CIMA Hong Kong. part qualified salary survey 2011

Transcription

1 CIMA Hong Kong part qualified salary survey 2011

2 Table of contents Executive summary 1 Economic context 2 Main findings 3 Overview of remuneration packages 3 Expectations for future pay and conditions 4 Improving employability and opportunities 6 Attracting candidates and retaining employees 7 One word to describe...management accounting 8 Appendix 9 Technical information 9 Further information 9 Acknowledgements 9 Global offices 10

3 Table of figures Figure 1: Hong Kong real GDP and inflation forecasted trend 2 Figure 2: Monthly remuneration and salary tier 3 Figure 3: Expectations for the business environment 4 Figure 4: Expectations for personal salary and job security 5 Figure 5: Hours worked in a typical week 5 Figure 6: Attitudes towards the CIMA qualification 6 Figure 7: Numbers rating additional benefits as important versus currently receiving 7 Figure 8: Motivators in employment 8 Figure 9: Words used to describe management accounting 8

4 1 Executive summary The 2011 CIMA survey indicated that Hong Kong respondents are earning on average HK$47,000 in basic monthly salary. Seven in ten are classified by our survey as earning a higher tier basic monthly salary of above HK$40,000. In terms of expectations for personal salary growth, the outlook is optimistic, with eight out of ten respondents expecting an increase over the next 12 months. However, with the majority of those expecting an increase of less than 4%, their salary growth in real terms may be negligible or even negative if the inflation forecast of 4.5% in 2011 is realised. Business sentiment in general is positive, on balance, with more respondents expecting increases in salary, profitability and investment than those expecting decreases in these areas within their employing business. Following the global economic crisis and the 2009 recession in Hong Kong, the economy is performing well. This may be one reason that the desire to emigrate among part qualified students who responded to the survey is negligible, despite the CIMA qualification being strongly perceived to enable employment internationally. The qualification is also perceived to be a catalyst for career growth by enabling movement across all areas of business, and more generally by creating career opportunities.

5 2 Economic context Hong Kong has made a fast and strong recovery following recession in 2009, and positive economic performance is set to continue in the medium term. Real GDP growth dropped from around 7% in the middle of the last decade to 2.2% in 2008 and -2.8% in 2009, recovering quickly to 6.8% growth in Current estimates place growth for 2011 at 4% to 5%. 1 The pace of recovery is a testament to the attractiveness of the Hong Kong economy to foreign markets and investors, as well as its relationship to mainland China, which accounts for approximately half of Hong Kong s international trade. Business confidence is positive in Hong Kong and the unemployment rate fell from 5.5% in 2009 to 3.8% in Exports grew by 17% in 2010, helped by strong economic performance in China and Asia, and investment grew by 8%. 2 Economic performance is supported by government investment in infrastructure projects and fiscal management (both in Hong Kong and in mainland China) to contain inflationary pressures caused by increasing global food and commodity prices, and property prices within Hong Kong. Hong Kong has made a fast and strong recovery following recession in 2009, and positive economic performance is set to continue in the medium term. Figure 1: Hong Kong real GDP and inflation forecasted trend 10% GDP Est. GDP Inflation Est. inflation 8% 6% 4% 2% 0% - 2% % Sources: IMF World EconomicOutlook October 2010; UN World Economic Report 2011; Hong Kong Budget. Following several years of deflation in the early part of the last decade, consumer prices have been on a rising trend, reaching a high of 4.3% in 2008 before falling back in the wake of the recession. However, the Hong Kong government currently estimates inflation will reach 4.5% in 2011, prompting policies to increase productivity, curb credit growth and avoid a property price bubble. Other downside risks are economic performance in other important markets the US, Europe and Japan. 1 Hong Kong Economy, The Government of the Hong Kong Special Administrative Region of the People s Republic of China Budget, Accessed April Ibid.

6 3 Main findings Overview of remuneration packages Seven in ten respondents are earning a higher tier basic monthly salary of above HK$40,000. Survey shows significantly high proportion earning a higher tier salary The 2011 CIMA survey reveals that Hong Kong respondents are earning on average HK$47,000 in basic monthly salary. Seven in ten are classified by our survey as earning a higher tier basic monthly salary of above HK$40,000. Figure 2: Monthly remuneration and salary tier 7 HK$47,000 3 Hong Kong mean average* Mid tier (HK$20,000- HK$39,999) Higher tier (HK$40,000+) *Caution: Calculation based on only 10 respondents Number of respondents reported for salary tiers. Benefits most commonly received in addition to basic salary are healthcare and bonus. Seven out of ten respondents are satisfied with their current salary.

7 4 Expectations for future pay and conditions Confidence in economic conditions for the coming 12 months in Hong Kong appears to be positive, on balance. Only 3 out of 10 respondents anticipate budget cuts, a recruitment freeze or job cuts within the business in which they work. None of the respondents expect salary decreases or cuts in staff training. Seven respondents are expecting salary increases across the board in the business in which they work, while five are expecting increased recruitment activity. Several respondents expect the organisations in which they work to embark on a strategy for increased growth, whether organic or inorganic growth, four expect there to be more money available for future investment and three expect increased merger and acquisition activity. In terms of expectations for personal futures, the outlook for salary is optimistic for the majority of respondents. The premise that business confidence is on an upswing is further supported by four respondents expecting increased overall profitability of the business in which they work, while just one is expecting a decline in the overall profitability of the business. Figure 3: Expectations for the business environment 3 Reduced expenditure and headcount Budget cuts 3 Recruitment freeze 3 Job cuts 3 Reduced performance, increased caution Business process/policy changes 4 Greater focus on regulatory issues 4 Increased expenditure on staffing Increase in staff recruitment 5 Salary increases 7 Increased performance, more investment Increase in the overall profitability of business 4 More money available for future investment 4 Increased merger/acquisition activity 3 In terms of expectations for personal futures, the outlook for salary is optimistic for eight out of ten respondents, compared to only one expecting their salary to be frozen over the next 12 months. 3 Items cited by zero or one respondent are not shown in the table.

8 5 Figure 4: Expectations for personal salary and job security Salary increase Salary freeze Redundancy Shorter working week Number of respondents: 10 Salary reduction None of these The average expected increase in salary is less than 4% for five out of eight respondents. Just two of eight respondents expect an increase in the range of 4% to 6%, while another one is expecting a salary increase in the range of 14% to 17%. The number of hours typically worked in a week is hours, which was cited by five out of ten respondents, while another three respondents stated their typical working week to be hours. Just two respondents stated their typical working week to be over 50 hours. Figure 5: Hours worked in a typical week Up to 35 hours hours hours hours More than 60 hours Number of respondents: 10 While six out of ten respondents expect their working hours to remain the same, four anticipate an increase in their working hours. The primary reasons for this increase are related to career growth and company growth taking on more responsibility and understaffing.

9 6 Improving employability and opportunities The CIMA qualification is perceived to be a catalyst for career growth among part qualified respondents in Hong Kong. There is a high level of agreement that the CIMA qualification enables employment internationally. Furthermore, there are similarly high levels of agreement that the qualification enables movement across all areas of business, and more generally that the qualification creates career opportunities. The majority of part qualified respondents are not planning to move job within next two years. Just 3 out of 10 are planning to move, and all these plan to remain within Hong Kong. Figure 6: Attitudes towards the CIMA qualification Disagree/Strongly disagree Strongly agree/agree Strengthens your ability to move internationally with your career Creates career opportunities for you Strengthens your ability to move across all areas of the business

10 7 Attracting candidates and retaining employees Although only two respondents cited additional benefits as a key motivator in employment, the benefits package is an important part of remuneration. Figures indicate that bonus and healthcare are the most commonly received additional benefits, and they are also considered to be the most important. However, gaps do seem to exist between the number of respondents perceiving a benefit as important and the number receiving it, with 8 out of 10 respondents citing pension as an important benefit, but only four currently receiving a pension. Other gaps seem to exist for share options, life assurance, extra holidays and study leave. Figure 7: Numbers rating additional benefits as important versus currently receiving Important 4 Currently receive Bonus 10 6 Healthcare 9 6 Pension 8 4 Extra holidays 7 1 Study leave 6 1 Share options 6 2 Life assurance 6 3 Skill sets that part qualified respondents in Hong Kong most commonly wish to develop over the coming 12 months are reporting and analysis, personal development, risk management, communication, and persuading and influencing, each of which were mentioned by four respondents. 4 Rated as extremely important or important on a balanced five point scale.

11 8 Financial reward, followed by promotion prospects, scope of role/projects and job security are the key motivators in the workplace for respondents. Figure 8: Motivators in employment Financial reward 8 Promotion prospects 5 Scope of role/projects 4 Job security 4 Good working environment 2 Flexibility/work life balance 2 Benefits package 2 Challenging workload 1 Training and development 0 Number of respondents: 10 One word to describe...management accounting Part qualified students 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 9: Words used to describe management accounting Acumen Analytical Useful Challenging Powerful Professional Good Difficult

12 9 Appendix Technical information Survey responses were collected by CIMA among active part qualified students between 2 and 20 February 2011, via an online survey. The data was analysed and reported by an independent specialist consultancy. Just over 13,000 part qualified students were selected and invited to participate in the international study which covers 15 markets. Within the study period 2,121 responded internationally, including 10 from Hong Kong. Unless indicated, the data in this report is presented as numbers of respondents/responses due to the low base size of 10 respondents. Please note that due to this small base, the data has not been weighted to reflect the profile of part qualified students in Hong Kong and the data is only indicative; therefore the results should be viewed with caution and cannot reliably be compared to 2010 and 2009 results. Further information For further information on technical matters relating to this survey, contact yourvoice@cimaglobal.com For further country specific analysis and reports, visit CIMA MY JOBS at 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.

13 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

14 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