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HR Insights
Canada-U.S. Salary
Comparisons for the Information Technology (IT) Sector
June 2 marked the release of
the Software Human Resource Council (SHRC) and Personnel Systems joint study entitled "Salary Increases, 1997-1999 –
Informatics Occupational Skills Streams," which examines increases in common high tech
salaries in both Canada and the U.S. The study is the first of its kind, giving salaries in
Canadian and U.S. dollars respectively for a range of IT positions that fall under the 24 job
streams defined by SHRC's new Occupational Skills Profiles Model (OSPM) – a sectoral standard for job
definitions.
Findings by SHRC and Personnel
Systems' analysts suggest that the human resource shortages in the IT sector continue unabated
in both Canada and the U.S. These shortages were first identified five years ago and are
evident from the steady salary increases reflective of a high demand for skilled IT
professionals.
Overall study findings indicate
that:
- Average increases for
salaries compared under major OSPM job streams – such as software delivery, technical
architecture, testing, network support and systems programming – range between 7 and 15%,
with most falling in the 10-12% range for both Canada and the U.S.
- The largest salary increases
in Canada over the two-year period have come in the categories of programmers (20%),
software development managers (22%), technical support generalists (30%) and network
architects (35%). The U.S. experienced a lower percentage change in the same categories
over the same period, largely due to the fact that the "97 salaries in these
categories were considerably higher in the U.S. than in Canada in '97, e.g., Level 2
network architect salaries in the U.S. went from $50,000 to $56,299 (U.S.) as compared to
$41,435 to $55,822 (CAN) in Canada.
- Current peaks of 29%
increases for entry-level technical support staff are expected to subside once salaries
have found their own level.
- Higher increases occur at
senior level positions than at entry level jobs, except in the area of technical support
generalists, where newly created entry level positions are fluctuating until they find
their own level. U.S. salary increases are starting to edge out Canadian salary increases
for comparable positions in several categories. Senior software developers in the U.S.,
for instance, earn $88, 741 U.S. on average, compared to Canadian counterparts earning
$82,113 (CAN).
It is not difficult to extrapolate
from these figures, that the U.S. is pulling ahead of Canada in the competition for highly
skilled, senior IT professionals and their teams. The U.S. is offering higher salaries, made
more attractive by the value of the U.S. dollar and tax incentives. Hidden factors that also
weigh in, are: the attraction of challenging positions in new high technology centres being
touted by more aggressive recruiters and bonus incentives.
To read the report in its
entirety, click here for a PDF formatted document. To
learn more about the Software Human Resource Council, visit their web site at http://www.shrc.ca.
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