2008 AUCKLAND SALARY GUIDE

Transcription

1 2008 AUCKLAND SALARY GUIDE II

2 Table of Contents A message from Robert Half How data is collected The hiring outlook Sample characteristics Accountancy qualifications Accounting & finance salaries Salary negotiation Exit interviews Benefits Current job status Job seeking behaviour Work/life balance Overseas experience

3 A message from Robert Half Welcome to the 2008 Robert Half Finance & Accounting Auckland Salary Guide. The guide, now in its fourth year, is designed to offer both employees and employers detailed salary information on most job functions within Auckland s finance and accounting industry. As well as addressing standard questions on salary, job seeking behaviour and working hours, we ve also broached the topic of exit interviews to find out how they are perceived and what role they play in staff retention. All of the questions included in the salary guide are aimed to give you insight into the market trends in Auckland. We are pleased to announce the recent launch of two new divisions in our Auckland office. Robert Half Technology and Robert Half Management Resources have now opened to cater to the continued demand for IT and project finance professionals. To learn more about these divisions and the markets they serve, please visit roberthalf.co.nz We look forward to assisting you with your staffing needs in Auckland or throughout our global network of 360 offices in Asia Pacific, Europe, North America and South America. How data is collected The 2008 Auckland Salary Survey was ed to the Robert Half database and was live from 28 January to 15 February In this time, 1,158 finance professionals completed this online survey. The results of the survey were collated and analysed by Galaxy Research, an independent accredited market research company. Please note that the salary ranges within each job category reflect salary packages, including bonuses and other financial benefits. The hiring outlook In addition to this Salary Guide, we also produce the Global Financial Employment Monitor, which provides insight into the global hiring intentions in accounting and finance. Results are used to develop an overview of the current employment environment and focus on topics such as the challenge of finding skilled professionals, time to hire, key attributes sought in employees and staff retention. This global survey is conducted once a year across 17 countries, including Australia, Belgium, Canada, Czech Republic, France, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, New Zealand, Spain, Switzerland, The Netherlands, United Kingdom and the United States. According to the latest results, over half of New Zealand employers are having difficulty finding skilled candidates. The areas suffering the biggest shortages were operational support (eg credit, bookkeeping, payroll) and general accounting roles. 3

4 Sample characteristics Auckland Region The majority of respondents are from the Auckland CBD with representation in the city fringe areas and other business districts throughout the Auckland metropolitan area. Regional Breakdown % Auckland CBD 35 Auckland City Fringe 23 North Auckland 10 South Auckland 21 East Auckland 6 West Auckland 5 Gender Once again, we have an even spread of male and female respondents for this year s survey. Gender % Male 51 Female 49 Age The majority of respondents represented in this survey are in the age range. This is an accurate representation of our clients and candidates who work in all levels of finance from accounts clerk to chief financial officer. Age % Under

5 Business sectors The three main sectors represented in the survey are manufacturing/construction, financial services and property & business services. Business sector Manufacturing/construction 14 Financial services 13 Property & business services 13 Accountancy practice 9 FMCG 9 Retail 7 Public sector 5 Pharmaceutical/healthcare 4 Media/entertainment/publishing 4 IT/software/technology 3 Transport & storage 3 Telecommunications 3 Agriculture/forestry & fishing 3 Utilities/energy 2 Not for profit/charity 2 Education 2 Travel/tourism/hospitality 2 Other 2 % 5

6 Accountancy qualifications Do you hold a professional accountancy qualification? 28% No 56% Yes 16% Currently studying towards professional qualifications Echoing last year s results, the majority of respondents are either fully qualified or studying towards their professional accountancy qualification. These figures remain largely unchanged from 2007, showing a steady stream of finance professionals gaining their accreditation. 79% of fully qualified respondents are members of the New Zealand Institute of Chartered Accountants, with the remaining qualifications consisting of Associate Chartered Accountants of New Zealand, CPA Australia, Chartered Institute of Management Accountants, UK Chartered Accountants and Accounting Technicians. How many years experience do you have in the finance & accounting industry? Years of Experience % Less than 1 year years years years years years or more 30 Most of the respondents have more than six years experience in the industry which is an accurate reflection of the age group of the sample size. 6

7 What type of training/development would you find most valuable at this stage in your career? Leadership/ management skills Career counselling How to build an effective finance team Negotiation skills 12% 16% 10% 12% 9% 53% 45% Presentation skills How to hire and retain staff How to manage your career while overseas Other 2% 0 7% 10% 6% 7% 5% 6% % of respondents The above graph shows that finance professionals are crying out for training to improve their leadership and management skills. It is essential that employers support the promotion of staff into leadership positions by providing them with the right training and mentoring opportunities. It is commonly quoted that the younger generations are motivated by inspirational leadership which highlights the importance of building staff skills in this area. Employers should also consider training junior members of staff in these areas so that they are well equipped when a management opportunity presents itself. The graph indicates a combined 16% are seeking training on building an effective team and attracting and retaining staff. This continues to be a major focus for finance departments with the ongoing skills shortage. The Other category represented development in systems skills and further technical education such as the MBA and related courses. 7

8 Accounting & finance salaries In this survey, we asked respondents to select their salary range according to their full cash package in order to get an accurate reflection of the monetary benefits that finance professionals are receiving across all levels. In most job categories we can see a slight increase over last year s data, reflecting the continued tight demand for these roles. Understanding the salary data We have broken down some job titles by company turnover and others by years of experience. This is because certain roles (eg CFOs) have significant differences in salaries, which are illustrated more accurately when turnover is taken into account. In other roles (eg Finance Managers) turnover is less relevant than years of experience when measuring the salary within that function. As the role of Business Advisory Services is specific to chartered accounting firms, the salaries for this role only have been measured on level of accountancy qualification. CFO Company Turnover ($ millions) 2007 Salary Range 2008 Salary Range >$250 $250,000 + $250,000 + $100-$250 $190,000 - $230,000 $230,000 - $250,000 + $50-$99 $150,000 - $210,000 $170,000 - $230,000 <$50 $140,000 - $190,000 $140,000 - $210,000 Financial Controller Company Turnover ($ millions) 2007 Salary Range 2008 Salary Range >$250 $150,000 - $200,000 $150,000 - $200,000 $100-$250 $120,000 - $190,000 $140,000 - $210,000 $50-$99 $110,000 - $190,000 $140,000 - $190,000 <$50 $100,000 - $170,000 $110,000 - $170,000 Finance Manager Experience 2007 Salary Range 2008 Salary Range 10 + years $95,000 - $140,000 $110,000 - $150, years $95,000 - $130,000 $105,000 - $150, years $80,000 - $100,000 $85,000 - $100,000 8

9 Commercial Manager Company Turnover ($ millions) 2007 Salary Range 2008 Salary Range >$250 $130,000 - $190,000 $130,000 - $190,000 $100-$250 $120,000 - $170,000 $130,000 - $170,000 $50-$99 $110,000 - $150,000 $120,000 - $150,000 <$50 $90,000 - $140,000 $110,000 - $140,000 Business/Financial Analyst Company Turnover ($ millions) 2007 Salary Range 2008 Salary Range >$250 $85,000 - $120,000 $95,000 - $130,000 $100-$250 $80,000 - $120,000 $90,000 - $120,000 $50-$99 $80,000 - $90,000 $85,000 - $105,000 <$50 $65,000 - $95,000 $70,000 - $95,000 Management Accountant Experience 2007 Salary Range 2008 Salary Range 6 + years $80,000 - $120,000 $85,000 - $120, years $65,000 - $90,000 $75,000 - $90, years $60,000 - $75,000 $65,000 - $80,000 General/Financial Accountant Experience 2007 Salary Range 2008 Salary Range 6 + years $75,000 - $100,000 $85,000 - $105, years $60,000 - $95,000 $65,000 - $95, years $55,000 - $70,000 $55,000 - $75,000 Assistant Accountant Experience 2007 Salary Range 2008 Salary Range 6 + years $52,500 - $70,000 $55,000 - $70, years $50,000 - $65,000 $52,500 - $65, years $45,000 - $55,000 $50,000 - $60,000 9

10 Auditor Experience 2007 Salary Range 2008 Salary Range 10 + years $130,000 - $190,000 $130,000 - $190, years $65,000 - $96,000 $75,000 - $110, years $45,000 - $70,000 $50,000 - $70,000 Business Advisory Services Qualifications 2007 Salary Range 2008 Salary Range Fully qualified $60,000 - $110,000 $80,000 - $130,000 Part qualified $50,000 - $75,000 $50,000 - $85,000 Credit & Collections Title 2007 Salary Range 2008 Salary Range Credit Manager $65,000 - $90,000 $65,000 - $95,000 Credit Controller $42,500 - $55,000 $42,500 - $60,000 Payroll Title 2007 Salary Range 2008 Salary Range Payroll Manager $60,000 - $85,000 $65,000 - $85,000 Payroll Clerk $45,000 - $55,000 $50,000 - $60,000 Accounts Payable/Receivable Title 2007 Salary Range 2008 Salary Range AP/AR Manager $50,000 - $70,000 $52,500 - $75,000 AP/AR Clerk $37,500 - $47,500 $42,500 - $50,000 10

11 Salary negotiation How much has your salary increased over the last 12 months? 18% My salary increased by over 10% 21% My salary has not increased 22% My salary increased by 6-10% 39% My salary increased by up to 5% The above graph shows very similar results to 2007 with the majority of respondents receiving salary increases in the past 12 months. The high demand for finance professionals continues to push salaries up, however almost a quarter of respondents (21%) have not received a salary increase in the past year. Is any part of your salary dependent upon performance criteria? 42% No part of my salary package is determined on performance (company or personal) 9% Yes, a percentage is based on company performance 12% Yes, a percentage is based on company performance 37% Yes, a percentage is attributed to both company and personal performance Mirroring last year s results, almost half of the survey respondents do not have any part of their salary package tied to performance. Employers should consider implementing results-based rewards to get the most out of their staff and to provide a measuring tool when it comes to annual salary reviews. 11

12 What percentage of your salary package is at risk? 11% 15-20% 11% More than 20% 35% Less than 5% 15% 10-15% 28% 5-10% As seen in 2007, the majority of respondents have less than 10% of their package at risk. The more you earn, the greater the percentage risk on your salary 38% of those earning over $100,000 had 15% or more of their salary dependent on performance. Currently, how often do you negotiate your salary package? 13% Never 5% Twice a year 6% Longer than a year 76% Once a year It is most common for respondents to negotiate their salary on an annual basis. Surprisingly, a combined 19% are either negotiating their salary less than once a year or not at all. If employers want to keep their staff, they need to offer regular opportunities to discuss salary and other related benefits. 12

13 Have you researched the job market in preparation for a salary negotiation with your employer? Yes, by consulting a salary guide 38% Yes, by reviewing similar jobs online 33% Yes, by speaking to a recruitment firm 15% Yes, by reviewing jobs in the newspaper 11% No, I just prepare based on my own performance and expectations 42% % of respondents Salary guides remain the most popular reference tool for salary negotiation followed closely by reviewing online job ads. The percentage of those who don t do any research has actually risen by 4% since If employees want to secure a pay rise, it is essential that they do the necessary preparation in order to put a valid case to their employer. Do you believe it is necessary to move companies to gain greater bargaining power in salary negotiations? (By job title) Auditor 71% AP/AR Clerk Business/Financial Analyst Financial Accountant Payroll Clerk Business Advisory Services Assistant Accountant Management Accountant Finance Manager Credit Controller 69% 65% 64% 64% 62% 60% 59% 59% 55% Payroll Manager Credit Manager AP/AR Manager Financial Controller Commercial Manager 50% 50% 48% 46% 42% CFO 36% % believe need to move to negotiate Many employees still believe that they need to move companies to gain greater bargaining power in salary negotiations. This remains prominent amongst the more junior roles, however a large number of Auditors, Business/Financial Analysts, Finance Managers and qualified Accountants are also of this mindset. 13

14 Exit interviews Do you consider exit interviews worthwhile? 28% No 72% Yes Have you ever taken part in an exit interview when leaving a job? 13% Yes, more than once 57% No 30% Yes, once More than half (57%) of the respondents have never taken part in an exit interview yet the large majority (72%) believe they are worthwhile. When asked if they felt comfortable being honest with their employer in an exit interview, 69% of respondents said that they gave their genuine reasons for leaving and constructive feedback. A mere 7% said they didn t give their reasons for leaving and the remaining 24% were sometimes honest and sometimes not. Based on this information, more employers should consider implementing an exit interview process to understand why their employees are leaving and how they can improve their work environment to boost staff retention. 14

15 Benefits What benefits do you receive from your employer? Car parking 51% Bonus 49% Cell/mobile phone Staff purchasing/discounts 36% 35% Laptop Superannuation/KiwiSaver above requirements Payment of further educational expense Healthcare (group scheme) 26% 28% 31% 31% Life insurance 19% Healthcare (fully subsidised) 13% Shares or options Company car Income protection Leisure facilities/ gym membership Car allowance Travel 11% 11% 10% 9% 8% 7% Mortgage relief/discount rate Childcare 3% 1% Other 10% % of respondents The most common benefit amongst finance professionals continues to be car parking (51%) followed by bonus (49%) which is consistent with the results from last year. The Other category consisted of payment of professional membership fees, additional leave, fuel cards and home office expenses. 15

16 How satisfied or dissatisfied are you with your current salary and benefits package? (By job title) very satisfied satisfied not sure dissatisfied very dissatisfied CFO AP/AR Manager Commercial Manager Business Advisory Services Credit Manager Finance Manager Financial Accountant Financial Controller Payroll Manager Business / Financial Analyst Management Accountant Assistant Accountant Auditor AP/AR Clerk Payroll Clerk Credit Controller % of respondents Overall, 59% of all respondents are either satisfied or very satisfied with their current salary and benefits package. A key difference with this year s satisfaction levels is that the percentage of CFOs who are very satisfied with their salary and benefits package has increased from 10% in 2007 to 21% in Many of the results remained the same from 2007 with the more junior roles such as Credit Controllers, Payroll Clerks and AP/AR Clerks amongst the most dissatisfied when it comes to their salary package. 16

17 Which of the following would influence you to accept a slightly lower salary? Flexible hours 49% 35% Location Ability to work from home 11% 12% 13% 39% 44% Extra holiday 7% 39% Organisational culture 5% 37% Work for an inspirational leader Fast tracked career progression 4% 3% 2% 33% 32% Additional super contributions 2% 22% Employer brand 2% 18% Flexible sick leave / duvet days Insurance 2% 2% 8% 9% % of respondents We introduced this question for the first time this year to determine what the key non-financial motivators are for job seekers. The results illustrated in the above graph are no surprise with lifestyle being the key motivating factor influencing finance professionals to take a lower salary. Flexible hours, location, ability to work from home and extra holiday all scored highly and demonstrates the need for employers to look beyond financial benefits in order to retain staff. 17

18 Current job status How long have you been in your current job? 6% 10 years + 11% 6-9 years 29% Less than 1 year 12% 4-5 years 42% 1-3 years How long have you been in your current job? (By job title) Less than one year 1-3 years 4-5 years 6-9 years More than 10 years AP/AR Clerk Payroll Clerk Business/Financial Analyst Credit Controller Assistant Accountant Financial Accountant Commercial Manager Credit Manager Finance Manager Management Accountant Business Advisory Services Payroll Manager Financial Controller CFO AP/AR Manager Auditor % of respondents 18 The above graph shows that there is still a great deal of candidate movement in the market due to the number of job opportunities available for finance professionals. This trend continues primarily amongst the more junior roles but is also having a significant impact on Finance Managers, Management Accountants and Commercial Managers.

19 Job seeking behaviour Are you seeking a new job? 12% Yes, actively 53% No 35% Yes, thinking about it Are you seeking a new job? (By job title) Yes, actively Yes, thinking about it No Payroll Clerk AP/AR Clerk Assistant Accountant Business Advisory Services Auditor Management Accountant Payroll Manager Credit Controller Credit Manager Financial Accountant AP/AR Manager Business/Financial Analyst Finance Manager Financial Controller Commercial Manager CFO % of respondents There continues to be a significant number of finance professionals in Auckland considering a job change. The trend is highest amongst roles in payroll and accounts payable / receivable but is significant across all positions in finance. With just under half of all respondents either actively or passively looking for work, employers need to be speaking with their finance teams to determine what career plans they can put in place to keep their staff. 19

20 What methods are you using/would you use to look for a new job? Recruitment firms/agencies 81% Internet job boards 73% Newspapers 54% Networking (friends/contacts/families) 46% Online networking 10% Other 1% % of respondents Compared with 2007, a larger percentage of respondents would approach a recruitment firm to look for a new job. Internet job boards have dropped slightly along with newspapers. However networking, whether it be online (Facebook, MySpace, LinkedIn etc) or face-to-face, is emerging as a significant way to build professional contacts which can lead to job opportunities. What is/are the main reason/s you are looking? Better career development potential Pay increase Increased responsibilities/challenges Seeking a better workplace culture Looking for inspirational leadership Increased job opportunities in the market Looking for a more suitable location Change of career path Seeking flexible hours arrangement Ability to work from home 11% 23% 23% 22% 18% 18% 30% 29% Other 9% % of respondents 52% 50% Better career development potential and pay increases are the two most popular reasons for finance professionals seeking a new job. This year we allowed respondents to select all applicable options which saw increases on all categories, particularly in relation to pay increase. The Other category consisted of those who were made redundant, ended their contract or were relocating either within or outside of New Zealand. 20

21 Work/life balance How many hours do you work in an average week? (By job title) <25 hrs/week hrs/week hrs/week hrs/week >55 hrs/week CFO Auditor Financial Controller Commercial Manager Payroll Manager AP/AR Manager Finance Manager Credit Manager Financial Accountant Business Advisory Services AP/AR Clerk Management Accountant Business Analyst Payroll Clerk Credit Controller Assistant Accountant % of respondents Senior finance professionals in Auckland continue to work long hours with 75% of CFOs working more than 46 hours per week, an increase of 9% on Payroll Managers continue to be high on the rankings when it comes to working hours and AP/AR Managers have increased their hours in the last year, with 9% working more than 55 hours per week compared to zero in In the 2007 Robert Half Workplace Survey, we asked 5,098 managers across 17 countries about their working hours, and found 17% of New Zealand managers worked three weekends or more a month. When comparing New Zealand with Australia and Ireland, New Zealand managers reported the largest increase in working hours over the past five years, with 46% of managers saying they were working at least five hours more a week, compared with 45% of Australians and just 22% of Irish managers. The main reason for working longer hours was the same in all three countries the managers had taken on more responsibility and felt more pressure. The second most common reason across all three was that company growth led to a higher workload. 21

22 Is there pressure on you to work additional hours? (By job title) Always Very often Often Sometimes Never Auditor Payroll Clerk Commercial Manager CFO Financial Controller Payroll Manager Finance Manager Business Advisory Services Financial Accountant Assistant Accountant Management Accountant AP/AR Manager Business/Financial Analyst AP/AR Clerk Credit Manager Credit Controller % of respondents The pressure to work additional hours is seen across all job titles, some more so than others. 39% of all respondents admitted that they had taken on extra work within their department to cover the workload of a staff member who had left and not been replaced. With most positions within these finance departments taking between 1-3 months to fill, and under half these organisations using temporary resources to manage the workload, it is inevitable that existing employees will suffer with increased working hours. 22

23 If you had a requirement for part time or flexible hours, do you feel your employer would be responsive to such a request? 37% No 63% Yes It is positive to see that 63% of respondents believe that their employer would be open to a request of flexible or part-time hours. In the 2007 Robert Half Financial Directions Survey we found that 37% of New Zealand finance managers believed their biggest management challenge was balancing work and home life. At the same time, 48% stated that flexible working hours were their most valuable benefit which only proves that employers must be open to these types of work arrangements in such a candidate short market. 23

24 Overseas experience Have you ever worked overseas in the accounting/finance sector? 49% No 51% Yes Do you plan to work overseas in the accounting/finance sector in the future? 32% Yes 68% No The majority of respondents who are planning to work overseas in the future are under 35, currently studying towards their professional qualification and have less than three years working experience. This indicates that the Kiwi OE is still popular, especially for younger professionals who relocate after obtaining their accounting credentials. 24

25 When do you plan to go overseas? 6% Within 3 months 8% 3-6 months 62% In a few years 24% 6-12 months Most of the respondents planning on moving overseas will do so in the next few years. The decision to relocate is a big one involving a lot of research and preparation and this is reflected in the results. It also indicates that many planning to leave New Zealand are waiting until the right time (eg. completing education) before setting off on their travels abroad. In which location do you plan to work? Australia 37% UK 28% Middle East Hong Kong USA China Europe Singapore Canada Japan Other 6% 5% 4% 4% 4% 3% 2% 1% 6% % of respondents Australia and the UK continue to be the most popular destinations for Kiwis to live and work. However, Middle East and Hong Kong have increased in popularity since The Other category included other Asian countries such as Malaysia, Thailand and Indonesia as well as the tax haven of the Cayman Islands. When asked what resources they would use to research a move abroad, 79% of respondents said that they would speak to a recruitment firm. At Robert Half we understand that finance professionals need to prepare for an overseas experience, which is why we created This website helps our candidates research the job market in their location of choice as well as find out the finer details of living in their chosen destination, such as finding a place to live and setting up a bank account. 25

26 What is/are your motivation/s to consider working overseas? Better earning potential 69% Better career opportunities 53% Opportunity to experience life in another city 50% Family 25% Quality of life 24% Opportunities for a working holiday 24% Other 2% % of respondents The above graph illustrates the key reasons why finance professionals would leave New Zealand for overseas. Kiwis continue to seek better earning potential and career opportunites and this trend is set to continue as New Zealand businesses struggle to compete with the opportunities offered in Australia and the UK. 26

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28 Robert Half Finance & Accounting is a division of Robert Half International which pioneered specialised recruitment services and is the world s leader in the field today. Founded in 1948, the company is traded on the New York Stock Exchange and operates around the world placing highly qualified professionals on a temporary and permanent basis. Visit our website at AMSTERDAM AUCKLAND BIRMINGHAM BOSTON BRISBANE BRISTOL BRUSSELS CHICAGO DUBLIN EDINBURGH FRANKFURT HONG KONG LONDON LOS ANGELES MANCHESTER MELBOURNE MUNICH NEW YORK PARIS PRAGUE RIO DE JANEIRO ROME SAN FRANCISCO SAO PAULO SINGAPORE SYDNEY TOKYO TORONTO VANCOUVER AND OVER 360 OFFICES WORLDWIDE For further information, please contact us: AUCKLAND Level 38, ANZ Centre 29 Albert Street Auckland Tel: Fax: auckland@roberthalf.co.nz Robert Half. An Equal Opportunity Employer.