Average salary has fallen, do you believe it?
Few days ago, I posted a comment in Low Yat forum. A person with around 3 years of working experience as an IT programmer was asking about the salary range for someone at his level. Should it be around 3k-4k or 4.5k or more? The question received quite a number of mixed responses.
My reply was 3k to 4k but some of the readers were saying 4k to maybe 5k.
I said that’s possible, if we were still in 2008.
Many of them do not believe me but this is what I’ve found out based on my own job hunting experiences, from my friends who are also looking around, and from people in the recruitment agencies.
The average salary has indeed fallen in 2009, as compared to 2008. Companies are more reserved now and they prefer to keep their cash than to splash it out to hire talented people. So don’t expect that you still can get good salary unless the said company is very desperate for people (I know few companies who are quite desperate) or you are a very rare talent.
Also, expect more competitions this year. According to a friend of mine who is working as a HR of an IT firm, a similar job opening has only 3 to 5 job applicants in 2008…..but in 2009, it went up to 10 or more job applicants. That’s quite a significant increase, and is not a very positive sign for job hunters.
If you still don’t believe me, then try to do some research yourselves. I have no reason to lie to you anyway.
Last but not least, one word of advice. Appreciate your job. Stop complaining about no pay increment or no bonus. There are a lot of people getting retrenched and also a lot of people who are forced to go on extended unpaid leave. Those people need jobs a lot more than you do. If you still think you can come in late to office, going out for extended lunch breaks, playing games in office or even watching Youtube in office…….then I have nothing more to say except for “Good luck”.
p/s… there are still some companies who have increments/bonuses but the amount has dropped significantly. 2009 is not the same as 2008. This is something people should understand.
p/s… this article is purely based on my own findings. It is not supported by a formal survey (like those done by JobStreet). So don’t come flaming me if my findings are wrong. 
hmm, IT programmer? I think it also depends on which programming language…
3 yrs? 3 to 3.5K lar..I think… hehe….
Jys
2 Apr 09 at 10:35 am
Agree… shud be around 3 to 4k. But also depends on the company itself. Maybe some companies still able to afford higher salary.
hyperX
2 Apr 09 at 1:54 pm
@ Jys
Yea, normally 3 yrs is 3-4k at most.
The person was asking about J2EE.
@ hyperX
As I said earlier, out of 10 companies, maybe only 1 or 2 will be willing to pay high salary now. The rest of them have already lowered their average salary structure.
Alvin Lim
2 Apr 09 at 5:28 pm
The salary cuts you see today is a knee-jerk reaction to the crisis by companies in panic. When they eventually settle down to the new reality, I think you’ll see pretty much the same salary levels being preserved. However you’ll see big staff cuts which is a more rational reaction to weak demand than steep payroll slashes.
Why more rational? Try to imagine Accenture operating with 10 consultants at $20k each and with 40 consultants reduced to $5k each. Which is more sustainable? IMO the former will last a lot longer than the latter for the same cost, and it makes better business sense. Less overheads.
Damien Tan
2 Apr 09 at 9:20 pm
@ Damien
I think this new average salary structure will be here to stay for few years to come. When businesses close down, people will be jobless and the supply of resources will be way over as compared to the demand. Employers will just push the price down.
And yeah, it’s more like a knee jerk reaction. Everyone is cutting cost, they will think that if they don’t do the same, they will lose out.
Alvin Lim
3 Apr 09 at 4:44 pm
Hmm…. I still come in late to office, going out for extended lunch breaks, I don;t play games but well msn occasionally
I guess all goes to the demand and supply theory and current economic situation would rather reserve than building future sustainability…
Observer
21 Sep 09 at 10:09 am
@Observer
Demand n supply = true. But I also believe that we should show the right attitude while at work. Occasionally is ok but do it too often is not very healthy.
Alvin Lim
21 Sep 09 at 10:19 am