ima The Association of Accountants and Financial Professionals in Business 2015 United Arab Emirates Salary Survey

Transcription

1 ima The Association of Accountants and Financial Professionals in Business 2015 United Arab Emirates Salary Survey

2 2015 United Arab Emirates Salary Survey About IMA IMA, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 80,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/ Africa. For more information about IMA, please visit June 2016 Institute of Management Accountants 10 Paragon Drive, Suite 1 Montvale, NJ, UAE Salary Survey 2

3 2015 United Arab Emirates Salary Survey About the Author Kip Krumwiede, CMA, CPA, Ph.D., is the director of research for IMA. Kip received his Master of Accounting degree from Brigham Young University and his Ph.D. from the University of Tennessee. Prior to joining IMA, Kip spent 18 years as a management accounting professor at universities, including Brigham Young University, Boise State University, and the University of Richmond, and worked for two Fortune 500 companies in a variety of positions. In addition, Kip has published more than 20 articles in both practice and academic journals. He can be reached at (201) or kkrumwiede@imanet.org Global Salary Survey For many years, IMA (Institute of Management Accountants) has conducted the very popular salary survey of its members around the world, enabling its members to compare their compensation to others, assess the value of education and certification, and more. The global report presents high-level results from this survey and compares compensation levels and job satisfaction across the globe. This is the second year IMA conducted a single global salary survey, making global trends easier to track and enhancing regional comparison. Additionally, we also look at other factors that contribute to job satisfaction, such as hours worked, opportunity for advancement, and work-life balance. Using the survey data, IMA is also able to provide country- and region-specific reports, such as this report for respondents in the United Arab Emirates. All the reports will be posted on IMA s Thought Leadership website at UAE Salary Survey 3

4 IMA 2015 Salary Survey Report: United Arab Emirates For the second consecutive year, IMA has conducted a single, combined global salary survey of its members. This report examines in detail the responses of members located in the United Arab Emirates (UAE). Not only does this analysis include comparisons to last year s survey results, but it also incorporates the results from previous salary surveys that focused only on UAE members. Key findings for UAE respondents in 2015 include: Overall, median base salary for IMA members in the UAE is the highest in the Middle East/Africa region, and median total compensation is in the top three. Women in the age group reported a higher overall median compensation than men, but a gender pay gap continues to exist in the older age ranges. Fifty-seven percent of respondents received a raise in the past year, and the average raise was 12%. Seventy-four percent expect similar increases in the coming year. Raises in this year s survey are more modest compared to those in last year s survey. The average work week reported this year is The median is 48.0 hours, which is about the global average. About half the respondents said they are satisfied with their jobs. The most important factors overall to job satisfaction in the UAE are opportunity for advancement and salary. The number of respondents with the CMA (Certified Management Accountant) credential increased from 43% last year to 54% this year. CMAs in the UAE earn 30% more in median salary and 33% more in median total compensation than their non-cma counterparts. Respondent Demographics Table 1 presents the demographic characteristics of the survey respondents. Compared with respondents globally, UAE members are slightly younger and more likely to be male (82%). Nearly all (99%) possess at least a baccalaureate degree, and 45% have an advanced degree. Compared to last year, there is a higher concentration of respondents in senior management positions and fewer in lower management positions. They have spent about the same number of years in their field (11) and with their employer (4) as respondents globally. Overall, 54% hold a CMA credential, a big increase over last year s 43% and about the same percentage globally. How We Conducted the Survey In October-November 2015, survey invitations were sent to 2,764 IMA members in the UAE. For the purposes of the salary results, we considered only respondents who included salary information and indicated that they were either fulltime employees or self-employed. The survey was completed by 259 members (a 9.4% response rate). This report provides a summary of those responses UAE Salary Survey 4

5 Table 1: Respondent Demographics This Year Last Year Global Gender Female 18% 18% 35% Male 82% 82% 65% Age Mean Median Degree Baccalaureate 99% 99% 96% Advanced 45% 43% 41% Management Level Top management 5% 8% 10% Senior management 33% 24% 23% Middle management 48% 48% 32% Lower management/entry level 13% 19% 28% Academic position in college/university 1% 1% 7% Years of Experience (Median) Current position Current employer Years in field Certification CMA 54% 43% 53% CPA 11% 9% 15% Salary Results The mean salary for IMA members in the UAE is $53,371, and the median salary is $39, Mean total compensation (salary and additional compensation) is $65,075, and median total compensation is $45,500 (see Table 2). All of these are in the top three results in the Middle East/ Africa region, and the median salary of $39,197 is the highest in the region. These results are consistent with the overall Middle East/Africa regional results, where compensation is down 13% to 18% over last year, likely a reflection of the sharp decline in the price of oil. 1 All compensation data was collected in UAE dirham (AED) or U.S. dollars and is reported here in U.S. dollars. To convert to AED, multiply the U.S. dollar amounts by the exchange rate prevalent at the time the survey was conducted (approximately 3.67 AED per U.S. dollar on average for the month of November 2015: UAE Salary Survey 5

6 Table 2: 2015 vs Compensation Base Salary Total Compensation Base Salary Total Compensation Mean $53,371 $65,075 $61,768 $72,082 Median $39,197 $45,500 $48,000 $54,000 Dubai and Abu Dhabi accounted for 89% of UAE respondents (61% and 28%, respectively). Table 3 presents the annual base salary and total compensation for respondents in these two emirates. In the 2014 Global Salary Survey, average base salaries and total compensation in Abu Dhabi were 7% to 8% higher than in Dubai, while the median values were about the same. The difference in remuneration between the two emirates increased this year. Mean salary and total compensation in Abu Dhabi are 16% greater than in Dubai, while the opposite holds true for median compensation (17% and 8% lower, respectively). Table 3: Abu Dhabi and Dubai Salary and Compensation Salary Total Compensation Mean Median Mean Median Abu Dhabi $61,671 $39,197 $75,683 $45,131 Dubai $53,314 $47,441 $65,131 $48,996 Abu Dhabi as a Percentage of Dubai 116% 83% 116% 92% Gender Pay Comparison This year s study indicates a significant difference between the salary and compensation for men and women in the UAE (see Table 4). The median pay values for women are 65% and 72% of those for men, respectively. Last year s results for the UAE had a similar gap between women and men, and this year s results show that the gender pay gap still exists. Table 4: Salary and Compensation by Gender Base Salary Total Compensation Mean Median Mean Median Women $33,047 $31,303 $38,155 $35,441 Men $58,212 $48,000 $71,219 $48,996 Women as a Percentage of Men 57% 65% 54% 72% 2015 UAE Salary Survey 6

7 Traditionally, the gender pay gap has been narrower among younger respondents those in the early stages of their career. The good news is that the median salaries and total compensation for women in the UAE are a little higher than for men in the age range (see Table 5). Last year, women s median values in that age group were 75% of those for men. Unfortunately, women s median salaries and compensation this year are lower than men s in the age range, with a base salary gap of 85% and a total compensation gap of 81%. They are considerably lower in the age range (34% and 39%, respectively). The gender pay gap in the latter age group is worse than last year, when it was 54% and 58%, respectively. It should be noted, however, that there are only six women in this age group compared to 53 men, a difference which can lead to more variation in the women s results. So these numbers should be used with extreme caution. Table 5: Women s Compensation as a Percentage of Men s (Median) Age Range Base Salary Total Compensation Women Men Women % of Men Women Men Women % of Men $19,598 $19, % $21,232 $19, % $35,930 $42,259 85% $37,877 $46,609 81% $22,321 $65,328 34% $27,016 $68,594 39% Note: There were too few female respondents over the age of 50 to make a meaningful salary gap comparison. Compensation and Certification As is true throughout the world, CMAs in the UAE earn substantially more than their non-cma counterparts. CMAs in the UAE have a median salary of $48,996 and median total compensation of $51,282, compared to $37,812 and $38,702, respectively, for non-cmas. Thus, members with a CMA designation earn 30% more in salary and 33% more in total compensation than non-cmas (see Table 6). Table 6: Compensation by CMA Designation Mean Median Salary Total Compensation Salary Total Compensation CMAs $58,347 $73,597 $48,996 $51,282 Non-CMAs $47,609 $55,203 $37,812 $38,702 CMA Premium 23% 33% 30% 33% Note: CMA premium = (CMA compensation Non-CMA compensation) UAE Salary Survey 7

8 Along with the higher salary, respondents with a CMA designation found the certification to be valuable in other ways: 87% agree that the CMA designation creates career opportunities for me. 89% agree that the CMA strengthens my ability to move across all areas of business. 82% said that their CMA certification strengthens their position in salary negotiations. All of these percentages are higher than last year s results. Given all the benefits of the CMA designation, it s no wonder that 94% of non-cma respondents in the UAE plan to pursue the designation in the next year. A senior auditor wrote, I am trying to get the CMA in order to get a chance for a better opportunity. Compensation and Education Table 7 shows that respondents with an advanced degree earned significantly higher compensation overall than those with only a baccalaureate degree. It s clear that education pays a higher level of education tends to lead to higher earnings. Table 7: Compensation by Level of Education Base Salary Total Compensation Mean Median Mean Median Baccalaureate degree $53,856 $40,014 $65,695 $46,002 Advanced degree $58,913 $51,718 $73,787 $54,440 Supervisory Responsibilities As shown in Table 8, the higher a respondent s supervisory responsibility, the higher his or her compensation. For those who head a major department and report directly to the CEO or board, total median compensation is $69,645. There s a distinct drop in total median compensation for those who head a major department but do not report directly to the CEO or board ($45,500). Those who report directly to the CEO or board but have little supervisory responsibility earn a little less ($41,531). There s another distinct drop in compensation for those who have some supervisory responsibility but do not head a major department ($35,904) and for those with no supervisory responsibility ($36,257). In terms of the size of each group, the mix of supervisory categories is similar to last year. The biggest category is respondents who have supervisory responsibility but do not head a major department (34%), followed by the two groups who head a major department (25% and 23%) UAE Salary Survey 8

9 Table 8: Supervisory Responsibilities Head of a major department and reports directly to a CEO or board of directors Head of a major department but does not report directly to a CEO or board of directors Little or no supervisory responsibility and reports directly to a CEO or board of directors Some supervisory responsibility but not head of a major department No supervisory responsibility Age Base Salary Total Compensation Percentage of Respondents Mean Mean Median Mean Median This Year Last Year 39.4 $78,447 $64,084 $92,233 $69,645 23% 26% 39.0 $56,369 $45,076 $72,994 $45,500 25% 20% 33.6 $40,489 $34,420 $48,206 $41,531 6% 7% 34.1 $42,027 $32,664 $48,103 $35,904 34% 33% 32.9 $37,671 $33,807 $48,286 $36,257 12% 14% Responsibility Area Figure 1: Median Total Compensation by Responsibility Area $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 n Additional Compensation n Base Salary $0 General Management Government Accounting Internal Auditing Budgeting and Planning Finance Corporate Accounting Public Accounting General Accounting Cost Accounting Figure 1 shows the median salaries and total compensation by area of responsibility (for those areas with at least four respondents). Three stand out as the highest paid: general management, government accounting, and internal auditing. The median total compensation for respondents 2015 UAE Salary Survey 9

10 in each of these three areas exceeds $100,000. Compensation for the other areas is noticeably lower, with respondents in the next-highest responsibility, budgeting and planning, reporting a median total compensation less than $60,000. Those working in cost accounting are the lowest paid (median total compensation of $17,911). The highest median additional compensation was reported by those in general management ($29,942), and the lowest median additional compensation was reported by those in cost accounting ($3,539). Salary Increases Fifty-seven percent of UAE survey respondents received a raise in the past year. The average raise was 12%, and the median raise was 10% (see Table 9). A larger percentage of respondents (74%) expect a salary increase in the coming year, with the amounts of the increases expected to be similar. This is illustrated in Figure 2 (based on the values of the right two columns of Table 9). In last year s survey, however, there were relatively more people receiving and expecting raises in the 15% to 25% range. In this year s survey, there are many more expecting raises in the 5% to 15% range. This difference may be due in part to the belt tightening going on in the region as a result of falling oil prices. Raise Percentage At Least (%) Less Than (%) Table 9: Raises Received and Expected Received a Raise in the Past Year Expect a Raise in the Coming Year 0 5 8% 9% % 21% % 18% % 8% % 8% % 6% % 2% 100 >100 0% 0% 2015 UAE Salary Survey 10

11 Figure 2: Salary Raise Percentage: (Cumulative) Past Year vs. Next Year 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% >100 Past Year Next Year Note: The horizontal axis represents the percentage of the raise while the vertical axis represents the percentage of respondents receiving or expecting that raise percentage. Employee Satisfaction Compensation, while important, is only one factor contributing to employee satisfaction. Other factors examined in this survey include the number of hours worked, job satisfaction, and employee benefits. Hours Worked The average work week for UAE respondents is 45.8 hours (median 48.0 hours), which is almost the same as the overall Middle East/Africa region average (45.9) and global average (46.0). When asked how their hours worked had changed in the past year, 3% indicated a decrease in hours worked, 76% indicated their hours stayed the same, and 21% indicated they are working more hours. The reasons for working more hours varied, and respondents often cited multiple reasons. Of those reporting an increase in hours worked, 73% identified taking on more responsibility/more pressure on the job as contributing to their increased workload (see Figure 3). Hours worked also vary somewhat by supervisory level. Those who are a head of major departments or have some supervisory responsibility have a median of 48.0 hours per week (mean 46.3 hours). Those with little or no supervisory responsibility have a median of 40.0 hours per week (mean 43.5 hours) UAE Salary Survey 11

12 Figure 3: Reasons for Increase in Hours Worked Taking on more responsibility/more pressure Understaffing/lack of resources Company growth Company culture Change in role Current financial climate 0% 20% 40% 60% 80% Job Satisfaction This year we asked respondents to assess their overall job satisfaction. Overall, about half reported being very satisfied or more satisfied than dissatisfied with their job. Only 9% reported being very dissatisfied, and 18% reported being more dissatisfied than satisfied (26% were neutral). We also asked respondents to rate their satisfaction and the importance of various job attributes to their career satisfaction in management accounting. Figure 4 indicates the percentage of respondents who report being satisfied with these job factors as well as how important these factors are to their career satisfaction. ( Satisfaction here is defined here as rated Very satisfied or More satisfied than dissatisfied. ) Overall, the most important are opportunity for advancement and salary (75% for each), followed by job security, employee benefits, and how Figure 4: Job Factor Satisfaction and Importance n Satisfaction n Importance 0% 10% 20% 30% 40% 50% 60% 70% 80% Opportunity for advancement My salary Job security Employee benefits How employer handles ethical issues Acknowledged for performing well Interesting and challenging work Working relationships with others Included in decision-making process Overall job satisfaction 2015 UAE Salary Survey 12

13 their employer handles ethical issues. Yet respondents rated their satisfaction with opportunities for advancement as lowest overall. Only 22% are mostly or very satisfied with their opportunities for advancement, while 38% are satisfied with their salary and 44% are satisfied with their job security. Respondents are most satisfied with their working relationships with others (75%). Although these results provide overall trends, it s important to remember that each individual has his or her own unique needs and talents. For example, a group vice president commented, More than salary, it is the job content and the overall atmosphere that is important and keeps me in the current organization. I have been fortunate enough to have been provided with the opportunity to challenge a new area of work every couple of years or so within the finance field. Desire for Job Change About 57% of survey respondents plan to look for another job in the short term. This is consistent with the results of last year s survey, which found 56% were looking to change jobs within a year. The two most commonly identified reasons for considering a job move are improved salary (59%) and seeking a new career opportunity (58%). As shown in Figure 5, the two other reasons commonly mentioned are an improved quality of life and better employment opportunities. Figure 5: Reasons for Considering a Job Change 0% 10% 20% 30% 40% 50% 60% Improved salary New career opportunity Improved quality of life Better employment opportunities Work promotion Experience a different culture Improved employment conditions Friends and family Stronger economy Take time off/travel Internal company transfer To learn a new language Of those planning to look for another job, 36% are very confident and 49% are somewhat confident they would be able to find one in the next year UAE Salary Survey 13

14 Employee Benefits Historically, the most commonly received employee benefit has been healthcare or healthcare insurance. This year, 85% of respondents reported receiving this benefit (and another 13% desired it). As illustrated in Figure 6, the other most common benefits are bonus (51%), mobile phone (39%), travel benefits (39%), company car (37%), and life insurance (34%). The benefits not received but most desired are payment of IMA dues, pension benefits, share options, and flexible hours. Figure 6: Benefits Currently Received or Desired 100% n Currently receive this benefit n Don t receive but would like to 80% 60% 40% 20% 0% Healthcare/health insurance Bonus Mobile phone Travel benefits/allowance Company car/allowance Life insurance Flexible hours Extra holidays Pension Payment of IMA dues Working from home ipad or tablet Share/share options 2015 UAE Salary Survey 14

15 Final Thoughts The base salary and total compensation reported by IMA members in the UAE are in the top three for countries in the Middle East. And the median salary was the highest in the region. The majority of UAE respondents received moderate raises this year, and about three-fourths expect similar increases in the coming year. Although the gap in base salary and total compensation between men and women appears to increase later in respondents careers, the good news is that the gender pay gap disappears for women in their 20s. Respondents reported an average work week this year of 45.8 hours, which is about the global average. This year, we asked respondents about their overall job satisfaction. Nearly half the respondents said they are satisfied with their jobs. Clearly the most important factors overall to job satisfaction in the UAE are opportunity for advancement and salary, followed by job security, employee benefits, and how their employer handles ethical issues. More than half of the UAE respondents said they were considering a job change in the next year, citing a desire for improved salaries, new career opportunities, and improved quality of life as primary motivations. The value of participation in the CMA program continues to be clear: The median salary for CMAs is 30% more and the median total compensation is 33% more than that for non-cmas in the UAE. A lower-level manager commented, I will be looking for new employment soon, and I will use my CMA qualification to search for the position UAE Salary Survey 15