CIMA SALARY SURVEY India

Transcription

1 CIMA SALARY SURVEY 2013 India

2 1 Foreword CIMA s members and students are looking forward to rapid career progression and salary - despite the continuing economic uncertainty. This optimistic outlook reflects the growing demand for professionally qualified management accountants who are focused on helping organisations in both the public and private sectors - to develop strategies that are successful and sustainable in the long term. Overall, our members and students told us that they are heading for a dynamic future with promotion and attractive earnings packages on the horizon. Their confidence may well have been boosted by CIMA s joint venture with the American Institute of Certified Public Accountants. The result of this alliance is a new global designation, the Chartered Global Management Accountant (CGMA). The CGMA designation is rapidly gaining globally acceptance as a mark of unparalleled excellence in business and financial management. On average, CIMA members in India are earning over Rs. 30 lakhs per annum, while students on average earn Rs lakhs per year. The 2013 survey figures for average total pay package for students represent an 8.8% increase compared with last year. Over the next 12 months 95% of part qualified CIMA students in India expect to receive a salary increase at a rate of 13.6%, which is above the price inflation forecast of 10.8%. Ambition is a key driver for both members and students, as 57% of members and 63% of students said they want to develop their leadership skills. Almost all of our members and students (97%) expect to be in a different role in three years time, and well over half of students (59%) expect to be in a senior, finance-related role. The growing diversity of CIMA members as business partners is reflected by our members, 15% of whom anticipate being in a very senior, non-finance role such as CEO or leading a non-finance division. Our survey also revealed a preference for a more flexible approach to career progression. Key workplace motivators for both members and are flexibility/work-life balance (47%), a good working environment (45%), a challenging workload (45%) and the scope of the role (42%). Combined, these responses give a clear indicator to employers of what they should be offering if they want to attract the very best in management accounting expertise. Fiona Harvey Regional Director India CIMA

3 2 Salary survey results India average salary figures In 2013, qualified CIMA members in India are earning on average Rs lakhs in basic annual salary plus Rs.3.69 lakhs in bonus payments, totalling Rs lakhs per year. Part qualified students in India are earning on average Rs.9.79 lakhs in basic annual salary plus Rs.1.07 lakhs in bonus payments, totalling Rs lakhs. Salary satisfaction Among all members and students, 62% are satisfied with their salary, down from 66% in Salary increases anticipated The average salary for students has increased by 8.8% since Looking ahead, over the next 12 months 95% of part qualified students expect to receive a salary increase at a rate of Figure 1: Annual remuneration by CIMA level 13.6%, which compares well against the price inflation forecast of 10.8%. 1 It should be noted that 55% anticipate a smaller than average increase. Among CIMA members, 94% expect a salary increase, at an average rate of 9.1%. Qualification boosts salary deals 78% of all students at the operational/ management level agree that the CIMA qualification strengthens their position in salary negotiations. The CIMA qualification helps me grow professionally while providing financial growth and stability. Male student, finance analyst/ business analyst in the oil, gas and alternative energy sector. On average qualified CIMA members earn c. Rs.30 lakhs per year. 78% of all students at operational/ management level agree that the CIMA qualification strengthens their position in salary negotiations Rs lakhs Rs lakhs Rs.9.93 lakhs Rs lakhs Operational/ Management Strategic T4 professional competence Total qualified members 1 IMF World Economic Outlook April Available at: Accessed 25 June 2013.

4 3 87% of CIMA students and members are employed in large businesses with 250 or more employees, where average earnings are higher. Salary patterns Annual remuneration by city Our survey suggests that students working in some of India s largest cities Bangalore, Chennai and Mumbai earn 9%, 9% and 13% more in total salary respectively than the average for CIMA students in India. The average total salary for Delhi is in line with the India average. Figures suggest that the average total salary for Chennai is boosted by a strong presence in the oil, gas and alternative energy sector, where large bonus payments are expected. Annual remuneration by business size 87% of CIMA members and students are employed in large businesses with 250 or more employees. On average, these large businesses pay students Rs lakhs, which is one-fifth more than students employed in micro/small/ medium businesses are paid (Rs.9.16 lakhs). The higher averages salaries in large businesses can be explained by the greater availability of senior roles and the predominance of high-paying industries banking, and ICT/ technology and telecoms in contrast to the prevalence of accountancy practices among micro/small/medium businesses. Figure 2: Part qualified students annual remuneration by city Delhi (21*) Basic salary: Rs.9.68 lakhs Bonus: Rs.0.91 lakhs Total: Rs lakhs Mumbai (27*) Basic salary: Rs lakhs Bonus: Rs.1.14 lakhs Total: Rs lakhs Bangalore (25*) Basic salary: Rs lakhs Bonus: Rs.1.00 lakhs Total: Rs lakhs Chennai (36) Basic salary: Rs lakhs Bonus: Rs.1.36 lakhs Total: Rs lakhs *Caution: low base, under 30.

5 4 Business and the economy Expectations for future pay and conditions The economy grew by 4% in 2012, undershooting forecasts of around 5%. Growth for 2013 is predicted to be higher at 5.7%, rising to 6.2% and 7.0% in succeeding years. 2 The rate of inflation remains challenging, however, and amid an uneven recovery in Western markets affecting export trade and multinationals, CIMA members and students remain mildly cautious. As in 2012, around one-third anticipate an increase in business profitability, with around one-fifth expecting a fall in business profits. Restrictions on business expansion are expected to be managed largely through budgets, headcounts and salaries. In 2013, 11% of members and students anticipate job cuts within the businesses in which they work, up from 8% in More positively, a recruitment freeze is anticipated by 19%, but this is outweighed by 23% expecting an increase in recruitment. Furthermore, while the proportion anticipating a freeze on salaries has almost doubled since 2011 to 13%, salary increases across the board are anticipated by around one-quarter. Figure 3: Expectations for the business environment over the coming 12 months selected indicators Increase in the overall profitability of the business 36% 34% 50% Budget cuts 9% 29% 27% Salary increases 26% 25% 39% Increase in staff recruitment 23% 24% 52% Increased spend on staff training 21% 18% 31% Recruitment freeze Fall in the overall profitability of the business 4% 5% 19% 17% 19% 17 Salary freezes Job cuts 13% 10% 7% 11% 8% 2% IMF World Economic Outlook April Available at: Accessed 25 June 2013.

6 5 88% of members and students agree that the CIMA qualification strengthens their ability to move internationally with their career. Working conditions Working hours On average, Indian members and students work 49 hours per week, although around twofifths (39%) work longer hours. Overall, 49% of members and students expect their working hours to increase over the coming 12 months, while the same proportion expect no change. The most influential reason for increasing hours is related to career progression: taking on more responsibility/pressure was cited by 67%. Other contributory factors are understaffing/lack of resource (39%), company culture (37%) and company growth (32%). Motivators at work The key motivators at work for both members and students are flexibility/work-life balance (47%), a good working environment (45%), a challenging workload (45%) and the scope of the role (42%). The CIMA qualification strengthens my ability to move internationally with my career 88% agree This is one of the most relevant and desirable business qualifications for working finance professionals to enhance [their] business knowledge. [The] CIMA qualification enhances the horizon of finance professionals and upgrades them from routine finance activities to strategic business finance, which paves the way to lead a business from all frontiers. Male student, financial controller in the retail, consumer, FMCG, food and drink industry. The CIMA qualification creates career opportunities for me 81% agree The CIMA qualification strengthens my ability to move across all areas of the business 81% agree

7 6 Career plans Seeking new opportunities Further suggesting the presence of a high degree of mobility and promotion prospects is the fact that only 3% of qualified members and part qualified students see themselves in the same role in three years time. Among CIMA students, 59% anticipate being in a senior finance related role in three years time, such as finance manager, financial director, financial controller, CFO, head of accounting/finance or self-employed practitioner. The [CIMA] curriculum is in line with my career objective to be a business finance professional rather than a financial accountant. I strongly believe that it will eventually help me achieve my ultimate career goal of becoming a CEO. Male student, financial director in the financial services industry. Among qualified members, 15% anticipate being in a very senior non-finance role such as CEO/MD, head, chief or VP of a non-finance division in three years time. Among all members and students, 42% are planning to find another job over the next six months and a total of 76% are planning to move job within the next two years, one-half of whom wish to relocate. A global career Among the 53% of members and students who plan to seek employment abroad, twothirds are considering the UK (65%). Other popular planned destinations are Australia (47%), Singapore (44%), the USA (38%) and Canada (31%). CIMA is a globally recognised professional body for management accountants. Becoming CIMA [qualified] will enable me to move across the world without limitations and pursue a career of my choice. Male student, finance analyst/business analyst in the ICT, technology and telecoms industry. The key reason for wanting to relocate is seeking improvements in salary (79%), followed by quality of life (72%), and better employment opportunities (62%). Significant proportions also look forward to a new employment opportunity (51%), improved employment conditions (46%) and experiencing a different culture (45%). 97% of all members and students anticipate being in a new role in the next three years. 59% of CIMA students expect to take up a senior role in finance within three years. 76% are looking to move job within the next two years, of which 47% plan to stay in India 53% plan to move abroad

8 7 Over the coming 12 months nearly two-thirds of part qualified students want to develop their leadership skills. Building skill sets Over the coming 12 months, part qualified students will be focusing on developing a broad range of managerial and management accounting skills. Nearly two-thirds (63%) want to develop their leadership skills and more than one-half (54%) will focus on strategic planning and implementation and decision making skills (52%). In addition to technical skills such as financial reporting, interpersonal skills will be important: communication, skills for developing others and relationship management. Among students at the T4 professional competence level, development of decision making skills is the priority. It was mentioned by 70% at this level, along with leadership (68%) and strategic planning and implementation (65%). For qualified CIMA members, the top two priorities remain the same as for students overall: both leadership and strategic and implementation are mentioned by 57%. Beyond these, there is a distinct focus on managerial skills sets and interpersonal skills. The CIMA qualification ensures a rounded personality. It helps in cultivating not only accounting and financial skills but also other skills befitting a leader in an organisation. I realised early on that this qualification helps build invaluable skills like decision making, analysis of data and communication. Female student, finance analyst/business analyst in the ICT, technology and telecoms industry. Figure 4: Top skills that students and members wish to develop 63% Leadership Part qualified students 54% Strategic planning and implementation 57% Leadership Qualified members 57% Strategic planning and implementation 52% Decision making 51% Skills for developing others 44% Personal development 41% Problem solving 40% Communication 34% Financial reporting 33% Skills for developing others 37% Relationship management 37% Personal development 37% Persuading and influencing 31% Change management 29% Project management 29% Communication 26% Risk management

9 8 Appendix Note: Segmented data for qualified members is unavailable due to low base numbers. India Base Basic salary (Rs. lakhs per annum) Part qualified students Bonus (Rs. lakhs per annum) Total package (Rs. lakhs per annum)** Total Age Up to 25 years years years 24* years *** Gender Male Female* 13 *** *** *** Level Operational /Management Strategic T4 professional competence Experience since enrolling Up to 1 year 18* years years years 22* or more years 24* Size of organisation Micro/small/Medium (1 249 employees) 19* All Large (250+ employees) *** *** *** 1,000 9, ,000 or more Major city Bangalore 25* Chennai Delhi 21* Mumbai 27* Job role Financial analyst/business analyst *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

10 9 Technical information Survey responses were collected by CIMA among active qualified members and part qualified students between 25 April and 19 May 2013, via an online survey. The data was analysed and reported by an independent specialist consultancy. Approximately 25,000 qualified members and just over 21,000 part qualified students were selected and invited to participate in the international study, which covers 23 markets in total. Within the study period 6,039 responded internationally, including 182 from India. The response data presented in this report has been weighted to reflect the profile of CIMA qualified members and part qualified students 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 For further country specific analysis and reports, visit CIMA MY JOBS at 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.

11 CIMA India Unit 1-A-1, 3rd Floor, Vibgyor Towers, C-62, G Block, Bandra Kurla Complex, Bandra (East), Mumbai T: +91 (0) E: india@cimaglobal.com September 2013, Chartered Institute of Management Accountants