drive businesses through continuing uncertainty and on to longer-term, sustainable success. ... The average total salary
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Foreword Despite the global economic uncertainty, CIMA’s members and students are in demand. Our 2012 salary survey shows that chartered management accountants are commanding salaries that reflect their value in helping to drive businesses through continuing uncertainty and on to longer-term, sustainable success. CIMA’s latest salary survey clearly shows that our students are taking home average annual earnings of Rs.10 lakhs. Furthermore, over 90% of new students, with less than one year’s experience said the CIMA qualification gives them greater leverage in salary negotiations. Many of our students are clearly aiming for the top from the outset of their studies. Over 60% told us they want to develop their leadership skills, indicating a strong focus on ambition. But financial reward isn’t everything. Both our students and members said today’s dream ticket is a mixture of a competitive salary combined with a challenging workload and flexible work-life balance. According to our survey, part qualified students in Bangalore, Chennai and Delhi earn 9%, 12% and 13% more in total salary respectively than the average for CIMA students in India. The average total salary for Mumbai is slightly under the CIMA average for India. Tentative figures for smaller cities including Hyderabad, Kolkata and Pune suggest that they attract lower salaries than the CIMA average for India. Figures suggest that the average total salary for Chennai and Bangalore are higher due to the presence of the ICT and shared services industry industry. Overall, the potential for CIMA members and students to develop rewarding and dynamic international careers remains strong despite the many challenges facing the business community over the next 12 months. This potential has recently been enhanced following the launch of our new member designation, the Chartered Global Management Accountant (CGMA). The CGMA is the result of a joint venture with the American Institute of Certified Public Accountants and reflects the global prestige of two of the world’s leading accountancy bodies. The confidence of our members and students is reflected in our survey. A total of 85% agreed that the CIMA qualification creates careers opportunities while 89% said that it strengthened their chances of adding an international dimension to their CV. Combined with the 78% who said the qualification gave them greater opportunities to move across all areas of the business, these figures show that the CIMA community is robust, flexible and ideally equipped to add value in both the public and private sectors - all the more so in challenging economic environments.
Arati Porwal Chief Representative – India CIMA
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Salary survey results India average salary figures In 2012 part qualified students in India are earning on average Rs.9.03 lakhs in basic salary plus Rs.0.95 lakhs in bonus payments, totalling Rs.9.98 lakhs.
The CIMA qualification strengthens your ability to move internationally with your career
Tentative figures suggest qualified CIMA members are earning on average Rs.20.87 lakhs in basic salary plus Rs.2.48 lakhs in bonus payments, totalling Rs.23.35 lakhs per annum.1 Robust salary satisfaction Among all part qualified students and qualified members, 66% are satisfied with their current salary; up from 50% in 2011.
agree
The CIMA qualification creates career opportunities for you
The CIMA qualification strengthens your ability to move across all areas of the business
However, 48% are expecting a lower than average salary rise of up to 11% over the coming 12 months.
85% agree
Salary increases anticipated 93% of CIMA students and members are anticipating a salary rise over the next 12 months at an average rate of 12%, which in real terms will be above price inflation forecasts of around 8.5%.2
89%
78% agree
CIMA boosts salary deals Among all part qualified students and qualified members 70% agree that the CIMA qualification strengthens their position in salary negotiations. The effect is strongest at the early stages of one’s career: 91% of part qualified students with less than one
year of relevant experience since enrolling agree that the CIMA qualification strengthens their position in salary negotiations. The vast majority say it strengthens international employability, creates career opportunities, and widens career choice.
Figure 1: Annual remuneration by CIMA level
Rs.9.16 lakhs
Rs.10.13 lakhs
Rs.9.67 lakhs
Operational*
Management
Strategic
Rs.23.35 lakhs Rs.10.89 lakhs
T4 professional competence
CIMA members*
*Caution, low base under 30
1 Figure may not sum due to rounding. Tentative figures based on 19 respondents. 2 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 5 July 2012.
‘91% of students with less than one year of relevant experience say the CIMA qualification strengthens their position in salary negotiations.’
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Salary patterns Annual remuneration by city According to our survey, part qualified students in Bangalore, Chennai and Delhi earn 9%, 12% and 13% more in total salary respectively than the average for CIMA students in India. The average total salary for Mumbai is slightly under the CIMA average for India. Tentative figures for smaller cities including Hyderabad, Kolkata and Pune suggest that they attract lower salaries than the CIMA average for India. Figures suggest that the average total salary for Chennai is boosted by a strong presence in the oil, gas and alternative energy sector and
the ICT, technology and telecoms sector. The average total salary for Bangalore is boosted by the ICT sector, while that of Mumbai is lowered due to a relatively strong presence of small/micro/medium sized businesses, particularly accountancy and finance practices. Annual remuneration by business size Average basic salaries and bonuses for part qualified students tend to increase with business size. Of those who work in large organisations with 250 or more employees, the average total salary of Rs.10.47 lakhs is 5% more than the CIMA average for India but 47% more than the average for those working in micro/small/medium businesses.
Figure 2: Part qualified students – annual remuneration by city
Delhi (20*) Basic salary: Rs.10.34 lakhs Bonus: Rs.0.96 lakhs Total: Rs.11.3 lakhs
Mumbai (28*) Basic salary: Rs.8.81 lakhs Bonus: Rs.1.03 lakhs Total: Rs.9.84 lakhs
Bangalore (35) Basic salary: Rs.9.97 lakhs Bonus: Rs.0.94 lakhs Total: Rs.10.91 lakhs *Caution: low base, under 30.
Chennai (28*) Basic salary: Rs.9.96 lakhs Bonus: Rs.1.19 lakhs Total: Rs.11.15 lakhs
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Business and the economy Expectations for future pay and conditions Despite forecasts of around 5% GDP growth for 2012, a slowdown in the rate of growth of the Indian economy, coupled with rising prices for food and fuel, is affecting consumer confidence and dampening spend amid an uncertain global picture.3 Reflecting the dampened economic confidence, CIMA students and members are mildly cautious about the business environment for the coming 12 months, especially in comparison to 2011.
There are positive expectations for an increase in the overall profitability of business (34%), salary increases across the board (25%) and increased headcount (24%), but expectations for these outcomes are lower than in 2011. At the same time there have been notable increases since 2011 in the proportions expecting budget cuts (27%), a fall in the overall profitability of the business (17%) and recruitment freezes (17%).
Figure 3: Expectations for the business environment over the coming 12 months − selected indicators 34%
Increase in the overall profitability of the business Budget cuts
27%
9%
25%
Salary increases
24%
Increase in staff recruitment Fall in the overall profitability of business
5%
Recruitment freeze
4% 2012
50%
39% 52%
17% 17%
2011
3 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 3 July 2012. ft.com. R.Jacob, ‘Foreign investors still upbeat on India’, June 28, 2012 4:49 pm. Available at: www.ft.com/cms/s/0/6f29db16-c02c-11e1-982d-00144feabdc0.html#axzz1zkUkrdpb Accessed 5 July 2012; ‘Indian rates held amid pressure to cut’, June 18, 2012 8:56 am. Available at: www.ft.com/cms/s/0/f19499b8-b91711e1-9bfd-00144feabdc0.html#axzz1zkUkrdpb Accessed 5 July 2012; CNN. M. Kapur. Television broadcast 31 May 2012.
‘CIMA students and members are mildly cautious about the business environment for the coming 12 months.’
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Working conditions Working hours Students and members in India typically work 48 hours per week. This average includes 30% who work more than 50 hours per week. While 48% expect no change, 44% of students and members expect their working hours to increase over the coming 12 months. By far the most influential reason is related to career progression – taking on more responsibility was cited by 68% of students and members who expect to work longer hours in the coming year. Other notable factors are understaffing, company growth and company culture, each of which was mentioned by around one-third of those expecting increased hours. Motivators at work The key motivators at work for students and members are a challenging workload (50%), flexibility/work-life balance (46%), scope of the role (45%), and a good working environment (43%).
Career plans Seeking new opportunities Mobility of students and members in India remains robust, with 39% planning to find
another job within six months and a total of 73% planning to move job within the next two years. Of those, 50% plan to stay within India. Although planned mobility has fallen by 11 percentage points since 2011− when 84% of all students planned to seek new employment within two years − the proportion of those planning to stay within India has not changed. Students at the T4 professional competence level are the most likely to seek work, both within the next six months (60%) and the next two years (83%), presumably as they plan to embark on their careers as chartered management accountants. Among students and members who plan to seek employment abroad, the UK is the most frequently named potential destination (59%), followed by Singapore (42%) and the USA (35%). Australia, Canada and the UAE are also popular planned destinations. The key reason for wanting to relocate is related to career prospects: around threequarters mention seeking a better salary (74%), an improved quality of life (73%) and better employment opportunities (72%). Experiencing a different culture is also attractive for 66% of those planning to relocate.
Figure 4: Proportion planning to move job, to emigrate
50% plan to stay in India 73% are looking to move job within the next two years, of which… 50% plan to move abroad
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Building skill sets Over the coming 12 months students are keen to develop a broad mix of technical and managerial skill sets. The managerial skills of leadership, decision making, and strategic planning and implementation feature in the top three desired skill sets, indicating strong ambition among part-qualified students. Among qualified members, figures suggest that the most desired skill sets are strategic and managerial: leadership, strategic planning and implementation, skills for developing others, persuading and influencing, relationship management, change management and project management.
Figure 5: Top skills that part qualified students wish to develop 61% Leadership 53% Decision making 49% Strategic planning and implementation 46% Personal development 46% Financial reporting 39% Communication 32% Problem solving 32% Project management
‘61% of students want to focus on leadership skills, indicating strong ambition even at the start of their careers.’
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Appendix Note: Segmented data for qualified members is unavailable due to low base numbers. Part qualified students India
Base
Basic salary (Rs. lakhs per annum)
Bonus (Rs. lakhs per annum)
Total package (Rs. lakhs per annum)**
Total
154
9.03
0.95
9.98
< 25 yrs*
23
5.86
0.62
6.48
25-34 yrs
100
8.74
0.97
9.71
35+ yrs
31
12.27
1.13
13.4
Male
136
9.32
0.99
10.31
Female*
18
6.76
0.65
7.41
Operational*
21
8.19
0.97
9.16
Management
43
9.28
0.85
10.13
Strategic
60
8.71
0.96
9.67
T4 professional competence
30
9.75
1.14
10.89
Up to 1 year*
29
7.56
0.49
8.05
1–2 years*
28
8.50
0.99
9.49
2–4 years
58
8.86
0.99
9.85
4+ years*
27
10.50
1.20
11.70
23
6.60
0.53
7.13
131
9.45
1.02
10.47
250−999*
17
8.86
0.70
9.56
1,000–9,999*
29
9.54
1.06
10.60
10,000 or more
85
9.54
1.08
10.62
Bangalore
35
9.97
0.94
10.91
Chennai*
28
9.96
1.19
11.15
Delhi*
20
10.34
0.96
11.30
Mumbai*
28
8.81
1.03
9.84
All qualified members
19
20.87
2.48
23.35
Age
Gender
Level
Experience since enrolling
Size of organisation Micro/small /medium (1–249 employees)* All Large (250+ employees)
City
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Technical information Survey responses were collected by CIMA among active part qualified students and qualified members between 2 and 29 May 2012, via an online survey. The data was analysed and reported by an independent specialist consultancy. Just under 15,000 part qualified students and approximately 21,000 qualified members were selected and invited to participate in the
international study, which covers 19 markets in total. Within the study period 5,558 responded internationally, including 173 from India. The response data presented in this report has been weighted to reflect the profile of CIMA part qualified students and qualified members 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
[email protected]
For further country specific analysis and reports, visit CIMA MY JOBS at http://myjobs.cimaglobal.com
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.
Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44 (0)20 7663 5442 E.
[email protected] www.cimaglobal.com © August 2012, Chartered Institute of Management Accountants
