Electrical engineers have been highlighted in recent research as some of the professionals seeing notable increases in their salary packages.
Compensation for professionals in logistics management, electrical engineering, risk assessment, management accounting, and credit management has emerged as significantly higher, with a recent industry survey identifying these fields as the primary beneficiaries of increased salary offers.
Key Takeaways
- High Demand Drives Higher Salaries: Professionals in fields with growing demand and limited skilled talent, such as logistics management and electrical engineering, are seeing substantial salary increases. Upskilling in these high-demand areas can significantly improve earning potential.
- Global Trends Impact Local Markets: The decline in IT sector salaries in South Africa reflects broader global trends, such as tech layoffs by major companies like Google and Amazon. This highlights how international market shifts can directly influence local job opportunities and pay scales.
- Staying Competitive Requires Adaptability: To navigate salary fluctuations, professionals should proactively monitor industry trends, acquire in-demand skills, and consider pivoting to emerging fields like AI, cloud computing, or renewable energy where growth is strong and salaries remain competitive.
According to the November 2024 Pnet Job Market Trends Report, remuneration for these occupations has seen growth ranging from 35% to 48% between 2021 and 2024, a period when the majority of salaries in South Africa lagged behind inflation and showed little movement.
What’s inflation and why does it matter here?
Inflation refers to the general increase in prices and the decline in the purchasing power of money over time. If salary increases don’t at least match inflation, employees effectively lose money because their earnings buy less. This makes salary hikes like the ones highlighted in the report stand out even more.
This report also delved into which sectors have seen the most substantial increases and decreases in remuneration over the past three years.
The fluctuations in salary levels, as noted in the findings, are influenced by two main factors: the demand for specific roles and the availability of skilled workers to fill them.
Tip: How can job seekers use this information?
Research industries experiencing high demand but low supply. Upskilling in these areas can make candidates more competitive and potentially result in better salary offers. Platforms like LinkedIn and career-specific training websites are valuable for identifying in-demand skills.
Fields with high demand but limited supply pools are, unsurprisingly, rewarded with higher remuneration, while professions with a surplus of talent and low demand see reduced pay, as highlighted by the analysis.
Professions Benefiting the Most
For consistency and comparison, the report restricted its analysis to job postings for mid-level positions located in Gauteng, excluding opportunities for junior or senior professionals and those based outside the province.
The top five professions experiencing the most significant salary hikes are as follows:
- Logistics Management: Salary packages have risen by as much as 48%.
- Electrical Engineering: Salaries have grown by up to 45%.
- Risk Assessment: Offers in this field have increased by 43%.
- Cost & Management Accounting: Compensation has climbed by 37%.
- Credit Management: Salaries have risen by 35%.
The demand for logistics and warehousing professionals has surged steadily, with year-on-year increases of 5%. Over the three years from 2021 to 2024, demand has grown by 16%, with logistics management seeing a specific increase of 22%.
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In 2021, logistics managers were typically offered monthly salaries ranging from R29 000 to R47 000. By 2024, these figures have escalated, with offers now ranging between R43 000 and R56 000 per month.
This trend clearly demonstrates that organisations are prepared to provide up to 48% higher salaries to attract highly skilled logistics professionals compared to three years ago.
Professions Facing Lower Salary Offers
On the opposite end of the spectrum, these five roles have seen the steepest declines in pay:
- IT Project Manager: Salaries have dropped by as much as 30%.
- Software Developer: Compensation has reduced by 16%.
- HR Officer: Salary offers have decreased by 14%.
- Business Analyst: Pay has declined by 13%.
- Personal Assistant: Salaries have dropped by 12%.
Demand for IT professionals has waned significantly in recent years, with the sector seeing a year-on-year decline of 21% and a more substantial 40% drop in recruitment activity over the last three years.
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Why are IT Salaries Declining?
The report attributes this trend to global tech layoffs, where major players in the technology industry have been downsizing. This has resulted in an oversupply of talent in the market, putting downward pressure on salaries.
Global tech layoffs have been a significant factor driving this decline in local demand, as noted in the report. Large-scale retrenchments by major technology companies were first announced in late 2022, with organisations such as Google, Amazon, and Meta leading the trend. This wave of layoffs has persisted and remains widespread in 2024.
The analysis further noted that, alongside Google and Amazon, companies like Tesla, TikTok, and Microsoft have also reduced their tech workforces significantly this year.
The demand for IT Project Managers, in particular, has seen a sharp 30% decrease over the last three years.
Average salary packages for IT Project Managers have fallen from R54 000–R80 000 per month in 2021 to R44 000–R56 000 per month in 2024.
With reduced competition for IT Project Managers due to declining demand, companies have less incentive to offer high salaries, leading to a steady reduction in average compensation for these roles.
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Conclusion
Salary trends across South Africa highlight a stark contrast between industries experiencing growth and those facing decline, underscoring the importance of aligning career choices with market demand. Fields like logistics management and electrical engineering are thriving due to high demand and limited supply, offering lucrative opportunities for skilled professionals, while sectors such as IT are grappling with oversupply and global layoffs. To remain competitive and maximise earning potential, professionals must stay informed, adapt to evolving industry needs, and invest in upskilling or transitioning to emerging fields that promise stability and growth.
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