are enjoying salary and bonus packages that can reach levels around the .... accountant. Assistant management accountant
CIMA salary survey 2012 United Kingdom
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Foreword Despite the ongoing economic turbulence in the British economy, 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 earnings well above the national average while members at executive level are enjoying salary and bonus packages that can reach levels around the £180,000 mark. Many of our students are clearly aiming for the top from the outset of their studies. Over 42% 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 good working environment and flexible work-life balance. Around three-quarters of newly qualified members said the CIMA qualification gives them greater leverage in salary negotiations and this is serving them well. On average, our members’ pay packages increase by almost £10,000 in the first few years after qualifying. This rises to £20,000 over the next six years. Beyond that, the average salary continues to rise by around £60,000 over the following 30-year career span. Looking to the next 12 months, our members are showing a mild optimism that the economy will rally. This is reflected in an anticipated average earnings increase of 3.5% - which in real terms will be above inflation forecasts of around 2%. Part qualified students are expecting a higher average increase of between 3.8% and 5.2% as they progress through the syllabus. Traditionally, organisations in London and the South East have provided our members and students with the highest levels of earnings. But our 2012 survey shows that companies in Scotland are also offering comparatively high average salaries. Earnings in this region are boosted by oil, gas and alternative energy sectors as well as a strong banking sector presence. 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 95% agreed that the CIMA qualification creates careers opportunities while just over 80% said that it strengthened their chances of adding an international dimension to their CV. Combined with the 74% 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.
Charles Tilley Chief Executive CIMA
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Salary survey results UK average salary figures In 2012, qualified CIMA members in the UK are earning on average £53,309 in basic salary plus £5,125 in bonus payments, totalling £58,434 per annum. Part qualified students in the UK are earning on average £31,432 in basic salary plus £1,512 in bonus payments, totalling £32,944. This compares with a current average national UK salary figure of £28,236.1 Robust salary satisfaction Among qualified members, satisfaction with salary is up on the 2011 figure by two percentage points, at 68%. In general, satisfaction with salary increases with years of experience: 84% of those with 20 or more years’ experience and 90% of Fellows are satisfied, perhaps reflecting the substantial salaries that can be earned by CIMA members who are at a later stage in their careers. Satisfaction with salary is slightly lower among part qualified students; however, at 61%, the figure has increased by four percentage points since 2011.
Salary increases anticipated CIMA students and members are mildly optimistic about personal salary rises over the next 12 months. An average rise of 3.5% is anticipated by qualified members, which in real terms will be above inflation forecasts of around 2%.2 For part qualified students, the average expected pay rise is higher, and tends to increase with CIMA level attained. Among those anticipating a salary rise, the average at operational level is 3.8%, increasing to 5.2% among those at T4 professional competence level. CIMA boosts salary deals The effect of the CIMA qualification on boosting salary is strongest for recently qualified members with less than one year of post-qualification experience. 73% agree that the CIMA qualification strengthens their position in salary negotiations. 74% of part qualified students are also in agreement.
Figure 1: Annual remuneration by CIMA level START: £28,000
£139,349+
*AVERAGE SALARY Office for National Statistics, 2012
£49,979 £28,889
£31,179
£34,125
Operational Management Strategic
£39,672
T4 professional competence
‘On average CIMA Fellows (FCMAs) will earn £139k in 2012.’
CIMA member ACMA, CGMA
CIMA member FCMA, CGMA
1 Office for National Statistics, Mean gross weekly earnings for full time employees, Jan-Mar 2012. Updated May 2012. Table EARN04. The weekly mean figure was multiplied by 52 weeks to estimate an annual figure. Available at: www.ons.gov.uk/ons/datasets-and-tables/index.html?pageSize=50&newquery=earnings Accessed 11 July 2012. 2 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 19 June 2012; Treasury forecasts: comparison of independent forecasts. Available at: www.hm-treasury.gov.uk/d/201205forcomp.pdf Accessed 19 June 2012.
‘74% of part qualified students say the CIMA qualification strengthens their position in salary negotiations.’
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Salary patterns ‘Part qualified students working as management accountants earn £34k on average.’
Among qualified members, management accountants earn an average of £38,000 in total salary per annum; analysts earn slightly more at £47,000. Finance managers and financial controllers earn £53,000 and £56,000 respectively, while those in very senior roles can expect to earn a salary plus bonus of between £78,000 and upwards of £100,000 plus additional benefits.
Annual remuneration by job role Among part qualified students, those in assisting roles, such as assistant management accountant, typically earn between £23,000 and £25,000 per annum in total salary. Management accountants typically earn £34,000 and financial analysts/business analysts £35,000 per annum, including bonus. Part qualified students in more senior roles, such as finance manager, earn £40,000 on average. Figure 2: Annual remuneration by job role
UK total - part qualified students
£31,432
Financial controller
£39,515
Finance manager
£37,927
Project account/manager
£37,539
Financial/business analyst
UK total qualified members
£32,944
£42,327 £40,052 £39,331
£33,200
£35,258
£53,309
£58,434
CFO*
£157,247
Financial director
£102,198
Director (non-finance) /COO/partner*
£113,462
£81,346
Head/chief/VP (of accounting/finance)
£89,961
£70,144
£78,488
Financial accountant
£32,668
£34,085
Manager (non-finance)
Management accountant
£32,493
£33,852
Financial controller
£51,009
Other accountant*
£31,678
Finance manager
£48,568
£52,858
Project accountant/ manager
£47,131
£50,895
Financial analyst/ business analyst
£43,498
£47,231
Other finance role Accountant Other assistant accountant
£33,183
£30,987 £27,862 £24,358
£32,708 £28,772 £25,477
Assistant management accountant
£23,837
Finance assistant
£22,904
£23,471
Accounts assistant/executive
£22,424
£22,931
Financial accountant Management accountant
£24,354
£59,563
£38,029
£66,581 £55,760
£39,817
£36,226 £38,296
Accountant £35,687
£37,775
*Caution: Low base, under 30. Lowest base: Director (other than of finance)/ COO/partner (13). Highest base: Management accountant (293)
*Caution: Low base, under 30. Lowest base: Other accountant, (26*) Highest base: Management accountant (264)
Basic salary
£180,946
Bonus
Total
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Annual remuneration by region Average salary packages vary considerably by UK region, with London and the South East attracting significantly larger average salaries than other regions. Part qualified students and members working in London can expect to earn around 20% more than the UK average total salary. Those in the South East can expect to earn around 10% more.3
Sector variations go some way to explaining the regional variations. In particular, London has larger banking, financial and marketing sectors and the South East has a larger ICT, technology and telecoms sector; according to our survey, these sectors tend to pay larger salaries than the UK average. Average salaries in Scotland are boosted by the oil, gas and alternative energy sector, as well as a strong banking sector presence.
Figure 3: Annual remuneration by region
Scotland Part qualified: £32,127 Qualified: £60,725
Northern Ireland* Part qualified: £23,905 Qualified: £43,539 North West Part qualified: £27,442 Qualified: £47,260
North East and Yorkshire/Humberside Part qualified: £29,005 Qualified: £36,719
East and West Midlands Part qualified: £29,283 Qualified: £60,408 East of England Part qualified: £29,858 Qualified: £46,080 South West Part qualified: £30,795 Qualified: £43,149 *Caution: Low base, under 30.
London Part qualified: £38,863 Qualified: £71,957 South East Part qualified: £35,159 Qualified: £63,214
3 Part qualified students in London earn on average 21% more and qualified members earn on average 23% more than the UK average total salary (basic salary plus bonus). Figures for the South East are 9% more and 8% more respectively.
‘Part qualified students and members working in London can expect to earn around 20% more than the average UK salary.’
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those working in ICT, technology and telecoms earn 31% more and those working in banking earn 16% more.
Annual remuneration by sector
‘Qualified CIMA members working in ICT, technology and telecoms earn on average 31% more than the average UK salary package for CIMA members.’
CIMA students and members working in the following sectors will typically earn more than the average UK salary package: • • • • • •
In contrast, the accountancy and public sectors report the lowest average salary packages for students, at 13% and 10% less than the national average respectively. While public sector pay continues to be constrained in order to reduce government borrowing, part qualified students in the accountancy sector are more likely than average to be under 25 years of age and working in a micro/small business − factors which are linked to lower salary than the UK average.
banking business services financial services healthcare and pharmaceutical ICT, technology and telecoms oil, gas and alternative energy.
In particular, students working in the banking sector earn 33% more and those in ICT, technology and telecoms earn 17% more than the average UK total salary package for part qualified students (£32,944).
For members, the education and travel, leisure and tourism sectors report the lowest salary packages, at 24% and 23% less than the national average respectively.
Compared to the average UK total salary package for qualified members (£58,434), Figure 4: Annual remuneration by sector UK total - part qualified members
£31,432
Banking ICT, technology and telecoms Business services Oil, gas and alternative energy Financial services Travel, leisure and tourism Healthcare and pharmaceutical Construction and property Natural resources, energy/fuel and utilities* Retail and consumer goods Media, marketing, advertising and PR Transport, distribution and storage Manufacturing and engineering Education* Sales, purchasing and supply chain* Not-for-profit/charity Public sector Accountancy
UK total qualified members
£32,944
£40,244
£43,729
£36,434
£38,401
£36,351
£37,871
£34,152
£37,089
£33,290 £31,796 £32,281 £31,328 £30,206 £30,095
£35,661 £33,865 £33,073 £32,648 £32,073 £32,055
£29,317 £29,338 £27,586
£76,454
£61,531
£69,219
£60,493
£68,962
£61,794
£68,882
£60,906
Financial services Manufacturing and engineering Media, marketing, advertising and PR Transport, distribution and storage Construction and property
£67,989
£57,351
£64,997
£51,493 £49,906 £48,007 £46,866
£56,720 £53,344 £52,501 £49,519 £48,577
£31,250
Public sector
£46,559
£47,641
£30,514
£44,286
£47,567
£29,871
Natural resources, energy/fuel and utilities Retail and consumer goods Travel, leisure and tourism
£29,849
Education*
£29,621
£28,091
£68,868
£47,462
£31,584
£30,183
ICT, technology and telecoms Oil, gas and alternative energy Healthcare and pharmaceutical Business services Banking
£58,434
Not-for-profit/charity
£30,670
£29,356
£53,309
£30,261
£42,770 £41,347
£44,868
£44,107
£44,641
£29,549 £28,500
*Caution: Low base, under 30. Lowest base: Sales, purchasing and supply chain (24*).
Basic salary
*Caution: Low base, under 30. Lowest base: Education (28*).
Bonus
Total
£46,940
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Annual remuneration by business size Average basic salaries and bonuses for part qualified students tend to increase with business size, although for qualified members the pattern is less clear cut. Students and members working in very large organisations with 10,000 or more employees receive the largest average bonuses, with
students receiving 36% more and members 24% more than the average UK bonus figure. Typically, students working in micro/small businesses will earn 40% less than the average UK bonus figure. This difference significantly reduces to just 7% less for members working in a micro/small business; this may be attributed to the fact that 14% of those are self-employed or the CEO.
Business and the economy Expectations for future pay and conditions Amid growing concern over the fate of the Eurozone, mixed US economic data and the pace and shape of the UK recovery over the medium term, CIMA students and members are holding firm on their expectations for the business environment, with a mildly cautious outlook.
Expectations of CIMA students and members have changed little since 2011. The most positive expectation is for an increase in the overall profitability of business (34%). However, this optimism is offset by similar proportions expecting job cuts (33%), salary freezes (30%) and recruitment freezes (29%).
Figure 5: Expectations for the business environment over the coming 12 months − selected indicators 38% 40%
Budget cuts Increase in the overall profitability of the business*
33% 32%
Job cuts Salary freezes
30% 30%
Recruitment freeze
29% 30%
Increase in staff recruitment*
20% 19%
Cuts in funding for staff training
19% 19%
58%
32%
12% 14%
Increased spend on staff training* 2012
2011
49% 54%
25% 26%
Salary increases*
*Indicator not featured in 2009.
65%
34% 35%
2009
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Working conditions ‘A good working environment remains a basic motivator throughout students’ and members’ careers, as it is equally important across all CIMA levels and age groups.’
Working hours On average, UK students and members work 42 hours per week, although 49% work less than the average. Longer hours tend to be linked to experience and seniority, region and sector. The proportion of students and members working over 40 hours per week increases with CIMA level, from 35% of part qualified students at operational level to 74% of Fellows. Those working in London, Scotland and the East Midlands are more likely to be working over 40 hours per week, as are those in the banking, accountancy, business services, technology, and retail sectors. One-third of students and members expect their working hours to increase over the coming 12 months, while almost two-thirds expect no change. The primary reason for increasing working hours is related to career progression – taking on more responsibility was cited by 70% of students and members. A secondary factor, mentioned by 52%, is understaffing/lack of resource; this is especially evident in the public sector, where 69% attribute increased working hours to understaffing. Motivators at work The key motivators at work for students and members are a good working environment (45%), flexibility/work-life balance (44%) and financial reward (43%). While there are no major differences in the key motivators by CIMA level, it is clear from the survey that age and experience have an effect: over time, financial reward, training and development, and promotion prospects become less important, while job security and a challenging workload become bigger motivators.
The CIMA qualification creates career opportunities for you
95% agree
The CIMA qualification strengthens your ability to move internationally with your career
82% agree
The CIMA qualification strengthens your ability to move across all areas of the business
74% agree
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Career plans Seeking new opportunities Mobility of students and members in the UK remains strong, with 25% planning to find another job within six months and a total of 58% planning to move job within the next two years. Of those, 87% plan to stay within the UK. Students at the T4 professional competence level are the most likely to be seeking new employment (71%), presumably as they plan to embark on their careers as chartered management accountants.
Among students and members who plan to seek employment abroad, Australia is the most frequently named destination (48%), followed by the USA (35%), Canada (17%), the UAE (17%) and Singapore (14%). Improved quality of life remains a primary motivator for relocating (69%). A new career opportunity (51%) and improved salary (39%) also remain important factors, while a desire to experience a different culture has been cited by substantially more members than in recent years (60%).
87% plan to stay in the UK 58% are looking to move job within the next two years, of which… 13% plan to move abroad
Building skill sets Over the coming 12 months, students are keen to develop technical skills such as financial reporting, personal development skills (including career planning and time management) and communication skills to aid their careers.
As students progress through the qualification and into full membership, developing strategic and managerial skills such as persuading and influencing, strategic planning and implementation, and skills for developing others are favoured over the more technical aspects of accounting.
Figure 6: Top skills that students and members wish to develop Part qualified students
Qualified members
50% Personal development
44% Leadership
42% Leadership
38% Personal development
38% Communication
37% Persuading and influencing
35% Financial reporting
34% Strategic planning and implementation
35% Strategic planning and implementation
33% Communication
35% Decision making
33% Skills for developing others
31% Persuading and influencing
27% Decision making
30% Project management
27% Relationship management
27% Skills for developing others
27% Project management
‘42% of students want to focus on leadership skills, indicating strong ambition even at the start of their careers.’
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Appendix Part qualified students
Qualified members
UK
Base
Basic salary (£ per annum)
Bonus (£ per annum)
Total package (£ per annum)**
Base
Basic salary (£ per annum)
Bonus (£ per annum)
Total package (£ per annum)**
Total
1138
31,432
1,512
32,944
1250
53,309
5,125
58,434
