Posted on September 2021 By Speller International
We all know that it’s becoming a candidate-short SAP market – and the bonus of that for SAP specialists is that some organisations are prepared to spend serious money on the right people.
Historically, Speller International has placed about 85 per cent of our SAP Consultants into contract roles, usually on a daily rate, with the remaining 15 per cent going into permanent/fixed term positions.
Speller International’s average daily rates paid to the consultant are currently hovering around $900 per day whereas this time last year our average rate was $830 per day (this is an average across all contractors, which considers all positions from SAP Super user to Program Managers/Enterprise Architects), says Speller International Managing Director Judy Cole.
Those considering contract opportunities need to understand that their daily rate includes everything - superannuation, workers' compensation costs, and PI and PL insurances. You do not get sick pay, holiday pay, family leave, carers’ leave, and loading.
Remember, a ‘daily’ rate doesn’t mean you clock on at 9am and off at 5pm. You’re expected to work until you get the task completed, and that can mean long days at times, especially over key milestones, and go-lives. If hours do get too long though contractors should feel comfortable enough to have that discussion with their agent.
Judy says the ratio of contract versus permanent placements is starting to shift at Speller, with the last quarter seeing many more permanent opportunities arriving on the market. About 30 per cent of the roles Speller recently placed were permanent – a split that Judy has never seen in her 16 years at Speller
The increase in permanent requirements show great confidence in the future economy, with companies prepared to make longer term commitments - a great sign for SAP in Australia and New Zealand.
Some industries are doing very well through the pandemic and are willing to pay higher salaries. These include consulting firms, utilities, mining, oil and gas, and some retailers such as home improvement, discount stores and food.
Logistics and manufacturing are busier than ever but do remain the lower paying industries.
Government is also busy, but we are still seeing the higher split of contract versus permanent in government so permanent salaries here remain unchanged.
Judy says there are too many variations to pin down an ‘average’ salary in SAP due to so many differing positions and industries.
“But it’s reasonable to say that experienced ‘hands-on’ SAP Technical and Functional consultants should expect between $120,000 and $160,000 as a base annually,” she says. “Newer ‘niche’ skills may attract up to $180,000. This is up to 20% increase on where they were last year.
"Most industries though, if they see a candidate they REALLY WANT, are willing to be flexible and we are seeing this a lot more."
It is important to note that with COVID currently restricting migration into Australia and New Zealand, salaries across many sectors may be providing a temporary inflation, and this is true for contractor rates while demand exceeds supply. We expect this pressure valve to release slightly when migration can resume.
As always, we advise our consultants to consider taking the role and company they feel best matches their ‘wants’ and career goals over being dazzled by higher salaries and rates. Some organisations cannot offer the big bucks but may be able to offer more flexibility, training, and perks such as health insurances or if you are lucky … cases of beer!
Stay tuned for our quarterly crunch in coming weeks – let’s see what it reveals!