Sector salary growth outstrips global wage increases

Data center sector salary growth has outstripped global wage increases over the last 12 months, says one of the findings of the DatacenterPeople Salary White Paper, launched in London recently. The new white paper has been developed on behalf of DatacenterPeople by DCD Intelligence (a division of DatacenterDynamics).

DatacenterPeople managing director, Peter Hannaford said, “The White Paper indicates an estimated half a million people are employed in data centers around the globe, yet relatively little is known about their salary levels, qualifications or their experience. The DatacenterPeople Salary White Paper aims to help overcome the difficulties which employers and candidates face in terms of knowing their worth and setting expectations.”

Employment opportunities in the sector comprises positions in both Facilities and IT (where the larger proportion of personnel are employed), but it is expected that continuous changes in facility design and the technologies being implemented will lead to the roles merging closer together in the next 5 years. Currently, however, over 60% of data center operators cite a lack of suitably qualified staff as one of the major issues they face in the coming 12 months.

The increasing reliance by businesses on IT infrastructure, particularly data centers, coupled with the fact that there are a limited number of people with the experience and qualifications necessary at the higher levels of the industry has led to an almost recession proof growth in salary levels. Globally there has been an average increase in salaries of 3.9% across all sectors during the last 12 months.

Regionally, it is no surprise that the countries with the most mature data center markets also employ the greatest number of people. Supply and demand is a key driver of salaries, i.e., the relationship between the supply of suitably trained and qualified personnel and the demand for that labour. The highest average salaries are also found in the largest data center market – the United States – where the highest increases of 11.9% have also been identified.

The need for education and training is also highlighted in the new report; globally it appears that a technical diploma offers greater salary expectations than a graduate degree. This may be due to the career path of an older qualified workforce which has come into the industry through an apprenticeship or similar route. Those qualified to degree level have seen their salaries increase over the last twelve months; those without any form of tertiary or technical qualifications have seen a drop in wage, indicating the increasing importance of furtherment of education in the sector.

However, those recruiting for the industry appear to attach a greater level of importance to experience than to education level: Data center salaries are largely determined by the length of time spent in the industry. Those who have spent 10 years or more in the industry tend to command a far higher wage than those with less than 5 years, and a considerable amount more that those with between 5 and 10 years’ experience.