Sunday, November 04, 2007

Whose salary rises faster

During recent few years we can observe significant salary growth trend in most cities in Eastern Europe. The rates go high for all qualification levels, but does the speed differ for different levels?

The following graph is the result of some extra investigation, that was triggered by the comment to one of my previous posts (IT salaries in Eastern Europe). It shows the proportion between salary weights for:
  • beginner - entry level technician(0 years of experience);
  • specialist - intermediate level (1-2 years of experience in particular area);
  • professional - advanced level (3-4 years of experience in particular area);
  • expert - a professional with 5 or more years of experience in particular area.

Individual IT Career

Before I'd processed historical salary information, I was sure that Juniors' salaries rise faster, and I had some explanation that seemed very reasonable to me:
  • beginners have more areas to improve their personal qualification level. It's quite easy to move from nothing to the next stage in their professional career;
  • junior's salary is usually much lower than an employer can afford. It means that it's not a problem for a company to keep her/his salary rising constantly thus increasing the person's loyalty;
  • intermediate level professionals are most demanded on the market because they already have enough skills to participate in production process, and their salary still allows to be profitable.

But the figures show a bit different result. The next image contains the salary growth curve for an average IT specialist. X axis lists years of experience, 6 means 6 years of experience in particular area by October 31, 2007. You can see two graphs, one of them uses only present salary information. Another one is based on historical data for an average developer who started his career in November, 2001. These values are adjusted by the coefficient of inflation.

IT Salary by Experience
One more chart displays proportion between salaries of 4 mentioned categories (beginner, specialist, professional, expert). The values are also adjusted by the coefficient of inflation, so it looks like salaries were not changing during the period between years 2004 and 2006. Actually the change was just enough to compensate the inflation:
IT Salary Level Growth
As you can see, my classification identifies only 4 levels of qualification. What is the next point in a career? - is a regular questions for almost everyone in IT. Actually, what is? I'm going to return to this topic in one of future posts, and review several options as well as the difference between employee expectations in IT and in other industries.


These 3 charts can not be re-republished without written permission from Serge Stepantsov, this blog author. However, anyone can post a link to this page.

4 comments:

Unknown said...

Always thought salary should stop at some not-too-high value. Good people should go to their own business ;-) Hopefully that would happen because these rising figures imho block a lot of possible startups. Oh wait, was it a nostalgia for small company atmosphere? ;-)))

Serge Stepantsov said...

Well, this growth can stop one day, when the demand will become equal or even smaller than corresponding offerings. One more (less probable) possible reason is stop of inflation.

Moving to own business, doesn't mean stopping salary grows. Almost everyone who starts personal business dreams of making mega money ;)

Unknown said...
This comment has been removed by a blog administrator.
Serge Stepantsov said...

Hi Przemyslaw,

Your comment contained e-mail address in plain text form, so I've deleted it (just to avoid web grabbing tools collecting your address and adding it to spam databases). If you want to keep your address published, please feel free to restore the comment again.

The original text was:

Hello Serge,
I am about to prepare some material about salaries in Belarus, can you give me your email to write you some more details. I think about kind of cooperation. My email is ***********.