CIMA SALARY SURVEY 2013 Republic of Ireland
1 Foreword CIMA s members and students are looking forward to rapid career progression and salary rises well above the national average - 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 the Republic of Ireland are earning just over 89,000 per annum while our students earn over 44,000 on average; well above the national average. However there is still a considerable gender gap among members where, on average, women earn 22,337 less than their male counterparts. This is a slight drop from last year s figure and CIMA is working hard to address this issue. There are signs that the younger generation is beginning to close the imbalance: the gap between male and female students is significantly lower at just under 1,400. Ambition is a key driver for both members and students. 38% of members and 35% of students said they want to develop their leadership skills. The vast majority of our members and students (93%) expect to be in a different role in three years time. Almost half (47%) expect to be in a senior, finance-related role. The growing diversity of CIMA members as business partners is reflected by members, 20% 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 motivator is a desire for flexibility/work-life balance (50%), followed by a good working environment (47%), financial reward (42%), and a challenging workload (39%). 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. Denis McCarthy Director CIMA Ireland
2 Salary survey results Ireland average salary figures In 2013, qualified CIMA members in Ireland are earning on average 81,733 in basic salary plus 7,399 in bonus payments, totalling 89,132 per annum. Part qualified students in Ireland are earning on average 41,958 in basic salary plus 2,264 in bonus payments, totalling 44,221. This compares with a current average national Ireland salary figure of 35,924. 1 Robust salary satisfaction Overall 65% of all CIMA members and students are satisfied with their current salary, compared with 67% in 2012 and 68% in 2011. The 2013 figure is highest among students at the operational level of their CIMA qualification (70%). Substantial salary increases anticipated CIMA members and students are optimistic about their personal salary rises over the next 12 months. A 2.7% overall rise in the salaries Figure 1: Annual remuneration by CIMA level Salary patterns of qualified members is anticipated. However, among the two-thirds who are expecting an increase, the average anticipated rise is much higher at 4.3%, which in real terms will be well above inflation forecasts of around 1.5%. 2 Among part qualified students, salaries are expected to increase largely in line with CIMA level attained from 3.8% at operational level to 5.6% among those at T4 professional competence level. Among the 70% at T4 professional competence level who are expecting a salary increase as fully qualified CIMA members, the average anticipated increase is 8%. Qualification boosts salary deals for CIMA students The CIMA qualification boosts salary deals, and the effect is strongest for students at operational level, with 76% saying it helps strengthen their position in salary negotiations. 84,481 131,486 On average CIMA Fellows (FCMA) will earn c. 131k and Associates (ACMA) c. 84k in 2013. 76% of part qualified students at operational level say the CIMA qualification strengthens their position in salary negotiations. 39,127 44,039 50,915 42,970 Operational Management 3 Strategic T4 professional competence CIMA member ACMA, CGMA CIMA member FCMA, CGMA 1 Annual average earnings for 2011. Central Statistics Office. Statistical Yearbook of Ireland 2012 Edition. Chapter 17, Earnings. Available at: www.cso.ie/en/media/csoie/releasespublications/documents/statisticalyearbook/2012/ c17earnings.pdf Accessed 11 June 2013. 2 Economic and Social Research Institute (ESRI) Spring 2013 Quarterly Economic Review. Available at: www.esri.ie/ UserFiles/publications/QEC2013SPR_ES.pdf Accessed 16 June 2013. 3 Figures for students at the management level of the qualification should be treated with some caution as they are based on the responses of 24 students.
3 Financial controllers and finance managers earn on average c. 89k per annum. Salary patterns Annual remuneration by job role Among qualified members, management accountants earn an average total salary of 63,641. However, CIMA members at more senior levels earn substantially more on average: financial controllers and finance managers earn on average c. 89,000 per annum (up from 84,000-86,000 in 2012) while financial directors earn c. 130,000 (up from 127,000 in 2012). CFOs earn on average c. 136,000 including bonus. Figure 2: Qualified members annual remuneration by job role Republic of Ireland total - qualified members 81,733 89,132 Financial director 113,876 129,792 Finance manager Financial controller Manager (other then finance) Financial accountant* Finance/Business analyst Management accountant 82,292 81,695 80,231 62,275 60,366 61,190 89,326 89,208 87,239 66,544 63,827 63,641 Accountant 54,135 55,695 *Caution: Low base, under 30. Lowest base: Financial accountant (22) Highest base: Financial controller (65). Basic salary Bonus Total
4 Annual remuneration by region Total annual salaries (including bonuses) across the provinces appear to have equalised somewhat in 2013. This is perhaps due to a clustering of financial services and banking sectors in Leinster, where bonus payments are lower this year than in other key sectors, bringing them to below the average bonuses reported for Connacht and Munster. Part qualified students in Leinster and Dublin are earning on average over 45,000 per annum in total salary. The comparable figure for Munster is just below, at 39,000. 81% of qualified members in Connacht and 75% of those in Munster are satisfied with their current salary, perhaps reflecting higher bonus payments this year than in previous years. Part qualified students working in Leinster and Dublin are earning 45,000 in average total salary. Figure 3: Annual remuneration by province and major city Connacht Part qualified: ** Qualified: 86,439 Galway Part qualified: ** Qualified: 88,468* Dublin Part qualified: 45,465 Qualified: 91,371 Leinster Part qualified: 45,347 Qualified: 90,875 *Caution: Low base, under 30. ** Data unavailable due to low base numbers Munster Part qualified: 39,107* Qualified: 85,516 Cork Part qualified: ** Qualified: 82,952
5 The banking, healthcare and pharmaceutical, and ICT, technology and telecoms sectors are tending to pay higher than average total annual salaries across the CIMA qualified membership. Annual remuneration by sector Industry sector has an impact on salary and in particular on bonus levels, at a time when basic salaries have seen little change from a year ago. Compared to the national average total salary package for qualified members ( 89,132), those working in banking are earning 11% more, in healthcare and pharmaceuticals 7% more and in ICT, technology and telecoms 4% more. Earnings in the latter two sectors are boosted by annual average bonuses in excess of 10,000. While those in the public sector earn no or very little bonus, their average basic salary is higher than those of key private sector industries (bar banking, and healthcare and pharmaceuticals) resulting in a competitive average total salary despite a fall of 6% since 2012. Annual remuneration by business size For qualified members, the size of average basic salaries and bonuses tends to increase with business size. The availability of senior and very senior roles in large multinational corporations is likely to be driving this. Those working in very large businesses with 10,000 or more employees (which covers the high-paying banking sector) are earning c. 96,000, including c. 10,000 in annual bonus payments. Those in senior and very senior roles are highly likely to be working up to 50 or 60 hours per week, with around one-third anticipating increasing working hours. Figure 4: Qualified members annual remuneration by sector Republic of Ireland total - qualified members Banking Healthcare and pharmaceutical ICT, technology and telecoms Manufacturing and engineering Financial services Retail, consumer goods Public sector Business services* 81,733 95, 452 85,231 82,397 82,057 80,029 79,707 83,123 70,442 89,132 99,374 95,744 92,399 89,426 87,628 87,100 83,444 75,924 *Caution: Low base, under 30. Lowest base: Business services (19*) Highest base: ICT, technology and telecoms (64) Basic salary Bonus Total
6 Business and the economy Expectations for future pay and conditions Although there have been dramatic improvements since 2009, lingering questions over Eurozone economic performance and weak GDP growth of just under 1% for Ireland 3 are manifesting in a stable but continued cautious outlook among CIMA members and students. However, there are some glimmers of optimism. The percentage expecting a fall in business profits has reduced slightly from 26% in 2011 to 21% this year, while the percentage expecting less money available for future investment has decreased from 24% to 19% over the same period. Outsourcing activity is on an increasing trend. At the same time, expectations for budget cuts (36%), recruitment freezes (27%), salary freezes (34%), salary increases (22%), and increasing profitability (31%), all appear to moving slowly in a positive direction. Figure 5: Expectations for the business environment over the coming 12 months selected indicators 36% Budget cuts 38% 38% 71% Salary freezes Increase in the overall profitability of the business* 31% 30% 27% 34% 41% 39% 78% Recruitment freeze Job cuts 27% 29% 30% 73% 26% 27%30% 59% Increase in outsourcing Increase in staff recruitment* Salary increases* Fall in the overall proftability of business 25% 22% 19% 13% 22% 22% 22% 22% 20% 19% 21% 22%26% 62% Less money available for future investment Salary decreases* 13% 12% 15% 19% 21%24% 42% *Indicator not featured in 2009. 2013 2012 2011 2009 3 Economic and Social Research Institute (ESRI) Spring 2013 Quarterly Economic Review. Available at: http://www.esri.ie/userfiles/publications/qec2013spr_es.pdf Accessed 16 June 2013.
7 In smaller businesses, company growth and the financial climate seem to be requiring more input from staff. Working conditions Working hours On average, members and students work 44 hours per week, although 35% work less than the average. Longer hours are linked to seniority: 52% of students are working more than 40 hours per week, compared to 66% of qualified Associate members and 80% of Fellows. Furthermore, 87% of financial directors, 78% of financial controllers and 75% of finance managers work more than 40 hours per week, compared to 40% of accountants and 29% of financial accountants. The CIMA qualification creates career opportunities for me The CIMA qualification strengthens my ability to move internationally with my career 90% agree 87% agree Overall, two-fifths (41%) of members and students expect their working hours to increase over the coming 12 months, while more than one-half (56%) expect no change. Those working in micro/small businesses are less likely than average to face increasing working hours (23%), while the percentage is higher in medium (37%) and large businesses (45%). The primary reason for increasing working hours is related to career progression taking on more responsibility was cited by 68% of students and members and 87% of finance managers. A secondary factor, mentioned by 56%, is understaffing/lack of resource. Motivators at work The key motivator at work for both members and students is flexibility/work-life balance (50%), but this is more important for females (58%) than males (45%) as they may be more likely to need to juggle work and non-work commitments. A good working environment (47%), financial reward (42%) and a challenging workload (39%) are also important motivators in general. Promotion prospects are especially important for part qualified students (mentioned by 38%), taking precedence over work-life balance and a challenging workload. The CIMA qualification strengthensmy ability to move across all areas of the business 81% agree
8 Career plans Seeking new opportunities Only 7% of members and students see themselves in the same role in three years time, further suggesting the presence of a high degree of mobility and promotion prospects. While almost one-half (47%) anticipate being in a senior finance-related role such as finance manager, financial director, financial controller, CFO, head of accounting/finance or self-employed practitioner, 11% anticipate being in a very senior non-finance role such as CEO/MD, head, director or manager of a nonfinance division. Among those already working as a management accountant, 45% expect to progress to finance manager or financial controller in the next three years. Among all qualified members and part qualified students, 20% are planning to find another job over the next six months and a total of 49% are planning to move job within the next two years. Of those, 84% plan to stay within Ireland. The propensity to seek a new job decreases with seniority: Students at the management (71%), strategic (72%) and T4 professional competence levels (67%) are significantly more likely than average to be seeking a new role within the next two years compared to 46% of Associates and 34% of Fellows. A global career Among members and students who plan to seek employment abroad, the UK is the most frequently named destination (42%), followed by the USA (38%). Canada (26%) and Australia (24%) are each favoured by around onequarter of those wishing to relocate and the UAE by 18%. In 2013, seeking a new career opportunity is the key reason for planned relocation (60%), largely to secure a bigger salary (57%) and improved quality of life (52%).Wanting to experience a different culture is mentioned by 42% and better employment opportunities by 40%. 93% anticipate being in a new role within the next three years. Figure 6: Proportion planning to move job, to emigrate 49% are looking to move job within the next two years, of which 84% plan to stay in Ireland 16% plan to move abroad
9 Communication and interpersonal skills are important development areas for both members and students. Building skill sets Over the coming 12 months part qualified students will be focusing on developing their technical skills, especially financial reporting (39%) and data analysis (35%). However, interpersonal qualities such as communication skills (34%) and leadership (35%) will also be important to them, along with personal development skills (37%), such as time management. However, for students at the strategic level of the CIMA qualification there is a different set of priorities: strategic planning and implementation (54%) and communication skills (51%) take precedence, followed by personal development (46%) and leadership skills (44%). For qualified CIMA members, developing strong leadership skills and strategic planning and implementation are the twin priorities, with soft managerial skills being important areas for development for around one-third to one-quarter. Figure 7: Top skills that students and members wish to develop Part qualified students 39% Financial reporting 37% Personal development 35% Data analysis 35% Leadership 34% Communication 30% Strategic planning and implementation 29% Decision making 28% Project management 23% Persuading and influencing 23% Problem solving 38% Leadership Qualified members 36% Strategic planning and implementation 33% Persuading and influencing 31% Personal development 26% Skills for developing others 24% Relationship management 24% Change management 23% Communication 23% Decision making 22% Project management
10 Appendix Ireland Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** Total 142 41,958 2,264 44,221 418 81,733 7,399 89,132 Age <25 yrs *** 25 34 yrs 78 39,743 1,759 41,501 35 44 yrs 46 46,972 3,177 50,149 45+ yrs *** Age < 31 yrs 24* 50,521 3,241 53,761 31 35 yrs 81 66,142 5,365 71,507 36 40 yrs 117 79,395 7,658 87,053 41-50 yrs 151 89,110 8,587 97,697 51+ years 45 105,535 8,456 113,991 Gender Male 82 42,708 2,491 45,199 284 87,714 8,523 96,237 Female 60 40,962 1,962 42,925 134 68,911 4,989 73,900 Level Operational 37 37,432 1,695 39,127 Management 24* 40,938 3,101 44,039 Strategic 39 41,218 1,752 42,970 T4 professional competence 42 48,214 2,701 50,915 Associate 383 77,696 6,785 84,481 Fellow 35 118,500 12,986 131,486 Size of organisation Micro/small (1 50 employees) Medium (50 249 employees) All large (250+ employees) 20* 46,278 3,205 49,483 66 76,349 3,878 80,227 23* 36,349 1,193 37,541 58 78,762 5,296 84,058 99 42,370 2,319 44,689 294 83,547 8,616 92,163 250 999 19* 39,676 1,718 41,394 58 80,217 6,080 86,297 1,000 9,999 22* 43,242 2,974 46,216 103 81,990 7,939 89,929 10,000 or more 58 42,924 2,266 45,190 133 86,201 10,247 96,448 Experience since enrolling Up to 2 years 32 38,981 2,833 41,814 2 4 years 40 38,950 4,144 43,093 4+ years 47 47,658 2,790 50,448 *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers
11 Ireland Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** Total 142 41,958 2,264 44,221 418 81,733 7,399 89,132 Experience since qualifying Up to 1 year 18* 48,333 3,714 52,047 1 3 years 55 55,136 3,623 58,760 4 5 years 52 66,250 5,998 72,248 6 9 years 60 75,500 6,912 82,412 10 19 years 166 92,601 8,389 100,990 20+ years 67 101,629 10,349 111,979 Industry Banking *** 21* 95,452 3,922 99,374 Business services *** 19* 70,442 5,482 75,924 Financial services *** 57 80,029 7,599 87,628 Healthcare and pharmaceuticals *** 50 85,231 10,513 95,744 ICT, technology and telecoms *** 64 82,397 10,002 92,399 Manufacturing and engineering *** 37 82,057 7,368 89,426 Public sector *** 36 83,123 321 83,444 Retail and consumer goods *** 39 79,707 7,392 87,100 Transport, distribution and storage *** 21* 97,977 12,324 110,301 Province Leinster 105 43,077 2,270 45,347 289 83,698 7,177 90,875 Munster 28* 37,179 1,928 39,107 84 77,442 8,074 85,516 Connacht *** 38 78,485 7,953 86,439 City Dublin 89 43,076 2,389 45,465 241 84,251 7,121 91,371 Cork *** 43 74,792 8,160 82,952 Galway *** 24* 78,899 9,569 88,468 Job role Accountant 19* 42,639 1,317 43,955 26* 54,135 1,560 55,695 CFO *** 14* 121,077 14,594 135,671 Financial analyst/business 35 39,637 1,633 41,270 41 60,366 3,461 63,827 analyst Finance manager *** 50 82,292 7,034 89,326 Financial accountant *** 22* 62,275 4,269 66,544 Financial controller *** 65 81,695 7,514 89,208 Financial director *** 31 113,876 15,917 129,792 Management accountant *** 49 61,190 2,451 63,641 Manager (other than finance) *** 30 80,231 7,008 87,239 *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 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 and 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 560 from the Republic of Ireland. 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 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.
CIMA Ireland 5th Floor, Block E, Iveagh Court, Harcourt Road, Dublin 2 T: +353 (0)1 643 0400 E: cima.ireland@cimaglobal.com September 2013, Chartered Institute of Management Accountants