CIMA salary survey 2012 South Africa

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ForewordDespite the global economic downturn, 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 steering their organisations through continuing uncertainty and on to long-term, sustainable success.

CIMA’s latest salary survey clearly shows that our students are taking home average earnings of R400, 000 while members at executive level are enjoying salary and bonus packages that can reach levels around the R1, 170,000 mark.

Many of our students are clearly aiming for the top from the outset of their studies. Over 50% 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 part qualified students 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 R200, 000 in the first ten years after qualifying. Beyond that, the average salary continues to rise by around R260, 000 over the following 30-year career span.

The confidence of our members and students is reflected in our survey. A total of 90% agreed that the CIMA qualification creates career opportunities while 94% said that it strengthened their chances of adding an international dimension to their curriculum vitae, due to the global recognition and reputation of a CIMA designation. Combined with the 83% 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.

Looking to the next 12 months, our students and members are holding firm in their expectations for the business environment, with a largely positive outlook. This is reflected in an anticipated average earnings increase of 8% - which in real terms will be above inflation forecasts of around 6%.

Average salary packages vary by major city, with Johannesburg attracting significantly larger average salaries than other cities, particularly Cape Town and Durban. Students and members working in Johannesburg can expect to earn around 6% and 9% more respectively than the average total salary for South Africa.

Johannesburg and the surrounding areas have large natural resources, banking, technology and manufacturing sectors and, according to our survey, these sectors pay comparatively higher total salaries than the national average. Higher costs of living and the fact that Johannesburg is an accepted economic hub boasting many head offices of global and local organisations could be contributing to higher than average salaries in this city. In addition, in Johannesburg and certain other non-coastal cities, salaries tend to be higher in order to attract talented candidates who might otherwise be more attracted to the lifestyles that coastal cities like Cape Town and Durban offer.

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.

Samantha Louis Regional Director Africa CIMA

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Salary survey results

South Africa average salary figures

In 2012, qualified CIMA members in South Africa are earning on average R774,273 in basic salary plus R105,784 in bonus payments, totalling R880,057 per annum. Part qualified students in South Africa are earning on average R366,284 in basic salary plus R34,519 in bonus payments, totalling R400,804.1

Salary satisfaction is linked to CIMA level

The proportion of qualified members who are satisfied with their current salary is 77%, representing an increase of ten percentage points since 2011.

The survey shows a clear link between CIMA level/experience and satisfaction with salary. Among Fellows 88% are satisfied, and among those with 10 or more years of experience 84% are satisfied; perhaps reflecting the substantial salaries that can be earned by CIMA members who are at a later stage in their careers.

At 50%, satisfaction with salary is lower among part qualified students and ranges from

46% among those at operational level to 63% among those at T4 professional competence level. The overall figure for students has decreased by one percentage point since 2011.

Salary increases anticipated

CIMA students and members are mildly optimistic about personal salary rises over the next 12 months. 95% expect a pay rise over the next 12 months and among them an average rise of 8.0% is anticipated, which in real terms will be above price inflation forecasts of around 6%.2

CIMA boosts salary deals

The effect of the CIMA qualification on boosting salary is strongest for part qualified students: 77% agree that the CIMA qualification strengthens their position in salary negotiations, rising to 80% among students at the management level of the qualification.

Figure 1: Annual remuneration by CIMA level

‘On average CIMA Fellows (FCMAs) will earn R1.13m in 2012.’

‘77% of part qualified students say the CIMA qualification strengthens their position in salary negotiations.’

1 Figure may not sum due to rounding

2 IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 19 June 2012.

R1,128,728

R849,983

R420,579R389,107R360,785

R500,926

CIMA MemberFCMA, CGMA

CIMA Member ACMA, CGMA

Strategic T4 professionalcompetence

ManagementOperational

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Salary patterns

Annual remuneration by job role

Among part qualified students the average salary for management accountants is on a par with the average total salary for South Africa. Finance managers attract the highest average total salary, which is 40% above figure for South Africa.

On the other hand, part qualified accountants and financial accountants are earning 25% and

19% below the average total salary for South Africa respectively.

Among qualified members, finance managers earn an average of R749,065 in total salary per annum, while those in very senior roles such as finance director, CFO and CEO/managing director can expect to earn a salary plus bonus of between R1.14m and R1.17m, plus additional benefits.3

Figure 2: Part qualified students − annual remuneration by job role

‘Part qualified students working

as management accountants earn

R401k on average.’

3 Figures reported for very senior roles are based on low bases of less than 30 members but represent statistically significant differences against the national average salary for members.

562,907506,752

435,965396,848

400,995369,851

326,101298,778

301,940279,572

400,804366,284South Africa total - part qualified students

Finance manager

Financial analyst/business analyst

Management accountant

Financial accountant*

Accountant

*Caution: Low base, under 30.Lowest base: Financial accountant (28*)Highest base: Management accountant (81)

Basic salary Bonus Total

4

‘Part qualified CIMA students working in natural resources, energy/fuel and utilities earn on average 27% more than the average total salary for South Africa.’

Annual remuneration by city

Average salary packages vary by major city, with Johannesburg attracting significantly larger average salaries than other regions, particularly Cape Town and Durban.

Part qualified students and qualified members working in Johannesburg can expect to earn

around 6% and 9% more respectively than the average total salary for South Africa.

As the largest city, Johannesburg, has large banking, technology, financial and manufacturing sectors and, according to our survey, these sectors tend to pay higher total salaries than the average for South Africa.

Figure 3: Annual remuneration by city

DurbanPart qualified: R346,822Qualified: R837,900

JohannesburgPart qualified: R425,610Qualified*: R959,761

Cape TownPart qualified: R362,330Qualified: R752,655

PretoriaPart qualified: R411,717Qualified*: R845,934

Bases shown in brackets*Caution: Low base, under 30

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Annual remuneration by sector

Students working in the natural resources, energy/fuel and utilities sector earn 27% more than the national average total salary for part qualified students (R400,804). Other large sectors offer salaries just above the average, while students in the accountancy sector earn 30% below – this may be a result of the greater likelihood of these students working in the accountancy sector being in the very early stages of their careers.

Among qualified members, the salary patterns by industry sector are similar to those for part qualified students; however, bases tend to be too small for detailed analysis. The sector with the highest number of qualified respondents is manufacturing and engineering, which attracts an average total salary that is 3.5% more than the average total salary for members in South Africa.

Figure 3: Part qualified students − annual remuneration by sector

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 slightly less clear cut.

Students and members working in very large organisations (VLOs) with 10,000 or more employees receive 16% more and 4% more respectively than the comparable average total salaries for South Africa.

Typically, students working in micro/small businesses will earn 25% less than the national average total salary. This difference significantly reduces to just 5% less for qualified members working in a micro/small business, which may be attributed to the fact that 39% of those are self-employed or the CEO.

509,612460,820

445,528406,924

427,604388,701

418,731378,253

414,915385,164

366,643329,355

282,136257,990

400,804366,284South Africa total - part qualified students

Natural resources, energy/fuel and utilities

Retail, consumer goods

Banking

ICT, technology and telecoms*

Manufacturing and engineering

Financial services

Accountancy*

*Caution: Low base, under 30.Lowest base: ICT, technology and telecoms (26*)

Basic salary Bonus Total

‘Part qualified students and

qualified members working in

Johannesburg can expect to earn

6–9% more than the average total salary

for South Africa.’

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Business and the economy

Expectations for future pay and conditions

Despite growing concern over the fate of South Africa’s major trading partners in the Eurozone, the USA and China, coupled with rising domestic unemployment and high wage growth,4 CIMA students and members are holding firm in their expectations for the business environment, with a largely positive 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 the business and salary increases, both at 43%. However, this optimism is offset to some extent by notable proportions expecting budget cuts (27%), a recruitment freeze (18%) and job cuts (14%), perhaps in part due to rising wage costs.

Figure 4: Expectations for the business environment over the coming 12 months − selected

indicators

4 IMF Working Paper, N. Klein. ‘Real Wage, Labor Productivity, and Employment Trends in South Africa: A Closer Look.’ South African Wage Report IMF 2012. Available at: www.imf.org/external/pubs/ft/wp/2012/wp1292.pdf Accessed 27 June 2012; IMF World Economic Outlook, April 2012. Available at: www.imf.org/external/pubs/cat/longres.aspx?sk=25342 Accessed 27 June 2012.

43%43%

38%43%

26%27%

25%27%

69%

21%18%

57%

12%14%

35%

15%13%

60%

10%9%

28%

Increase in the overallprofitability of the business*

Salary increases*

Increase in staff recruitment*

Budget cuts

Recruitment freeze

Job cuts

Fall in the overallprofitability of business

Salary freezes

2012 2011 2009*Indicator not featured in 2009

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Working conditions

Working hours

On average, students work 44 hours per week, and members 47 hours per week, giving an overall average of 45 hours.

While more than one-half (57%) of students and members expect no change in their working hours, two-fifths expect their working hours to increase over the coming 12 months. The primary reason is related to career progression – taking on more responsibility was cited by 68% of students and members. A secondary factor, mentioned by 45%, is understaffing/lack of resource.

Motivators at work

The key motivators at work for students and members are a good working environment (51%), flexibility/work–life balance (43%), financial reward (42%) and a challenging workload (41%).

The survey reveals that the importance of financial reward and flexibility/work–life balance increase with CIMA level: financial reward is an important motivator for 36% of students at operational level, rising to 49% for those at T4 professional competence and 45% for qualified members. A similar rise in importance is seen for flexible hours: from 29% to 41% and 54% respectively.

Conversely, the importance of training and development reduces from 34% for those at operational level to 18% for those at T4 professional competence level and 11% for members. However, a challenging workload and good working environment remain important throughout CIMA students’ and members’ careers.

The CIMA qualificationstrengthens your abilityto move internationally

with your career 94%agree

The CIMA qualificationcreates careeropportunities

for you 90%agree

The CIMA qualificationstrengthens your

ability to moveacross all areas of

the business 83%agree

‘A good working environment

and challenging workload remain

key motivators throughout students’

and members’ careers.’

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Career plans

Seeking new opportunities

Mobility of students and members in South Africa remains strong, with 29% planning to find another job within six months and a total of 66% planning to move job within the next two years. Students at operational level are the most likely segment to seek new employment (81%).

Of those planning to move job, 87% plan to stay within South Africa. Among the 13% who

plan to move abroad, the UK (54%) is the most frequently named destination, followed by Australia (42%) and the USA (31%).

A new career opportunity (68%) remains the key reason for relocating, followed by improved salary (52%), the chance to experience a different culture (49%) and improved quality of life (45%).

66% are looking to move job withinthe next two years, of which…

87% plan to stay in South Africa

13% plan to move abroad

Building skill sets

Over the coming 12 months students are keen to develop a broad mix of skill sets. Technical skills such as financial reporting are important, alongside personal development (which includes career planning and time management) and project management. However, managerial skills – particularly

leadership and strategic planning – are the skill sets students most wish to develop.

While leadership and strategic planning skills remain important at all levels of experience, acquiring managerial ‘people’ skills becomes more important for qualified members: 35% mention skills for developing others and 31% mention persuading and influencing.

Figure 5: Top skills that students and members wish to develop

Part qualified students Qualified members

44% Leadership51% Leadership

35% Personal development

46% Personal development

33% Communication

31% Persuading and influencing

40% Financial reporting

44% Strategic planning and implementation56% Strategic planning and implementation

27% Communication

40% Decision making

35% Skills for developing others

39% Project management

35% Risk management 25% Risk management

‘51% of students want to focus on leadership skills, indicating strong ambition early in their careers.’

‘Of those planning to move job, 87% plan to stay within South Africa’

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Appendix

Part qualified students Qualified members

South Africa Base Basic salary (R per

annum)

Bonus (R per

annum)

Total package (R per

annum)**

Base Basic salary (R per

annum)

Bonus (R per

annum)

Total package (R per

annum)**

Total 399 366,284 34,519 400,804 227 774,273 105,784 880,057

Age

<25 yrs 30 220,549 19,181 239,730

25–34 yrs 291 350,048 30,642 380,690

35–44 yrs 68 457,333 52,368 509,700

Age

< 31 yrs 47 511,170 57,487 568,657

31–35 yrs 52 659,278 92,149 751,428

36–40 yrs 53 867,404 122,077 989,481

41-50 yrs 50 923,974 124,866 1,048,840

51+ yrs 25* 962,674 143,355 1,106,029

Gender

Male 243 373,090 38,400 411,491 170 809,407 114,169 923,576

Female 156 356,204 28,771 384,976 57 666,783 80,134 746,916

Level

Operational 120 331,667 29,119 360,785

Management 103 360,922 28,184 389,107

Strategic 86 380,233 40,346 420,579

T4 professional competence

90 450,833 50,093 500,926

Associate 210 749,286 100,698 849,983

Fellow 17* 980,882 147,846 1,128,728

Size of organisation

Micro/small (1–50 employees)

53 277,244 25,277 302,521 35 757,943 78,749 836,692

Medium (50–249 employees)

77 327,983 26,276 354,259 31 784,382 92,595 876,977

All Large (250+ employees)

269 395,802 38,787 434,589 161 775,803 114,480 890,282

250−999 56 320,695 30,298 350,993 23* 718,615 110,200 828,815

1,000–9,999 93 408,431 39,127 447,558 57 781,906 103,311 885,217

10,000 or more 120 423,759 42,791 466,550 81 787,694 123,563 911,257

Experience since enrolling

Up to 2 years 115 277,503 23,018 300,521

2–3 years 83 347,854 30,165 378,019

3–4 years 49 394,383 34,885 429,269

4–5 years 25 369,051 35,062 404,113

5+ years 79 488,106 55,719 543,826

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

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Part qualified students Qualified members

South Africa Base Basic salary (R per

annum)

Bonus (R per

annum)

Total package (R per

annum)**

Base Basic salary (R per

annum)

Bonus (R per

annum)

Total package (R per

annum)**

Total 399 366,284 34,519 400,804 227 774,273 105,784 880,057

Experience since qualifying

Up to 1 year 29* 621,552 68,159 689,711

1–3 years 65 595,417 78,204 673,621

4–9 years 58 780,414 103,349 883,763

10–19 years 50 958,640 130,291 1,088,931

20+ years 25* 992,603 158,449 1,151,052

Industry

Accountancy 29* 257,990 24,146 282,136 ***

Banking 41 388,701 38,903 427,604 ***

Financial services 49 329,355 37,288 366,643 ***

ICT, technology and telecoms

26* 378,253 40,478 418,731 ***

Manufacturing and engineering

58 385,164 29,751 414,915 ***

Natural resources, energy/fuel and utilities

30 460,820 48,792 509,612 ***

Retail, consumer goods 56 406,924 38,604 445,528 ***

Region

Cape Town 77 332,890 29,439 362,330 45 662,791 89,864 752,655

Durban 36 319,983 26,839 346,822 27* 726,153 111,746 837,900

Johannesburg 204 385,249 40,361 425,610 123 840,051 119,710 959,761

Pretoria 37 385,583 26,134 411,717 17* 773,529 72,404 845,934

Job role

Accountant 39 279,572 22,368 301,940 ***

Financial accountant 28* 298,778 27,324 326,101 ***

Management accountant 81 369,851 31,144 400,995 21* 553,571 72,619 626,190

Finance manager 70 506,752 56,155 562,907 47 672,032 77,033 749,065

Financial analyst/business analyst

47 396,848 39,117 435,965 18* 595,833 75,903 671,736

CEO/managing director 20* 979,528 158,017 1,137,546

CFO 18* 1,030,388 141,962 1,172,350

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

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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 626 from South Africa.

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