CIMA salary survey 2012

CIMA salary survey 2012 United Kingdom

1 Foreword Despite 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. 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. Figure 1: Annual remuneration by CIMA level START: 28,000 *AVERAGE SALARY Office for National Statistics, 2012 139,349+ 28,889 31,179 34,125 39,672 49,979 Operational Management Strategic T4 professional competence CIMA member ACMA, CGMA CIMA member FCMA, CGMA 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 Part qualified students working as management accountants earn 34k on average. 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 UK total - part qualified students 31,432 32,944 UK total - qualified members 53,309 58,434 Financial controller 39,515 42,327 CFO* 157,247 180,946 Finance manager 37,927 40,052 Financial director 102,198 113,462 Project account/manager Financial/business analyst 37,539 33,200 39,331 35,258 Director (non-finance) /COO/partner* Head/chief/VP (of accounting/finance) 81,346 70,144 89,961 78,488 Financial accountant 32,668 34,085 Manager (non-finance) 59,563 66,581 Management accountant 32,493 33,852 Financial controller 51,009 55,760 Other accountant* Other finance role Accountant Other assistant accountant Assistant management accountant Finance assistant Accounts assistant/executive 31,678 30,987 27,862 24,358 23,837 22,904 22,424 25,477 24,354 23,471 22,931 28,772 *Caution: Low base, under 30. Lowest base: Other accountant, (26*) Highest base: Management accountant (264) 33,183 32,708 Finance manager Project accountant/ manager Financial analyst/ business analyst Financial accountant Management accountant Accountant 48,568 47,131 43,498 38,029 36,226 35,687 52,858 50,895 47,231 39,817 38,296 37,775 *Caution: Low base, under 30. Lowest base: Director (other than of finance)/ COO/partner (13). Highest base: Management accountant (293) Basic salary Bonus Total

4 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. Part qualified students and members working in London can expect to earn around 20% more than the average UK salary. Figure 3: Annual remuneration by region Scotland Part qualified: 32,127 Qualified: 60,725 Northern Ireland* Part qualified: 23,905 Qualified: 43,539 North West Part qualified: 27,442 Qualified: 47,260 North East and Yorkshire/Humberside Part qualified: 29,005 Qualified: 36,719 East and West Midlands Part qualified: 29,283 Qualified: 60,408 East of England Part qualified: 29,858 Qualified: 46,080 *Caution: Low base, under 30. South West Part qualified: 30,795 Qualified: 43,149 London Part qualified: 38,863 Qualified: 71,957 South East Part qualified: 35,159 Qualified: 63,214 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 Qualified CIMA members working in ICT, technology and telecoms earn on average 31% more than the average UK salary package for CIMA members. 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 UK total - part qualified members 31,432 32,944 UK total - qualified members 53,309 58,434 Banking ICT, technology and telecoms Business services Oil, gas and alternative energy Financial services Travel, leisure and tourism Healthcare and pharmaceutical Construction and property Natural resources, energy/fuel and utilities* Retail and consumer goods Media, marketing, advertising and PR Transport, distribution and storage Manufacturing and engineering Education* Sales, purchasing and supply chain* 40,244 36,434 36,351 34,152 33,290 31,796 32,281 31,328 30,206 30,095 30,670 29,621 29,356 30,183 28,091 38,401 37,871 37,089 35,661 33,865 33,073 32,648 32,073 32,055 31,584 31,250 30,514 30,261 29,871 43,729 ICT, technology and telecoms Oil, gas and alternative energy Healthcare and pharmaceutical Business services Banking Financial services Manufacturing and engineering Media, marketing, advertising and PR Transport, distribution and storage Construction and property Not-for-profit/charity Public sector Natural resources, energy/fuel and utilities Retail and consumer goods Travel, leisure and tourism 68,868 61,531 60,493 61,794 60,906 57,351 51,493 49,906 48,007 46,866 47,462 46,559 44,286 42,770 41,347 76,454 69,219 68,962 68,882 67,989 64,997 56,720 53,344 52,501 49,519 48,577 47,641 47,567 46,940 44,868 Not-for-profit/charity 29,317 29,849 Education* 44,107 44,641 Public sector 29,338 29,549 Accountancy 27,586 28,500 *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 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. 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. 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 Budget cuts Increase in the overall profitability of the business* Job cuts Salary freezes Recruitment freeze Salary increases* Increase in staff recruitment* 20% 19% 25% 26% 33% 32% 30% 30% 29% 30% 34% 35% 38% 40% 49% 54% 58% 65% Cuts in funding for staff training Increased spend on staff training* 12% 14% 19% 19% 32% *Indicator not featured in 2009. 2012 2011 2009

7 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. 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. The CIMA qualification creates career opportunities for you 95% agree The CIMA qualification strengthens your ability to move internationally with your career 82% agree The CIMA qualification strengthens your ability to 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%). 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. 42% of students want to focus on leadership skills, indicating strong ambition even at the start of their careers. 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% Skills for developing others 27% Project management

9 Appendix UK Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** 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) Medium (50 249 employees) All Large (250+ employees) 99 29,503 911 30,414 89 55,312 4,750 60,062 177 30,959 1,221 32,180 171 45,375 2,969 48,345 862 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 UK Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** 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 Manufacturing and engineering Media, marketing, advertising and PR Natural resources, energy/ fuel and utilities 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 52 30,670 915 31,584 61 49,906 3,438 53,344 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 Transport, distribution and storage 24* 28,091 1,780 29,871 *** 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 *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

11 UK Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** 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 Head/chief/VP (of accounting or finance) 13* 81,346 8,615 89,961 32 70,144 8,344 78,488 Manager (non-finance) 46 59,563 7,018 66,581 *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.

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 yourvoice@cimaglobal.com 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. cima.contact@cimaglobal.com www.cimaglobal.com August 2012, Chartered Institute of Management Accountants