERSTAND CANDIDATE DESIRES
INCREASE RETENTION
RATES
PRESENT BETTER JOB
OFFERSEVALUATE SKILLS GAPS
ASSESS TALENT
DEMAND AND SUPPLY
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PREDICT CANDIDATE SUCCESS
NEW INTERVIEWING TOOLS
While traditional interview techniques are still largely popular, Hiring Managers and Recruiters agree that more focus needs to be placed on assessing candidates' soft skills. This includes developing approaches which give a more accurate sense of candidate personality and provide a better candidate experience that also allows both the candidate and employer to determine best fit.
To ascertain this, five emerging hiring techniques were identified in LinkedIn’s research, with these already starting to replace more traditional interview approaches:
Global companies such as Citadel are pioneering the way – designing one-day job auditions for potential candidates. Auditions simulate high pressure work situations, giving Hiring Managers and Recruiters an insight into work performance and personality traits.
JOB AUDITIONS
MEETING IN CASUAL SETTINGS
VIDEO INTERVIEWS
SOFT SKILLS ASSESSMENTS
VIRTUAL REALITY ASSESSMENTS
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ARTIFICIAL INTELLIGENCE
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ALTHOUGH ARTIFICIAL INTELLIGENCE (AI) HAS BEEN MORE SLOWLY ADOPTED, 76% OF HIRING MANAGERS AND RECRUITERS BELIEVE IT TO BE A SIGNIFICANT EMERGING TREND THAT WILL HAVE A LARGE IMPACT ON HOW WE SOURCE AND HIRE CANDIDATES.
AI technology allows the automation of basic tasks such as screening and scheduling and has the potential to greatly improve efficiencies. 67% of Recruiters believe that AI indeed improves time efficiency – while a further 43% state it removes human bias.
Although it might sound as if AI poses a threat to Recruiters, only 14% are concerned that it will put their job at risk. Their view is that recruitment is a person centric profession, which relies on personal and emotional engagement – AI simply lacks the empathy or judgement to carry out complex recruitment tasks. Rather than replacing Recruiters, AI allows Recruiters to automate time consuming and repetitive processes, so they can concentrate on interviewing and building relationships with candidates.
PERFECTING YOUR EMPLOYEE VALUE
PROPOSITION (EVP)
A good EVP is important as it helps to elevate your brand, providing a deep dive into each position and your organisational culture - allowing each candidate to determine whether the job is the right fit for them.
If you haven’t perfected your EVP yet, it is important that you look closely at what you are offering, and why a candidate should pick you over a competitor. A good place to start is to work through 5 key elements:
New tools and technologies are rendered ineffective without a strong Employee Value Proposition (EVP) to sell to candidates.
Wages, bonuses, commissions, benefits, work tools, trips and any other tangible benefits.
TANGIBLE REWARDS
Clearly define where each position sits within your corporate structure and where the position can lead the candidate on their own career path.
THE OPPORTUNITY
Including the overall employment brand. What is it that sets your company apart?
YOUR ORGANISATION
Including who the candidate will be working with, such as mentors and thought leaders, team and group dynamics.
THE PEOPLE
What does a day in the life of this position look like? Identify keys to success so the candidate can imagine themselves in the role.
THE WORK ITSELF
POSITION DESCRIPTION
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18%
1%3%3%
5%
5%
5%
5%
6%
7%
9% 10%
11%
12%
A positive culture
Additional nancial bene ts
Flexible working arrangements
Recognition and rewards
Great leaders
Opportunities to advance my career
Training and development opportunities
Clear goals and expectations from my role
Regular feedback on my performance
Latest tools and equipment for my role
Don't know
Fair and inclusive employment policies
Other wellbeing bene ts
Great workplace facilities
Opportunities to advance in my career
Opportunities to advance in my career
Opportunities to advance in my career
Additional financial benefits
Additional financial benefits
Additional financial benefits
Flexible working arrangements Flexible working arrangements
Flexible working arrangements
Clear goals and expectations for my role Clear goals and expectations for my role
Clear goals and expectations for my role
46%
42%
38%
32%
44%
42%
39%
29%
40%
35%
30%
28%
MILLENIALS
GENERATION X
BABY BOOMERS
2018 Employee Insights Report, Sunsuper
2018 Employee Insights Report, Sunsuper
In Sunsuper’s 2018 Australian Employee Insights Report (which surveys Australian employees across hundreds of Australian businesses), a positive culture was revealed as the top attribute contributing to a great employee experience, followed by financial benefits and flexible working arrangements.
When perfecting your EVP, it is important to pick and choose the benefits that work best for your company and emphasise particular areas for particular roles. And remember, always treat each role individually and work through what mix of benefits will attract the best candidates in each area.
The research also revealed that different generations value different workplace attributes and benefits – and it is important to keep this in mind when fine tuning your EVP. While millennials value opportunities to advance their career, Generation X are more focused on financial benefits, while Baby Boomers value clear goals and expectations for their role.
The mix of benefits you include in your EVP should be aligned to what employees value most in an organisation. Taking a good look at the employee experience is key to this – that is, which elements of an EVP employees engage with the most.
THE GENERATIONAL DIVIDE
WHERE TO NEXT?
As the market tightens, it is important that as an employer you have a recruitment partner that knows the market and anticipates the skills you need to source the right talent. Management of the candidate experience and your EVP is paramount to this - as a cohesive hassle free experience will help you secure the best professionals.
As Australia and New Zealand’s leading provider of tech and digital talent, we can help you map out which up and coming skill sets provide opportunity to transform your business, and work with you to source skilled candidates locally and globally. We provide a market leading experience, delivering you the best talent by exceeding candidates’ expectations - so you have access to the best talent.
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18Paxus 2019 Tech and Digital Salary Guide and Market Trends Report
paxus.com.au | paxus.co.nz
Across Australia and New Zealand
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