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CIMA salary survey 2012 South Africa
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Foreword Despite the global economic downturn, 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 steering their organisations through continuing uncertainty and on to long-term, sustainable success. CIMA’s latest salary survey clearly shows that our students are taking home average earnings of R400, 000 while members at executive level are enjoying salary and bonus packages that can reach levels around the R1, 170,000 mark. Many of our students are clearly aiming for the top from the outset of their studies. Over 50% 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 part qualified students 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 R200, 000 in the first ten years after qualifying. Beyond that, the average salary continues to rise by around R260, 000 over the following 30-year career span. The confidence of our members and students is reflected in our survey. A total of 90% agreed that the CIMA qualification creates career opportunities while 94% said that it strengthened their chances of adding an international dimension to their curriculum vitae, due to the global recognition and reputation of a CIMA designation. Combined with the 83% 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. Looking to the next 12 months, our students and members are holding firm in their expectations for the business environment, with a largely positive outlook. This is reflected in an anticipated average earnings increase of 8% - which in real terms will be above inflation forecasts of around 6%. Average salary packages vary by major city, with Johannesburg attracting significantly larger average salaries than other cities, particularly Cape Town and Durban. Students and members working in Johannesburg can expect to earn around 6% and 9% more respectively than the average total salary for South Africa. Johannesburg and the surrounding areas have large natural resources, banking, technology and manufacturing sectors and, according to our survey, these sectors pay comparatively higher total salaries than the national average. Higher costs of living and the fact that Johannesburg is an accepted economic hub boasting many head offices of global and local organisations could be contributing to higher than average salaries in this city. In addition, in Johannesburg and certain other non-coastal cities, salaries tend to be higher in order to attract talented candidates who might otherwise be more attracted to the lifestyles that coastal cities like Cape Town and Durban offer. 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. Samantha Louis Regional Director Africa CIMA
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Salary survey results South Africa average salary figures In 2012, qualified CIMA members in South Africa are earning on average R774,273 in basic salary plus R105,784 in bonus payments, totalling R880,057 per annum. Part qualified students in South Africa are earning on average R366,284 in basic salary plus R34,519 in bonus payments, totalling R400,804.1 Salary satisfaction is linked to CIMA level The proportion of qualified members who are satisfied with their current salary is 77%, representing an increase of ten percentage points since 2011. The survey shows a clear link between CIMA level/experience and satisfaction with salary. Among Fellows 88% are satisfied, and among those with 10 or more years of experience 84% are satisfied; perhaps reflecting the substantial salaries that can be earned by CIMA members who are at a later stage in their careers. At 50%, satisfaction with salary is lower among part qualified students and ranges from
46% among those at operational level to 63% among those at T4 professional competence level. The overall figure for students has decreased by one percentage point since 2011. Salary increases anticipated CIMA students and members are mildly optimistic about personal salary rises over the next 12 months. 95% expect a pay rise over the next 12 months and among them an average rise of 8.0% is anticipated, which in real terms will be above price inflation forecasts of around 6%.2 CIMA boosts salary deals The effect of the CIMA qualification on boosting salary is strongest for part qualified students: 77% agree that the CIMA qualification strengthens their position in salary negotiations, rising to 80% among students at the management level of the qualification.
Figure 1: Annual remuneration by CIMA level
R1,128,728 R849,983 R360,785
R389,107
R420,579
Operational Management Strategic
R500,926
T4 professional competence
‘On average CIMA Fellows (FCMAs) will earn R1.13m in 2012.’
CIMA Member ACMA, CGMA
CIMA Member FCMA, CGMA
1 Figure may not sum due to rounding 2 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 19 June 2012.
‘77% 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 R401k on average.’
Annual remuneration by job role Among part qualified students the average salary for management accountants is on a par with the average total salary for South Africa. Finance managers attract the highest average total salary, which is 40% above figure for South Africa. On the other hand, part qualified accountants and financial accountants are earning 25% and
19% below the average total salary for South Africa respectively. Among qualified members, finance managers earn an average of R749,065 in total salary per annum, while those in very senior roles such as finance director, CFO and CEO/managing director can expect to earn a salary plus bonus of between R1.14m and R1.17m, plus additional benefits.3
Figure 2: Part qualified students − annual remuneration by job role South Africa total - part qualified students
366,284
Finance manager
506,752
Financial analyst/business analyst
396,848
Management accountant
369,851
Financial accountant* Accountant
400,804
298,778 279,572
562,907 435,965 400,995 326,101 301,940
*Caution: Low base, under 30. Lowest base: Financial accountant (28*) Highest base: Management accountant (81)
Basic salary
Bonus
Total
3 Figures reported for very senior roles are based on low bases of less than 30 members but represent statistically significant differences against the national average salary for members.
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Annual remuneration by city Average salary packages vary by major city, with Johannesburg attracting significantly larger average salaries than other regions, particularly Cape Town and Durban. Part qualified students and qualified members working in Johannesburg can expect to earn
around 6% and 9% more respectively than the average total salary for South Africa. As the largest city, Johannesburg, has large banking, technology, financial and manufacturing sectors and, according to our survey, these sectors tend to pay higher total salaries than the average for South Africa.
Figure 3: Annual remuneration by city
Pretoria Part qualified: R411,717 Qualified*: R845,934 Johannesburg Part qualified: R425,610 Qualified*: R959,761
Durban Part qualified: R346,822 Qualified: R837,900
Cape Town Part qualified: R362,330 Qualified: R752,655 Bases shown in brackets *Caution: Low base, under 30
‘Part qualified CIMA students working in natural resources, energy/fuel and utilities earn on average 27% more than the average total salary for South Africa.’
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‘Part qualified students and qualified members working in Johannesburg can expect to earn 6–9% more than the average total salary for South Africa.’
Annual remuneration by sector Students working in the natural resources, energy/fuel and utilities sector earn 27% more than the national average total salary for part qualified students (R400,804). Other large sectors offer salaries just above the average, while students in the accountancy sector earn 30% below – this may be a result of the greater likelihood of these students working in the accountancy sector being in the very early stages of their careers.
Among qualified members, the salary patterns by industry sector are similar to those for part qualified students; however, bases tend to be too small for detailed analysis. The sector with the highest number of qualified respondents is manufacturing and engineering, which attracts an average total salary that is 3.5% more than the average total salary for members in South Africa.
Figure 3: Part qualified students − annual remuneration by sector South Africa total - part qualified students
366,284
Natural resources, energy/fuel and utilities
400,804
460,820
Retail, consumer goods
406,924
Banking
388,701
509,612 445,528 427,604
ICT, technology and telecoms*
378,253
418,731
Manufacturing and engineering
385,164
414,915
Financial services
329,355
Accountancy*
257,990
366,643 282,136
*Caution: Low base, under 30. Lowest base: ICT, technology and telecoms (26*)
Basic salary 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 slightly less clear cut. Students and members working in very large organisations (VLOs) with 10,000 or more employees receive 16% more and 4% more respectively than the comparable average total salaries for South Africa.
Bonus
Total
Typically, students working in micro/small businesses will earn 25% less than the national average total salary. This difference significantly reduces to just 5% less for qualified members working in a micro/small business, which may be attributed to the fact that 39% of those are self-employed or the CEO.
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Business and the economy Expectations of CIMA students and members have changed little since 2011. The most positive expectation is for an increase in the overall profitability of the business and salary increases, both at 43%. However, this optimism is offset to some extent by notable proportions expecting budget cuts (27%), a recruitment freeze (18%) and job cuts (14%), perhaps in part due to rising wage costs.
Expectations for future pay and conditions Despite growing concern over the fate of South Africa’s major trading partners in the Eurozone, the USA and China, coupled with rising domestic unemployment and high wage growth,4 CIMA students and members are holding firm in their expectations for the business environment, with a largely positive outlook.
Figure 4: Expectations for the business environment over the coming 12 months − selected indicators 43% 43%
Increase in the overall profitability of the business*
43% 38%
Salary increases* Increase in staff recruitment*
27% 26%
Budget cuts
27% 25%
Recruitment freeze Job cuts Fall in the overall profitability of business Salary freezes
*Indicator not featured in 2009
69%
18% 21% 14% 12%
57% 35%
13% 15% 9% 10%
2012
60% 28% 2011
2009
4 IMF Working Paper, N. Klein. ‘Real Wage, Labor Productivity, and Employment Trends in South Africa: A Closer Look.’ South African Wage Report IMF 2012. Available at: www.imf.org/external/pubs/ft/wp/2012/wp1292.pdf Accessed 27 June 2012; IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres. aspx?sk=25342 Accessed 27 June 2012.
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Working conditions ‘A good working environment and challenging workload remain key motivators throughout students’ and members’ careers.’
Working hours On average, students work 44 hours per week, and members 47 hours per week, giving an overall average of 45 hours. While more than one-half (57%) of students and members expect no change in their working hours, two-fifths expect their working hours to increase over the coming 12 months. The primary reason is related to career progression – taking on more responsibility was cited by 68% of students and members. A secondary factor, mentioned by 45%, is understaffing/lack of resource.
The CIMA qualification strengthens your ability to move internationally with your career
agree
The CIMA qualification creates career opportunities for you
The survey reveals that the importance of financial reward and flexibility/work–life balance increase with CIMA level: financial reward is an important motivator for 36% of students at operational level, rising to 49% for those at T4 professional competence and 45% for qualified members. A similar rise in importance is seen for flexible hours: from 29% to 41% and 54% respectively. Conversely, the importance of training and development reduces from 34% for those at operational level to 18% for those at T4 professional competence level and 11% for members. However, a challenging workload and good working environment remain important throughout CIMA students’ and members’ careers.
90% agree
Motivators at work The key motivators at work for students and members are a good working environment (51%), flexibility/work–life balance (43%), financial reward (42%) and a challenging workload (41%).
94%
The CIMA qualification strengthens your ability to move across all areas of the business
83% agree
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Career plans Seeking new opportunities Mobility of students and members in South Africa remains strong, with 29% planning to find another job within six months and a total of 66% planning to move job within the next two years. Students at operational level are the most likely segment to seek new employment (81%).
plan to move abroad, the UK (54%) is the most frequently named destination, followed by Australia (42%) and the USA (31%). A new career opportunity (68%) remains the key reason for relocating, followed by improved salary (52%), the chance to experience a different culture (49%) and improved quality of life (45%).
‘Of those planning to move job, 87% plan to stay within South Africa’
Of those planning to move job, 87% plan to stay within South Africa. Among the 13% who
87% plan to stay in South Africa 66% 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 a broad mix of skill sets. Technical skills such as financial reporting are important, alongside personal development (which includes career planning and time management) and project management. However, managerial skills – particularly
leadership and strategic planning – are the skill sets students most wish to develop. While leadership and strategic planning skills remain important at all levels of experience, acquiring managerial ‘people’ skills becomes more important for qualified members: 35% mention skills for developing others and 31% mention persuading and influencing.
Figure 5: Top skills that students and members wish to develop Part qualified students
Qualified members
56% Strategic planning and implementation
44% Strategic planning and implementation
51% Leadership
44% Leadership
46% Personal development
35% Skills for developing others
40% Financial reporting
35% Personal development
40% Decision making
31% Persuading and influencing
39% Project management
27% Communication
35% Risk management
25% Risk management
33% Communication
‘51% of students want to focus on leadership skills, indicating strong ambition early in their careers.’
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Appendix Part qualified students
Qualified members
South Africa
Base
Basic salary (R per annum)
Bonus (R per annum)
Total package (R per annum)**
Base
Basic salary (R per annum)
Bonus (R per annum)
Total package (R per annum)**
Total
399
366,284
34,519
400,804
227
774,273
105,784
880,057
