auckland regional report - july 2020 · the top ten skills in demand by it employers in auckland...
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Auckland RegionalReport
2020
Industry Split
The private sector covers the largest number oftech and digital employers in Auckland. Thissector makes up 77% of employers in ourlargest city, in comparison 20% of employerswho operated in the public sector and 3% ofnot-for-profit and social enterprise employers.
Auckland's median tech base salary increasedby 9%, which secured their position as thesecond highest paying region after Wellingtonwith a median salary of $95,000. Meanwhile, themedian contracting rate remained stable at$100/hour. Auckland's digital remuneration remained equalto 2019, with the median digital salary being$90,000 and the median digital contracting ratebeing $73/hour.
Money Matters
We began compiling informationfor this report before the
wide-reaching effects of theCovid-19 pandemic began to
impact New Zealand.
Some predictions see New Zealand’s unemployment
rate reaching double digits,however the impact on
Auckland's tech sector is not yetclear, as organisations move to
offset this impact throughinnovation and embracing new
ways of working.
While we are faced with thesenew economic challenges – theway we react and move forward
will define who the future leadersin the technology industry will be.
Software Development tops the list of skills indemand by employers, followed by ITSupport/Helpdesk and Digital & Cloud. Interestingly, this is the first year that BusinessAnalysis and Project Management have notappeared in the in the top five, instead we areseeing Architecture and Agile skills beingat the forefront of Auckland employers'business needs.
Skills in Demand
Over the past three years there has been a steady rise in employers stating that theyfind it harder to source techand digital talent than the
year prior.
At the time the responses wecollected, 30% of Auckland
employers say it is harder tosource tech and digitaltalent compared to this
time last year.
Key Findings___
Absolute IT2020 Auckland Regional Report
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Employer Demand Job Seeker Skills
When skill sets from job seekers and theskills in demand from IT employers inAuckland are cross referenced, itbecomes clear that Digital/Cloud, Agileand Security skills are the biggest painpoints for employers, as demand faroutstrips supply. Alternatively, System Administration, WebDevelopment and Service Delivery are jobseeker skills that are more readilyavailable across the market without anequivalent demand from employers.
Software Development
Project Management
Management
Business Analysis
Testing/QA
System Administration
Networking/Infrastructure
IT Support/Helpdesk
Architecture
Web Development
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Software Development
IT Support/Helpdesk
Digital/Cloud
Agile
Architecture
Business Analysis
Project Management
Testing/QA
Business Intelligence
Security
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Software Development
IT Support/Helpdesk
Digital/Cloud
Agile
Architecture
Business Analysis
Project Management
Testing/QA
Business Intelligence
Auckland Job Market
The most prevalent skills amongstAuckland Job Seekers are:
The top ten skills in demand byIT Employers in Auckland are:
Security
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The outbreak of Covid-19 has pushedmany organisations to re-evaluate theskills that they require to both surviveand thrive. We have seen an increasein demand for cloud, security and dataskills as organisations attempt tonavigate the post-Covid landscape.
Skill Gaps
Permanent Contract Fixed Term
1
2
3
17%
1%
82%
of Auckland IT professionals find it harder to find jobs intheir area of speciality compared to this time last year,while 9% find it easier.
72%
26%
2%
Better income - 34%
Challenging work - 18%
Flexible hours/remote working - 13%
1.
2.
3.
4.
Better workplace culture - 8%
IT Professionals in Auckland
Career development - 21%
Primary deciding factor whenaccepting a new job offer
Top three reasons for changing jobs
Contract or project coming toan end - 17%
Improved income - 16%Training and developmentopportunities - 9%
5.
of Auckland IT professionals want tochange jobs in the year ahead.62%
16%
Absolute IT2020 Auckland Regional Report
Female
Non-binary
Male
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Respondents who rated their workplaceas a good place to work
Respondents who rated their workplaceas a bad place to work
Results across the sectors were comparable with 86% of publicsector employees and 85% of private sector employees reportingthat their workplace is a good place to work. Employees of not-for-profit or social enterprise organisations tookout the lead position with 89% of respondents stating that theirworkplace is a good place to work.
The primary causes for Auckland IT professionals' workplace satisfaction aligns with thenational response. This solidifies the importance of management and workplace culturein creating a positive workplace experience.
IT Professionals in Auckland
86% of Auckland IT professionals rate their workplace as a goodplace to work.
Primary drivers of workplace satisfaction
10%
13%
9%
3%
16%
49%
15%
11%
50%
24%
CareerProgression
Diversity ManagementStyle
Salary WorkplaceCulture
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Tech Digital
Auckland's median tech remunerationrate is equal to the national median at$90,000 per annum. Auckland's median digital base salary is2.9% higher than the national median of$87,500 per annum. Additionally, thedigital median contracting rate is 4.3%higher than the national median rate of$70/hour.
Auckland's median tech base salary is$95,000, a 5.6% increase from the$90,000 recorded in July 2019. The median tech contracting rate of$100/hour is tied with Wellington for thehighest rate in the country. These ratesare 7.5% higher than the national medianhourly rate of $93/hour. In comparison to our latest data fornational median IT remuneration rates,
IT Professionals in Auckland
Median remuneration rates for Auckland IT Professionals
Median techhourly rate
Median digitalhourly rate
100k
90k
80k
70k
$82,000
$90,500 $90,000
$95,000
$80,000 $80,000
$90,000 $90,000
2017 2018 2019 2020
Remun
eration
$100 $73
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28% 23% 20%
ContractPermanent
IT Employers in Auckland
New projects
Key reasons employers are hiring
Increased demand ofIT from the business
Replacement of staff
68%
48%
Auckland IT employer'shiring intentions for thenext 12 months, across
both their permanent andcontract workforces
Employers' top reasons for hiring contractors
Project work Skill availability Quick start
1 2 3
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56%23%
Valuable
Neutral
Not valuable
Intern & Graduate Programmes
of Auckland employershave employed ITinterns or graduatesover the past threeyears.
of Auckland ITprofessionals haveundertaken aninternship or graduateprogramme at somepoint in their career.
86% 8% 6%
Value received from internship and graduate programmes forIT professionals
of IT employers in Aucklandfind it harder to attract tech
and digital talent to theirorganisation compared to
this time last year.
Attracting and retaining staff is the primary business
challenge for Auckland IT employers. Finding funding
and budget constraints comes in second, and growing
market share rounds out the top three business
challenges facing IT employers in the City of Sails.
Businesschallenges
70%
of Auckland IT employers havea social corporate
responsibility initiative in thetech space as part of their
2020 business plan.
30%
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39% of tech and digital professionals inAuckland rate their work-life balance asabove average, 51% rate it as averageand only 10% rate it as below average. Flexible working hours and remoteworking also rate as the top non-financialbenefits for techs in Auckland.
56%
Work-Life Balance
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Remote Working
of Auckland IT employers offered
remote working
Prior to the outbreak of Covid-19, the
majority (67%) of IT employers said that
they offered remote working to attract
talent from across New Zealand, while 33%
say that it helps them them to attract IT
talent from overseas.
Remote working as a talentattraction and retention strategy
Prior to Covid-19
of Auckland IT professionalshave flexible working options
and/or remote access
87%
Absolute IT2020 Auckland Regional Report
Benefits of remote workingfor employers
Happy and motivatedemployees - 59%
Ability to access talent fromother locations - 35%
Drawbacks of remote workingfor employers
Loss of personal connectionto team members - 65%
Negative impact on teamdynamics - 26%
After New Zealand entered alert level 4lockdown, organisations across thecountry found themselves forced toadapt to new ways of working andcommunicating within a short space oftime. We predict that moving forward morecompanies will adopt and embraceremote working and we are fascinated tosee what the 'new norm' of working inthe IT industry will look like.
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