CIMA Global. qualified salary survey 2011

Transcription

1 CIMA Global qualified salary survey 2011

2 Table of contents Foreword 1 Executive summary 2 Economic context 3 Main findings 5 International comparison of remuneration levels 5 Expectations for future pay and conditions 8 Improving employability and opportunities 17 Attracting candidates and retaining employees 21 One word to describe...management accounting 23 Appendix 24 Tables of salaries and bonuses 24 Country comparisons of annualised basic salaries in USD ($) 35 Technical information 36 Further information 36 Acknowledgements 36 Global offices 37

3 1 Foreword Welcome to our third global members salary survey. Each year, we ask Chartered Management Accountants to give us an insight into their working lives and their outlook for the year ahead. The results give us a valuable snapshot of the current employment experiences and career aspirations of CIMA s members. The survey also demonstrates the increasing value that employers are putting on the unique skills and knowledge being offered by our members. Despite another rollercoaster year, the CIMA community has shown notable resilience to the ongoing turbulence in the global economy. Although the number of members who are satisfied with their current salary (68%) has not changed since our 2010 survey, their overall outlook on job security and career development has improved. Nearly half our members are expecting a salary increase during the next 12 months. Just a quarter are expecting a pay freeze and this is a notable drop from last year s figure of 45%. The threat of a salary reduction or notice of redundancy is negligible for CIMA members at 3% and 8% respectively. The number planning to move to a new job in the next two years has increased from 52% to 61%. Clearly, the majority of CIMA members are feeling comparatively recessionproof and are looking for opportunities to develop their careers in the near future. Longer working hours are anticipated for the year ahead, particularly in Singapore, Malaysia, Hong Kong, China, South Africa, Sri Lanka, the UK and the UAE. These figures show the pressures on members on either side of the coin. On one side, Chartered Management Accountants are helping their employers to meet the additional demands of surviving in the downturn while on the other side, they are supporting organisations as they experience significant growth. Cautious optimism is still the general outlook of our members. Asked to look at the situation that their employers are facing in the year ahead, our members revealed some glimmers of hope. A total of 38% predicted budget cuts compared with 63% when we asked members in Just 29% anticipated a recruitment freeze which compares with 57% two years ago. Moreover, less than a quarter (20%) believed their organisation will suffer a fall in business profitability. This is a considerably more positive view than the 2009 figure of 51%. Overall, CIMA members have told us that they are reaping the benefits of their professional qualification. A total of 91% said that their CIMA skills has opened up greater career opportunities and 75% said the qualification has given them greater access to others areas of the business. 81% said their CIMA toolkit had also provided more scope to develop an international career. For the first time, our members were asked to describe what management accounting means to them in a single word. The five most frequent words were: challenging, strategic, interesting, dynamic and flexible. I would contend that our members have provided five very good reasons why CIMA s offering continues to be the qualification of choice in the global business arena. Charles Tilley Chief Executive CIMA

4 2 2 Executive summary The 2011 CIMA survey shows that in 12 of the 14 countries included in the research, at least one-fifth of members are classified as earning a higher-tier salary. 1 In Singapore, the USA, Malaysia and Hong Kong, one-half or more of members are higher-tier earners. However, the picture is quite different when we compare annualised salaries, expressed in British pounds sterling (GBP), across countries. The USA tops the league with a mean average annual salary equivalent to GBP105,498, followed by Hong Kong, Australia and China; while Ireland, Canada and New Zealand appear in the middle of the group. The UK and South Africa appear in the lower half of the league. Members in Malaysia, India and Sri Lanka earn the lowest annualised average salaries when expressed in GBP. However, we have also seen that Malaysia has a large proportion of members earning a higher-tier national salary, and India and Sri Lanka have large proportions earning higher- to mid-tier salaries, which demonstrates the value of CIMA members to these emerging economies. There is wide variation in the proportions anticipating a salary increase by country. Of the larger markets, members in Sri Lanka (64%), South Africa (63%) and the USA (61%), are the most likely to be expecting a raise, while those in Ireland (30%), Hong Kong (40%) and the UK (45%) are less likely than average to be expecting one. However, as global inflationary pressures persist, nine of the 14 markets surveyed may see real average salary increases of less than 2% if expectations are realised. In all countries surveyed, the number of hours worked in a typical week is most frequently hours. However, the more established economies are showing the lowest proportions of members working longer hours, with the notable exception of the USA, where over two-fifths (44%) typically work 51 or more hours per week. There are, however, widespread expectations of increasing working hours, particularly in Singapore, Malaysia, Hong Kong, China, South Africa, Sri Lanka, the UK and the UAE. 1 Higher, mid and lower salary tiers have been defined by CIMA s researchers in conjunction with each of the national offices, and relate to pay levels within each country.

5 The reason most commonly cited for this increase in working hours is taking on more responsibility/more pressure (65%), followed by understaffing/lack of resource (52%). However, in the UK and Ireland members are less likely to cite company growth and more likely to cite the current financial climate as reasons for increasing working hours. This is in line with more prevalent expectations of budget cuts and job cuts in employer organisations within those countries. By contrast, in faster-growing economies Malaysia, South Africa and Sri Lanka, company growth is more likely to be causing bottlenecks; this is also true of Australia, which has fared relatively well from a strong Asia-Pacific region. The CIMA qualification is held in high regard, particularly in terms of providing career opportunities and strengthening members ability to move internationally. Indeed, 61% of members are planning to move job within the next two years and 15% of those plan to emigrate, although there is notable variation by country. Of the larger markets, members in the UK, Malaysia, Singapore and Sri Lanka are the most likely to change jobs, while those in Ireland and the USA are the least likely. Emigration is a more likely prospect for members in smaller markets particularly China, India and the UAE as well as in Sri Lanka and expatriates moving away from the USA. The most popular destinations are Australia, the USA and the UK, with the aims of seeking an improved quality of life, pursuing new career opportunities and experiencing a different culture. Generally there is a good pattern of fit between the importance of additional benefits and their provision, particularly in relation to membership of a pension scheme, bonus payments and healthcare. However, flexible working and additional financial benefits such as life assurance, shares/share options and travel benefits/allowances are areas where employers could increase provision to attract and incentivise candidates, since such benefits are important to members but are currently provided to comparatively few. Economic context The IMF forecasts global growth to be 4.0% in both 2011 and 2012, revised down from 4.5% in April 2011, following events in the Eurozone and the continuing question mark over solutions to the debt crisis, global rebalancing, and uncertainty in the US economy. 2 Output remains below potential for most advanced economies, with rising rates of unemployment combined with low growth slowing the pace of full recovery considerably. There are fears that emerging economies could be affected by these problems, although current estimates are for advanced economies to grow at 1.6% in 2011 and 1.9% in 2012, and for emerging and developing economies to grow more quickly at 6.4% and 6.1% respectively. However, commodity prices have increased more than expected, posing a challenge for emerging and developing economies, where food and fuel comprise a large share of household spending. Global growth is forecast to be 4.0% in both 2011 and 2012, with advanced economies growing at under 2% and emerging and developing economies growing more quickly at over 6%. 2 IMF, World Economic Outlook September 2011, accessed November 2011.

6 4 4 With the pace of growth in the South Asia region as a whole increasing, India continues to enjoy robust economic growth. Although the USA s recovery from recession in 2009 was swift, the summer of 2011 saw renewed fears of double-dip recession as data on jobs, domestic demand and a weak housing market failed to reassure 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% 2012, figures which have been heavily downgraded since June Unemployment remains above 9%, 3 but as inflation falls from an estimated 3% in 2011 to 1.2% in 2012, this may help to buoy household budgets. Furthermore, the proposed $447bn American Jobs Act should provide at least some short-term stimulus, although longer-term solutions are needed amid great uncertainty in the domestic economy, in international investment markets and trade. Now the world s second largest economy, China s impressive growth record is expected to continue, with GDP growth forecasts of 9.4% for 2011 and 9.0% for However, continued strong performance within a stable economy will partly depend on keeping inflation and property prices under control, as well as on continuing to work on market reforms to attract foreign investors, since issues remain around regulations and the legal environment. With the pace of growth in the South Asia region as a whole increasing, India continues to enjoy robust economic growth, although downside risks remain. GDP estimates for India in 2011 and 2012 place growth at 7.8% and 7.5% respectively, although these have been revised down from April estimates. 5 Increases in salaries and wages will largely be offset by the continuing high level of inflation, which is forecast at 10.6% for 2011, 6 driven in particular by high energy and food prices, which could hamper growth if inflation escalates. Recovery in Europe is uneven and stalling, with surprisingly severe downside risks apparent in several economies due to the Eurozone debt crisis. This and the more recent USA downturn are generating uncertainty in the medium-term outlook for the UK, Germany and France. The Euro area is forecast to grow by 1.6% in 2011 and just 1.1% in 2012, compared to a more optimistic 4.3% and 2.7% respectively for Central and Eastern Europe. 3 United States Department of Labor, Bureau of Labor Statistics, Current Population Survey, accessed November IMF, World Economic Outlook, October 2010, accessed November Ibid. 6 Labour Bureau, Government of India, Press Release: Consumer Price Index Numbers for Industrial Workers, accessed March 2011; IMF, World Economic Outlook, September 2011, accessed November 2011.

7 Main findings International comparison of remuneration levels The 2011 CIMA survey shows that in 12 of the 14 countries included in the research, at least one-fifth of members are classified as earning a higher-tier salary. 7 In Singapore, the USA, Malaysia and Hong Kong, one-half or more members are higher-tier earners. There is wider variation by country in the proportions earning mid-tier and lower-tier salaries. The UK has by far the highest proportion of members classified as earning a lower-tier salary, while the USA, Australia, New Zealand and Ireland have the lowest proportions earning a lower-tier salary, with large proportions earning in the middle tier. Figure 1: Summary of salary tiers by country Higher tier Mid tier Lower tier USA (98) 54% 33% 13% Hong Kong (44) Australia (273) China (18*) 29% 34% 50% 53% 42% 24% 26% 18% 24% UAE (26*) Ireland (425) Canada (61) 22% 31% 17% 31% 36% 50% 52% 42% 19% New Zealand (51) Singapore (51) South Africa (200) UK (863) 22% 21% 16% 14% 67% 31% 60% 70% 12% 48% 18% 21% Malaysia (113) India (13*) Sri Lanka (131) 22% 37% 52% 40% 35% 28% 20% 38% 29% Base: Shown in brackets. 7 Higher, mid and lower salary tiers have been defined by CIMA s researchers in conjunction with each of the national offices, and relate to pay levels within each country.

8 6 6 Figure 2: Basic annual/monthly remuneration by country Canada (61*) CA$112,816 a UK (863) 52,357 a USA (98) US$166,138 a Ireland (425) 80,788 a China (18*) RMB802,778 a Hong Kong (44) HK$86,106 b South Africa (200) R718,839 a UAE (26*) AED 35,722 b India (13*) Rs lakh a Sri Lanka (131) Rs.195,397 b Malaysia (113) RM140,121 a Singapore (51) SGD9,630 b Australia (273) AUS$126,969 a New Zealand (51) NZ$117,103 a Base: Shown in brackets While an analysis of salary tiers illustrates relative rates of pay within countries, an analysis of annualised average basic salary expressed in a common currency in this case, GBP allows us to compare salary levels across countries. The USA tops the league with a mean average annual salary equivalent to GBP105,498, followed by Hong Kong, Australia and China, while Ireland, Canada and New Zealand appear in the middle of the group. The UK and South Africa appear in the lower half of the league. Members in Malaysia, India and Sri Lanka earn the lowest annualised average salaries when expressed in GBP. However, we have also seen that Malaysia has a large proportion of members earning a higher-tier national salary, and India and Sri Lanka have large proportions earning higher- to mid-tier salaries, which demonstrates the value of CIMA members to these emerging economies.

9 Figure 3: Comparison of annualised basic salaries in GBP ( ) 8 USA (98) 105,498 Hong Kong (44) Australia (273) China (18*) 84,315 82,161 79,900 UAE (26*) Ireland (425) Canada (61) 73,996 70,472 69,991 New Zealand (51) Singapore (51) South Africa (200) UK (863) 59,043 57,679 57,054 52,357 Malaysia (113) India (13*) Sri Lanka (131) 13,506 28,613 26,949 Base: Shown in brackets In 11 of the 14 countries surveyed, the proportion of members who are satisfied with their benefits package exceeds the proportion satisfied with their current salary. Across all countries, 68% are satisfied with their salary, but the proportion is higher in China, Hong Kong, Canada and the USA. In fact, with the exception of Canada, those countries with the highest comparative average salaries and/or a large proportion of higher-tier earners also have the highest proportions who are satisfied with their salary. Broadly speaking, there is a greater level of satisfaction with additional benefits packages than with salary; however, in contrast to financial reward, the benefits package does not tend to be a key motivator in employment and this will tend to affect satisfaction scores favourably for the benefits package. Across all countries, 51% of members cite financial reward as one of their top three motivators at work, compared to only 13% who cite the benefits package. India shows by far the lowest satisfaction levels for salary and benefits; however, these figures are based on only 13 members and should therefore be treated with caution. 8 Sources: Sri Lanka: all other countries: both sites accessed 17 October 2011.

10 8 8 Figure 4: Satisfaction with salary and benefits by country China (18*) Hong Kong (44) Canada (61) USA (98) New Zealand (51) Singapore (51) Australia (273) Ireland (425) Sri Lanka (131) South Africa (200) Malaysia (113) UK (863) UAE (26*) India (13*) 38% 46% 88% 94% 86% 77% 83% 88% 82% 90% 82% 78% 81% 73% 75% 80% 70% 76% 68% 70% 67% 76% 67% 74% 66% 77% 62% 80% Satisfied with salary Satisfied with benefits package Base: Shown in brackets Expectations for future pay and conditions Across all of the markets surveyed, the outlook for the business environment among members is cautiously optimistic. In 2011, only 20% are expecting a fall in profitability of the business in which they work, compared to 36% expecting an increase in profits. Furthermore, in 2009, one-half (51%) of members were expecting a fall in business profitability; this indicates, on balance, not only that there is optimism about the business environment in 2011, but also that sentiment has improved significantly since Further evidence of improved conditions is seen with regard to expectations for a recruitment freeze and budget cuts. The proportion expecting a recruitment freeze in the coming 12 months has fallen from 57% in 2009 to 29% in 2011, while one-fifth (20%) are expecting an increase in headcount in the coming 12 months. The proportion expecting budget cuts has also fallen from two-thirds (63%) to two-fifths (38%) over the same period. Business process/policy changes are expected to affect 50% of members, as organisations adjust to fluctuating trading conditions. On balance, outsourcing is expected to increase, with 21% of members anticipating a rise and only 6% expecting a fall in outsourcing by the organisation in which they work.

11 Figure 5: Expectations for the business environment global total Reduced expenditure and headcount Reduced performance, increased caution Budget cuts 38% Business process/policy changes 50% Salary freezes 27% Greater focus on regulatory issues 28% Recruitment freeze 29% Less money available for future investment 20% Job cuts 30% Fall in overall profitability 20% Cuts in funding for staff training Salary decreases 4% 18% Less outsourcing Restricted mergers/acquisitions 6% 6% Increased expenditure on staffing Increased performance, more investment Salary increases 29% Increase in the overall profitability of business 36% Increase in staff recruitment 20% More money available for future investment Increased mergers/acquisitions 18% 19% Increased spend on staff training 15% Increase in outsourcing 21% Base: (2,121) An analysis of several key indicators reveals that beneath the aggregated global figures, there are some stark differences by country. Members in Ireland and the UK are more likely than those in other countries to be expecting salary freezes and job cuts across the board in the businesses in which they work over the next 12 months, and this is driven by expectations of falls in profitability and budget cuts. Investment levels are expected to be subdued, with only 17% of members in the UK and 14% of members in Ireland expecting increased investment over the next 12 months, rising to a maximum of 33% of members

12 10 10 anticipating such a rise in Sri Lanka. However, in many countries large proportions of members are expecting increased profitability, including over one-half of members in the USA, Sri Lanka, Singapore and China. In contrast, the UK (36%) and Ireland (26%) have the lowest proportions of members anticipating increased profitability over the next 12 months. Figure 6: Expectations for the business environment selected indicators by market Budget cuts Salary freezes Global (2,367) UAE (26*) UK (863) Ireland (425) India (13*) Singapore (51) USA (98) New Zealand (51) Australia (273) South Africa (200) Canada (61) Malaysia (113) Hong Kong (44) Sri Lanka (131) China (18*) 30% 29% 29% 28% 27% 24% 23% 23% 21% 17% 12% 38% 41% 39% 46% Global (2,367) Ireland (425) UK (863) Canada (61) New Zealand (51) Singapore (51) USA (98) South Africa (200) Hong Kong (44) India (13*) UAE (26*) Australia (273) Malaysia (113) China (18*) Sri Lanka (131) 12% 10% 10% 9% 8% 7% 6% 5% 4% 3% 22% 21% 27% 30% 41% Base: Shown in brackets Base: Shown in brackets Recruitment freeze Increase in staff recruitment Global (2,367) Ireland (425) UAE (26*) UK (863) South Africa (200) USA (98) Singapore (51) Australia (273) Malaysia (113) New Zealand (51) Hong Kong (44) Canada (61) Sri Lanka (131) India (13*) China (18*) 0% 8% 29% 32% 32% 30% 25% 24% 24% 22% 19% 19% 18% 17% 15% Global (2,367) China (18*) Singapore (51) Sri Lanka (131) Hong Kong (44) Canada (61) Australia (273) Malaysia (113) New Zealand (51) UAE (26*) South Africa (200) USA (98) Ireland (425) UK (863) India (13*) 20% 37% 36% 32% 31% 29% 28% 28% 27% 26% 25% 21% 18% 16% 44% Base: Shown in brackets Base: Shown in brackets In contrast, the business environment in smaller or emerging economies such as Sri Lanka, Singapore and Malaysia is expected to be somewhat more robust over the coming 12 months. Although unlikely to come away unscathed from the effects of the renewed downturn affecting many developed economies, members in these countries are among the least likely to be anticipating job cuts or budget cuts over the next 12 months.

13 Figure 6 cont.: Expectations for the business environment selected indicators by market Job cuts Fall in overall profitability of the business Global (2,367) UK (863) Ireland (425) Hong Kong (44) New Zealand (51) USA (98) UAE (26*) Australia (273) Canada (61) Singapore (51) South Africa (200) Sri Lanka (131) Malaysia (113) China (18*) India (13*) 0% 7% 6% 6% 20% 20% 17% 17% 17% 16% 30% 33% 32% 27% 25% Global (2,367) UAE (26*) Ireland (425) India (13*) UK (863) South Africa (200) Malaysia (113) Australia (273) Singapore (51) USA (98) Hong Kong (44) Sri Lanka (131) Canada (61) New Zealand (51) China (18*) 20% 27% 24% 21% 21% 21% 20% 20% 16% 15% 14% 10% 7% 6% 32% Base: Shown in brackets Base: Shown in brackets More money available for future investment Increase in overall profitability of the business Global (2,367) Sri Lanka (131) Hong Kong (44) South Africa (200) Singapore (51) USA (98) New Zealand (51) India (13*) UAE (26*) Australia (273) Malaysia (113) UK (863) China (18*) Canada (61) Ireland (425) 18% 33% 29% 27% 25% 24% 24% 24% 23% 19% 18% 17% 16% 15% 14% Global (2,367) USA (98) Sri Lanka (131) Singapore (51) China (18*) New Zealand (51) South Africa (200) Canada (61) Hong Kong (44) India (13*) Australia (273) Malaysia (113) UAE (26*) UK (863) Ireland (425) 26% 36% 54% 53% 53% 53% 48% 47% 47% 47% 46% 43% 40% 38% 35% Base: Shown in brackets Base: Shown in brackets Business sentiment is also reflected in future expectations for personal salaries. While 29% of members are expecting salary increases across the board within their employing businesses, in terms of their personal salaries there is much greater optimism, with 46% anticipating an increase over the next 12 months. This is compared to one-quarter who are expecting their salary to be frozen and 13% who are facing the prospect of redundancy, anticipating a shorter working week and/or expecting a salary reduction over the next 12 months.

14 12 12 Figure 7: Expectations for personal salary and job security 46% 26% 23% 8% 2% 3% Salary increase Salary freeze Redundancy Shorter working week Salary reduction None of these Base: (2,367) There is wide variation in the proportions anticipating a salary increase by country. Of the larger markets, members in Sri Lanka, South Africa and the USA are the most likely to be expecting a raise, while those in Ireland, Hong Kong and the UK are less likely than average to be expecting one the figure is just 30% in Ireland, compared to the global average of 46%. Other markets in which members are expected to see encouraging levels of average salary increases are Malaysia, the UAE and, to a lesser extent, Australia.

15 Figure 8: Percentage expecting an increase in personal salary India (13*) Sri Lanka (131) South Africa (200) USA (98) China (18*) UAE (26*) Malaysia (113) Singapore (51) Australia (273) Canada (61) New Zealand (51) UK (863) Hong Kong (44) Ireland (425) 30% 64% 64% 63% 61% 58% 58% 56% 54% 52% 52% 47% 45% 40% Base: Shown in brackets As global inflationary pressures persist, nine of the 14 markets surveyed may see real average salary increases of less than 2% if expectations are realised. Figure 9: Comparison of average expected increase with average real expected increase (after inflation)

16 % Average expected increase* Average real expected increase** 12.5% 12.2% 12.0% 10.0% 8.0% 7.2% 7.2% 7.1% 6.6% 6.0% 4.0% 2.0% 0.0% 4.1% 1.6% 1.7% 1.3% 1.6% 3.4% 5.8% 5.6% 5.5% 5.3% 4.3% 4.1% 4.0% 3.0% 2.3% 3.2% 1.6% 1.1% 1.1% 1.1% 3.3% -1.1% -2.0% Base: Shown in brackets **Based upon 2011 consumer inflation estimates, IMF September 2011; among those expecting a salary increase over the next 12 months Working hours In all countries surveyed, the number of hours worked in a typical week is most frequently hours; however, there is a greater tendency towards a shorter working week in the UK, where almost two-fifths (37%) typically work a hour week. By contrast, there is a tendency towards longer hours in the USA, where over two-fifths (44%) typically work 51 or more hours per week. In terms of the proportions of members typically working over 40 hours per week, the highest proportions are seen in Singapore, the USA and China; in fact, in 13 of the 14 countries surveyed, two-thirds or more members are working over 40 hours per week. With the notable exception of the USA, the more established economies are showing the lowest proportions working longer hours.

17 Figure 10: Proportion typically working over 40 hours per week by country Singapore (51) USA (98) China (18*) UAE (26*) Hong Kong (44) South Africa (200) Malaysia (113) Sri Lanka (131) India (13*) New Zealand (51) Ireland (425) Australia (273) Canada (61) UK (863) 56% 96% 92% 90% 85% 84% 82% 81% 79% 78% 73% 71% 66% 65% Base: Shown in brackets Despite a typical working week of over 40 hours for the vast majority of members in Singapore, more than two-fifths are expecting their working hours to increase in the future. Similar proportions are expecting increased working hours in Malaysia, Hong Kong, China, South Africa, Sri Lanka, the UK and the UAE.

18 16 16 Figure 11: Percentage expecting an increase in working hours by country Singapore (51) Malaysia (113) Hong Kong (44) China (18*) South Africa (200) Sri Lanka (131) UK (863) UAE (26*) USA (98) Ireland (425) New Zealand (51) Australia (273) India (13*) Canada (61) 30% 27% 24% 21% 44% 42% 42% 42% 41% 39% 38% 38% 36% 35% Base: Shown in brackets In all countries where there was a base of sufficient size for analysis, the reason most commonly cited for an increase in working hours was taking on more responsibility/more pressure, which was mentioned by 65% of all members, followed by understaffing/lack of resource, mentioned by 52%. However, when we look at the underlying reasons for increased pressure and understaffing, some interesting differences emerge. In the UK and Ireland, members are less likely to cite company growth and more likely to cite the current financial climate. This is in line with more prevalent expectations of budget and job cuts in employer organisations within those countries. By contrast, in the fastergrowing economies of Malaysia, South Africa and Sri Lanka company growth is more likely to be causing bottlenecks; this is also true of Australia, which has fared relatively well from a strong Asia-Pacific region. Figure 12: Reasons most commonly cited for an increase in working hours Australia Ireland Malaysia South Africa Sri Lanka UK Understaffing/lack of resource 51% 54% 55% 47% 34% 53% Company growth 35% 25% 43% 40% 45% 15% Taken on more responsibility /more pressure 58% 72% 79% 59% 86% 63% Current financial climate 16% 38% 19% 27% 8% 24% Base:

19 The CIMA qualification provides career opportunities and strengthens the ability to move internationally. Improving employability and opportunities Attitudes towards the CIMA qualification The CIMA qualification is perceived to provide mobility and career opportunities, particularly in terms of strengthening CIMA members ability to move internationally and to move across all areas of the business. In these respects, the qualification is held in high regard. Figure 13: Attitudes towards the CIMA qualification global total Agree/Strongly agree Creates career opportunities for you 91% Strengthens your ability to move internationally with your career 81% Strengthens your ability to move across all areas of the business 75% Base: (2,367) While financial reward is the most frequently cited motivator in seven of the 14 countries surveyed, a good working environment is the most frequently cited motivator in six countries. Motivators in employment Members were asked to cite their most important motivators in the workplace. 9 While financial reward is one of the most frequently cited motivators in seven of the 14 countries surveyed, a good working environment, a challenging workload and work life balance are also important motivators. 9 The analysis in Figure 14 is based on the most frequently cited motivators; other motivators are not shown.

20 18 18 Figure 14: Top motivators in employment by country primary motivator(s) secondary motivator(s) Financial reward Challenging workload or scope/role of projects Good working environment Flexibility/work life balance Australia (273) Canada (61) China (18*) Hong Kong (44) India (13*) Ireland (425) Malaysia (113) New Zealand (51) Singapore (51) South Africa (200) Sri Lanka (131) UAE (26*) UK (863) USA (98) Mobility of members Overall, 61% of members are planning to move job within the next two years, but there is notable variation by country. Of the larger markets, those in the UK, Malaysia, Singapore and Sri Lanka and are the most likely to change jobs, while those in Ireland and the USA are the least likely. Among all members, the proportion planning to move jobs within two years is 61%, of which 15% plan to emigrate.

21 Figure 15: Proportion planning to move job by country India (13*) UAE (26*) UK (863) Malaysia (113) Singapore (51) Sri Lanka (131) Australia (273) New Zealand (51) China (18*) South Africa (200) Canada (61) Hong Kong (44) USA (98) Ireland (425) 63% 62% 62% 60% 56% 56% 56% 55% 49% 48% 42% 41% 77% 100% Base: Shown in brackets Of all members, the proportion planning to emigrate within the next two years is 15%, but again there is considerable variation by country. Large proportions of those in smaller, emerging markets plan to move to another country, and one-third of members working in the USA plan to emigrate over the next 12 months. Planned emigration is lowest in the UK and Ireland, followed by Australia. Figure 16: Proportion of total base planning to emigrate by country China (18*) India (13*) UAE (26*) Sri Lanka (131) USA (98) New Zealand (51) Singapore (51) Malaysia (113) Hong Kong (44) South Africa (200) Canada (61) Australia (273) Ireland (425) UK (863) 29% 27% 26% 24% 21% 19% 17% 16% 13% 42% 38% 36% 52% 61% Base: Shown in brackets

22 20 20 In terms of destinations being considered, Australia is cited by 35% of those planning to move abroad, the USA is cited by 33% and the UK by 17%. A combination of proximity and cultural, lingual and historic ties seems to be influencing planned destinations. Such ties between the UK, Australia, and South Africa are evident, as are ties of the USA with Ireland and the UK. Figure 17: Top planned migration destinations by country primary planned destination(s) secondary planned destination(s) Planned destinations Australia Ireland Malaysia South Africa Sri Lanka Australia USA UK New Zealand Singapore Base: UK In most cases, members who are considering emigration seek an improved quality of life, which was cited by 56% of all members planning to emigrate. However, there is a range of other factors at play, including pursuing a new career opportunity (50%) and experiencing a different culture (48%). In terms of the most frequently cited reasons, members in Ireland are most likely to want to emigrate to seek better employment opportunities, primarily in the USA. Members in the UK, Sri Lanka and Malaysia primarily seek an improved quality of life, while members in Australia and South Africa are motivated primarily by new career opportunities and, for Australians, being close to friends and family.

23 Figure 18: Top reasons for migrating by country primary reason(s) secondary reason(s) Australia Ireland Malaysia South Africa Sri Lanka Better employment opportunities Experience a different culture New career opportunity Improved salary Improved quality of life Stronger economy Friends and family Better employment conditions Base: UK Attracting candidates and retaining employees Only 13% of all members cite additional benefits as a key motivator in employment; nevertheless, the benefits package is an important part of remuneration. Members scored 12 of the 22 benefits we looked at as important; i.e. they gave a score of 3 or more out of 5 on our importance scale. Generally, there is a good pattern of fit between the importance of additional benefits and their provision, particularly in relation to membership of a pension scheme, bonus payments and healthcare. However, benefits which are not commonly received but are of relatively high importance to members are flexible hours, extra holidays and working from home, and to a lesser extent additional financial products life assurance, shares/share option and travel benefits/allowances. With 61% of members planning to change jobs within the next two years, employers may benefit from reviewing and tailoring the benefits package for members in order to retain the best talent.

24 22 22 Figure 19: Additional benefits received global total 80% 70% 60% 50% 75% % 63% % Received 3.55 Importance (mean average) % 30% 20% 37% 36% 34% 30% 30% 23% % 18% 18% 17% 16% % 13% % 5% 2% % 1.00 Lowest base (all answering): Sabbatical (2,218)

25 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 20: Words used to describe management accounting Analysis Challenging Interesting Varied Flexibility Essential Relevant Business Dynamic Useful Insightful Important Information Strategic Diverse

26 24 24 Appendix Figure 21: Table of salaries and bonuses Australia Australia Base Salary (AUS$ per annum) Bonus (AUS$ per annum) Total package (AUS$ per annum)** Total ,969 11, ,590 Salary tier Lower 49 68,248 1,682 69,931 Medium ,950 8, ,417 Higher ,000 23, ,287 Age < 31 years ,152 8, , years ,576 11, , years ,505 14, , years ,392 11, , years* ,122 8, ,388 Gender Male ,348 13, ,765 Female ,793 7, ,142 Level Associate ,652 11, ,438 Fellow* ,000 10, ,619 Size of organisation Micro/small (1 50 employees) ,816 6, ,714 Medium ( employees)* ,019 6, ,516 Large (250+ employees) ,819 13, ,279 Years of experience Newly qualified (< 1 year)* ,000 10, , years ,286 7, ,143 <3 years combined ,700 8, , years 36 1, , , years ,810 10, , years ,080 14, , years ,065 10, ,216 Division Finance ,750 11,927 36,677 Operations* ,899 11, ,435

27 Figure 21 cont.: Table of salaries and bonuses Australia Australia Base Salary (AUS$ per annum) Bonus (AUS$ per annum) Total package (AUS$ per annum)** Total ,969 11, ,590 City Brisbane ,679 11, ,211 Melbourne ,010 8, ,349 Perth ,808 7, ,767 Sydney ,249 15, ,934 Job role Finance manager ,070 11, ,999 Financial controller ,513 14, ,892 Management accountant* ,714 6, ,601 Finance or business analyst ,985 7, ,864 Ownership Australian ,032 9, ,083 International ,188 17, ,254 **Figures may not sum due to rounding

28 26 26 Figure 22: Table of salaries and bonuses Ireland Ireland Base Salary ( per annum) Bonus ( per annum) Total package ( per annum)** Total ,788 6,873 87,661 Salary tier Lower 84 44,471 1,278 45,749 Medium ,579 4,511 74,090 Higher ,045 14, ,307 Age < 31 years 39 54,551 3,094 57, years 96 68,092 6,069 74, years ,533 6,954 84, years ,665 9, , years ,665 5, ,913 Gender Male ,049 8,413 95,462 Female ,486 3,600 71,086 Level Associate ,350 6,281 82,630 Fellow ,042 11, ,618 Size of organisation Micro/small (1 50 employees) 80 81,134 2,963 84,098 Medium ( employees) 51 70,881 5,314 76,195 Large (250+ employees) ,478 8,225 90,702 Years of experience Newly qualified (< 1 year)* 24 58,750 2,763 61, years 83 58,931 4,222 63,153 Total <3 years ,891 3,896 62, years 52 67,418 3,926 71, years 67 75,824 6,571 82, years ,161 9,213 99, years ,014 9, ,238 Division Finance ,261 6,098 81,359 Operations 52 93,634 10, ,682

29 Figure 22 cont.: Table of salaries and bonuses Ireland Ireland Base Salary ( per annum) Bonus ( per annum) Total package ( per annum)** Total ,788 6,873 87,661 Industry sector Banking* 27 97,139 8, ,784 Financial services 78 84,106 9,084 93,190 Healthcare and pharmaceutical 44 79,709 7,832 87,541 ICT, technology and telecoms 46 76,627 7,603 84,230 Manufacturing and engineering 39 80,291 8,790 89,081 Public sector* 29 87, ,319 Retail and consumer goods 54 76,857 8,470 85,328 Province Leinster ,996 7,015 90,012 Munster 92 75,508 6,565 82,073 Connacht* 29 74,165 6,341 80,506 City Galway ,863 7,210 91,073 Cork 49 73,206 4,466 77,672 Dublin* 18 72,361 7,478 79,839 Job role Finance manager 68 77,087 5,666 82,753 Manager (other than of finance) 33 85,657 8,311 93,968 Financial controller 58 80,130 6,244 86,374 Management accountant 67 60,347 3,041 63,388 Accountant 46 52,652 2,613 55,264 Finance or business analyst 39 61,410 4,198 65,608 Financial director/head/ chief/vp of accounting/finance ,872 12, ,815 Non-finance role Manager 33 85,657 8,311 93,968 Director/VP/COO/head/partner (excluding CEO)* ,750 18, ,074 **Figures may not sum due to rounding

30 28 28 Figure 23: Table of salaries and bonuses Malaysia Malaysia Base Salary (RM per annum) Bonus (RM per annum) Total (RM per annum)** Total ,121 18, ,026 Salary tier Lower* 23 58,370 6,045 64,414 Medium ,894 12, ,068 Higher ,862 27, ,295 Age Up to 40 years ,313 13, , years ,271 24, ,221 Gender Male ,291 22, ,720 Female ,434 15, ,482 Level Associate ,146 16, ,753 Fellow* ,000 36, ,150 Size of organisation Micro/small/medium (1 249 employees) ,149 15, ,194 Large (250+ employees) ,481 21, ,873 City Kuala Lumpur ,888 18, ,472 Selangor ,809 20, ,058 Ownership Malaysian ,281 20, ,348 International ,684 17, ,601 **Figures may not sum due to rounding

31 Figure 24: Table of salaries and bonuses South Africa South Africa Base Basic salary (R per annum) Bonus (R per annum) Total salary (R per annum)** Total ,839 86, ,557 Salary tier Lower ,323 44, ,900 Medium ,805 92, ,003 Higher , , ,709 Years of experience <1 year (newly qualified)* ,074 51, , years ,674 76, ,156 <3 years combined total ,476 67, , years ,176 74, , years and more , , ,865 Age <31 years ,129 57, , years ,729 80, , years ,561 97, , years , , , and over* ,935 75, ,097 Gender Male ,185 95, ,905 Female ,528 50, ,963 Level Associate ,750 83, ,374 Fellow* , , ,000 Ethnicity Black African* ,998 67, ,644 Indian/Asian* ,605 93, ,979 White ,712 88, ,591

32 30 30 Figure 24 cont.: Table of salaries and bonuses South Africa South Africa Base Basic salary (R per annum) Bonus (R per annum) Total salary (R per annum)** Total ,839 86, ,557 Size of organisation Micro/small/medium (1 249 employees) ,381 61, ,412 Large (250+ employees) ,969 97, ,078 City Cape Town ,714 56, ,618 Durban* ,532 74, ,883 Johannesburg , , ,741 Ownership South African ,417 85, ,627 International ,761 90, ,780 **Figures may not sum due to rounding

33 Figure 25: Table of salaries and bonuses Sri Lanka Sri Lanka Base Salary (Rs. per month) Bonus (Rs. per annum) Total ,397 27,783 Salary tier Lower 40 68,000 7,752 Medium ,000 16,827 Higher ,053 53,463 Age < 31 years ,702 12, years ,763 32, years ,094 39,162 Gender Male ,236 32,778 Female ,514 15,433 Level Associate ,685 20,757 Fellow* ,000 54,463 Size of organisation Micro/small/medium (1 249 employees) ,906 23,206 Large (250+ employees) ,685 30,716 Years of experience < 1 year (newly qualified)* 11 89,091 7, years* ,370 15,261 <3 years combined total ,974 13, years ,505 22, years ,153 43,463 Ownership Sri Lankan ,327 29,671 International ,163 25,275

34 32 32 Figure 26: Table of salaries and bonuses UK UK Base Salary ( per annum) Bonus ( per annum) Total package ( per annum)** Total ,357 4,814 57,170 Salary tier Lower ,751 2,292 41,043 Medium ,500 7,018 69,518 Higher ,472 14, ,657 Gender Male ,231 6,166 64,397 Female ,761 3,064 47,826 Level Associate ,295 4,385 52,680 Fellow* 17 88,529 8,626 97,156 Age < 31 years ,303 3,681 46, years ,983 4,535 52, years 88 62,925 6,643 69, years ,144 5,590 66, years 43 81,320 7,512 88,831 Years of experience <1 year ,269 2,487 40, years ,140 3,694 50, years ,232 4,948 57, years 70 60,281 6,449 66, years 62 82,056 10,653 92, years 35 82,916 9,619 92,535 Job role Management accountant ,882 1,901 38,782 Accountant 72 37,003 2,137 39,140 Finance/business analyst ,970 3,624 47,594 Finance manager ,699 5,066 56,765 Financial controller 77 56,312 6,782 63,095 Financial director/head/ chief/vp of accounting/finance 37 69,012 7,301 76,313 Self-employed practitioner/consultant* 21 79,513 1,466 80,979

35 Figure 26 cont.: Table of salaries and bonuses UK UK Base Salary ( per annum) Bonus ( per annum) Total package ( per annum)** Total ,357 4,814 57,170 Manager (non-finance) 54 61,350 6,708 68,059 Director/VP/COO/head/partner (excluding CEO), non-finance* 23 91,113 11, ,775 Division Finance ,136 4,108 52,244 Operations 59 55,232 6,408 61,640 Information technology* 22 87,401 6,963 94,364 Strategy* 26 64,390 6,119 70,508 Size of organisation Micro/small (1 49 employees) ,010 3,032 60,042 Medium ( employees) 74 52,338 5,435 57,773 Large (250+ employees) ,507 5,064 56,571 Region East of England 44 42,119 2,375 44,493 East and West Midlands ,577 3,593 48,170 London ,221 6,730 68,951 North East and Yorkshire/Humberside 45 47,301 4,467 51,768 North West 52 42,952 3,790 46,742 Northern Ireland* 18 46,771 3,521 50,291 Scotland* ,312 11,033 87,345 South East ,196 5,082 60,279 South West ,574 2,491 43,065 Wales* ,268 1,566 64,834 London and South East ,668 6,131 65,799 All southern ,667 5,144 59,811 All mid to northern ,730 3,787 48, Significantly higher than UK average salary is observed due to proportionately greater numbers of respondents in high-earning industries (banking; ICT, technology and telecoms) and highly experienced job roles (CEO/MD). 11 Significantly higher than UK average salary is observed due to proportionately greater numbers of respondents who are highly experienced self-employed practitioners and non-finance directors.

36 34 34 Figure 26 cont.: Table of salaries and bonuses UK UK Base Salary ( per annum) Bonus ( per annum) Total package ( per annum)** Total ,357 4,814 57,170 Industry sector Accountancy* 25 58,122 2,702 60,824 Banking 86 62,587 7,730 70,317 Business services 34 66,368 5,606 71,975 Construction and property* 23 42,436 1,075 43,511 Financial services 77 57,257 6,946 64,203 Healthcare and pharmaceutical 37 49,459 4,710 54,169 Education* 28 47, ,646 ICT, technology and telecoms 67 63,846 8,877 72,723 Manufacturing and engineering ,786 4,287 49,073 Media, marketing, advertising and PR 33 62,414 5,085 67,499 Natural resources, energy/fuel and utilities 35 44,500 4,773 49,273 Not-for-profit/charity* 20 40, ,180 Oil, gas and alternative energy* 26 62,115 8,313 70,429 Public sector 76 48, ,652 Retail and consumer goods ,437 5,833 54,271 Transport, distribution and storage* 19 43,947 4,015 47,963 Travel, leisure and tourism* 26 42,692 2,447 45,139 *Caution: low base, under 30 **Figures may not sum due to rounding

37 Figure 27: Comparison of annualised basic salaries in USD ($) 12 USA (98) $166,138 Hong Kong (44) Australia (273) China (18*) $132,846 $129,089 $126,037 UAE (26*) Ireland (425) Canada (61) $116,714 $110,971 $110,199 New Zealand (51) Singapore (51) South Africa (200) UK (863) $92,734 $90,719 $89,812 $82,415 Malaysia (113) India (13*) Sri Lanka (131) $21,258 $45,175 $42,444 Base: Shown in brackets 12 Sources: Sri Lanka: all other countries: both sites accessed 17 October 2011.

38 36 36 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. 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.

39 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