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

Absolute IT2020 Auckland Regional Report

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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

Page | 3

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

Absolute IT2020 Auckland Regional Report

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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

Absolute IT2020 Auckland Regional Report

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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

Absolute IT2020 Auckland Regional Report

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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%

Absolute IT2020 Auckland Regional Report

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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

Page | 8

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.

(09) 374 4467

absoluteit.co.nz

recruitment@absoluteit.co.nz

Absolute IT, Level 10

51 Shortland Street

Auckland, 1010

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