CIMA South Africa part qualified salary survey 2011 CIMA part qualified salary survey 2011 – South Africa Table of figures
Foreword 1 Figure 1: South Africa GDP – forecasted trend 3
Executive summary 2 Figure 2: Annual remuneration by number of years’ relevant experience 4 Figure 3: Annual remuneration by age category 5 Economic context 3 Figure 4: Annual remuneration by city 6 Main findings 4 Figure 5: Annual remuneration by sector 7 Overview of remuneration packages 4 Figure 6: Annual remuneration by business size 7 The career ladder for part qualified students 7 Figure 7: Annual remuneration by CIMA level 7 Expectations for future pay and conditions 9 Figure 8: Satisfaction with salary – trend 8 Improving employability and opportunities 13 Figure 9: Expectations for the business environment – trend 9 Attracting candidates and retaining employees 14 Figure 10: Expectations for the business environment – by city 10 Special report – focus on equality of opportunity 18 Figure 11: Expectations for personal salary and job security 11
One word to describe...management accounting 22 Figure 12: Expectations for increase in personal salary 12 Figure 13: Expectations for working hours and reasons for any increase 12 Appendix 24 Figure 14: Attitudes towards the CIMA qualification 13 Table of salaries and bonuses 24 Figure 15: Proportion planning to move job, to emigrate 13 Technical information 26 Figure 16: Planned migration destinations 14 Further information 26 Figure 17: Proportion planning to move job, to emigrate − trend 14 Acknowledgements 26 Figure 18: Reasons for migrating − trend 15 Global offices 27 Figure 19: Additional benefits received versus importance 16 Figure 20: Skill sets part qualified students wish to develop − top 10 skills 17 Figure 21: Motivators in employment 17 Figure 22: Comparison of racial profile – CIMA respondents vs. general population 18 Figure 23: Comparison of racial profile – CIMA respondents by level 18 Figure 24: Annual remuneration – by racial category 19 Figure 25: Satisfaction with salary − by racial category 20 Figure 26: Expectations for personal salary and job security − by racial category 21 Figure 27: Proportion planning to move job within two years − by racial category 21 Figure 28: Key motivators in employment − by racial category 22 Figure 29: Words used to describe management accounting 23 Figure 30: Table of salaries and bonuses 24 1 2
Foreword Executive summary
Welcome, on behalf of the Chartered Institute of Management This report details the findings of the third annual CIMA part qualified salary survey for South Africa. Accountants (CIMA), to our third global part qualified salary survey. The The first survey was conducted in 2009 and comparisons with this and the 2010 study are provided results in this report will provide you with an insight into the current where relevant. employment experiences and career aspirations of the business leaders of The 2011 CIMA survey reveals that part qualified students in South Africa are earning on average tomorrow – CIMA’s South African student community. R359,819 per annum in basic salary, plus R33,384 in bonus payments. However, a third are earning Despite continuing economic uncertainty in many regions around the under R250,000, while almost a third earn above R450,000 in basic salary. A range of additional world, our 2011 report reaffirms the strong relationship that exists benefits is received, the most common being study leave, bonus and membership of a pension between our students and their employers. The survey reflects the strength scheme. of CIMA’s reputation, and how its focus on global business offers our After five years of experience, part qualified CIMA students in South Africa earn on average students a greater sense of confidence and job security. R245,081 more in salary and benefits than those at the start of their career. On average, part In general terms, our 2011 survey reveals that CIMA’s students have increased confidence in the qualified students can expect to earn R92,124 more than their peers at the operational level by the buoyancy of the economy and the resilience of business to adverse global pressure. For example, the time they reach the T4 professional competence level. number of students who believe the profitability of their organisations will fall in the coming year, Average salary packages vary somewhat by city; those working in Johannesburg receive the has reduced from 52% in 2009 to 14% in 2011. highest average salary package of the country’s major cities. In particular, part qualified students in Our 2011 survey again demonstrates that the majority of our students believe they are recession- Johannesburg receive a salary 34% higher than those in Cape Town (R426,934 vs. R318,491). proof. Globally, 92% do not expect to be affected by redundancy in 2011: the same high level of Total remuneration rises significantly with the size of business. Compared to the average national confidence felt by students in our 2010 survey. Moreover, nearly two thirds remain positive enough salary, large businesses pay 7% more; whereas micro and small businesses pay 28% less. Medium to consider a job move in the next two years. sized businesses pay about one-tenth less than the average salary. This report, which focuses on CIMA students in South Africa, identifies a number of significant Our study finds that industry sector has an impact on remuneration, with the natural resources factors. During the next 12 months far fewer South African students expect further deterioration in and manufacturing and engineering sectors being the highest-paid sectors, in contrast to the economic conditions such as, budget cuts, a recruitment freeze or a fall in the overall profitability major service industries. Those in the natural resources sector (which includes mining and of business. However, in spite of this growing confidence in South Africa, those who expect a salary extraction) report the highest average salary – 28% above national average – followed by those in freeze has risen from 6% in 2010 to 11% in 2011. More positively, 72% of South African students manufacturing and engineering, who earn 12% above national average. expect to receive a salary increase. In a special report, we highlight the key findings in relation to equality of opportunity. We find that In South Africa, whilst the average annual student remuneration package (salary and bonuses) Black Africans are particularly under-represented among CIMA part qualified students in South is R393,203, the number of South African students satisfied with their remuneration package Africa in relation to the general population, and by contrast, Whites are over-represented. However, has dropped slightly from 55% in 2010 to 51% in 2011. This may be reflected in the increased there is clear evidence that the level of equality in terms of numbers within the profession will rise percentage of students, who, in 2011, are considering changing jobs in the next two years; 78%, up over time, and hopefully on a continuous basis. In terms of remuneration, all racial groups appear to from 70% in 2010. Pay is determined by experience, role and industry sector, with all racial groups be on an equal footing, with the major determinants of pay being the type of business in which part appearing to compete on a level playing field. qualified students are working and how much experience they have, rather than race. The South African report reflects very positively the global survey’s conclusions, that a growing The South African economy seems to be emerging out of recession with a more optimistic number of students believe CIMA’s professional accountancy qualification is the best way to outlook towards the year ahead. In 2011 a much lower proportion anticipate a decrease in overall develop their career potential, with 91% of South African students in agreement that studying for profitability of the business in which they work (10% in 2011, down from 57% in 2009). There are CIMA creates career opportunities; 88% believing that the CIMA qualification enables them to also lower proportions anticipating budget cuts, recruitment freezes, salary freezes or job cuts. move across all areas of the business and 96% in agreement that CIMA strengthens their ability to develop their careers internationally. There is further evidence of economic recovery and an active market, with 78% looking for alternative employment within the next two years, representing an increase of 20 percentage points Please read through the following pages to find further highlights of our students’ working lives. I since 2009. hope you find it informative reading.
Charles Tilley Chief Executive CIMA 3 4
‘Part qualified Economic context Main findings ‘After five years of students in South experience, part The South African economy appears to be on 66% are expecting a salary increase and 9% Africa are optimistic Overview of remuneration packages qualified CIMA a path of recovery following recession in 2009 are expecting redundancy; and in Botswana about their own students in South when it experienced a contraction of 1.7%. where 61% are expecting a salary increase and Survey shows steady progression of salary After four years of experience, the average salaries and job Looking at a longer historic trend, the UN 6% are expecting redundancy. Africa earn on with experience bonus payment steps up significantly to well security for the has identified South Africa as a ‘decelerating’ average R245,081 Exports account for a large proportion of above R40,000 – equivalent to 9% or more of coming 12 months.’ economy due to the fact that GDP per capita The 2011 CIMA survey reveals that part more in salary and GDP, particularly coal and minerals such basic salary – and a fifth of those with five or was growing at above 3% during the period qualified students in South Africa are earning bonus than those as platinum, gold, manganese and chrome. more years of experience expect to earn 20% 2004–2007, but is estimated to be growing on average R359,819 per annum in basic at the start of their The processing of minerals is an important or more in bonus payments. at below this level during 2010–2011. GDP salary, plus R33,384 in bonus payments. career.’ and growing industry and there is a diverse growth has yet to recover to the pre-recession However, there is considerable variation, with As one would expect, average basic salary manufacturing industry, including motor average of 5% (during 2004–2007). around one-third earning under R250,000 and and bonus also tend to increase with age. vehicles and parts, railway rolling stock, approximately 60% expecting below the mean Those who are aged 35 and over earn on By contrast, nearby countries Botswana and synthetic fuels, and mining equipment and average bonus of 8.6%; while almost a third average 44% more than the national average Zambia are currently classified as ‘accelerating’ machinery. Recent years (bar the period of earn above R450,000 and 41% expect to earn (equivalent to around R172,500 annually). and ‘fast growing’ economies respectively. The recession) have seen increased foreign direct 9% or more in bonus payments. Furthermore, Bonus payments average around 11% of salary relatively weak economic recovery in South investment and merger and acquisition after five years of experience and a steadily amongst those who are 35+ years, compared Africa is deemed to be driven by a decrease in activity. Such investment tends to be popular increasing average salary, part qualified CIMA to 8.5% nationally and 7% for those under demand in the manufacturing sector, subdued within the country’s key sectors – mining, students in South Africa earn on average 25 years of age, and this differential tends to retail spending, a series of major labour strikes agriculture, and to a lesser extent light R245,081 more in salary and bonus than when inflate the total salary package of those in the and high formal unemployment. This is despite manufacturing and services – in particular they began their career, and 24% earn over older age category exponentially. a policy of fiscal easing to support economic from Asian and South Asian companies. R650,000 in basic salary. recovery and mitigate structural gaps − in line Furthermore, today South Africa has a with many countries on the African continent sophisticated financial structure, with a – and several billion dollars of domestic Figure 2: Annual remuneration by number of years’ relevant experience large and active stock exchange that ranks R 547, 648 investment to support the hosting of the 2010 17th in the world,1 thanks to an ongoing FIFA World Cup. R 477,247 policy of financial and market liberalisation. Nevertheless, part qualified students in South Because of these international trading factors, R 393,203 R 389,159 R 356,756 Africa are optimistic about their own salaries the country’s future economic growth is R 302,567 and job security for the coming 12 months, as interlinked with that of its major trading 72% are anticipating a salary increase and only partners and investors – China, Germany, the 3% are expecting redundancy. This is a slightly United States, Japan and the United Kingdom, R 359,819 R 279,525 R 330,393 R 357,793 R 434,227 R 493,161 more favourable picture than in Zambia, where as well as other Sub-Saharan countries.
Figure 1: South Africa GDP – forecasted trend S. Africa total Up to 2 years 2-3 years 3-4 years 4-5 years 5+ years 5.00% 4.00% 3.00% Basic salary Bonus Total Lowest base: 4-5 yrs. (31) 2.00% 1.00% 0.00% Comment: -1.00% 2008 2009 2010 2011 2012 -2.00% 85% percent are expecting to receive a bonus in 2011 and, among those, the average Source: IMF World Economic Outlook, January 2011 Update GDP Est. GDP anticipated payment is R39,222.
1 US Department of State, Bureau of African Affairs, Background notes, www.state.gov/r/pa/ei/bgn/2898.htm#econ. Accessed March 2011. 5 6
Figure 3: Annual remuneration by age category Figure 4: Annual remuneration by city R 565,765
R 393,203 R 378,163 Pretoria (22)* Basic salary: R355,270 Total: R378,155
R 206,823 Johannesburg (164) Basic salary: R390,593 Total: R426,934 R 359,819 R 194,194 R 347,826 R 509,570
S. Africa total < 25 years 25-34 years 35+ years Durban (23)* Basic salary Bonus Total Lowest base: <25 yrs (34) Basic salary: R296,775 Total: R325,191
There is some evidence that the average South – part qualified students in Johannesburg Cape Town (60) Basic salary: R291,875 African salary package fell slightly by 1% (R426,934) receive a salary 34% higher than Total: R318,491 Bases shown in brackets between 2010 and 2011 (from R397,911 in those in Cape Town (R318,491). However, *Caution: Low base, under 30 2010 to R393,203 in 2011).2 However, in 2011, with average bonus payout at 9% of basic 72% are expecting a salary increase over the salary, organisations in both Cape Town and next 12 months, the mean average increase Johannesburg make similar bonus payments. Industry sector has an impact on salary package – 22% less than the national being close to 9% but with a third expecting remuneration. Compared to the major average – and the financial services sector Tentative figures for Pretoria and Durban below 6% of their salary and the same service industries, the natural resources and reports an average 5% below the national show average salary packages lower than proportion expecting above 9%. On balance, manufacturing and engineering sectors in average figure. Johannesburg, but higher than Cape Town. we can reasonably expect the reported average South Africa are the highest paid sectors. As a proportion of basic salary, on average, the salary package to increase in the next 12 Higher costs of living and a different economic The natural resources sector (which includes industries featured in Figure 5 pay bonuses months, despite a medium-term forecast of a structure could be contributing to a higher mining and extraction) focuses on high value ranging between 8% and 12.5%. falling rate of wage inflation. average salary in Johannesburg compared to products, such as gold and diamonds – South Cape Town. Indeed, Johannesburg is considered Africa has among the world’s largest gold and Total remuneration rises significantly with Part qualified students receive a range of to be the ‘powerhouse of Africa’ and has a diamond reserves – and metals important the size of business. Compared to the average benefits in addition to their basic salary and concentration of high-earning industries – for manufacturing processes in major export national salary package, large businesses pay annual bonus, the top three being: including banking (16%) and manufacturing markets such as China. 7% more; whereas micro and small businesses • study leave (received by 76%) (20%) – as well as large businesses (81%); pay 28% less. Medium-sized businesses pay Our figures indicate that part qualified • bonus (59%) thus accounting for the higher average salary. 8% less than the average salary package. students working in the natural resources • pension (52%). Furthermore, in Johannesburg and other sector earn 28% above the national Bonus payments as a percentage of basic non-coastal cities, salaries tend to be higher average total salary package; those in the salary vary a little with the size of business, Salary varies considerably by city and in order to attract talented candidates who manufacturing and engineering sector earn ranging between 7% and 10% for micro industry sector might otherwise be more attracted to the 12% above the national average, followed and small businesses and large businesses lifestyle that a coastal city such as Cape Town The average basic salary varies considerably by those in the banking sector, who earn 7% respectively; however, due to the fairly large can offer. between the primary cities of South Africa above the national average. In contrast, the incremental increases in salary, in cash terms, accounting sector reports the lowest total bonus payments tend to rise exponentially. 2 Comparisons with 2010 should be treated with some caution, as 2010 data is not weighted by CIMA level. 7 8
Bonus payout as a percentage of basic salary remained stable. However, in 2011 there is a ‘On average, part Figure 5: Annual remuneration by sector does not vary significantly by CIMA level, marginal decline of four percentage points; one qualified students averaging at 8.6%. half of respondents are now satisfied with their can expect to earn South Africa total R359,819 R393,203 current salary, reflecting the decline in salaries Over a period of two years – 2009 and 2010 R92,124 more than outlined earlier in the report. – overall satisfaction with current salary has their peers at the Natural resources, energy/fuel and utilities* (21) R447,720 R504,013 operational level by Manufacturing and engineering (56) R399,359 R438,510 Figure 7: Annual remuneration by CIMA level the time they reach R446,820 Banking (32) R390,754 R421,327 R421,038 the T4 professional R393,203 R407,057 R354,696 competence level.’ Retail and consumer goods (35) R382,732 R411,767 ICT, technology and telecoms* (26) R343,649 R380,358 Financial services (37) R336,556 R373,206 R359,819 R326,531 R372,727 R383,562 R405,385 Accounting*(27) R283,486 R306,987 Base () *Caution: low base Basic salary Bonus Total South Africa total Operational Management Strategic T4 professional competence Figure 6: Annual remuneration by business size Basic salary Bonus Total Lowest base: Management, (66) R420,896 R393,203 R361,483 R282,640 Comment:
The range of additional benefits available as part of the total remuneration package tends to increase with age and experience. In particular, part qualified students who are aged 35 R359,819 R264,879 R330,282 R383,936 years and over are more likely than their younger peers aged less than 25 years to receive: • company car/allowance South Africa total Micro & small Medium Large • bonus • healthcare • mobile phone/Blackberry/PDA Basic salary Bonus Total Lowest base: Medium, (36) • study leave.
The career ladder for part qualified students Figure 8: Satisfaction with salary – trend The total salary package varies significantly On average, part qualified students can expect 55% 55% depending on the CIMA level attained. In to earn R92,124 more than their peers at the 51% comparison to the national average for part operational level by the time they reach the qualified students, those at the T4 professional T4 professional competence level. This could competence level earn 14% more, followed be because CIMA level is closely linked with by those at the strategic (7% more) and number of years of experience; as a career management levels (4% more). Those at the progresses, bringing experience and knowledge, operational level earn 10% less than the so the associated salary increases. national average salary package. 2009 2010 2011
Base: 2009 (181), 2010 (324), 2011 (308) 9 10
‘The South African Expectations for future pay and conditions Compared to 2009, lower proportions now One of the impacts of recession is restricted economy seems to anticipate hardships associated with recession, access to money for future investment and The South African economy seems to be overall profitability of the business in which be emerging out such as budget cuts (25% in 2011, down from this measure is also undergoing a change. emerging out of recession with a more they work (40%) versus those anticipating a 71% in 2009), recruitment freezes (19% in Fewer than one in ten believe that less of recession with optimistic outlook towards the year ahead. fall in the overall profitability of business (10% 2011, down from 52% in 2009), salary freezes money will be available for future investment, a more optimistic Business sentiment is on an upswing, with a in 2011, down from 57% in 2009). (10% in 2011, down from 27% in 2009) and compared to four in ten in 2009. Additionally, outlook towards the higher proportion anticipating an increase in job cuts (10% in 2011, down from 34% in one in six clearly stated that more money will year ahead.’ 2009). be available for future investment in 2011. Figure 9: Expectations for the business environment – trend
Reduced expenditure and headcount Reduced performance, increased caution Figure 10: Expectations for the business environment – by city
Budget cuts 25% Business process/ 33% Cape Town Johannesburg 71% policy changes 30% Reduced expenditure and headcount Recruitment 19% Greater focus on 18% Salary freezes 5% 13% freeze 52% regulatory issues 24 % Job cuts 4% 12% Fall in the Salary freezes 10% 10% Salary decreases 0% 2% 27% overall profitability 57% of business Recruitment freezes 7% 22%
Job cuts 10% Less money available 8% Budget cuts 19% 26% 34% for future investment 38% Cuts in funding for staff training 3% 11% Cuts in funding 8% Less outsourcing 6% Reduced performance, increased caution for staff training 31% 19% Less money available for future investment 10% 9%
Salary decreases 2% Restricted merger/ 3% Fall in the overall profitability of business 5% 12% acquisition activity 7% Less outsourcing 5% 6%
2011 2009 2011 2009 Restricted merger/acquisition activity 6% 3% Greater focus on regulatory issues 15% 19% Increased expenditure on staffing Increased performance, more investment Business process/policy changes 34% 36% Increased expenditure on staffing Increase in the 40% overall profitability Increase in staff recruitment 40% 19% Salary increases 33% of business Increased spending on staff training 29% 17% More money Salary increases 44% 29% 16% available for future investment Increased performance, more investment Increase in staff 26% More money available for future investment 16% 15% recruitment Increased merger/ 10% Increase in the overall profitability of business 42% 39% acquisition activity 6% Increase in outsourcing 12% 7%
Increased spend Increased merger/acquisition activity 5% 11% 20% Increase in 9% on staff training outsourcing 6% Base 60 164
2011 2011 2009
Base: 2009 (181), 2011 (308) 11 12
In terms of overall business outlook, similar (Cape Town: 3%, Johannesburg: 11%). Figure 12: Expectations for increase in personal salary proportions in both Johannesburg and Cape In terms of expectations for personal futures, Town anticipate an increase in overall business 40% the outlook for personal salary and job security Mean average increase expected: 8.8% profitability and more money available for is more optimistic for the vast majority of future investment. However, the similarity part qualified students. 72% expect their own ends there. Compared to Johannesburg, Cape salary to increase over the next 12 months, 24% Town is planning to invest more heavily in its compared to only 33% anticipating salary people by increasing staff recruitment (Cape increases across the board in the business in Town: 40%, Johannesburg: 19%), increasing 12% which they work. However, one in ten expect spending on staff training (Cape Town: 29%, 8% their own salary to remain frozen over the 5% 5% Johannesburg: 17%) and salary increases (Cape 3% next 12 months. 1% 2% 1% Town: 44%, Johannesburg: 29%). The average anticipated salary increase in In contrast, Johannesburg is focusing more Less than 1%- 4%- 6%- 9%- 11%- 14%- 17%- 20% or Don’t 2011 is 8.8% of salary; however, there is on operational excellence, with a greater 1% 3.9% 5.9% 8.9% 10.9% 13.9% 16.9% 19.9% more know likely to be variation, with 40% expecting proportion anticipating salary freezes (Cape an increase of 6–9% and 30% expecting an Base: All those expecting a salary increase over the next 12 months (222) Town: 5%, Johannesburg: 13%), job cuts (Cape increase under 6%. One-fifth of respondents Town: 4%, Johannesburg: 12%), recruitment anticipate a salary increase between 9% and freezes (Cape Town: 7%, Johannesburg: 22%), Over half of respondents work 41–50 hours growth (29%). Understaffing could be a 20%; while an additional one-tenth expect a budget cuts (Cape Town: 19%, Johannesburg: per week, while another third work 35–40 carryover of the impact of recession, which in salary increase greater than 20%. 26%) and cuts in funding for staff training hours per week. Just one in ten work over 51 turn is leading part qualified students to take hours per week. on more responsibility. Coupled with economic Figure 11: Expectations for personal salary and job security revival, companies are experiencing growth However, while one-half expect their working and hence increased working hours. 72% hours will remain the same, two-fifths are anticipating an increase in working hours, One in five also attribute increased working primarily due to taking on more responsibility/ hours to company culture (21%) and the pressure (55%), followed by understaffing current financial climate (16%). (40%), a change in role (34%) and company
Figure 13: Expectations for working hours and reasons for any increase
Decreasing 3% Taken on more responsibility/more pressure 55% 15% Understaffing/ 11% lack of resource 40% 3% 0% 0% My role has changed 34%
Salary increase Salary freeze Shorter Salary Redundancy None of these Company growth 29% working week reduction Increasing Base: (308) 43% Staying Company culture 21% the same 54% Current financial climate 16%
Other 7%
Base: (308) Base: All those expecting an increase in working outside normal hours (133) 13 14
‘The CIMA Improving employability and opportunities qualification is Figure 16: Planned migration destinations The CIMA qualification is perceived to provide months. Of those planning to move job within perceived to provide Canada Switzerland career opportunities, particularly in terms of the next two years, one in six are seeking 17% Netherlands 9% career opportunities strengthening CIMA part qualified students’ employment overseas. 7% and to strengthen ability to move internationally and providing Among those seeking employment overseas, the ability to move the ability to move across all areas of business: English-speaking destinations are preferred, internationally.’ in these respects, the qualification is held in with the UK by far the most popular, followed high regard. UK by Australia and the USA. A strong historical 71% The vast majority of part qualified students association with the UK could be one of the Australia are planning to move job within the next two reasons for a significantly higher proportion Germany USA 38% years, including one-third within the next six considering it as a migration destination. 17% 36% UAE New Zealand Figure 14: Attitudes towards the CIMA qualification 11% 15%
Strongly disagree/Disagree Agree/Strongly agree
Strengthens your ability 1% 96% to move internationally Figure 17: Proportions planning to move job, to emigrate − trend with your career 75% 78% 2009 2010 2011 70% 1% 91% Creates career opportunities for you
Strengthens your ability 27% 3% 88% to move across all areas 21% Base: (308) of the business 16%
Figure 15: Proportion planning to move job, to emigrate Planning to move within 2 years Planning to move to another country
Planning to move the job Base: 2009 (181), 2010 (324), 2011 (308) Base: Those planning to move within next 2 years, 2009 (136), 2010 (227), 2011 (236)
Not currently 22% Attracting candidates and retaining employees There is evidence that employment mobility different culture has increased in importance remains strong. In fact, while the desire to as a reason for migrating, moving up from Yes, in... Within 84% change job has varied little since 2009 (bar a fourth position in 2010 to being the key driver South Africa 78% are looking to slight fall in 2010), figures suggest a decreasing in 2011. In contrast, improved quality of life 0–3 months 24% move job within the next 4–6 months 10% trend in desired emigration – a further sign has moved from being the key driver in 2010 two years, of which... 7–11 months 13% that prospects are improving within South to fifth position in 2011. 1–2 years 30% Abroad 16% Africa. For a higher proportion of respondents, a The need to experience a different culture new career opportunity (63% in 2011, up *Figures may not sum due to rounding (76%) is the key driver for migrating overseas, from 55% in 2010) and better employment followed by a new career opportunity (63%), opportunities (51% in 2011, up from 40% improved salary (52%) and better employment in 2010) are re-emerging as key reasons to opportunities (51%). The need to experience a migrate. 15 16
Figure 18: Reasons for migrating − trend The majority of benefits are important for In comparison to 2010, the desirability of part qualified students: 16 out of 22 benefits individual skill sets has either undergone a 76% Experience a different culture 47% scored 3 or more out of 5 on an importance slight decline or remained stable. Strategic 57% scale. South African students receive a range planning and implementation, leadership 63% of benefits in addition to their basic salary and and risk management have all declined in New career opportunity 55% 57% annual bonus, and there is a match between desirability. 52% the top three benefits desired and provided, 51% A possible explanation is that while recession Improved salary suggesting that employers are also aware of 65% (as experienced in 2009) forces people to 51% the importance of these benefits. Better employment opportunities 40% create new skill sets, during economic revival 56% The top three benefits received and desired there is a higher number of vacancies for all 48% are study leave (received by 76%), bonus skills sets. Hence, we observe an overall decline Improved quality of life 62% 52% (received by 59%) and pension (received by or stability in skill sets desired as the South 31% 52%) - scoring 4.6, 4.7 and 4.6 out of 5 on our African economy recovers. 30% Improved employment conditions importance scale respectively. 36% A good working environment and financial 28% However, there are important exceptions: reward are the key motivators for two-fifths of Take time out/travel 30% 30% healthcare is highly desired (4.6) but only part qualified students. However, it is perhaps 28% one-third of students receive it. Incentives for surprising that job security is cited by just over Stronger economy 32% 22% passing exams via a pay rise and/or bonus are one-quarter of respondents as a motivator in 27% currently available to fewer than one in twenty the workplace. Work promotion 15% 36% students each, but are rated very highly on 23% importance (4.1 and 4.0 out of 5 respectively). Internal company transfer 9% 19% 13% Figure 19: Additional benefits received versus importance To learn a new language 9% 13% 80% 4.6 Received Importance (mean average) 5.0 4.7 4.6 4.6 9% Friends and family 15% 70% 4.2 4.5 20% 4.1 4.0 76% 3.9 60% 3.8 4.0 3.6
59% 3.5 Base: 2009 (37), 2010 (64), 2011 (40) 2011 2010 2009 50% 3.3 3.3 3.5 3.2 3.2 52% 3.0 2.9 2.9 40% 2.8 2.8 2.8 3.0 42%
30% 37% 2.3 2.5 Comment: 20% 2.0
Part qualified students who are aged upwards of 35 years are more likely than their younger 23% 21% 21% 17% peers (aged 25 years and under) to receive a company car/allowance, bonus, healthcare, a 17%
10% 15% 1.5 5% 4% 3% 10% 2% 2% mobile phone or similar and study leave. Our study shows that the benefits that become 2% 1% 7% 0% 6% more important with age tend to be more financial in nature: 0% 1.0 Bonus
• company car/allowance Pension Sabbatical Healthcare Study leave Study of CIMA of fees
• pension Flexible hours Life assurance Life Extra holidays Extra Mortgage relief Mortgage Leisure facilities Leisure for passing exams for
• mortgage relief (received by fewer than one in ten) Season ticket loan Shares/share option Working from home from Working Daily subsidised food Daily Contribution/payment • shares/share options as an incentive rise Pay Company car/allowance Company Travel benefits/allowance Travel • life assurance. Product/services discount Mobile phone/Blackberry/PDA Childcare arrangements/vouchersChildcare
Lowest base (all answering): Leisure facilities (291) passing exams for as incentive Bonus 17 18
Special report – focus on equality of opportunity ‘There is clear Figure 20: Skill sets part qualified students wish to develop − top 10 skills evidence that the The abolition of apartheid in 1990 marked of the part qualified population. Whilst this 52% level of equality in the end of division of South African peoples may not be surprising given the relatively Strategic planning and implementation 62% terms of numbers 62% into different categories; however, many recent end of apartheid in the history of 48% South Africans still view themselves and each South Africa, it gives a clear illustration of the within the profession Reporting and analysis 49% will rise over time.’ 51% other according to the different groups and extent of the journey towards true equality 48% the government’s ongoing focus on fostering of opportunity within the accountancy Leadership 58% equality of opportunity means that the profession. 50% classification is still relevant for monitoring 45% There is encouraging data when we look at Personal development 48% purposes. 45% the enrolment profile within each of the 42% In the same spirit, the 2011 CIMA study asked racial categories. Whites are spread across Decision making 45% part qualified students to specify to which each of the four main CIMA qualification 44% group they belong, and in this special report levels, suggesting that enrolment levels have 41% Project management 42% we highlight the key findings in relation to not changed dramatically in recent years. 40% equality of opportunity. On the other hand, the profiles of each of 35% the other racial groups suggest a clear and Budgeting 35% The chart below shows the difference in the fairly recent rise in enrolment, because over 35% ethnic profile of respondents compared to the half are currently at the lowest, operational 35% general population of South Africa. The key Communication 40% level of attainment. Presumably, as many 35% variations are plain to see, with Black Africans of these students qualify fully, the level of 31% comprising about 80% of the population but Risk management 41% equality within the profession will rise, and will only one-third of respondents. By contrast, 38% hopefully continue to do so. 30% Whites are over-represented to comprise half Problem solving 33% 39% Figure 22: Comparison of racial profile – respondents vs. general population
Base: 2009 (181), 2010 (324), 2011 (308) 2011 2010 2009 80% Respondents General population*
Figure 21: Motivators in employment
Good working environment 44% 48% Financial reward 42% 33% Challenging workload 37%
Training and development 36% 12% 7% 9% 9% Promotion prospects 34% 3%
Job security 28% Black African Coloured Indian/Asian White
Flexibility/work life balance 26% Base: 2011 (308) *US State Department, Bureau of African affairs 2011, rounded
Scope of role/projects 24%
Benefits package 12%
Base: 2011 (123) 19 20
‘All racial groups Despite differing profiles by CIMA level, the difference can be explained by the alternative Although respondents are employed across Indians/Asians are concentrated in the banking ‘Several tendencies appear to be on mean average salaries of Whites and Black types of employers favoured by each of the different types of businesses regardless of and manufacturing industries (accounting for are observed, which an equal footing, Africans are similar, whilst Indians/Asians largest racial groups. Figures for Coloureds are race (with the largest proportion working one-fifth each) and the banking sector ranks impact total salary with the major earn notably more on average. Much of the tentative due to the relatively low base size. in manufacturing) several tendencies are among the highest paying sectors. On balance, levels by race.’ determinants of pay observed, which impact total salary levels by this is likely to be producing an upward effect race. on salaries for Indians/Asians. being the type of Figure 23: Comparison of racial profile – respondents by level business in which 67% Black Africans are currently more likely than The majority of employers of respondents are respondents are Whites to be employed in large organisations large businesses (74% overall), but Whites are working and how 54% 54% (81% vs. 63%) whether nationally or currently more likely than Black Africans to much experience internationally owned. There is a clear link be employed in micro and small businesses 43% they have, rather between salary and business size, and large (22% vs. 10% respectively). As we have seen, organisations are tending to pay 7% above small businesses are tending to pay lower than race.’ 30% 28% the national average compared to micro and salaries. Furthermore, the manufacturing, retail, small businesses (which our data indicates pay accounting, and financial services industries 22% 21% 21% 20% 20% 18%19% 19% 15% 15% on average 28% below the national average). are popular among White respondents; 12% Furthermore, in addition to manufacturing, accounting in particular is proportionately 8% 8% 4% the natural resources sector is popular among more popular than among other racial groups. Black African respondents and data indicates With the exception of manufacturing, broadly that this sector is tending to pay the highest these industries are tending to pay in line with South Africa total Black African Coloured Indian/Asian White rates at 28% above the national average. or below the national average. Operational Management Strategic T4 professional competence Nevertheless, the average basic salary of Black In terms of satisfaction with basic salaries, Lowest base: Coloured (19*) Caution: law base Africans is lower than for Whites, and it is likely Black Africans are the least likely to be that the higher proportion of Black Africans at satisfied, followed by Indians/Asians, whereas Figure 24: Annual remuneration – by racial category the operational level of attainment accounts, Whites are the most likely to be satisfied. It at least in part, for this finding. could be that satisfaction is linked to a rise in CIMA level, but this effect is not seen globally; South Africa total R359,819 R393,203 Data indicates that in addition to therefore, the disparity in satisfaction with manufacturing, Coloureds are concentrated in salary remains unclear. the ICT and retail sectors, which tend to pay Black African (93) R352,868 R385,548 broadly in line with the national average.
Figure 25: Satisfaction with salary − by racial category Coloured (19*) R311,585 R340,132 59% 55% Indian/Asian (36) R386,728 R420,788 46% 40%
White (160) R364,894 R399,316
Lowest base: Coloured (19). *Caution: lowest base Basic salary Bonus Total Black African Coloured Indian/Asian White
Lowest base: Coloured (19*) *Caution: low base 21 22
In terms of personal salary and job security, Asians to be working in the most lucrative In terms of motivators in employment, similar groups – in line with the CIMA profile – where respondents across the racial groups are industry sectors. items appear in the top categories mentioned there are high proportions starting their highly likely to anticipate a salary increase. A across the racial groups. However, there are qualification. Promotion prospects are also Whites are also the least likely group to comparatively lower proportion of Coloureds some differences in the ordering, with training key motivators for groups where there are be seeking alternative employment within are expecting a salary increase, but this and development being most favoured high proportions at the early stages of their the next two years. Reasons for this lower difference is not statistically significant. amongst the Black African and Indian/Asian qualification. overall mobility could be that there are Low proportions across all racial groups are proportionately more Whites at the higher expecting to become redundant in the next 12 Figure 28: Key motivators in employment − by racial category CIMA levels − those in their second or third months, but Blacks (5%) and Whites (3%) may position may be more likely to stay and well be affected. consolidate their career gains with their Black African Coloured Indian/Asian White Overall, Whites seem to be the most existing employer; they may also find more Training and Financial reward Training and Good environment optimistic about the future of their current challenging opportunities within smaller development development and Promotion prospects Financial reward employer and the most satisfied with their businesses, where proportionately more Good environment Job security (joint salaries. This is despite a higher likelihood to Whites than other racial groups are likely to be Job security Challenging workload 1st) be working in smaller businesses and a lower working. Promotion prospects Training and likelihood than Black Africans and Indians/ Promotion prospects Financial reward development
Figure 26: Expectations for personal salary and job security − by racial category Challenging workload
Black African Coloured* Indian/Asian White Salary increase 71% 59% 76% 74% Salary freeze 15% 16% 5% 10% Redundancy 5% 0% 0% 3% Base 93 19* 36 160
Lowest base: under 30* *Caution: low base
Figure 27: Proportion planning to move job within two years − by racial category
91% 85% 84%
69%
Black African Coloured Indian/Asian White
Lowest base: Coloured (19*) *Caution: low base 23 24
One word to describe management accounting Appendix
Part qualified students were asked to use words below show the most popular responses, Figure 30: Table of salaries and bonuses one word to describe what management with the size of font denoting frequency of accounting means to them personally. The mention. Salary Bonus Total package South Africa Base (R per annum) (R per annum) (R per annum)** Figure 29: Words used to describe management accounting Total 308 359,819 33,384 393,203 Age Creative Innovative <25 yrs 34 194,194 12,629 206,823 Amazing Awesome Brilliant Enjoyable Exciting 25–34 yrs 214 347,826 30,337 378,163 Business Leadership 35+ yrs 60 509,570 56,195 565,765 Crucial Essential Necessary Vital Decision-making Difficult Hard Empowering Success Involved Control Experience Costing Opportunity Gender Growth Insightful Male 191 378,068 35,157 413,225 Integral Best Forward-looking Future Proactive Female 117 331,912 30,671 362,584 All-rounder Broad Diverse Strategic Level Relevant Complex Value-adding Operational 98 326,531 28,166 354,696 Operational Fascinating Management 66 372,727 34,330 407,057 AnalysisChallenging Strategic 73 383,562 37,476 421,038 Changing Evolving Dynamic Interesting T4 professional competence 71 405,385 41,435 446,820 Size of organisation Adaptable Flexibility Versatile Information Informative Reporting Micro/small (1–49 employees) 49 264,879 17,761 282,640 Medium (50–249 employees) 36 330,282 31,201 361,483 Large (250+ employees) 223 383,936 36,960 420,896 Years of experience Up to 2 years 102 279,525 23,042 302,567 2–3 years 64 330,393 26,362 356,756 3–4 years 43 357,793 31,365 389,159 4–5 years 31 434,227 43,020 477,247 5+ years 68 493,161 54,487 547,648 Division Finance 243 350,039 31,490 381,528 Operations* 26 350,248 39,074 389,323
*Caution: Low base, under 30 **Figures may not sum due to rounding. 25 26
Technical information
Figure 30: Table of salaries and bonuses (continued) Survey responses were collected by CIMA internationally, including 308 from South among active part qualified students between Africa.
Salary Bonus Total package 2 and 20 February 2011, via an online survey. South Africa Base The response data presented in this report (R per annum) (R per annum) (R per annum)** The data was analysed and reported by an has been weighted to reflect the profile of the independent specialist consultancy. Total 308 359,819 33,384 393,203 CIMA part qualified membership by market Industry sector Just over 13,000 part qualified CIMA students and level of study. All base numbers quoted in were selected and invited to participate in the Figures report the lowest unweighted base i.e. Accountancy* 27 283,486 23,501 306,987 international study which covers 15 markets. the number of responses. Banking 32 390,754 30,574 421,327 Within the study period 2,121 responded Financial services 37 336,556 36,649 373,206 ICT, technology and telecoms* 26 343,649 36,708 380,358 Further information Manufacturing and engineering 56 399,359 39,151 438,510 For further information on technical matters For further country specific analysis and Retail and consumer goods 35 382,732 29,035 411,767 relating to this survey, contact reports, visit CIMA MY JOBS at City [email protected] http://myjobs.cimaglobal.com Cape Town 60 291,875 26,617 318,491 Acknowledgements Durban* 23 296,775 28,416 325,191 This research was conducted by CIMA Research Society Company Partner. Both CIMA Johannesburg 164 390,593 36,341 426,934 in conjunction with Spotlight Market and Spotlight abide by the Market Research Pretoria* 22 355,270 22,885 378,155 Research & Editing. The Chartered Institute Society’s Code of Conduct and the Data Ethnicity of Management Accountants is a Market Protection Act. Black 93 352,868 32,680 385,548 Coloured* 19 311,585 28,547 340,132 Indian /Asian 36 386,728 34,061 420,788 White 160 364,894 34,422 399,316
*Caution: Low base, under 30 **Figures may not sum due to rounding. 27
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