CIMA salary survey 2012

CIMA salary survey 2012 Sri Lanka

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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 earnings of Rs.56,000 while members at executive level are enjoying salary and bonus packages that can reach levels around the Rs.500,000 mark. Many of our students are clearly aiming for the top from the outset of their studies. Nearly two thirds 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. Three-quarters of students and 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 Rs.33,000 in the first few years after qualifying. This rises to Rs.70,000 over the next six years. Beyond that, the average salary continues to rise by around Rs.200,000 over the following 30-year career span. Looking to the next 12 months, our students and members are showing a mild optimism that the economy will rally. This is reflected in an anticipated average earnings increase of 12.3% - which in real terms will be above inflation forecasts of around 7-9%%. 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 92% said that it strengthened their chances of adding an international dimension to their CV. Combined with the 86% 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.

Bradley Emerson Regional Director – Middle East, South Asia and North Africa CIMA

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Salary survey results Sri Lanka average salary figures In 2012 qualified CIMA members in Sri Lanka are earning on average Rs.229,480 in basic monthly salary plus Rs.25,262 in bonus payments, totalling Rs.254,742 per month. Part qualified students in Sri Lanka are earning on average Rs.50,649 in basic salary plus Rs.5,340 in bonus payments, totalling Rs.55,989.

CIMA boosts salary deals Three-quarters (75%) of all students and members agree that the CIMA qualification strengthens their position in salary negotiations. The proportion rises to 82% among part qualified students only. Salary increases anticipated

Salary satisfaction is linked to CIMA level 72% of qualified members are satisfied with their current salary, an increase of four percentage points since 2011. At 53%, satisfaction with salary is lower among all part qualified students and has decreased by three percentage points since 2011.

CIMA students and members are optimistic about personal salary rises over the next 12 months, with 89% expecting a pay rise at an average rate of 12.3%, which in real terms will be above price inflation forecasts of around 7% to 9%.1 Monthly remuneration by sector

The survey shows a clear link between CIMA level and satisfaction with salary: 39% of students at operational and management levels are satisfied, rising to 56% of those at strategic level and 62% of students at T4 professional competence level. 70% of Associate members and 83% of Fellows are satisfied with their salary. This link reflects the wide difference in salary ranges earned by part qualified students compared to qualified members.

The survey findings indicate that members working in the manufacturing and engineering sector earn more than the national average for CIMA members, while those in financial services earn slightly less than average; the figure for the banking sector is roughly on a par with the national average.

Figure 1: Monthly remuneration by CIMA level

Rs.467,604 Rs.200,954 Rs.62,077

Rs.67,540

Strategic

T4 professional competence

Rs.36,223

Operational/ management

‘On average CIMA Fellows (FCMAs) will earn Rs.468k in 2012.’

CIMA member ACMA, CGMA

CIMA member FCMA, CGMA

1 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 29 June 2012; Central Bank of Sri Lanka. Selected Economic Indicators: March 2012. Available at: www.cbsl.gov. lk/pics_n_docs/_cei/_docs/ei/mei_2012_03.pdf Accessed 29 June 2012.

‘82% of part qualified students say the CIMA qualification strengthens their position in salary negotiations.’

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Figures suggest that students working in the accountancy and financial services sectors earn significantly less than the national average total salary for part qualified students, while those in banking and manufacturing earn more than average.2 Average monthly salary for the accountancy sector is likely to be low because this is where students tend to begin their career. Monthly remuneration by business size Typically, students working in micro/small/ medium businesses will earn 14% less than the monthly student average for Sri Lanka. However, the 70% of students working in large businesses have total earnings of 5% above the average monthly figure. Similarly, qualified members working in micro/ small businesses earn 16% less than the monthly average for members, while those in large businesses earn 6% more.

Business and the economy Expectations for the business environment Sri Lanka’s strong GDP growth is expected to continue in 2012. However, amid uncertainty in the global markets and with Government policy geared to reducing the trade deficit, curbing import related credit growth and controlling fluctuating price inflation, there is some uncertainty about the outlook for Sri Lanka over the coming 12 months.3 CIMA students and members are slightly less optimistic about the business outlook than a year ago. The most positive expectations for the coming year are for an increase in the overall profitability of the business in which CIMA students or members work (46% expect this) and salary increases (30%). However, this optimism is offset to some extent by notable proportions expecting negative outcomes such as budget cuts (28%), recruitment freezes (20%), salary freezes (13%) and a fall in business profits (22%).

Figure 2: Expectations for the business environment over the coming 12 months − selected indicators 46% 52%

Increase in the overall profitability of the business 30%

Salary increases Budget cuts

21%

Fall in the overall profitability of business

13%

Job cuts

28%

22%

20% 15%

Recruitment freeze Salary freezes

37%

7%

13%

10% 8% 2012

2011

2 Industry sector analysis is based on low bases of less than 30 members but represents statistically significant differences against the national average salary for members, or against earnings for the accountancy sector. 3 ft.com: Neil Munshi, ‘Sri Lanka: first rate rise in 5 years’. February 3, 2012 9:36 am. Available at: http://blogs.ft.com/ beyond-brics/2012/02/03/sri-lanka-first-rate-rise-in-5-years/#axzz1zAbo6OD0. Accessed 29 June 2012; Central Bank of Sri Lanka: Selected Economic Indicators: March 2012. Available at: www.cbsl.gov.lk/pics_n_docs/_cei/_docs/ ei/mei_2012_03.pdf Accessed 29 June 2012; IMF World Economic Outlook, April 2012. Available at: www.imf.org/ external/pubs/cat/longres.aspx?sk=25342 Accessed 29 June 2012.

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Working conditions

Career plans

Working hours

Seeking new opportunities

On average, both students and members work 46 hours per week.

Mobility of students and members in Sri Lanka remains strong, with 23% planning to find another job within six months and a total of 61% planning to move job within the next two years.

While more than one-half (57%) of students and members expect no change, two-fifths (37%) 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 80% of students and members. A secondary factor, mentioned by 47%, is company growth. Motivators at work The key motivators at work for students and members are a good working environment (48%), flexibility/work-life balance (42%) and a challenging workload (39%). The survey reveals differing workplace motivators between males and females. About one-half of students and members of both sexes say a good working environment is important, but this is the primary motivator for males and the secondary motivator for females. A challenging role and the scope of the role are somewhat more important to female students and members than to their male counterparts. Conversely, financial reward, promotion prospects and a benefits package are more important to male students and members than to their female counterparts. The survey indicates that the importance of financial reward and training and development tend to reduce over time, while having a challenging workload increases in importance. An exception is among those with 4–5 years of post-qualification experience, where increased importance of financial rewards and promotion prospects is seen.

The likelihood of seeking new employment is strongly linked to age and years of experience. Students aged under 25 years are the most likely segment to seek new employment (85%), followed by students aged 25–34 (70%) and those aged 35+ years (60%). 52% of members plan to seek new employment in the next two years, falling to 25% of those aged 41+ years. The CIMA qualification creates career opportunities for you

95% agree

The CIMA qualification strengthens your ability to move internationally with your career

92% agree

The CIMA qualification strengthens your ability to move across all areas of the business

86% agree

‘Taking on more responsibility is the key reason that students and members expect increased working hours in the coming year.’

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Of those planning to move job, one-third plan to move abroad, but there is a link to CIMA level, with those at the strategic and T4 professional complete levels (45%) much more likely to emigrate than those at the operational and management levels (25%). Among all those who plan to move abroad, Australia (54%) is the most frequently named

destination, followed by the UAE (35%), UK (34%) and Qatar (23%). The key reason for wanting to relocate is related to improved lifestyle and prospects − better employment opportunities (67%), improved salary (66%), improved quality of life (65%) and a new career opportunity (59%) are the top mentions in our survey.

66% plan to stay in the Sri Lanka 61% are looking to move job within the next two years, of which… 34% plan to move abroad

‘65% of students want to focus on leadership skills, indicating strong ambition early in their careers.’

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 and problem solving are important, alongside personal development (which includes career planning and time management) and communication. At the same time, managerial skills –

particularly leadership and decision making – are also important. For qualified members, by far the most important skill set to develop is leadership. Strategic planning and relationship management become more important relative to other skill sets including decision making and risk management.

Figure 3: Top skills that students and members wish to develop Part qualified students

Qualified members

65% Leadership

62% Leadership

57% Decision making

46% Strategic planning and implementation

56% Personal development

40% Personal development

49% Risk management

39% Relationship management

47% Problem solving

39% Risk management

45% Strategic planning and implementation

39% Decision making

41% Communication

36% Communication

40% Financial reporting

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Appendix Part qualified students

Qualified members

Sri Lanka

Base

Basic salary (Rs. per month)

Bonus (Rs. per month)

Total package (Rs. per month)**

Base

Basic salary (Rs. per month)

Bonus (Rs. per month)

Total package (Rs. per month)**

Total

147

50,649

5,340

55,989

165

229,480

25,262

254,742