BACKGROUND – FACTORS TO CONSIDER WHEN USING AVERAGE WAGE DATA
TECH INDUSTRY MEDIANWAGE VS. OVERALL MEDIANWAGEMATRIX
KEY POINTS ⇥ The average – also referred to as the mean – is a useful starting point in data analysis. However, it should not be used in isolation. Averages are affected by the distribution of data, especially points at the very high or very low end of the range. Wage percentiles, including the median, provide more granularity in understanding the nuances of earnings. ⇥ Ontario accounts for 45 percent of the national tech sector payroll and 43 percent of tech sector workers. The province is so large relative to the others, that it exerts a significant upward pull on tech sector wages. As depicted in the chart to the right, Ontario sits above the median tech sector wage of $76,471. Alberta and Saskatchewanare the otherprovinces with a median tech sector wage exceeding the national median. ⇥ The government agency, Statistics Canada, notes “in addition to regular remuneration, wages includes directors' fees, bonuses, commissions, gratuities, income in kind, taxable allowances, retroactive wage payments and stock options.” The highest paid tech CEO in Canada in 2018 reportedly earned $24.6 million in total compensation, partially due to stock options. This is another example of an outlier data point that elevates average tech sector wagedata. ⇥ Wages should always be viewed in the context of cost of living. The buying power of a salary in Toronto will vary greatly with the buying power in Lloydminster. According to the The Toronto Real Estate Board, the average selling price for all housing in Toronto (all types) during August 2019was $792,611. ⇥ Beyond location, the other important variables to consider when reviewing wage data are job role, areas of expertise, job experience, industry sector, and company size. A skilled employee in a hot field such as machine learning, working for a Fortune 500 company, will earn on average far more than a tech worker in an established field such as IT support, working for a small non-profitmuseum. ⇥ Relatedly, the tech sector average wage reflects technical and non-technical positions. The median for technical roles tends to exceed non-technical roles when accounting for job level and experience. For example, a mid-tier software developer may earn substantiallymore than a mid-tier marketing professional or operationsmanager. ⇥ Within tech occupations, a comparison of workers at the 90 th percentile of compensation and the 10 th percentile yields a differential of 146 percent. The 10 th and 25 th percentile wages are often entry-level wages, while the 75 th and 90 th percentile wages may reflect seniority and significant expertise developed from years on thejob.
$54,483 CAD = Median annual national wage, 2019
$90,000
Alberta
Ontario
$76,471 CAD= Median annual tech sector wage, 2019
$80,000
$70,000
Prince Edward Island
$60,000
$50,000
$40,000
$50,000 $60,000 $70,000 $80,000
$90,000
MEDIAN ANNUAL PROVINCE WAGE, CAD
TECH OCCUPATION WAGE DISTRIBUTION, CAD
+146%
$114,721
$95,383
$76,471
$59,341
$46,602
10th percen- tile
25th percen- tile
90th percen- tile
Median 75th percen- tile
Sources: EMSI | Statistics Canada | CompTIA
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