CIMA United States of America. qualified salary survey 2011

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1 CIMA United States of America qualified salary survey 2011

2 Table of contents Executive summary 1 Economic context 2 Main findings 2 Overview of remuneration packages and the career ladder 2 Expectations for future pay and conditions 4 Improving employability and opportunities 8 Attracting candidates and retaining employees 9 One word to describe...management accounting 11 Appendix 12 Table of salaries and bonuses 12 Technical information 13 Further information 13 Acknowledgements 13 Global offices 14

3 1 Executive summary This report details the findings of the second annual CIMA member salary survey for the USA. The first survey was conducted in 2010 and comparisons are provided where relevant. The 2011 CIMA survey reveals that members in the USA are earning on average $166,138 in basic salary, plus $28,587 in bonus payments, resulting in a total average package of $194,725. More than one-half are earning a higher-tier basic salary of at least $150,000, and both basic salary and bonus increase with experience. The greatest increase in salary occurs when a CIMA member progresses from less than 10 years to years of experience, when average total salary increases by $51,000. The vast majority of members are satisfied with their current salary and benefits package at 82% and 90% respectively and there has been no decrease in levels of satisfaction since The business outlook for the next 12 months is seen by members to be positive, on balance, with 54% anticipating an increase in the profitability of the business in which they work compared to 16% expecting a decline in profits, and 40% expecting salary increases across the board compared to just 1% expecting salary reductions. Other key indicators show a more mixed picture: equal proportions are anticipating a recruitment freeze and an increase in recruitment, while jobs cuts are expected by 20% of members. Perhaps as a result of the economic climate, businesses are expected to attempt to control costs by restructuring and outsourcing: mergers and acquisitions are expected to increase, with 39% anticipating an increase in such activity compared to 8% expecting a decline, while at the same time outsourcing is also expected to increase, with 23% anticipating an increase compared to 1% anticipating a decline. The vast majority of members agree that the CIMA qualification enables employment internationally, creates career opportunities and enables movement across all areas of the business. In fact, 42% of CIMA members are considering alternative job opportunities within the next two years, including 18% seeking change within the next six months. Of those planning to seek new employment, 36% are planning to emigrate mainly to English-speaking destinations. This is primarily driven by a promotion at work, new career opportunities and/or an internal company transfer.

4 2 Economic context Although US recovery from recession in 2009 was swift, the summer of 2011 saw renewed fears of a double-dip recession as data on jobs, domestic demand and a weak housing market failed to reassure the markets. Confidence is also being hampered by political divisions affecting the course of US economic policy. GDP is forecast to grow by 1.5% in 2011 and 1.8% in 2012, figures which have been heavily downgraded since June Nevertheless, the proposed $447bn American Jobs Act should provide at least some short-term stimulus, although longer-term solutions are needed amid uncertainty in the domestic economy, international investment markets and trade. Unemployment remains above 9%, 2 but as inflation falls from an estimated 3% in 2011 to 1.2% in 2012, this may help to buoy household budgets. Main findings Overview of remuneration packages and the career ladder The 2011 CIMA survey reveals that CIMA members in the USA are earning on average $166,138 in basic salary, plus $28,587 in bonus payments, resulting in a total average package of $194,725. More than one-half are earning a higher-tier basic salary of at least $150,000, although one-third are earning a mid-tier salary and just over 10% are earning a lower-tier salary of under $100,000. The survey also shows that both basic salary and bonus increase with experience. The greatest increase in salary occurs when a CIMA member progresses from less than 10 years to years of experience, when average total salary increases by $51,000. When a CIMA member progresses from less than 10 years to years of experience, average total salary increases by $51,000. There is evidence that the average basic US salary package has risen significantly between 2010 and 2011, up from $157,724, but the average bonus figure has fallen slightly over the same period, down from $29, IMF World Economic Outlook September Bureau of Labor Statistics, United States Department of Labor, Labor Force Statistics from the Current Population Survey, accessed December 2011

5 3 Figure 1: Annual remuneration and basic salary tier $194,725 54% 33% $166,138 13% USA mean average Basic salary Bonus Total Lower tier (up to $99,999) Mid tier ($100,000 - $149,999) Higher tier ($150,000 +) Base: (98) In addition to salary, CIMA members receive a range of benefits, by far the most common being: healthcare bonus mobile phone/blackberry/pda pension. Overall satisfaction with current salary in 2011 is showing a slight upward movement of four percentage points compared to 2010: 82% of CIMA members are now satisfied with their current salary. Figure 2: Satisfaction with salary trend 78% 82% Base: 2010 (122), 2011 (98) A very high proportion of CIMA members in 2011 continue to be satisfied with the benefits they receive. With an increase of one percentage point since 2010, 90% are now satisfied with their benefits package.

6 4 Expectations for future pay and conditions According to members at the time of being surveyed, the business outlook was positive, on balance, with 54% anticipating an increase in the profitability of the business in which they work and 40% expecting salary increases across the board. These figures compare well to 16% expecting a decline in profits and just 1% expecting salary reductions across the board in the next 12 months. Other key indicators show a more mixed picture: equal proportions are anticipating a recruitment freeze and an increase in recruitment, while job cuts are expected by 20% of members. Perhaps as a result of the economic climate, businesses are expected to attempt to control costs by restructuring and outsourcing: mergers and acquisitions are expected to increase, with 39% anticipating an increase in such activity compared to 8% expecting a decline, while at the same time outsourcing is also expected to increase, with 23% anticipating an increase compared to 1% anticipating a decline. To boost organisational efficiencies, one-half of members expect business process and policy changes, while a greater focus on regulatory issues is anticipated by one-third of members.

7 5 Figure 3: Expectations for the business environment Reduced expenditure and headcount Reduced performance, increased caution Budget cuts 29% Business process/policy changes 50% Recruitment freeze 24% Greater focus on regulatory issues 32% Job cuts 20% Fall in the overall profitability of business 16% Salary freezes 10% Less money available for future investment 13% Cuts in funding for staff training 9% Restricted mergers/acquisitions 8% Salary decreases 1% Less outsourcing 1% Increased expenditure on staffing Increased performance, more investment Salary increases 40% Increase in the overall profitability of business 54% Increased mergers/acquisitions 39% Increase in staff recruitment 25% More money available for future investment 24% Increased spend on staff training 20% Increase in outsourcing 23% Base: (98)

8 6 In terms of expectations for personal salaries, 61% of CIMA members expect a salary increase, while 15% are anticipating a salary freeze or redundancy. Figure 4: Personal expectations for salary and job security 61% 23% 12% 3% 1% 0% Salary increase Salary freeze Redundancy Shorter working week Base: (98) Salary reduction None of these Among those expecting a salary rise, the average expected increase is 4.1%. However, two-thirds are anticipating a rise of less than 4%, and the overall average rise will be reduced to 1.1% in real terms if inflation forecasts are realised. 3 Figure 5: Expectations for increase in personal salary Mean average increase expected: 4.1% 65% 20% 2% 3% 3% 1% 2% 0% 2% Less than 1% 1% - 3.9% 4% - 5.9% 6% - 8.9% 9% % 11% % 14% % 17% % 20% or more Base: All those expecting a salary increase over the next 12 months (60) 3 Based on 2011 consumer inflation estimates, IMF, World Economic Outlook, September 2011, accessed December 2011.

9 7 Currently one-half of CIMA members in the USA work hours in a typical week, while another third typically work hours per week. About two-thirds of CIMA members anticipate their working hours remaining unchanged in the next 12 months, while another one-third expect an increase. The primary reason for an anticipated increase in working hours remains career progression taking on more responsibility/more pressure which has seen an increase of 12 percentage points since Issues related to the business environment, such as company growth, have emerged as important reasons for increased working hours, while understaffing has declined in influence. Figure 6: Reasons for expected increase in working hours trend Taken on more responsibility/ more pressure 56% 68% Company growth Company culture Understaffing/ lack of resource 39% 40% 41% 35% 50% 50% My role has changed Current financial climate 23% 26% 33% 37% Base: All those expecting an increase in working outside normal hours : 2010 (39), 2011(35)

8 Improving employability and opportunities The vast majority of members agree that the CIMA qualification enables employment internationally, creates career opportunities and enables movement across

10 8 Improving employability and opportunities The vast majority of members agree that the CIMA qualification enables employment internationally, creates career opportunities and enables movement across all areas of the business. Figure 7: Attitudes towards the CIMA qualification Agree/Strongly agree Strengthens your ability to move internationally with your career 80% Creates career opportunities for you 80% Strengthens your ability to move across all areas of the business 74% Base: (98) In fact, 42% of CIMA members are considering alternative job opportunities within the next two years, and of those, 18% are seeking change within the next six months. Of those planning to seek new employment, 36% are planning to emigrate, mainly to English-speaking destinations, with the United Kingdom being the most popular, followed by Singapore and Australia. The desire to emigrate is primarily driven by a promotion at work, new career opportunities and/or an internal company transfer. While the proportion of members planning to move job has fallen from 47% in 2010 to 42% in 2011, the proportion planning to emigrate has remained stable at 36%.

11 9 Attracting candidates and retaining employees CIMA members receive a range of benefits in addition to their basic annual salary, most commonly healthcare (93%), bonus (84%), a mobile phone/blackberry/pda (78%) and membership of a pension scheme (76%). Three of the top four benefits received are also the most desired benefits a mobile phone/blackberry/pda is valued less in relation to the proportion receiving one. The same can be said for contribution to/payment of CIMA fees. Conversely, increased access to financial products company pension schemes, life assurance and shares/share options would be valued by CIMA members, as demonstrated by high importance ratings relative to current provision. Furthermore, flexible working is available to only a small proportion of members relative to the importance attached to it: working from home, flexible hours and extra holidays are each received by less than one-fifth of members, but are rated at 3.5 or more out of 5 on our scale of importance. Figure 8: Additional benefits received versus importance 100% Received Importance (mean average) % 93% 78% 80% 84% 76% % 67% 63% % % 50% 39% 40% % 28% 30% % 21% 21% 20% 12% 9% 10% 5% 0% % 1% 1% Lowest base (all answering): Sabbatical (88) In terms of skill sets that CIMA members wish to develop over the coming 12 months, leadership remains the most desired skill set, followed by strategic planning and implementation. In general, it is managerial skill sets that are most desired by members.

12 10 Apart from notable increases in the desirability of skills in strategic planning and implementation and in decision making; and a decrease in the demand for teambuilding skills, there has been little change in the pattern of demand since Figure 9: Skill sets CIMA members wish to develop trend Leadership Strategic planning and implementation Persuading and influencing Skills for developing others (e.g. assessing Personal development (e.g. career planning, time Project management* Communication (e.g. negotiating, writing, presenting) Decision making Risk management Reporting and analysis Team building IT software (e.g. MS Excel, Word, PowerPoint, etc.) Internal audit and control* Time management Problem solving Budgeting* 41% 34% 33% 35% 30% 25% 29% 28% 23% 22% 23% 19% 12% 19% 20% 11% 15% 11% 21% 10% 10% 7% 7% 11% 7% 8% 5% 48% 50% Base: 2010 (122), 2011 (98) *Figure for 2010 not available

11 One word to describe...management accounting Members were asked to use one word to describe what management accounting means to them personally.

13 11 One word to describe...management accounting Members were asked to use one word to describe what management accounting means to them personally. The words below show the most popular responses, with the size of font denoting frequency of mention. Figure 10: Words used to describe management accounting

14 12 Appendix Figure 11: Table of salaries and bonuses USA Base Salary $USD per annum) Bonus ($USD per annum) Total package ($USD per annum)** Total ,138 28, ,725 Level Associate ,358 26, ,094 Fellow* ,059 39, ,228 Years of experience <9 years ,297 20, , years ,504 30, , years* ,156 36, ,244 Business ownership American ,298 27, ,728 International ,000 30, ,159 *Caution: low base, under 30 **Figures may not sum due to rounding

15 13 Technical information Survey responses were collected by CIMA among active members between 09 June and 04 July 2011, via an online survey. The data was analysed and reported by an independent specialist consultancy. Just over 21,000 CIMA members were selected and invited to participate in the international study which covers 14 markets. Within the study period 2,367 responded internationally, including 98 from the USA. The response data presented in this report has been weighted to reflect the profile of the CIMA membership by market. All base numbers quoted in Figures report the lowest unweighted base i.e. the number of responses. Further information For further information on technical matters relating to this survey, contact For further country specific analysis and reports, visit CIMA MY JOBS at Acknowledgements This research was conducted by CIMA in conjunction with Spotlight Market Research & Editing. The Chartered Institute of Management Accountants is a Market Research Society Company Partner. Both CIMA and Spotlight abide by the Market Research Society s Code of Conduct and the Data Protection Act.

16 36 Global contacts 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 50374, Block 3, First Floor Southern Wing, Fairgrounds Financial Centre Gaborone, Botswana Postal address: PO Box Gaborone, Botswana Telefax F / E. CIMA China Unit 1508A 15th Floor, AZIA Center 1233 Lujiazui Ring Road Pudong Shanghai P.R.China T (0) F. +86 (0) E. CIMA Hong Kong Suite 2005, 20th Floor Tower 1, Times Square 1 Matheson, Street Causeway Bay 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 Republic of Ireland 5th Floor, Block E, Iveagh Court, Harcourt Road, Dublin 2, Ireland 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 middleeast 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 /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 southafrica 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 zimbabwe CIMA s global offices may change during the year, so please visit the global web links for the most upto-date contact details. For a full list of global contacts, please visit globalcontacts

17 Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0) F. +44 (0) E. June 2011, Chartered Institute of Management Accountants CMI004V0611

CIMA New Zealand. qualified salary survey 2011

CIMA New Zealand. qualified salary survey 2011 CIMA New Zealand qualified salary survey 2011 Table of contents Main findings 1 Overview of remuneration packages 1 Expectations for future pay and conditions 2 One word to describe...management accounting