A study by Mercer shows that six of the world’s ten highest paying counties for information technology (IT) managers are in Western Europe. The 2007 'Pay Around the World' survey compared total annual cash compensation and remuneration information for IT staff of 6,545 companies in 35 different countries.

Top of the list

Switzerland comes in at number one for the highest paid IT salaries (based on gross annual total cash) where an IT manager job pays an average of 74,150 pounds annually.  Denmark came in second paying 64,750 pounds, and Belgium third with an average of 63,760 pounds. 

The UK is fourth, paying 62,180 pounds, with Ireland behind the UK at number five, paying 56,950 pounds. Germany ranks at seven, paying 56,160 pounds, sandwiched between two non-Western European countries, the US at number six (paying 56,550 pounds) and Canada at number eight (paying 49,370 pounds).

Bottom of the list

The survey found that IT managers received the lowest pay in Vietnam at 8,140 pounds, Bulgaria coming in just above that at 11,700 pounds, with the Philippines at 11,720 pounds.  IT manages in India were fourth from the bottom, earning an average of 13,150 pounds.  

Pay in relations to experience

David Van de Voort, IT workforce specialist in Mercer’s Chicago office, explains that the impact of outsourcing IT roles from North America and Western Europe can help explain the pattern of global pay.  He says while lower level roles are being outsourced to regions where talent is cheaper, the roles in the US and Western Europe (though fewer in number) are more complex and demanding roles.

The survey also highlights that the relationship between experience/skill level and pay varies in different countries.  For example there are large pay gaps between junior and senior career streams in Indonesia, India, Brazil, Chile and Vietnam which have the highest pay progression rations between the lowest and highest career streams.  Unlike these countries, in the US and many Western European countries, pay increases more proportionately with experience.

Compensation vs. cash

Mr. David Conroy, a principal in Mercer’s London office believes that this reflects a lack of hierarchy in the West. 

"In these countries, companies are generally more creative in attracting staff.  There is more focus on variable factors such as bonus schemes, while in lower paying countries, the emphasis remains on cash compensation," says Conroy.

“The globalisation of the IT function continues to develop.  Companies in Europe and the US continue to be more imaginative in their remuneration strategies to ensure that they keep the best talent.  [These] employers understand local markets and look to developing successful staff attractions and retention strategies to remain competitive,” he says.

3 March 2008

[Copyright Expatica 2008]