2013 salary survey south africa
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CIMA SALARY
SURVEY 2013
South Africa
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Foreword
Zahra Cassim
Head of South Africa
Our annual salary survey for 2013 shows the positive impact of professionalqualifications on members earning potential, salary satisfaction and the abilityto realise ambitions such as moving to a new organisation, or working abroad.
Respondents across the board agree that the CIMA qualification strengthens theirability to move internationally in their career at 93%, while 89% agree that thequalification creates career opportunities and 82% agree that it allows them tomove across all areas of the business and outside of the finance function.
The effect of the CIMA qualification on boosting salary deals is strongest for newlyqualified members and part qualified students, with 75% of both categories saying ithelps to strengthen their position in salary negotiations.
CIMA members are in demand and earn on average R906 943 pa. Meanwhile,part-qualified CIMA students in South Africa are earning on average R380 761(basic salary), plus R34 235 in bonus payments, totalling R414 996 pa.
While 75% of members are satisfied with their current salary, the figure is loweramong students at 52%. This difference highlights the fact that the average totalannual salary for members is more than twice that for students.
Amid a mixed backdrop of continuing concern over the fate of South Africas majortrading partners in the Eurozone, China and to a lesser extent - the USA, theeconomy is still forecast to grow by 2.8% in 2013, rising to 3.3% in 2014. In linewith this, two-fifths of CIMA members and students are positive in their expectations
for the profitability of the organisation in which they work, and one-third expect salaryincreases across the board.
Mobility of CIMA members and students in South Africa remains strong, with only 4%seeing themselves in the same role in three years time. Up to 71% anticipate being ina new role within the next two years and 17% plan to move abroad.
Among members and students who plan to seek employment abroad, the UK is themost frequently named destination at 58%, followed by the USA, August and Canada.Switzerland and Singapore are also other popular planned destinations. Key reasonscited for moving would be a new career opportunity and improved quality of life.
Among those already working as a management accountant, 42% expect to progress
to finance manager, financial controller or finance director within the next three years.Among those currently working in assisting finance roles, 43% expect to progress tomanagement accountant.
Managerial skills, particularly leadership and strategic planning are the skill setsstudents most wish to develop, while for qualified members there is a secondaryfocus on softer skills such as persuading and influencing, personal developmentand skills for developing others.
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Salary survey results
South Africa average salary figuresIn 2013, qualified CIMA members in South
Africa are earning on average R794,452 in
basic salary plus R112,490 in bonus payments,
totalling R906,943 per annum.1Part qualified
students in South Africa are earning on average
R380,761 in basic salary plus R34,235 in bonus
payments, totalling R414,996.
Robust salary satisfaction
While 75% of members are satisfied with
their current salary, the figure is lower amongstudents (52%). This difference highlights the
fact that the average total annual salary for
members is more than twice that for students.
The overall level of satisfaction among
members and students combined is 62%,
compared with 77% in 2012 and 67% in 2011.
Above-inflation salary increases anticipated
Nevertheless, there is considerable optimism
about future salaries, particularly among part
qualified students. 97% of all members andstudents are expecting an increase in salary, at
an average rate of 7.9%.
Among part qualified students alone, salaries
are expected to increase largely in line with
CIMA level attained: from 7.8% at operational
level to 9.1% among those at T4 professional
competence level, who are anticipating higher
salaries as fully qualified CIMA members. In
real terms, these average rises will be well
above inflation forecasts of around 5.6%.2
Bonus payments form a significant part of
total salary and 84% of members and students
expect to receive one this year, at an averagerate of 11.8% on top of basic salary. The figure
rises to 12.9% among qualified members
alone.
Qualification boosts salary deals for CIMA
students
The effect of the CIMA qualification on
boosting salary deals is strongest for newly
qualified members and part qualified students
at operational level, with 75% of both
categories saying it helps to strengthen theirposition in salary negotiations.
Figure 1:Annual remuneration by CIMA level
97% of membersand students areexpecting a salaryincrease, at anaverage rate of7.9%.
75% of newlyqualified memberssay the CIMAqualificationstrengthens theirposition in salarynegotiations.
1 Figures may not sum due to rounding.
2 IMF World Economic Outlook, April 2013. Available at: http://www.imf.org/external/pubs/ft/weo/2013/01/pdf/text.pdfAccessed 11 June 2013.
R1,202,789
R874,775
R438,507R434,794R370,059R461,786
CIMA Member
FCMA, CGMA
CIMA Member
ACMA, CGMA
Strategic T4 professional
competence
ManagementOperational
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Salary patterns
Remuneration by job roleJust over one-third (36%) of part qualified
students work as a management accountant or
finance manager and earn above-average total
salaries of c . R442k and R548k respectively.
Those in accounts assisting roles earn on
average c. R229k, are significantly more likely
to be female than male, and tend to have less
than one year of relevant experience.
Average salaries for qualified members are
substantially higher. Associate members
(ACMAs) earn c. R875k and Fellows (FCMAs)earn c. R1.2m on average. Management
accountants earn an average of c. R640k, and
finance managers earn c. R840k per annum.
Those in very senior roles (CEO/MD and CFO)
tend to earn over c . R1m on average, including
significant annual bonus payments of around
16.5% or R175kR202k.3
Remuneration by business size
For students, average basic salaries and
bonuses tend to increase with business size.
Those working in micro/small and medium
businesses earn on average 25% and 9% less
than the national average respectively, while
those working in large businesses earn c.
R550k: 8% more than the national average.
In contrast, qualified members in micro/small
businesses earn 5% more than the overall
average. The most likely reason being that 21%
of them are the business owner (CEO/MD).
Figure 2: Annual remuneration by job role
Associate members(ACMAs) earn c.
R875k and Fellows(FCMAs) earn R1.2m
on average.
Johannesburgattracts a significantly
larger average salaryfor qualified members
than other cities.
3 Figures reported for Fellows (FCMAs) and very senior roles are based on low bases of less than 30 members but representstatistically significant differences against the national average salary for qualified members.
547,620495,924
442,154404,826
413,958380,466
356,232330,529
346,694320,337
229,007209,277
414,996380,761South Africa - partqualified students
Finance manager
Management accountant
Finance/Business analyst
Financial accountant
Accountant
Accounts assistant/executive/Assistant
management accountant*
1,383,3821,181,179
1,197,8701,023,286
839,090741,076
790,413706,250
639,950566,000
906,943794,452South Africa -
qualified members
CEO/MD*
CFO*
Finance manager
Finance/Business analyst*
Management accountant*
*Caution: Low base, under 30Lowest base: Accounts assistant/executive/Assistant management accountant* (26)Highest base: Management accountant (93)
*Caution: Low base, under 30Lowest base: CEO/MD* (12)Highest base: Finance manager (53)
Basic salary Bonus Total
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Students working
in the naturalresources, energy/fuel and utilitiessector earn one-third(32%) more thanthe national averagetotal salary for partqualified CIMAstudents (R414,996).
Figure 3: Annual remuneration by city
Remuneration by major city
Average salary packages vary by major city,
with Johannesburg attracting a significantly
larger average salary for qualified members
than other cities, and 10% more than
the national figure. As the largest city,
Johannesburg has sizeable banking, technology,
financial and manufacturing sectors; according
to our survey, these tend to pay among the
highest salaries by industry sector.
Although in 2013 part qualified students
in Pretoria currently earn more on average
than those in Johannesburg, the difference in
salaries between these cities is not statistically
significant. The Johannesburg total salary
is 9% higher than the national figure for
students, while that of Pretoria is 10% higher.
Remuneration by sector
Students working in the natural resources,
energy/fuel and utilities sector earn one-
third (32%) more than the national average
total salary for part qualified CIMA students
(R414,996). Other large sectors attract salaries
in line with the average, while those working
in the accountancy sector earn 45% below
the average this may be a result of the
greater likelihood of students working in the
accountancy sector being in the early stages of
their careers.
Salaries for qualified members tend to be more
consistent across the largest industry sectors,
with financial services paying the highest
average salary of R993,701; this includes
an average annual bonus of around 15%,
equivalent to c. R150k.
DurbanPart qualified (38): R320,748Qualified (22*): R807,015
JohannesburgPart qualified (255): R452,880Qualified (120): R998,785
Cape TownPart qualified (106): R334,133Qualified (43): R767,241
PretoriaPart qualified (36): R456,574Qualified (17*): R793,007
Bases shown in brackets*Caution: Low base, under 30
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Figure 4: Annual remuneration by sector
Equality of opportunity
Our ongoing commitment to equality
of opportunity is demonstrated by very
positive increases in the proportion of
African enrolees in the South African CIMA
membership.4In 2013, our salary survey
reports that Africans comprise 15% of
qualified members but 38% of part qualified
students (who are above certificate level and
in full-time employment). There are similarly
positive changes in the proportion of Indian
and Coloured membership, although on a
smaller scale: Indians comprise 11% of the
qualified membership but 14% of the student
population and Coloureds represent 4% of
members and 7% of students.
Among part qualified students, earnings across
the racial categories are similar, although the
annual earnings of Africans (R405,181) and
Coloureds (R405,982) are slightly below the
average total salary of R414,996 for all CIMA
students in South Africa. Over time, these
differences in salary are likely to lessen further,
as more Africans, Coloureds (and Indians)
progress through the qualification. Currently,
around one-half of all African, Indian and
Coloured students are at operational level,
compared to one-quarter of Whites.
Among qualified members, figures suggest
that, at R933,768, Whites earn just above the
national average total salary of R906,943,
while Africans and Indians earn just below
the average, at R860,689 and R852,654
respectively.
4 The abolition of apartheid in 1991 marked the end of division of South African peoples into different categories; however,many South Africans still view themselves and each other according to the different groups, and the governmentsongoing focus on fostering equality of opportunity means that the classification is still relevant for monitoring purposes.
548,523495,449
438,451405,317
436,545405,388
436,009394,779
434,325396,147
404,456362,674
227,168216,112
414,996380,761South Africa - partqualified students
Natural resources,energy/fuel and utilities
Retail andconsumer goods
Manufacturingand engineering
ICT, technologyand telecoms*
Banking
Financial services
Accountancy
993,701843,814
979,392843,215
938,572826,215
889,443763,530
851,381731,649
906,943794,452South Africa - partqualified students
Financial services
Natural resources,energy/fuel and utilities
Manufacturingand engineering
Banking
Retail andconsumer goods
*Caution: Low base, under 30Lowest base: ICT, technology and telecoms (26*)Highest base: Manufacturing and engineering (81)
*Caution: Low base, under 30
Lowest base: Natural resources,energy/fuel and utilities (19*)Highest base: Manufacturing andengineering (40)
Basic salary Bonus Total
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Figure 5: Annual remuneration by racial category
There are a number of interlocking factors
affecting average salary figures by racial group
for members; the key factors in 2013 seem
to be job role and industry sector. African
members are more likely than White members
to be in a senior role such as finance manager
or manager in a non-finance role, whereas
Whites represent 100% of all survey responsesfrom CEO/MDs and self-employed consultants,
who earn relatively larger salaries.
African members are more likely than other
racial groups to be working in the natural
resources, energy/fuel and utilities sector and
the oil, gas and alternative energy sector; this
has an upward effect on average salary.
On the other hand, they are also more likely
to be working in the government and not-for-
profit sectors, which has the opposite effect.
Similarly, Indians are highly likely to be working
in the financial services and the manufacturing
and engineering industries, which display
higher average total salaries, but also the retail
and banking industries, where average total
salaries are a little below average.
Business and the economy
Expectations for future pay and conditions
Amid a mixed backdrop of continuing concern
over the fate of South Africas major trading
partners in the Eurozone, China and to a
lesser extent the USA, the economy is still
forecast to grow by 2.8% in 2013, rising to
3.3% in 2014.5In line with this, two-fifths of
CIMA members and students are positive in
their expectations for the profitability of the
organisation in which they work, and one-third
expect salary increases across the board.
There has been dramatic improvement in
sentiment since 2009, particularly with regard
to budget cuts, job cuts and profitability
expectations. However, there is evidence of a
slight shift towards the downside in the last
two years.
5 IMF World Economic Outlook, April 2013. Available at: www.imf.org/external/pubs/ft/weo/2013/01/pdf/text.pdfAccessed 11 June 2013.
421,759388,944
420,513380,561
405,982358,994
405,181373,706
414,996380,761South Africa - partqualified students
White
Indian
Coloured
African
*Caution: Low base, under 30Lowest base: Coloured (30)Highest base: White (211)
933,768815,184
860,689758,537
852,654757,107
906,943794,452South Africa -
qualified members
White
African
Indian
Coloured*
*Caution: Low base, under 30** Insufficient responces for reporting (8)Lowest base: Indian (23*)
Highest base: White (151)
Basic salary Bonus Total
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The percentages of CIMA members and
students expecting changes to business
profits have remained steady since 2011, butthe proportion anticipating budget cuts has
increased from 25% to 30% over the same
period. Similarly, the proportion expecting
job cuts has increased from 12% to 17%.
Changes to business processes and policy are
anticipated by 41%, which is up substantially
from the 26% reported in 2009.
Working conditions
Working hours
On average, South African members and
students work 45 hours per week, although
29% work less than the average.
Longer hours are linked to seniority: 61% of
students at operational and management
levels of the CIMA qualification are workingmore than 40 hours per week, compared to
79% of qualified members.
Two-fifths (40%) of members and students
expect their working hours to increase over the
coming 12 months, while over one-half (56%)
expect no change. The primary reason for
increasing working hours is related to career
progression taking on more responsibility
was cited by 67% of members and students.
A secondary factor, mentioned by 46%, is
understaffing/lack of resource.
Figure 6: Expectations for the business environment over the coming 12 months selected
indicators
42%43%43%
41%42%
39%26%
35%43%
38%
23%27%
26%
30%27%
25%69%
18%16%16%
7%
17%14%
12%35%
8%9%10%
28%
15%
13%15%60%
Increase in the overall profitability of the business*
Business process/policy changes
Salary increases*
Budget cuts
Increase in staff recruitment*
Increase mergers/acquisitions
Job cuts
Fall in the overall profitability of the business
Salary freezes
201120122013*Indicator not featured in 2009 2009
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Motivators at work
The key motivators at work for both members
and students are a good working environment(47%) and financial reward (46%). Flexibility/
work-life balance is mentioned by 43%, but is
more important for females (53%) than males
(37%), as they may be more likely to need
to juggle work and non-work commitments.
Among qualified female members alone, 75%
are motivated by flexibility/work-life balance,
compared to 46% of qualified males.
A challenging workload is significantly more
important than average to students at T4
professional competence level (49% versus36% overall). The importance of training and
development reduces from 28% for students
to 14% for qualified members.
Career plans
Seeking new opportunitiesMobility of CIMA members and students in
South Africa remains strong, with only 4%
seeing themselves in the same role in three
years time.
While almost one-half (47%) anticipate being
in a senior finance-related role such as finance
manager, financial director or controller,
CFO, head of accounting or self-employed
practitioner, 14% anticipate being in a very
senior non-finance role such as CEO/MD,
head, director or manager of a non-financedivision. Among those already working as
a management accountant, 42% expect
to progress to finance manager, financial
controller or finance director within the next
three years. Among those currently working in
assisting finance roles, two-fifths (43%) expect
to progress to management accountant.
Among all qualified members and part
qualified students, 31% are planning to find
another job over the next six months and a
total of 71% are planning to move job withinthe next two years. Of those, 83% plan to stay
within South Africa and 17% plan to move
abroad.
The CIMA qualification
strengthens my ability
to move internationally
with my career 93%agree
The CIMA qualification
creates career
opportunities for me
89%agree
The CIMA qualificationstrengthens my ability
to move across all areas
of the business 82%agree
96% anticipatebeing in a new rolewithin the next threeyears and 17% planto move abroad.
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A global career
Among members and students who plan to
seek employment abroad, the UK is the most
frequently named planned destination (58%),
followed by the USA (42%), Australia (31%)
and Canada (28%). Other popular planned
destinations are Switzerland (17%) and
Singapore (12%).
In 2013, seeking a new career opportunity
(55%) and an improved quality of life (52%)
are the key factors to planned relocation.
Better employment opportunities, wanting to
experience a new culture (both at 45%) and
improved salary (43%) are also important
factors.
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: 38%
mention persuading and influencing, 33%
mention skills for developing others and 28%
mention relationship management.
71% are looking to move job withinthe next two years, of which
83% plan to stay in South Africa
17% plan to move abroad
Part qualified students Qualified members
52% Leadership
56% Leadership
35% Personal development42% Personal development
29% Data analysis
29% Operational planning
29% Skills for developing others
38% Persuading and influencing
36% Financial reporting
51% Strategic planning and implementation
60% Strategic planning and implementation
29% Communication
26% Risk management
24% Change management
43% Decision making
33% Skills for developing others38% Project management
34% Risk management
34% Communication
28% Relationship management
28% Decision making
While leadershipand strategic
planning skillsremain important
at all levels ofexperience, acquiring
managerial peopleskills becomes
more important forqualified members.
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Figure 7: Top skills that students and members wish to develop
Appendix
Part qualified students Qualified members
South Africa Base Basicsalary(R per
annum)
Bonus(R per
annum)
Totalpackage(R per
annum)**
Base Basicsalary(R per
annum)
Bonus(R per
annum)
Totalpackage(R per
annum)**
Total 475 380,761 34,235 414,996 216 794,452 112,490 906,943
Age
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*Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.
Part qualified students Qualified members
South Africa Base Basicsalary(R per
annum)
Bonus(R per
annum)
Totalpackage(R per
annum)**
Base Basicsalary(R per
annum)
Bonus(R per
annum)
Totalpackage(R per
annum)**
Total 475 380,761 34,235 414,996 216 794,452 112,490 906,943
Experience since qualifying
Up to 1 year 24* 565,625 63,130 628,755
13 years 65 659,231 78,210 737,440
45 years 38 738,686 88,333 827,020
69 years 26* 891,270 138,969 1,030,240
1019 years 42 963,242 157,696 1,120,938
20+ years 21* 1,060,267 180,725 1,240,992
Industry
Accountancy 31 216,112 11,056 227,168 6 *** *** ***
Banking 46 396,147 38,178 434,325 24* 763,530 125,913 889,443
Financial services 60 362,674 41,782 404,456 26* 843,814 149,888 993,701
ICT, technology andtelecoms
26* 394,779 41,230 436,009 11 *** *** ***
Manufacturing andengineering
81 405,388 31,158 436,545 40 826,215 112,357 938,572
Natural resources, energy/fuel and utilities
37 495,449 53,074 548,523 19* 843,215 136,177 979,392
Retail and consumergoods
67 405,317 33,134 438,451 28* 731,649 119,733 851,381
Region
Cape Town 106 308,802 25,331 334,133 43 671,341 95,900 767,241
Durban 38 296,897 23,852 320,748 22* 708,494 98,522 807,015
Johannesburg 255 414,525 38,355 452,880 120 867,710 131,075 998,785
Pretoria 36 420,842 35,732 456,574 17* 747,059 45,949 793,007
Race
African 170 373,706 31,476 405,181 33 758,537 102,152 860,689
Coloured 30 358,994 46,988 405,982 8 *** *** ***
Indian 62 380,561 39,952 420,513 23* 757,107 95,547 852,654White 211 388,944 32,815 421,759 151 815,184 118,584 933,768
Job role
Accountant 66 320,337 26,357 346,694 5 *** *** ***
Accounts assistant/executive/ Assistantmanagement accountant*
26* 209,277 19,730 229,007 2 *** *** ***
CEO/MD 0 *** *** *** 12* 1,181,179 202,203 1,383,382
CFO 2 *** *** *** 15* 1,023,286 174,583 1,197,870
Finance analyst/Businessanalyst
41 380,466 33,492 413,958 20* 706,250 84,163 790,413
Finance manager 82 495,924 51,696 547,620 53 741,076 98,014 839,090Financial accountant 30 330,529 25,702 356,232 5 *** *** ***
Management accountant 93 404,826 37,327 442,154 25* 566,000 73,950 639,950
*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 qualified members and partqualified students 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 under 21,000 part qualified students
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 691 from South
Africa.
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, [email protected]
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 MarketResearch Society Company Partner. Both CIMA
and Spotlight abide by the Market Research
Societys Code of Conduct and the Data
Protection Act.
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CIMA South Africa
1st Floor,198 Oxford Road,Illovo 2196
T: +27 11 788 8723E: [email protected]
September 2013, Chartered Institute of Management Accountants