2013 Salary Survey South Africa

8/12/2019 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


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


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)



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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


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)



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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


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.


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

2013 Salary Survey South Africa

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