cima salary survey 2012 · 1 foreword despite the ongoing economic turbulence in the british...

CIMA salary survey 2012 United Kingdom

1

ForewordDespite 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

2

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

‘On average CIMA Fellows (FCMAs) will earn £139k in 2012.’

‘74% of part qualified students say the CIMA qualification strengthens their position in salary negotiations.’

£139,349+

£49,979

£34,125£31,179£28,889

£39,672

CIMA memberFCMA, CGMA

CIMA member ACMA, CGMA

Strategic T4 professionalcompetence

Management

START: £28,000*AVERAGE SALARYOffice for National Statistics, 2012

Operational

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.

3

Salary patterns

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.

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.

Figure 2: Annual remuneration by job role

£42,327£39,515

£40,052£37,927

£39,331£37,539

£35,258£33,200

£34,085£32,668

£33,852£32,493

£33,183£31,678

£32,708£30,987

£28,772£27,862

£25,477£24,358

£24,354£23,837

£23,471£22,904

£22,931£22,424

£32,944£31,432UK total - part qualified students

Financial controller

Finance manager

Projectaccount/manager

Financial/businessanalyst

Financial accountant

Managementaccountant

Other accountant*

Other finance role

Accountant

Other assistant accountant

Assistant management accountant

Finance assistant

Accounts assistant/executive

*Caution: Low base, under 30.Lowest base: Other accountant, (26*)Highest base: Management accountant (264)

£180,946£157,247

£113,462£102,198

£89,961£81,346

£78,488£70,144

£66,581£59,563

£55,760£51,009

£52,858£48,568

£50,895£47,131

£47,231£43,498

£39,817£38,029

£38,296£36,226

£37,775£35,687

£58,434£53,309UK total -qualified members

CFO*

Financial director

Director (non-finance)/COO/partner*

Head/chief/VP (of accounting/finance)

Manager (non-finance)

Financial controller

Finance manager

Project accountant/manager

Financial analyst/business analyst

Financial accountant

Managementaccountant

Accountant

Basic salary Bonus Total

*Caution: Low base, under 30.Lowest base: Director (other than of finance)/COO/partner (13). Highest base: Management accountant (293)

‘Part qualified students working

as management accountants earn £34k on average.’

4

‘Part qualified students and members working in London can expect to earn around 20% more than the average UK salary.’

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

ScotlandPart qualified: £32,127Qualified: £60,725

Northern Ireland*Part qualified: £23,905Qualified: £43,539

North WestPart qualified: £27,442Qualified: £47,260

East and WestMidlandsPart qualified: £29,283Qualified: £60,408

East of EnglandPart qualified: £29,858Qualified: £46,080

South WestPart qualified: £30,795Qualified: £43,149

LondonPart qualified: £38,863Qualified: £71,957

South EastPart qualified: £35,159Qualified: £63,214*Caution: Low base, under 30.

North East andYorkshire/HumbersidePart qualified: £29,005Qualified: £36,719

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.

5

Annual remuneration by sector

CIMA students and members working in the following sectors will typically earn more than the average UK salary package:

• 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).

Compared to the average UK total salary package for qualified members (£58,434),

those working in ICT, technology and telecoms earn 31% more and those working in banking earn 16% more.

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.

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.

Figure 4: 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.’

£43,729£40,244

£38,401£36,434

£37,871£36,351

£37,089£34,152

£35,661£33,290

£33,865£31,796

£33,073£32,281

£32,648£31,328

£32,073£30,206

£32,055£30,095

£31,584£30,670

£31,250£29,621

£30,514£29,356

£30,261£30,183

£29,871£28,091

£29,849£29,317

£29,549£29,338

£28,500£27,586

£32,944£31,432UK total - part

qualified members

Banking

ICT, technologyand telecoms

Businessservices

Oil, gas andalternative energy

Financialservices

Travel, leisureand tourism

Healthcare andpharmaceutical

Constructionand property

Natural resources, energy/fuel and utilities*

Retail and consumer goods

Media, marketing,advertising and PR

Transport, distributionand storage

Manufacturing and engineering

Education*

Sales, purchasing andsupply chain*

Not-for-profit/charity

Public sector

Accountancy

£76,454£68,868

£69,219£61,531

£68,962£60,493

£68,882£61,794

£67,989£60,906

£64,997£57,351

£56,720£51,493

£53,344£49,906

£52,501£48,007

£49,519£46,866

£48,577£47,462

£47,641£46,559

£47,567£44,286

£46,940£42,770

£44,868£41,347

£44,641£44,107

£58,434£53,309UK total -

qualified members

ICT, technologyand telecoms

Oil, gas andalternative energy

Healthcare andpharmaceutical

Businessservices

Banking

Financialservices


Media, marketing,advertising and PR

Transport, distributionand storage

Constructionand property

Not-for-profit/charity

Public sector

Natural resources,energy/fuel and utilities

Retail andconsumer goods

Travel, leisureand tourism

Education*

*Caution: Low base, under 30.Lowest base: Sales, purchasing and supply chain (24*).

*Caution: Low base, under 30.Lowest base: Education (28*).

Basic salary Bonus Total

6

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

40%38%

65%

32%33%

49%

30%30%

54%

30%29%

58%

19%19%

32%

35%34%

26%25%

19%20%

14%12%

Budget cuts

Increase in the overallprofitability of the business*

Job cuts

Salary freezes

Recruitment freeze

Salary increases*

Increase in staff recruitment*

Cuts in funding for staff training

Increased spend on staff training*

2012 2011 2009*Indicator not featured in 2009.

7

Working conditions

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.

‘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.’

The CIMA qualification

creates career opportunities for you 95%

agree

The CIMA qualificationstrengthens your abilityto move internationally

with your career 82%agree

The CIMA qualificationstrengthens your abilityto move across all areas

of the business 74%agree

8

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%).

‘42% of students want to focus on leadership skills, indicating strong ambition even at the start of their careers.’

58% are looking to move job within the next two years, of which…

87% plan to stay in the UK

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% Project management 27% Skills for developing others

9

Appendix


UK Base Basic salary (£ per

annum)

Bonus (£ per

annum)

Total package (£ per

annum)**

Base Basic salary (£ per

annum)

Bonus (£ per

annum)


annum)**

Total 1138 31,432 1,512 32,944 1250 53,309 5,125 58,434

Age

<25 yrs 158 25,676 1,166 26,842

25–34 yrs 709 31,623 1,550 33,173

35–44 yrs 215 34,794 1,776 36,570

45+ yrs 56 33,857 1,128 34,985

Age

< 31 yrs 451 39,302 2,884 42,186

31–35 yrs 363 46,374 3,882 50,256

36–40 yrs 179 52,108 4,881 56,989

41-50 yrs 187 70,979 7,966 78,946

51+ years 70 96,849 12,567 109,416

Gender

Male 585 32,267 1,876 34,143 737 58,951 6,551 65,501

Female 553 30,525 1,119 31,644 513 44,580 2,919 47,499

Level

Operational 296 27,762 1,127 28,889

Management 287 29,895 1,284 31,179

Strategic 251 32,570 1,555 34,125

T4 professional competence

304 37,416 2,256 39,672

Associate 1219 46,146 3,833 49,979

Fellow 31 121,855 17,494 139,349

Size of organisation

Micro/small (1–50 employees)

99 29,503 911 30,414 89 55,312 4,750 60,062

Medium (50–249 employees)

177 30,959 1,221 32,180 171 45,375 2,969 48,345

All Large (250+ employees)

862 31,770 1,649 33,419 990 54,509 5,548 60,057

250−999 187 28,958 1,150 30,108 170 59,138 5,132 64,270

1,000–9,999 283 30,820 1,422 32,242 282 50,101 4,310 54,411

10,000 or more 392 33,811 2,053 35,864 538 55,258 6,331 61,589

*Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

10



annum)

Bonus (£ per

annum)


annum)**


annum)

Bonus (£ per

annum)


annum)**

Total 1138 31,432 1,512 32,944 1250 53,309 5,125 58,434

Experience since enrolling

Up to 1 year 79 26,013 1,205 27,218

1− 2 years 256 27,099 1,178 28,277

2–3 years 223 30,829 1,792 32,621

3–4 years 155 33,945 1,563 35,508

4–5 years 105 33,076 1,728 34,805

5+ years 255 36,695 1,724 38,420

Experience since qualifying

Up to 1 year 478 37,735 2,258 39,994

1–3 years 440 45,258 3,446 48,704

4–9 years 173 61,096 6,997 68,093

10–19 years 105 73,413 9,336 82,749

20+ years 54 117,904 16,666 134,570

Industry

Accountancy 45 27,586 914 28,500 ***

Banking 54 40,244 3,485 43,729 79 60,906 7,082 67,989

Business services 35 36,351 1,520 37,871 54 61,794 7,088 68,882

Construction and property 53 31,328 1,320 32,648 60 46,866 2,653 49,519

Education 28* 30,183 78 30,261 28* 44,107 533 44,641

Financial services 96 33,290 2,370 35,661 106 57,351 7,646 64,997

Healthcare and pharmaceutical

69 32,281 792 33,073 64 60,493 8,469 68,962

ICT, technology and telecoms

63 36,434 1,967 38,401 89 68,868 7,586 76,454


169 29,356 1,158 30,514 181 51,493 5,226 56,720

Media, marketing, advertising and PR

52 30,670 915 31,584 61 49,906 3,438 53,344

Natural resources, energy/fuel and utilities

28* 30,206 1,867 32,073 42 44,286 3,281 47,567

Not-for-profit/charity 41 29,317 532 29,849 46 47,462 1,115 48,577

Oil, gas and alternative energy

33 34,152 2,937 37,089 53 61,531 7,688 69,219

Public sector 103 29,338 212 29,549 114 46,559 1,082 47,641

Retail, consumer goods 141 30,095 1,961 32,055 139 42,770 4,170 46,940

Sales, purchasing, supply chain

24* 28,091 1,780 29,871 ***

Transport, distribution and storage

40 29,621 1,629 31,250 46 48,007 4,494 52,501

Travel, leisure, tourism 41 31,796 2,069 33,865 33 41,347 3,521 44,868


11



annum)

Bonus (£ per

annum)


annum)**


annum)

Bonus (£ per

annum)


annum)**

Total 1138 31,432 1,512 32,944 1250 53,309 5,125 58,434

Region

East of England 57 29,028 830 29,858 52 43,077 3,003 46,080

East Midlands 74 28,019 1,215 29,234 68 45,706 4,571 50,277

London 313 36,501 2,362 38,863 357 64,898 7,059 71,957

North East 33 28,321 1,143 29,464 32 34,063 1,367 35,430

North West 111 26,594 848 27,442 148 43,690 3,570 47,260

Northern Ireland 20* 23,733 172 23,905 25* 41,271 2,268 43,539

Scotland 53 30,569 1,558 32,127 78 55,088 5,636 60,725

South East 196 33,425 1,734 35,159 215 57,587 5,627 63,214

South West 113 29,407 1,388 30,795 98 41,602 1,547 43,149

Wales 19* 29,476 930 30,406 ***

West Midlands 80 28,479 850 29,329 83 59,828 8,128 67,957

Yorkshire/Humberside 69 28,096 663 28,759 83 35,223 1,975 37,198

London + South East 509 35,334 2,124 37,458 572 62,100 6,511 68,611

Job role

Accountant 41 27,862 910 28,772 80 35,687 2,088 37,775

Financial accountant 52 32,668 1,417 34,085 62 38,029 1,788 39,817

Management accountant 264 32,493 1,359 33,852 293 36,226 2,070 38,296

Project accountant/manager

32 37,539 1,792 39,331 61 47,131 3,764 50,895

Other accountant 26* 31,678 1,505 33,183

Finance manager 94 37,927 2,125 40,052 209 48,568 4,290 52,858

Accounts assistant/accounts executive

53 22,424 507 22,931

Finance assistant 42 22,904 567 23,471

Assistant management accountant

125 23,837 517 24,354

Other assistant accountant 49 24,358 1,119 25,477

Financial analyst/business analyst

183 33,200 2,058 35,258 228 43,498 3,733 47,231

Financial controller 67 39,515 2,812 42,327 109 51,009 4,751 55,760

Other finance role 45 30,987 1,721 32,708

CFO 14* 157,247 23,699 180,946

Financial director 52 102,198 11,264 113,462

Director (other than of finance)/COO/ partner

13* 81,346 8,615 89,961

Head/chief/VP (of accounting or finance)

32 70,144 8,344 78,488

Manager (non-finance) 46 59,563 7,018 66,581


12

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 2,388 from the UK.

The response data presented in this report has been weighted to reflect the profile of CIMA part qualified students and qualified members by market and level of study. 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

cima salary survey 2012 · 1 foreword despite the ongoing economic turbulence in the british...

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