CIMA Ireland part qualified salary survey 2010

Transcription

1 CIMA Ireland part qualified salary survey 2010

2 CIMA salary survey 2010 Ireland Foreword 1 Executive summary 2 Main findings 4 Salaries and bonuses 4 Gender 4 Sector 4 Job role 5 CIMA level 6 Future 7 Recruitment and retention 8 Importance of benefits 8 Satisfaction with salary and benefits 9 Working hours 10 Learning and personal development 11 Skill set requirements 12 Geographical mobility 13 Extent of movement 13 Top destinations 13 One word to describe CIMA difference 15 Country specific salary information 15 Technical information 16 Further information 16 Global contacts 17

3 Foreword 1 On behalf of the Chartered Institute of Management Accountants (CIMA), I would like to welcome you to our second global part qualified salary survey. The results in this report will provide you with an insight into the current employment experiences and career aspirations of the business leaders of tomorrow CIMA s Irish student base. Despite ongoing economic instability in many regions around the world, our report shows a strong relationship between our students and their employers. Businesses are looking to their professionally-qualified management accountants to help guide them through the recession and on to sustainable success. This gives our students a greater sense of job security than those studying for many other professional qualifications. Our global survey clearly shows that most of our students believe they are recession-proof. 92% do not anticipate being affected by redundancy in This response could also reflect an increasingly optimistic view of the general economic conditions: this percentage is even higher than the level of confidence felt by students in last year s survey (83%). Moreover, nearly two thirds are feeling positive enough to make a job move in the next two years, although with this feeling of security comes higher expectations. This year, just 51% of students are happy with their current salary compared with 58% in The drop could indicate a greater sense of professional value as the downturn lifts. This report which focuses on CIMA students in Ireland identifies a number of important trends. Namely, the current difficulties brought on by the recession in Ireland is reflected in our students views about job security and satisfaction. A total of 15% are concerned about redundancy in the coming year. This is the highest percentage of all countries surveyed. Moreover, more than half our students (59%) are anticipating salary freezes while 16% are expecting their earnings to be reduced. With this in mind, it is not surprising that salary satisfaction has dropped from 65% to 55% this year although a comparatively high number (68%) are satisfied with their benefits packages. However our Irish students are displaying a very practical approach to the current economic uncertainty. A total of 80% of respondents think that 2010 is a good year to invest more time in continuing professional development (CPD). This may explain why 58% intend to change jobs in the next two years and over a quarter (28%) are considering new career opportunities and better salaries abroad. Most are determined to find the time to increase their skill set. Only 24% feel that their learning and development suffered in 2009 as a result of the recession and budget cuts. Personal development, reporting and analysis and leadership skills are considered the most useful skills to acquire in the next 12 months. Overall, the global survey reinforces the fact that a growing number of students are finding that CIMA s professional accountancy qualification is the best way to develop their career potential. In 2009 we saw a second year of record student growth and, for the first time, a majority of our new students (56% of the total) were based outside the UK. Please read through the following pages to find further snapshots of our students working lives. I hope you find it informative reading. Charles Tilley Chief Executive CIMA

4 2 Executive summary Ireland s economy has been hard hit by the recession. Official figures from the Central Bank of Ireland showed that GDP declined by 7% in Unemployment rates averaged just below 12% during the same period. The recovery is expected to be a very slow and gradual one, with the Central Bank anticipating the recession to continue during 2010 with a GDP decline of some 1%. Full recovery seems unlikely much before the latter stages of this year and early The second annual global salary survey of CIMA students was carried out in February A total of 2,563 employed students (who had sat an exam within the last two years under the 2005 CIMA qualification structure) contributed to the survey of which 244 responses were from Ireland. This report summarises the results of this survey with a particular focus on Ireland, looking at how recent economic events are impacting on salary levels and benefit packages experienced by CIMA students working there. Salaries and bonuses The average basic salary in Ireland is 41,383, plus a bonus of 1,690, producing a total annual package of 43,073. Half of respondents are not expecting to receive any bonus in 2010 (compared with 43% in 2009). Looking at the average bonus of only those respondents expecting to receive one in 2010, there has been little movement between 2009 ( 3,598) and 2010 ( 3,352). The difference in basic salary between men and women has reduced. A difference of 6,330 per annum was reported in 2009 this has reduced to just 967 in Passed finalists are the highest earners, with a basic salary 8,772 greater than those students at managerial level. 59% of respondents are expecting a salary freeze in 2010 (the most pessimistic of all countries), 16% are expecting salary reductions, and 15% are anticipating possible redundancy.

5 Recruitment and retention 3 As the overall average salary received has declined, so too has satisfaction. In 2009, 65% stated they were satisfied with their salary; in 2010 this has decreased to 55%. Those at managerial level are the most satisfied with their salary: 57% stated they are satisfied, compared to 50% of passed finalists and 48% TOPCIMA. As you might expect, salary satisfaction is higher amongst the highest earners with 90% stating they are satisfied, compared to just 29% of the lower tier earners. The most important benefits are pensions, study leave and contribution/payment of CIMA fees. Personal development, reporting and analysis and leadership are the main skills students would like to focus on over the next 12 months. This is a reflection of the 80% of students that feel given the current economic conditions, 2010 is a good year for them to invest time into their personal development and future. Geographical mobility 58% of Irish students intend to change jobs in the next two years, including one-third who plan to move within the next twelve months. A new career opportunity is a key motivator for those planning to move abroad (63%), as is the desire for an improved salary (55%) and an improved quality of life (55%). Of those looking to move overseas (28%), most have a preference for moving to English speaking countries. The UK is the most popular destination (48%), followed by the USA (35%) and Australia (35%).

6 4 Main findings Salaries and bonuses The difference between male and female salaries has reduced to just 967 in The average basic annual salary is 41,383 with an average bonus of 1,690, making a total average remuneration package of 43,073. Salaries since 2009, will appear to have dropped because salary band points have changed between surveys. In Dublin, where 78% of Ireland s highest tier earners are based, the average salary rises to 43,000 per annum. Half of respondents are not expecting to receive any bonus in 2010 (compared with 43% in 2009). For those who are expecting a bonus, it will be equivalent to 8% of their salary. Looking at the average bonus of only those respondents expecting to receive one in 2010, there has been little movement between 2009 ( 3,598) and 2010 ( 3,352). Gender The difference in basic salary between men and women has reduced. A difference of 6,330 per annum was reported in 2009 this has reduced to just 967 in This is a reflection of the larger salary decreases experienced by men. In 2010, the average salary for males is 8,711 lower than in 2009 (17% decrease), compared to a 3,348 (8%) reduction for women. The gender disparity is now only 2%. Remuneration package by gender Salary Bonus Total package Ireland overall 41,383 1,690 43,073 Male 41,784 1,739 43,523 Female 40,817 1,621 42,438 Sector CIMA is important to the broad base of international industry with the accountancy, and banking, finance and insurance sectors employing the highest proportion of CIMA students 20% each followed by the manufacturing and engineering sector with 12%, and the ICT, telecoms and technology sector with 10%. The majority (67%) work for organisations employing at least 500 staff internationally.

7 Although the base numbers are too small to draw any reliable conclusions (244), the chart below offers an indication of the trends by key sectors. 5 Average salary and bonus by sector ICT, technology and telecoms Banking, finance and insurance Manufacturing and engineering 50,000 43,061 38,793 39,923 45,082 51,438 Accountancy 36,582 37,591 Ireland overall 41,383 43,073 Salary Bonus Total Job role CIMA students most commonly report their job title as management accountant (17%), finance or business analyst (12%), accounts assistant/accounts executive (8%), or financial accountant (8%) demonstrating the strategic nature of many students roles. Again, as base numbers are low it is only possible to give an indication of average salaries by key job titles. Average salary and bonus by job role Finance analyst/business analyst Financial accountant Management acountant 46,417 45,132 41,726 42,979 49,025 48,262 Accountant 35,001 36,637 Ireland overall 41,383 43,073 Salary Bonus Total In terms of fitting into the business, organisational structure is relatively traditional for respondents, as 72% sit in the finance division. A further 16% reside in operations and 2% in strategy. The information technology function is also important as 5% are based there.

8 6 CIMA level The higher the level of CIMA 1 study, the higher the salary. However, the gap has decreased significantly this year. In 2009, passed finalists earned 32% (or 14,260) more than managerial level students. In 2010, this has reduced to 25% (or 9,646). Average salary and bonus by CIMA level Passed finalists earn on average 9,000 more than students at managerial level. Passed finalist TOPCIMA Strategic Managerial Ireland overall 45,218 47,452 44,729 42,536 47,238 43,714 36,446 37,806 41,383 43,073 Salary Bonus Total Although passed finalists receive the largest basic salary, they have also seen the biggest reduction in salary. Salaries amongst passed finalists have fallen 11,751 (20%) in For the purposes of this survey, CIMA level data was collected under the 2005 CIMA qualification structure and refers to those at managerial level, strategic level, TOPCIMA and passed finalists. For comparison under the 2010 qualification structure, these levels are respectively now known as operational/management level, strategic level, T4 Part B Case Study and exams complete.

9 Future 7 Approximately three-fifths (59%) of respondents are expecting a pay freeze in This proportion is the highest recorded across all countries surveyed (39% globally). Likewise, those facing redundancy and salary reductions in 2010 are the highest of all the CIMA countries surveyed: 15% of respondents are anticipating redundancy (8% global average) and 16% are expecting salary reductions (3% global average). Anticipated impacts in 2010 Pay freeze Salary reduction Redundancy Shorter working week 3% 16% 15% 59% 59% of students in Ireland are expecting a pay freeze in None of the above 28% Those students studying TOPCIMA and passed finalists are more expectant than those at managerial level to be impacted by pay freezes in Women are less likely to anticipate negative factors impacting their salary: 31% state no negative factors are expected to affect them in 2010, compared to 26% of men.

10 8 Recruitment and retention Importance of benefits Employers could improve satisfaction levels by offering pay rises or bonuses as an incentive for passing exams, as well as flexible working hours. The most popular benefits, both in terms of availability and importance, are pension, study leave, and contribution/payment of CIMA fees, currently received by 62%, 58% and 66% of students respectively. In terms of benefits received, bonuses do not score so highly (39%) and there also appears to be big expectation gaps around pay rise and/or bonus as an incentive to pass exams (received by less than 10%). Men are significantly more likely to receive a company car allowance (7% compared to 0% of women), life assurance (30% vs 14%) and the option for working from home (13% vs 4%). High tier earners are more likely to receive the more traditional benefits compared to other salary groups, e.g. company cars, bonuses, mobile phone, life assurance, working from home and healthcare. Importance of benefits (mean score) by benefits received 5 = extremely important, 1 = not at all important % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pension Study leave Contribution/payment of CIMA fees Healthcare Bonus Flexible hours Pay rise as an incentive for passing exams Bonus as an incentive for passing exams Extra holidays Life assurance Travel benefit/allowances Working from home Share/share options Sabbatical Daily subsidised food Leisure facilities Mortgage relief Mobile phone/blackberry/pda Products/services discount Childcare arrangements/vouchers Company car/allowance Season ticket loan Importance Benefit received

11 Satisfaction with salary and benefits Salary satisfaction has fallen from 65% in 2009 to 55% in The impact the economy is having on salaries can probably be directly linked with the fall in salary satisfaction amongst students. In general, respondents are considerably more satisfied with the level of benefits they receive compared to salary levels. Overall, 68% are satisfied with their benefits, compared to 55% satisfied with their salary. The reduction in salary amongst passed finalists is reflected in the decrease in salary satisfaction amongst this group. In 2009, 69% of passed finalists were satisfied with their salary. In 2010, this has reduced to 50%. 9 Salary satisfaction has fallen from 65% in 2009 to 55% in Unlike salary satisfaction which does vary by CIMA level, there is little difference by CIMA level for benefits satisfaction. Those at managerial and strategic level are the most satisfied with their salary: 57% stated they are satisfied, compared to 50% of passed finalists and 48% studying TOPCIMA. Percentage satisfied or extremely satisfied with salary and benefits by CIMA level 55% 68% 57% 69% 57% 68% 48% 72% 50% 66% Ireland overall Managerial Strategic TOP CIMA Passed finalist Salary Benefits High tier earners (earning more than 45,000 per year) show similar levels of satisfaction for both salaries and benefits. However, low tier earners (earning less than 35,000 per year) are considerably more satisfied with their level of benefits than their salaries (47% and 29% respectively). Women are as satisfied with the benefits they receive as men, despite receiving lower bonuses.

12 10 Percentage satisfied or extremely satisfied with salary and benefits by salary level High tier earners (> 45,000) 90% 84% Mid tier earners 54% 74% Low tier earners (< 35,000) 29% 47% Ireland overall 55% 68% Salary Benefits Company growth is cited by 30% of students expecting their hours to increase in 2010, compared to 12% this time last year. Working hours The average working week is 43 hours compared to 42 hours globally. 43% of respondents work between 35 and 40 hours per week, and 42% work between 41 and 50 hours. Just over one-third (35%) expect to see their hours increase, with those who are already working longer than average hours (41 and above) more likely to see their hours increase further (46% of those working hours stated the need is increasing). Requirement to work outside normal hours 57% 35% Increasing Decreasing Staying the same 8% Most students (76%) cite taking on more responsibility/more pressure as the reason for increased hours. A further 53% of students state understaffing/lack of resources as a driver, highlighting a possible impact of the current economic climate. Company growth is cited by 30% of students expecting their hours to increase in 2010, compared to 12% this time last year.

13 11 Reasons for increasing hours Taken on more responsibility/more pressure Understaffing/lack of resources Current financial climate Company culture Company growth My role has changed Learning and personal development 12% 24% 23% 37% 33% 36% 30% 30% % 54% 70% 76% As a result of the current economic climate and high unemployment rates, 80% of Irish respondents think that 2010 will be a good year to invest more time into personal development and their future. As a result of the current economic climate and high unemployment rates, 80% of Irish respondents think that 2010 will be a good year to invest more time into personal development and their future. Only 24% feel that their learning and development suffered in 2009 as a result of the recession and budget cuts. Furthermore, they were not complacent during the boom years only 9% seeing prosperity as a reason not to train and develop. Time sparseness was only likely to inhibit one-quarter of Irish respondents continuing with their personal development. Agreement with learning and personal development statements (mean score) 1 = strongly disagree, 5 = strongly agree As a result of the current economic climate and high unemployment rates, 2010 will be a good year to invest more time into my personal development and future 4.1 During 2009 my learning and development suffered as a result of the recession and budget cut back Dooring the boom years I was too time poor too undertake training and development During the boom years I saw no reason for training and development 2

14 12 There are clear differences in skill set requirements by level of study. Skill set requirements CIMA students are well aware that progression in their future career depends on their acquisition of wider skills beyond technical accountancy. Personal development, reporting and analysis, and leadership are considered the most useful skills to acquire in the next 12 months, cited by 47%, 41% and 39% respectively. Project management, communication, and strategic planning and implementation are also considered important, required by 36%, 34% and 33% respectively. There are clear differences in requirements by level of study. Those at managerial level are more likely to cite budgeting skills, and reporting and analysis as talents to develop in 2010, and they are significantly less likely to look to develop persuading and influencing skills. Students at strategic level and those studying TOPCIMA are both more likely to develop their skills in risk management (41% and 33% respectively). No single skill set area stands out as being more relevant to passed finalists. Further differences are present by gender with women more interested in reporting and analysis (51% compared to 34% of men). Women are also more interested in problem solving (33% vs 21%) and communication (41% vs 29%). Skill sets required Personal development (e.g. career planning, time management) Reporting and analysis Leadership Project management Communication (e.g. negotiating, writing, presenting) Strategic planning and implementation Decision making Persuading and influencing Problem solving Skills for developing others (e.g. assessing performance, coaching) Risk management Time management Budgeting IT software (MS Excel, Word, Powerpoint, etc.) Internal audit and control Team building IT (hardware systems) 47% 41% 39% 36% 34% 33% 31% 30% 26% 25% 25% 25% 24% 24% 18% 15% 12%

15 Geographical mobility 13 Extent of movement 58% of Irish students intend to change jobs in the next two years, including one-third that have a preference to move within the next twelve months. Career plans for the next two years when are you looking to move job? 1-2 years 25% 7-11 months 4-6 months 0-3 months 9% 12% 12% Not currently seeking 42% The majority of people moving would prefer to stay within Ireland (72%). But with over onequarter (28%) of respondents looking to move outside their country for a new position, it is clear CIMA students value geographical mobility. Top destinations Mobility of CIMA qualification Canada 25% USA 35% UK 48% Germany 15% Switzerland 20% New Zealand 10% Australia 35%

16 14 A new career opportunity is the key motivator for those planning to relocate abroad (63%; up from 30% in 2009). Of those looking to move overseas, most have a preference for moving to English speaking countries. The UK is the most popular destination (48%), followed by the USA (35%), Australia (35%) and Canada (25%). It could be said that the economic situation is also a driver behind some students wishing to work outside of the country. A new career opportunity is a key motivator for those planning to move abroad (63%; up from 30% in 2009), as is the desire for an improved salary (55%; up from 38% in 2009) and better employment opportunities (45%; up from 33% in 2009). Relocation reasons of those likely to move abroad New career opportunity Improved quality of life Improved salary Better employment opportunities Experience a different culture Friends and family Stronger economy Take time out/travel Work promotion Improved employment conditions To learn a new language Internal company transfer 0% 30% 38% 33% 45% 40% 40% 36% 33% 26% 28% 22% 28% 15% 23% 23% 18% 15% 15% 15% 55% 55% 63% 62%

17 One word used to describe how CIMA is different from other accountancy qualifications... The size of the font reflects the number of times the word was spontaneously mentioned. 15 Industry Difficult Global Interesting Superior Practical Recognised Unique Marketability Focused Business Strategic Management Better Country specific salary information Diverse Flexibility Varied Innovative Professional Challenging Versatile Rounded WorldwideALL-ENCOMPASSING This section provides a breakdown of country specific salary information by key indicators (where the sample base is large enough to provide reliable information). Ireland Base: 244 Salary Bonus Package Total 41,383 1,690 43,073 Gender Male 41,784 1,739 43,523 Female 40,817 1,621 42,438 Level Managerial 36,446 1,360 37,806 Strategic 42,536 1,178 43,714 TOPCIMA 44,729 2,509 47,238 Passed finalist 45,218 2,234 47,452 Experience since enrolling Less than 1 year 33,500 1,776 35, years 37, , years 38,954 1,475 40, years 41,037 1,765 42, years 40,700 2,154 42,854 5 years + 46,386 2,009 48,395 Job role Accountant 35,001 1,636 36,637 Management accountant 41,726 1,253 42,979 Financial accountant 45,132 3,130 48,262 Finance analyst/business analyst 46,417 2,608 49,025 Sector Accountancy 36,582 1,009 37,591 Manufacturing and engineering 38,793 1,130 39,923 Banking, finance and insurance 43,061 2,021 45,082 ICT, technology and telecoms 50,000 1,438 51,438 Specialised Dynamic Relevant Forward Broader

18 16 Technical information Data collection for the CIMA Global Part Qualified Salary Survey 2010 was carried out by CIMA itself online during the period 28 January to 14 February The data was subsequently rim weighted (by Redshift Research) by country to ensure the profile of the survey sample accurately represents all CIMA markets. 13,980 CIMA students globally were selected and invited to participate (UK, Ireland, South Africa, Sri Lanka, Malaysia, India, Hong Kong, Australia, Mainland China, UAE, Botswana, Pakistan, Russia, Poland and Zambia). A total of 2,563 completed the study globally (18% response rate), with 244 respondents from Ireland. Basic responses were as follows: Table of responses by age band Under and over 8 Total 244 Table of responses by CIMA level Managerial 83 Strategic 69 TOPCIMA 46 Passed finalist 46 Total 244 Table of responses by gender Male 143 Female 101 Total 244 For the purposes of this survey, CIMA level data was collected under the 2005 CIMA qualification structure and refers to those at managerial level, strategic level, TOPCIMA and passed finalists. For comparison under the 2010 qualification structure, these levels are respectively now known as operational/management level, strategic level, T4 Part B Case Study and exams complete. Further information For further information on technical matters relating to this survey, contact yourvoice@cimaglobal.com For further country specific analysis and reports, visit CIMA MY JOBS at Both the Chartered Institute of Management Accountants and Redshift Research are Market Research Society Company Partners. The organisations abide by the Market Research Society s Code of Conduct and the Data Protection Act.

19 Global contacts 17 CIMA UK Head Office 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0) F. +44 (0) E. CIMA Australia Suite Pitt Street Sydney NSW 2000 Australia T. +61 (0) F. +61 (0) E. CIMA Botswana Plot 50676, 2nd Floor, Block B BIFM Building, Fairgrounds Office Park Gaborone, Botswana Postal address: PO Box Gaborone, Botswana Telefax F / E. gaborone@cimaglobal.com CIMA China Unit 1508A AZIA Center, 15th floor 1233 Lujiazui Ring Road Pudong Shanghai P.R.China T (0) F. +86 (0) E. infochina@cimaglobal.com CIMA Hong Kong Suites th Floor Jardine House Central, Hong Kong T F E. hongkong@cimaglobal.com CIMA India Unit 1-A-1, 3rd Floor Vibgyor Towers C-62, G Block, Bandra Kurla Complex, Bandra (East), Mumbai T. +91 (0) F. +91 (0) E. india@cimaglobal.com CIMA Ireland Pembroke Road Ballsbridge, Dublin 4 T (0) F (0) E. dublin@cimaglobal.com CIMA Malaysia Lots 1.03b and 1.05, Level 1 KPMG TOWER 8 First Avenue, Bandar Utama Petaling Jaya Selangor Darul Ehsan Malaysia T. +60 (0) F. +60 (0) E. kualalumpur@cimaglobal.com CIMA Middle East Office E01, 1st Foor, Block 3 PO Box Dubai Knowledge Village Al Sofouh Road Dubai, UAE T F E. middleeast@cimaglobal.com CIMA Pakistan No. 201, 2nd floor Business Arcade Plot No. 27 A, Block 6, P.E.C.H.S. Shahra-e-Faisal Karachi, Pakistan T /88/89 F E. pakistan@cimaglobal.com CIMA Singapore 51 Goldhill Plaza, #08-02 Singapore T F E. singapore@cimaglobal.com CIMA South Africa 1st Floor, 198 Oxford Road Illovo, Johannesburg South Africa Postal address: PO Box 745, Northlands 2116, South Africa T. +27 (0) /0861 CIMA SA F. +27 (0) E. johannesburg@cimaglobal.com CIMA Sri Lanka 356 Elvitigala Mawatha Colombo 5 Sri Lanka T. +94 (0) F. +94 (0) E. colombo@cimaglobal.com CIMA Zambia 6053, Sibweni Road Northmead, Lusaka Zambia Postal address: PO Box 30640, Lusaka, Zambia T / F E. lusaka@cimaglobal.com CIMA Zimbabwe 6th Floor, Michael House 62 Nelson Mandela Avenue, Harare Zimbabwe Postal address: PO Box 3831, Harare, Zimbabwe Telefax (0) / F (0) / E. harare@cimaglobal.com CIMA s global offices may change during the year, so please visit the global web links for the most up-to-date contact details. For a full list of global contacts, please visit

20 Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0) F. +44 (0) E. May 2010, Chartered Institute of Management Accountants