CIMA UK members salary survey 2010

CIMA members salary survey 2010 UK

Foreword. Executive summary.. Main findings.. Salaries and bonuses. Experience .. Job role.... CIMA level Sector .. Size of business.. Regional location. Gender.. Age........................ Recruitment and retention.. Satisfaction with salary .. Satisfaction with benefits .. Importance of benefits.. Working hours. Skill set requirements.... Geographical mobility.... Extent of movement.. Top destinations.... Future...... One word to describe CIMA difference.. UK salary information..... Technical information. Further information. Global contacts.... 1 3 5 5 7 9 10 11 13 14 16 18 20 20 22 24 26 28 30 30 32 34 35 36 38 39 40

Foreword
Despite the difficult economic conditions we have been experiencing, prospects for CIMA members appear to be extremely favourable. Prudent businesses are increasingly turning to our members to help drive them through the recession and on to sustainable success in the long term. This demand for management accounting expertise is reflected in the results of our second global members salary survey. Clearly, CIMA members are highly valued, especially during a period when businesses are looking for skilled financial managers to put them on a firm footing. Our global survey of CIMA members shows that Chartered Management Accountants earn significantly higher salaries than the national average in every nation featured in our research. In developed economies, members salaries are usually between two and three times the national average. But in developing economies such as Malaysia or Sri Lanka, the percentage can be as much as six or even ten times average earnings. Bonuses are also featuring as a significant proportion of member remuneration. By country, this accounts for between 8% and 15% of their salary with the figure rising to 20% in the USA and Hong Kong. Recovery from the downturn is having a mixed impact on our members. Malaysia and Australia show the most significant increases in average remuneration since our last survey in 2009. But countries such as the UK and Sri Lanka have experienced only modest growth - less than 4% on average. There has been a measurable decline in average salaries in South Africa and, to a lesser degree, in Ireland. Sectors currenly offering the highest salaries are oil, gas and alternative energy as well as the retail, consumer, FMCG, food and drink and transport sectors. In the UK, the figures reflect continued economic uncertainty. The average remuneration package for a CIMA member in 2010 is 65,267 - a small increase (3.8%) on the 2009 figure. The annual average salary is 58,820 and the average bonus is 6,447. However almost a third (32%) expect to receive a bonus this year. Fellow chartered management accountants (FCMAs) earn on average 54% more than associate chartered management accountants (ACMAs) - in part, this may well be because they are three times as likely to be a board director. Remuneration in the public sector is 81% of the overall average. A cause for some concern is the earnings disparity between genders. Across the world, male CIMA members appear to be earning significantly more on average than their female counterparts. In the UK, the average remuneration package for men is 24% higher than for women. Part of this disparity could be explained by the fact that there are a greater number of more experienced male CIMA members in our global community. However this issue needs to be looked at more closely. CIMA has recently completed a report which identifies the main barriers to women achieving positions of leadership and outlines four strategies for success. We very much hope that this analysis will help highlight the value that women can add to the workplace and the boardroom in particular. We are also launching a womens network on our online

community forum, CIMAsphere. The new network will provide our female members with a place to share advice and experiences. When it comes to employment benefits in the UK, access to a pension scheme (received by 86%) and contribution/payment of CIMA fees (69%), are rated as amongst the most important. The increasing desire for a better work/life balance is illustrated by the fact that flexible hours is considered one of the most attractive offerings in a benefits package. At first glance, it appears that our members are feeling less confident than our students about enhancing their employment mobility. Just over half (52%) of members are thinking about a job move in the next two years. This is a lower percentage that the result we received from our recent survey of CIMA students (62%). However CIMA students are keen to develop their skill set and this often means changing to more challenging roles with different companies. Once qualified, our members take on more senior roles and may be more reluctant to move to new companies as senior positions tend to be fewer in number. Overall, our UK members satisfaction with their remuneration is down a few percentage points from our last survey but the figures are still high. In total, 67% are satisfied with their salary and 80% are satisfied with their benefits. Evidently, the continuing fragile economic environment is still having an impact on our members. However, in general, they appear to be taking a cautious but confident approach. Almost half (48%) are worried that they may experience a pay freeze but far fewer (9%) are worried about possible redundancy during the coming year. Clearly we are not out of the woods yet in terms of economic recovery but the unique toolkit of training, experience and professional standards carried by our members will place them in a prime position to help organisations build firm foundations for future success.

Charles Tilley Chief Executive CIMA

Executive summary
2009 saw very tough trading conditions for UK businesses, with the economy only barely escaping recession at the end of the year with marginal increases in GDP of 0.4% for Q4 and 0.3% in Q1 2010. As the UK tentatively emerges from its worst economic recession since World War II, the question arises as to how the management accounting profession is coping in these demanding times. With this in mind CIMA sought to gauge its members views of the current climate and understand what impact, if any, the recession has had on their salary levels. The second annual global salary survey of CIMA members was carried out in April 2010. A total of 1,959 members contributed to the survey of which 547 responses were from the UK. This report summarises the results of this survey with a particular focus on the UK, looking at how recent economic events are impacting on salary levels and benefits packages of CIMA members working in the UK.

Salaries and bonuses The average remuneration package for a CIMA member in 2010 is 65,267, an increase of 3.8% on the 2009 figure: CIMA members average annual salary is 58,820 the average bonus is 6,447 across all respondents. 32% do not expect to receive a bonus in 2010. On average, male CIMA members are earning a package which is worth 24% (13,562) more than their female colleagues. Industries that offer their staff the largest remuneration packages include: retail and FMCG (76,470) information and communication technology (ICT), technology and telecoms (73,646) banking, finance and insurance (69,624). The average remuneration package within the public sector was found to be at only 81% of the overall average for the profession. Geographic differences indicate that members working in London earn 16% more than the average. Fellow chartered management accountants (FCMA) earn on average, 54% more than associate management accountants (ACMA), no doubt at least partly because they are three times as likely to be a board director.

4 Recruitment and retention 66% are satisfied or extremely satisfied with their salary. 80% are satisfied or extremely satisfied with their benefits package. Pension schemes and annual bonuses are key benefits sought from an employer. A significant proportion also feel that flexible working hours are important, something that is of particular interest to female members in their 30s. The average member works 44 hours per week with nearly 40% expecting their working hours to increase during the coming year. Increased working hours are largely attributed to a combination of understaffing and member promotion/increasing responsibilities. In terms of future development, members are most interested in leadership skills, persuading and influencing skills and personal development skills.

Geographical mobility Around half of members (52%) intend to change jobs in the next two years. Only 7% are considering a relocation overseas; with Australia, Canada and the USA proving to be popular potential destinations.

Future The current economic conditions are having some impact on member expectations, with 48% expecting a possible pay freeze during the coming year. A further 9% expressed concerns that they might face redundancy.

Main findings
Salaries and bonuses
CIMA members average annual salary is 58,820. The average bonus is 6,447 across all respondents. This produces an average package of 65,267, representing a 3.8% increase on 2009. This is reasonably impressive, given the tough economic conditions of the past year, in which people in many other professions would have seen little or nothing by way of a pay increase. However, it must be noted that in comparison with the 2009 survey, a higher proportion of respondents are working in London or the South East of England (47% vs. 41% in 2009), which is traditionally where the highest average salaries are paid. It is also the case that the proportion of respondents working within the public/not-for-profit sector (the lowest paid segment) has reduced from 16% to 8%. In a similar manner there has been a shift in the employment profile in favour of larger, corporate, employers (with 500+ staff) 76% compared to 69% in 2009. Thus the proportion of respondents employed in what have traditionally proven to be the higher paid areas of the profession has increased.

Average remuneration package rises by 3.8% despite the recession

Remuneration packages 2010 vs. 2009

2010

58,820

6,447

65,267

2009

57,600

5,300

62,900

Average salary

Average bonus

6 The average annual bonus received is 6,447 across all respondents. However, this average masks some significant variances in the levels of bonuses received by individual members. For a start, 32% do not expect to receive any bonus at all in 2010, so this benefit is by no means automatic. For the 68% expecting a bonus the average is 9,429 but even this average hides some significant variations, with 17% receiving bonuses in excess of 20% of their annual salary and 26% receiving bonuses equivalent to less than 9% of their annual salary.

Bonuses likely to be received in 2010

Over 20% of annual salary: 17% None: 32%

Between 9% and 19.9% of annual salary: 25% Under 9% of annual salary: 26%

7 Experience It is no surprise to find that members with the most work experience are more likely to receive higher salaries and bonuses than their less experienced colleagues. Indeed, the years of experience a member has is one of the strongest influencers on remuneration.

Members with 20+ years experience earn more than double newly qualified members

Average salary and bonus by experience

Total
20+ years experience 10-19 years experience 6-9 years experience 4-5 years experience 1-3 years experience Newly qualified UK overall
84,951 12,249

97,200

67,160

7,314

74,474 68,267

60,635

7,632

55,469

5,478

60,947

46,671

4,201

50,872 45,990 65,267

43,112

2,878

58,820

6,447

Average salary

Average bonus

It would seem that once a member gains more experience they can expect to see a steady increase in their salary and benefits. Those with the most experience (20 years or more) begin to command significantly higher salaries and bonuses than their less experienced colleagues.

8 People are most likely to receive a bonus as a matter of course once they have at least a full year of work experience after qualification. Thereafter, it seems that members are most likely to receive bonuses up until ten years experience. After this time the annual bonus is less likely to be received, especially once a member has 20 years experience or more.

Experience and seniority have the most significant impact on salary and bonus levels

Members likely to receive a bonus by experience

73% 68% 62%

72%

73% 66% 59%

UK overall

Newly qualified members

1-3 years experience

4-5 years experience

6-9 years 10-19 years 20+ years experience experience experience

Of course, it must be remembered that once a member has attained over 20 years experience the basic salary levels are very high (averaging nearly 85,000 per annum) and, even though bonuses are less likely to be received, the typical bonus at this stage of a members career is very high indeed (approaching 21,000 for those who actually receive one).

9 Job role Clearly, a members position within the business has a significant impact on their salary and bonus potential. More senior members receive significantly higher rewards than those at the most junior levels. This is especially the case once a member reaches board level in their company.

Average salary and bonus by job title

Total Finance directors

79,387 9,542

88,929

Financial controllers

56,250

6,636

62,886

Financial managers

54,888

5,564

60,452

Finance or business analysts

46,864

4,321

51,185

Management accountants

42,131

2,309

44,440

UK overall

58,820

6,447

65,267

Average salary

Average bonus

10 When it comes to the likelihood of receiving a bonus it is not necessarily the case that the most senior members would also be more likely to receive a bonus.

Members likely to receive a bonus by job role

81% 73% 68% 72% 66%

52%

UK overall

Financial controllers

Finance or business analysts

Financial managers

Financial directors

Management accountants

In terms of seniority it would appear that middle managers are the most likely to receive bonuses. However, when board level members do qualify for a bonus, the size of the bonus received is very substantial (averaging 14,554 for financial directors in the 66% of cases where a bonus is paid). Overall, it is the most junior members at non-managerial level who are clearly the least likely to be granted a bonus and would receive the smallest bonuses when they do.

CIMA level Fellow Chartered Management Accountants (FCMAs) receive significantly higher salaries and benefits than Associate Management Accountants (ACMA). The typical ACMA would receive a base salary of 55,786, supplemented by an average bonus of 5,951. An FCMA receives an average base salary of 84,471, supplemented by an average bonus of 10,643. In total FCMAs earn 54% more than ACMA members.

On average FCMAs earn 54% more than ACMAs

11 However, this disparity may well be explainable by the fact that it is the members in more senior positions, with the most experience, who are most likely to become FCMAs. 48% of FCMAs have a board level position or are, at least, a head of function within their company. This compares to only 16% of ACMAs. In a similar manner, 56% of FCMAs have more than 20 years of work experience, compared with just 7% of ACMAs.

Sector

Those working in the retail sector earn 45% more than those in the public sector

Remuneration packages within certain industry sectors such as banking, retail and ICT are higher than the average, whereas packages in other sectors, such as the public sector and in accounting practice, are lower than the average. Total remuneration within the public sector is 81% of the national average, and for those in accountancy practices 84%.

Average salary and bonus by sector

Total Retail, consumer, FMCG, food and drink ICT, technology and telecoms Banking, finance and insurance Manufacturing and engineering Accounting practice Public sector/not-for-profit UK overall
64,905 11,565

76,470 73,646 69,624 58,355 55,035

65,099

8,547

61,369

8,255

53,319

5,036

50,555

4,480

51,214 1,421

52,635 65,267

58,820

6,447

Average salary

Average bonus

12 Members working in the banking, retail and ICT sectors are also most likely to receive bonuses, with public sector employees being the least likely.

Members likely to receive a bonus by sector

Banking, finance and insurance

86%

Retail, consumer, FMCG, food and drink

83%

ICT, technology and telecoms

77%

Manufacturing and engineering

66%

Accounting practice

62%

Public sector/not-for-profit

33%

UK overall

68%

13 Size of business There is no significant difference in basic pay by size of the business, but larger companies pay on average approximately twice the bonus of firms with less than 250 employees.

Larger employers provide the highest remuneration packages, mainly because they pay more in bonuses

Average salary and bonus by size of business

Total 250+ staff 59,059 7,285 66,344

Under 250 staff

57,935

3,332

61,267

UK overall

58,820

6,447

65,267

Average salary

Average bonus

The availability of bonuses increases in larger businesses to the extent that three out of four members in the larger companies would receive a bonus, compared to only half of the members working in the smaller companies.

14 Regional location Due to a combination of the higher cost of living and the higher than average concentration of businesses from high paying sectors, such as banking and ICT, members working in London receive the highest average salaries and bonuses. The overall remuneration package in the London region is 16% higher than the national average and 37% higher than that received by members in regions such as Wales and the South West of England.

Members in London and the South East command the highest salaries and bonuses

Average salary and bonus by region

Northern England and Scotland Salary 52,064 Bonus 5,723 Total 57,787 Central England Salary 56,791 Bonus 6,367 Total 63,158

London Salary 67,254 Bonus 8,584 Total 75,838 Wales and South West England Salary 52,637 Bonus 2,851 Total 55,488 South East England outside London Salary 61,929 Bonus 6,700 Total 68,629

15 Bonuses are a significant percentage of the annual salary across all regions. In London it is 13% of the base salary on average and is often as high as 11% in most regions outside of London. The exception is in Wales and the South West of England where the level drops to just 5%. Members working in this particular region are also significantly less likely to receive a bonus as a matter of course (only just over half would do, compared to two thirds or more in every other part of the country). Part of the explanation for low bonuses in the Wales and South West region is that fact that nearly 20% of members in this region are employed in the public/not-for-profit sector (compared to just 8% nationally), where bonuses are much less likely to be paid.

Members likely to receive a bonus by region

Northern England and Scotland 65%

Central England 65%

London 79%

Wales and South West England 55%

South East England outside London 69%

16 Gender The survey shows that the total remuneration package received by male CIMA members exceeds that received by women to a significant degree. The average salary is 62,690 for male CIMA members, supplemented by a typical bonus of 7,299, providing a total package worth 69,989 on average. For female members, the average salary is 51,575 and the average bonus is 4,852, which provides a total annual package of 56,427. Therefore, males are earning on average 24% more than their female colleagues. In terms of the salaries received, the proportion of men whose salaries exceed 70,000 per annum is significantly higher than for women (26% vs. 13%). Similarly, at the other end of the scale the proportion of women earning less than 55,000 is significantly greater (68%) than for men (51%).

Men are paid 24% more than women

Average salary and bonus by gender

10% 16%

2% 11% 18%

23%

54% 45%

100K+ 70k-99k 55k- 69k 35k-54k Under 35k

14% 6% Male Female

17 The question arises as to what factors differentiate male and female CIMA members that might account for these differences? Key factors that appear to contribute to this differentiation are:

Male CIMA members tend to have more experience, usually a key factor in determining remuneration. 37% of men became fully qualified CIMA members more than 10 years ago, compared to just 25% of women. Indeed, 17% of men have more than 20 years experience (the level at which the average salary rises dramatically) against only 3% of women. A slightly higher proportion of men are working in London and the South East, where salaries are higher (49% vs. 43% of women). A slightly higher proportion of men are working in larger companies (companies with over 250 staff employed internationally), where remuneration packages tend to be higher (84% vs. 76% of women). A slightly higher proportion of men hold the most senior board level jobs which command the highest salaries (22% vs. 15% of women).

18 Age As seniority and level of experience are both closely associated with age, it is no surprise to find that average salaries and bonuses increase as members get older. Salaries begin to rise significantly amongst those aged over 40.

The level of average salaries and bonuses rise as members get older Members aged over 50 are less likely to receive a bonus than their younger colleagues. However, when they do, the size of the bonus is often considerably larger

Average salary and bonus by age

Total 51+
78,913 9,046

87,959

41-50

67,392

7,434

74,826

36-40

55,796

6,037

61,833

31-35

55,181

6,022

61,203

Aged under 31

45,233

4,796

50,029

UK overall

58,820

6,447

65,267

Average salary

Average bonus

19 As members grow older they become less likely to receive a bonus, especially once they pass the age of 50. However, those who do receive a bonus are more likely to receive significantly more money than their younger colleagues. This would lend weight to the view that the receipt of an annual bonus is most likely to feature for mid-career/middle management members. Later on in a management accounting career, one might expect to receive bonuses less frequently but, when one does, the bonus is likely to be significantly higher.

Members likely to receive a bonus by age

73% 68% 67%

45%

UK overall

Aged under 40

Aged 41-50

Aged 51+

20

Recruitment and retention

Satisfaction with salary Despite the fact that average salaries and bonuses have risen over the past year, the level of overall satisfaction has reduced slightly, with 72% satisfied or extremely satisfied in 2009 compared to 67% in 2010.

Satisfaction with current salary package

7%

6%

65%

61%

Extremely satisfied Satisfied Dissatisfied Very dissatisfied

28% 25% 2% 2009 5% 2010

21 A major influence on the level of satisfaction is the level of salary received. Those earning in excess of 70,000 per annum report higher satisfaction (87%) than those on lower salaries, especially those earning a base salary less than 55,000 (58% satisfaction).

Satisfaction with current salary package by salary level

6%

4%

10%

8%

54% 61% 64% 79% Extremely satisfied Satisfied Dissatisfied Very dissatisfied

35% 28% 26% 5%

UK overall

8%
Low (under 55k) Medium (55k-70k)

13%
High0% (70k+)

By region, those working in the South East are most satisfied (75%) with their salary whilst members in Wales and the South West are least satisfied (55%).

22 Satisfaction with benefits Satisfaction with benefits has more or less stayed the same year on year, with 80% satisfied overall.

Satisfaction with current benefits

9%

10%

73%

70%

Extremely satisfied Satisfied Dissatisfied Very dissatisfied

16%

16%

1%
2009

3%
2010

23 Again, salary has the biggest influence on benefits satisfaction levels, with close to 90% of those earning in excess of 55,000 per annum satisfied with their benefits package compared to 74% of those earning less than 55,000.

Satisfaction with current benefits by salary level

10%

6%

13%

17%

68% 70% 75% 72%

Extremely satisfied Satisfied Dissatisfied Very dissatisfied

21% 16% 3%
UK overall

5%

10% 2%

11%
High (70k+)

Low (under 55k) Medium (55k-70k)

24 Importance of benefits The type of benefits that members typically receive from employers have remained largely unchanged over the last year. The majority (86%) are provided with a company pension scheme as part of their remuneration package. Employers also commonly provide their staff (69% of cases) with a financial contribution to their CIMA membership fees. Other common benefits include a guaranteed annual bonus (64%) and healthcare provision (61%). Support for flexible working is less widespread but nevertheless received by a significant minority. 37% of members are able to work from home when desired, 33% have flexible working hours and 23% receive assistance with childcare from their employers. Access to benefits varies a little according to the circumstance of the respondent. Of course, some industries and different sizes of organisation may favour different benefits packages. For example, mortgage relief is very rarely offered as a benefit except within the finance industry itself, where 9% have access to it. Similarly mobile phones/ Blackberries/ PDAs are most likely to be provided to members working in the ICT segment (65%). A further example can be seen in the fact that season ticket loans are very commonly available to members working in London (55%) but comparatively rarely offered in other regions. It may also be that some members are provided with a menu of possible benefits from which they can select. 29% of women have access to childcare arrangements/vouchers via their employer, compared to only 19% of men, which suggests a certain amount of selectivity on the part of the employee. In contrast, women are less likely than men to receive mobile phones (48% vs 31%) and company car allowances (46% vs 32%).

A pension scheme, an annual bonus and contribution to/payment of CIMA fees are the most widely available benefits for CIMA members

25 Respondents were asked to rate the importance of various benefits, using a scoring system from one to five (where an average score close to five indicates a benefit of high importance). Pensions, an annual bonus and flexible working hours were judged to be the most important benefits that employers might offer. Indeed, employers currently provide pensions, as well as bonuses to a considerable proportion of members already. Access to flexible working hours stands out as one area that is not available to any more than a minority at present but which is, nonetheless, seen as a very significant potential benefit.

Importance of benefits (mean score) by benefits received 5 = extremely important, 1 = not at all important

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

4.7 4.2 4 3.8 3.7 69% 64% 61% 3.7 3.7

Benefit received Importance

3.6 3.4 3.3 3.1 3
3 3.5 4.5

86%

40% 33%

41% 37% 29% 24% 14%

42%

2.5

1.5

26 Working hours

UK CIMA members work an average 44 hour week

The typical UK member works a 44 hour week, no different from the average recorded in 2009. 45% of members work between 41 and 50 hours a week. A significant minority (18%) work longer hours than this (although only a small percentage of respondents work more than 60 hours in a typical week). 32% work between 35 and 40 hours a week, which leaves only a small minority working less than 35 hours on average (5%).

Typical working hours for UK respondents

More than 60 Under 35 hours, hours, 3% 5%

51-60 hours, 15%

35-40 hours, 32%

41-50 hours, 45%

Most members (60%) do not believe that their working hours are likely to change significantly over the coming year. Only 2% believe their hours are likely to reduce at all, which leaves 38% who feel their hours will probably increase.

27 Reasons for increasing working hours

2010
66% 61% 66%

2009

50% 45%

34%

32% 27%

31%

29%

29% 22%

Understaffing/lack of resource

Taken on more responsibility/more pressure

Company culture

Current financial climate

My role has changed

Company growth

It would seem, therefore, that increased working hours are most closely associated with a combination of understaffing on the one hand and increased responsibilities on the other. Some evidence exists to support the latter of these perceptions within the survey itself, with board level members working an average of 48 hours per week, compared to management accountants with no managerial responsibility working an average of 41 hours per week. A similar pattern can be seen when considering the relationship between the hours worked and the salaries earnt. Those earning a base salary under 55,000 per annum would typically work 42 hours per week, whereas those earning a base salary in excess of 70,000 per annum would typically work a 48 hour week.

28 Skill set requirements

Leadership skills are of greatest interest to members

Members were asked to comment on their skills and training requirements for the coming year. Members were most likely to identify leadership skills as a priority for future training. Other popular areas included persuading and influencing and personal development (e.g. career planning, time management).

Perceived skills/training requirements

Leadership Personal development Persuading and influencing Skills for developing others Strategic planning and implementation Project management Communication skills Decision making Risk management Reporting and analysis IT software skills Team building Time management 22% 20% 20% 19% 18% 15% 29% 26% 34% 34% 39% 39%

48%

Leadership skills are of greatest interest to younger members (under 40) where the proportion keen to acquire such skills is 58%. Indeed, the age and level of experience a member has appears to influence the type of skills they are most interested in acquiring. Newly qualified members are far more interested in acquiring the following types of skills than those with more experience: leadership skills required by 58% of newly qualified members personal development (e.g. career planning, time management) required by 47% communication skills (e.g. negotiating, writing, presenting) required by 38% reporting and analysis skills required by 35% decision making skills required by 31%.

29 In general, members with considerable work experience are much less likely to feel that they need anywhere near as much skills training. This attitude exists across most of the skills tested. However, a small number of specific skills remain attractive to members with more experience, these are: Strategic planning and implementation remains of interest to 32% of members with more than 20 years experience, making it the most attractive area of training for members in this group. Risk management is of interest to 23% of members with more than 20 years experience, making it the second most attractive area for training for members in this group.

Strategic planning and risk management are of greatest interest to more experienced members

It is also worth noting that training in IT software (examples given being MS Excel, Word, PowerPoint, etc.) remains equally high across all ages/levels of experience. The highest levels of interest for training in this area comes from members aged under 31 and members aged over 51. Organisation size can also have an influence on the types of skills people feel they require. Members working in larger companies (250+ staff) are more likely than their peers working in smaller businesses to feel that certain skills would benefit them: 51% of members in large companies are interested in leadership skills, compared to just 38% in smaller companies. 38% of members in companies with more than 250 staff are interested in skills for developing others (e.g. assessing performance, coaching) as compared with just 21% of members in smaller businesses.

30

Geographical mobility
Extent of movement There has been a limited change in the proportion of people who are planning to look for a new job since 2009. 52% are thinking about a move in the next two years, slightly higher than the 46% recorded for 2009. There is also some evidence to suggest that a higher proportion are now more serious about moving. The 2009 survey showed 19% were looking to move within six months and this proportion has increased to 24% in 2010.

52% of CIMA members are considering changing jobs in the next two years

Plans to move job 2010 vs. 2009

19%

24%

Within six months 27% 28% Within seven months - two years No plans

54%

48%

2009

2010

31 There are a number of reasons members may have become slightly more likely to look to change jobs: The tough economic conditions have increased the risk of pay freezes and redundancy in certain areas. Indeed, 48% of CIMA members are expecting a pay freeze whilst 9% are concerned about the risk of redundancy in the coming year. This would no doubt play a role in prompting people to consider looking for alternative employment. Salary and remuneration in general has increased only slightly over the past year (3.8%) and some members may be inclined to feel that prospects for any future increases are similarly limited within their current role, and hence be more open to the idea of looking at alternatives.

Those most likely to be considering alternative employment match the following profile: younger members (67% of members under 31 are considering a move) members working in ICT, technology or telecoms (63%) or in banking, finance and insurance (61%) members in more junior positions (64% of management accountants) members with less than three years experience (60%) members on lower salaries (59% of those earning under 55,000) members working in Northern England or Scotland (59%).

32 Top destinations 13% of those considering a change in jobs are thinking about a possible move overseas (which equates to around 7% of total respondents). This proportion is little different from the situation in 2009, which revealed that 6% (compared to the 7%) were considering such a move at that time. Those most likely to consider a move overseas were: members who are newly qualified (22% of those considering a move) members aged under 31 (22%) members on higher salaries over 70,000 per annum (22%) members working in ICT, technology or telecoms (22%) members currently working in London (18%).

7% of members are considering working overseas

A total of 37 members were identified by the survey who were potentially considering working overseas in their next job. In general these individuals preferred to look at opportunities in English speaking countries such as Australia, Canada, the USA and New Zealand.

Mobility of CIMA qualification

Canada 31%

Switzerland 10%

USA 31%

UAE 11%

Australia 44% New Zealand 19%

33 Those members who were considering working overseas were asked to say why they wanted to relocate. The main reasons were likely to be lifestyle oriented (quality of life and experiencing different cultures), although career related motives were also in evidence. The numbers stating improved quality of their life as their reason for wishing to work overseas has increased significantly since 2009.

Motives for wishing to work overseas

Improved quality of life New career opportunity Experience a different culture Improved salary Friends and family Better employment opportunities Work promotion Internal company transfer Stronger economy Improved employment conditions Take time out/travel To learn a new language
3% 17% 11% 15% 16% 13% 8% 10% 8% 19% 14% 14% 27% 32% 30% 30% 27% 27%

49% 49% 47% 62% 62%

70%

2009 2010

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Future
The greatest aspect of the tough economic conditions appears to be manifesting itself in terms of pay freezes. As many as 48% of members feel that they might experience a pay freeze during the coming year. Those members who are most concerned about this fit the following profile: members working in the South West of England or Wales (65%) members working in ICT, technology or telecoms (65%) members working in the public sector (61%) members with 10-19 years experience (59%) members working as management accountants rather than managers or directors (58%) members aged 41-50 (57%).

A further 9% of members are concerned that they might face redundancy during the coming year. This is the second most significant fear that members identify as a potential effect of the current economic problems. Management accountants are most likely to be concerned about redundancy (14%). Members with four to five years experience also seem more concerned than average (17%) along with members with more than 20 years experience (16%). The threat of redundancy also appears to be more acute in companies with more than 250 staff (10%) than in smaller organisations (4%).

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One word to describe how CIMA is different from other accountancy qualifications
A summary of respondent perceptions is illustrated below (the size of the font reflects the number of times the word was spontaneously mentioned).

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UK salary information
This section provides a breakdown of UK specific salary information by key indicators (where the sample base is large enough to provide reliable information). All salary information was collected in April 2010 and is presented in local currency.
UK Salary ( per annum) 58,820 Bonus ( per annum) 6,447 Total package ( per annum) 65,267

Base: 547 Total Salary level Lower Medium High Age Under 31 31-35 36-40 41-50 51 and over Gender Male Female Level Associate Fellow Size of organisation Under 50 staff 50 - 249 staff 250+ staff Years of experience Newly qualified 1-3 years 4-5 years 6-9 years 10-19 years 20 years + Job role Finance director Financial controller Financial managers Finance/business analysts Management accountants

41,889 63,000 100,038 45,233 55,181 55,796 67,392 78,913 62,690 51,575 55,786 84,471 61,993 51,475 59,059 43,112 46,671 55,469 60,635 67,160 84,951 79,387 56,250 54,888 46,864 42,131

2,604 7,189 16,013 4,796 6,022 6,037 7,434 9,046 7,299 4,852 5,951 10,643 3,235 3,486 7,285 2,878 4,201 5,478 7,632 7,314 12,249 9,542 6,636 5,564 4,321 2,309

44,493 70,189 116,051 50,029 61,203 61,833 74,826 87,959 69,989 56,427 61,737 95,114 65,228 54,961 66,344 45,990 50,872 60,947 68,267 74,474 97,200 88,929 62,886 60,452 51,185 44,440

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UK Salary ( per annum) 58,820 Bonus ( per annum) 6,447 Total package ( per annum) 65,267

Base: 547 Total Industry sector Retail, consumer, FMCG and food and drink ICT, technology and telecoms Banking, finance and insurance Manufacturing and engineering Accounting practice Public sector/not-for-profit Region London South East (exc. London) Central England Northern England and Scotland Wales and South West England

64,905 65,099 61,369 53,319 50,555 51,214 67,254 61,929 56,791 52,064 52,637

11,565 8,547 8,255 5,036 4,480 1,421 8,584 6,700 6,367 5,723 2,851

76,470 73,646 69,624 58,355 55,035 52,635 75,838 68,629 63,158 57,787 55,488

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Technical information
Data collection for the CIMA UK members salary survey 2010 was carried out online by CIMA during the period 19 March to 19 April 2010. The data was subsequently rim weighted (by Redshift Research) by CIMA member level to ensure the profile of the survey accurately represents all CIMA members working in business. 17,489 CIMA members globally (excluding retired members) were selected and invited to participate (UK, Ireland, Australia, Malaysia, Sri Lanka, South Africa, USA, Canada, Singapore, New Zealand, UAE, China and India) a total of 1,959 completed the study globally (11% response rate), with 547 respondents from the UK. Basic responses from the UK were as follows:

Sample profile

Respondent type Aged under 31 31-35 36-40 41-50 51 and over Male Female

Proportion of Sample 20% 27% 17% 25% 10% 65% 35%

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Further information
For further information on yourvoice@cimaglobal.com technical matters relating to this survey, contact

For further country specific analysis and reports, visit CIMA MY JOBS at http://myjobs.cimaglobal.com Both the Chartered Institute of Management Accountants and Redshift Research are Market Research Society Company Partners. The organisations abide by the Market Research Societys Code of Conduct and the Data Protection Act.

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Global contacts
CIMA UK Head Office 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 8849 2287 F. +44 (0)20 8849 2450 E. cima.contact@cimaglobal.com www.cimaglobal.com CIMA Australia Suite 1305 109 Pitt Street Sydney NSW 2000 Australia T. +61 (0)2 9376 9900 F. +61 (0)2 9376 9905 E. sydney@cimaglobal.com www.cimaglobal.com/australia CIMA Botswana Plot 50374, Block 3, 1st Floor Southern Wing Fairgrounds Financial Centre Gaborone, Botswana Postal address: PO Box 403475 Gaborone, Botswana Telefax. +267 395 2362 F. +267 395 2362/397 2982 E. gaborone@cimaglobal.com www.cimaglobal.com/botswana CIMA China Unit 1508A AZIA Center, 15th floor 1233 Lujiazui Ring Road Pudong Shanghai 200120 P.R.China T. +86 400 820 4080 +86 (0)21 5528 5119 F. +86 (0)21 5228 5120 E. infochina@cimaglobal.com www.cimaglobal.com/china www.cncima.com CIMA Hong Kong Suites 1414 1415 14th Floor Jardine House Central, Hong Kong T. +852 2511 2003 F. +852 2507 4701 E. hongkong@cimaglobal.com www.cimahongkong.com CIMA India Unit 1-A-1, 3rd Floor Vibgyor Towers C-62, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 T. +91 (0)22 4237 0100 F. +91 (0)22 4237 0109 E. india@cimaglobal.com www.cimaglobal.com/india CIMA Ireland 45-47 Pembroke Road Ballsbridge, Dublin 4 T. +353 (0)1 643 0400 F. +353 (0)1 643 0401 E. dublin@cimaglobal.com www.cima.ie CIMA Malaysia Lots 1.03b and 1.05, Level 1 KPMG TOWER 8 First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan Malaysia T. +60 (0)3 7723 0230 F. +60 (0)3 7723 0231 E. kualalumpur@cimaglobal.com www.cimaglobal.com/malaysia CIMA Middle East Office E01, 1st Foor, Block 3 PO Box 502221 Dubai Knowledge Village Al Sofouh Road Dubai, UAE T. +971 4434 7370 F. +971 4434 1998 E. middleeast@cimaglobal.com www.cimaglobal.com/middleeast CIMA Pakistan No. 201, 2nd floor Business Arcade Plot No. 27 A, Block 6, P.E.C.H.S. Shahra-e-Faisal Karachi, Pakistan T. +92 21 3432 2387/88/89 F. +92 21 3432 2390 E. pakistan@cimaglobal.com www.cimaglobal.com/pakistan CIMA Singapore 51 Goldhill Plaza, #08-02 Singapore 308900 T. +65 6535 6822 F. +65 6534 3992 E. singapore@cimaglobal.com www.cimaglobal.com/singapore CIMA South Africa 1st Floor, 198 Oxford Road Illovo, Johannesburg South Africa Postal address: PO Box 745, Northlands 2116, South Africa T. +27 (0)11 788 8723/0861 CIMA SA F. +27 (0)11 788 8724 E. johannesburg@cimaglobal.com www.cimaglobal.com/southafrica CIMA Sri Lanka 356 Elvitigala Mawatha Colombo 5 Sri Lanka T. +94 (0)11 250 3880 F. +94 (0)11 250 3881 E. colombo@cimaglobal.com www.cimaglobal.com/srilanka CIMA Zambia 6053, Sibweni Road Northmead, Lusaka Zambia Postal address: PO Box 30640, Lusaka, Zambia T. +260 21 1 290 219/291 708 F. +260 21 1 290 548 E. lusaka@cimaglobal.com www.cimaglobal.com/zambia CIMA Zimbabwe 6th Floor, Michael House 62 Nelson Mandela Avenue, Harare Zimbabwe Postal address: PO Box 3831, Harare, Zimbabwe Telefax. +263 (0) 4 708600/702617 F. +263 (0) 4 708600/702617 E. harare@cimaglobal.com www.cimaglobal.com/zimbabwe CIMAs global offices may change during the year, so please visit the global web links for the most up-to-date contact details. For a full list of global contacts, please visit www.cimaglobal.com/globalcontacts