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CIMA Poland part qualified salary survey 2011

Transcript of part qualified salary survey 2011 - CIMA - Chartered Institute … ·  · 2011-09-02part qualified...

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CIMA Polandpart qualified salary survey 2011

Page 2: part qualified salary survey 2011 - CIMA - Chartered Institute … ·  · 2011-09-02part qualified salary survey 2011. Table of contents. ... GDP growth fell from over 6% in 2006

Table of contents

Table of figures 1

Executive summary 2

Economic context 3

Main findings 4

Overview of remuneration packages 4

Expectations for future pay and conditions 5

Improving employability and opportunities 7

Attracting candidates and retaining employees 9

One word to describe...management accounting 10

Appendix 11

Technical information 11

Further information 11

Acknowledgements 11

Global offices 12

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Table of figures

Figure 1: Poland GDP forecasted trend 3

Figure 2: Monthly remuneration and salary tier 4

Figure 3: Expectations for the business environment 5

Figure 4: Expectations for personal salary and job security 6

Figure 5: Expectations for increase in personal salary 6

Figure 6: Expectations for working hours 7

Figure 7: Attitudes towards the CIMA qualification 7

Figure 8: Proportion planning to move job, to emigrate 8

Figure 9: Additional benefits received versus importance 9

Figure 10: Motivators in employment 10

Figure 11: Words used to describe management accounting 10

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Executive summary

This report details the findings of the second annual CIMA part qualified salary survey for Poland. The 2011 CIMA survey reveals that part qualified students in Poland are earning on average PLN11,036 in basic monthly salary. However, there is considerable variation, with one-half earning under PLN9,999, while one-third are earning above PLN14,000. One in six are classified by our survey as earning a mid tier basic salary of between PLN10,000 and PLN13,999. The 2011 CIMA survey of part qualified students reveals that confidence in economic conditions for the coming 12 months in Poland is cautious. While two-fifths expect an increase in the overall profitability of the business in which they work, expectations for expenditure on staffing and investment are more modest. Additionally, one-third of part qualified students anticipate budget cuts, while one-fifth expect a recruitment freeze and job cuts. Other signs of increased caution are one-third expecting business process/policy changes and one-fifth expecting greater focus on regulatory issues. Despite anticipated caution within the general business environment, in terms of their personal salaries there is much optimism among part qualified students in Poland, with 60% anticipating an increase over the next 12 months, compared to only 19% expecting salary increases across the board within their employing businesses. However, 26% are expecting a freeze on their personal salary over the next 12 months. The CIMA qualification is perceived by the vast majority of part qualified students to be a catalyst for career growth by enabling employment internationally and creating career opportunities. Indeed, two-thirds of part qualified students are planning to move job within next two years, including almost two-fifths within six months. Furthermore, of those planning to change jobs, two-fifths plan to emigrate. European destinations and the Pacific region are generally preferred, with Germany, Switzerland and Australia being by far the most popular destinations. Improved quality of life and new career opportunities are the key reasons for migrating overseas, followed by improved salary and better employment opportunities. In relation to additional benefits received as part of the remuneration package, in general, there seems to be a higher importance placed on individual benefits relative to the proportions receiving those benefits. By better synchronizing the benefits desired and provided, employers in Poland may benefit in terms of retaining talented candidates.

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Economic context

The Polish economy has experienced mixed fortunes in recent years, which will continue to play out in the medium term. On the one hand, the global economic crisis did affect the economy – GDP growth fell from over 6% in 2006 and 2007 to 1.6% in 2009 and Poland’s success story looked to be in jeopardy. The sharp fall of the złoty in the wake of the global crisis has led to a delay in the adoption of the Euro. The Polish Government has avoided a direct fiscal stimulus to support the economy, as it seeks to control public deficits, instead focusing on the sale of assets, privatisation, cuts in spending and economic reforms, such as a reform of the pensions system.1

Figure 1: Poland GDP forecasted trend

On the other hand, despite these effects, and perhaps to the surprise of those watching the fortunes of the Polish economy, it is the only EU member state to have avoided recession, and has shown the strongest GDP performance among new EU member states post-crisis. The implications of the global financial crisis were limited in Poland, partly due to the relatively low level of ‘toxic assets’ held in the banking sector, together with a weak złoty buoying export-led growth. Furthermore, inflation remains fairly stable and low, and foreign direct investment (FDI) has played a significant role in supporting Poland’s manufacturing sector – particularly motor vehicles and electrical machinery.

1 US Department of State, Bureau of European and Eurasian Affairs, http://www.state.gov/r/pa/ei/bgn/2875.htm. Accessed April 2011.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

GDP Est. GDP

Sources: IMF World Economic Outlook October 2010, UN World Economic Report 2011

‘Poland is the only EU member state to have avoided recession, and has shown the strongest GDP performance among new EU member states post-crisis.’

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Main findings Overview of remuneration packages Survey shows significantly higher proportion of students in lower tier salary bracket The 2011 CIMA survey reveals that part qualified students in Poland are earning on average PLN11,036 in basic monthly salary. However, there is considerable variation, with one-half earning under PLN9,999, while one-third are earning above PLN14,000. One in six are classified by our survey as earning a mid tier basic salary of between PLN10,000 and PLN13,999. Figure 2: Monthly remuneration and salary tier

In addition to basic salary, benefits that are most commonly received by part qualified students are:

• healthcare, • mobile phone/Blackberry/PDA and • bonus.

Satisfaction with current pay and conditions

Overall satisfaction with salary is high – 62% of part qualified students stated that they are satisfied with their current salary level. 1Central Statistical Office, Employment, wages and salaries in national economy in I-III quarters of 2010, http://www.stat.gov.pl/gus/5840_685_ENG_HTML.htm. Accessed April 2011.

50%

17%

33%

Lower tier (up to PLN9,999)

Higher tier (PLN14,000+)

PLN11,036

Poland mean average

Base: (42)

‘The 2011 CIMA survey reveals that part qualified students in Poland are earning on average PLN11,036 in basic monthly salary.’

Comment:

Figures from the Central Statistical Office (CSO) for the first three quarters of 2010 show basic average monthly gross earnings for those in the financial and insurance sector as PLN13,243.1

CSO figures include all part and fully qualified professionals, in contrast to CIMA’s solely part qualified survey.

Mid tier (PLN10,000- PLN13,999)

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Expectations for future pay and conditions

Confidence in economic conditions for the coming 12 months in Poland is cautious. Two-fifths expect an increase in the overall profitability of the business in which they work. However, this does not automatically translate into expectations for increased expenditure on staffing or increased investment for future growth: just one-fifth are expecting increases in salaries and increased spending on staff training, and only one in eight are expecting more money to be available for future investment and increased merger and acquisition activity. Additionally, one-third of part qualified students anticipate budget cuts, while one-fifth expect a recruitment freeze and job cuts. Other signs of increased caution are one-third expecting business process/policy changes and one-fifth expecting a greater focus on regulatory issues. Figure 3: Expectations for the business environment

Reduced expenditure and headcount

Reduced performance, increased caution

Increased expenditure on staffing

Increased performance, more investment

43%

14%

12%

12%

Increase in the overall profitability of

business

Increase in outsourcing

More money available for future investment

19%

19%

14%

Salary increases

Increased spend on staff training

Increase in staff recruitment

Base (42)

33%

19%

14%

7%

2%

0%

Greater focus on regulatory issues

Less money available for future investment

Restricted merger/ acquisition activity

Less outsourcing

Business process/ policy changes

Fall in overall profitability

33%

21%

19%

14%

12%

0%

Budget cuts

Recruitment freeze

Job cuts

Salary freezes

Cuts in funding for staff training

Salary

decreases

Increased merger/ acquisition activity

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Greater optimism is reflected in expectations for personal salary and job security compared to expectations for the business environment. While 19% of part qualified students are expecting salary increases across the board within their employing businesses, in terms of their personal salaries there is much greater optimism, with 60% anticipating an increase over the next 12 months. However, 26% are expecting a freeze on their personal salary over the next 12 months. Figure 4: Expectations for personal salary and job security

The average salary increase will be 7% in the next 12 months. Of the six in ten expecting an increase in salary, 60% expect an increment of less than 6%. A further one-quarter are expecting an increase in personal salary in the range of 6% to 10.9%, and just one in six are expecting an increase of over 11%. Figure 5: Expectations for increase in personal salary

60%

26%

0% 0% 0%

14%

Salary increase Salary freeze Redundancy Shorter working week

Salary reduction

None of these

0%

36%

24%

12% 12%

4% 4%

0%

8%

Less than 1%

1% - 3.9%

4% - 5.9%

6% - 8.9%

9% - 10.9%

11% - 13.9%

14% - 16.9%

17% - 19.9%

20% or more

Base: All those expecting a salary increase over the next 12 months (25)

Mean average increase expected: 7.1%

‘Despite anticipated caution within the general business environment, in terms of their personal salaries there is much optimism among part qualified students in Poland, with 60% anticipating an increase over the next 12 months.’

Base: (42)

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Currently, two-thirds of part qualified students in Poland typically work 41–50 hours per week, while another quarter work 35–40 hours per week. Just over one in ten work for more than 50 hours per week. While three-fifths of part qualified students expect their working hours to remain the same, two-fifths anticipate an increase in their working hours. The primary reasons for increased working hours are related to career growth – taking on more responsibility or a change in job role – followed by business-environment factors, such as company culture, understaffing, the current financial climate and company growth. Figure 6: Expectations for working hours

Improving employability and opportunities The CIMA qualification is perceived by the vast majority of part qualified students to be a catalyst for career growth by enabling employment internationally and creating career opportunities. A lower proportion of part qualified students agree that the qualification enables movement across all areas of business. Figure 7: Attitudes towards the CIMA qualification

Base: (42)

5%

0%

0%

67%

93%

93%

Strengthens your ability to move across all areas of the business

Creates career opportunities for you

Strengthens your ability to move internationally with your career

Strongly disagree/Disagree Agree/Strongly agree

Base: (42)

Increasing 36%

Decreasing 2%

Staying the same

62%

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Two-thirds of part qualified students are planning to move job within next two years, and almost two-fifths within six months. Furthermore, of those planning to change jobs, two-fifths plan to emigrate. Figure 8: Proportion planning to move job, to emigrate Planning to move job:

Among those seeking employment overseas, European destinations and the Pacific region are generally preferred, with Germany, Switzerland and Australia being the most popular destinations. Improved quality of life and new career opportunities are the key reasons for migrating overseas, followed by improved salary and better employment opportunities.

Not currently 33%

Yes, in ...

0-3 months 19%

4-6 months 19%

7-11 months 5%

1-2 years 24%

67% are looking to move job within the next two years of which...

Within Poland 61%

Abroad 39%

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Attracting candidates and retaining employees

Although only 5% cite additional benefits as a key motivator in employment, the benefits package is an important part of remuneration. Most of the benefits we looked at are important for students; i.e. 18 out of 22 benefits scored 3 or more out of 5 on an importance scale. Three of the top four benefits desired are also the most widely provided benefits, although not necessarily in the same order. The most desired benefits are bonus, flexible hours, healthcare and contribution to/payment of CIMA fees, scoring 4.4, 4.3, 4.1 and 4.1 respectively out of 5 on our scale of importance. However, the most frequently provided benefits are healthcare (76%), mobile phone/Blackberry/PDA (62%), bonus (60%) and contribution to/payment of CIMA fees (40%). Study leave is provided to relatively few part qualified students (29%), although it scores highly on desirability, scoring 4.0 out of 5 on our importance scale. Figure 9: Additional benefits received versus importance

Lowest base (all answering): Mortgage relief (42) Skill sets that part qualified students most commonly wish to develop over the coming 12 months are leadership (50%), followed by strategic planning and implementation (45%), and communication (40%).

76%

62%

60%

40%

31%

31%

29%

26%

21%

17%

17%

14%

12%

10%

7% 5% 2% 2% 0% 0% 0% 0%

4.1

3.4

4.44.1

3.6

4.34.0

3.3 3.42.9

3.8 3.7

2.73.2

3.5

2.9

3.43.7

3.9

3.0

2.5

3.0

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

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

100%

Received Importance (mean average)

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Financial reward, followed by a good working environment, is a key motivator for three-fifths and one-half of part qualified students respectively. Perhaps surprisingly, other potential motivators such as promotion prospects and job security are cited by just one-third and one-fifth of part qualified students respectively. Figure 10: Motivators in employment

One word to describe...management accounting Part qualified students were asked to use one word to describe what management accounting means to them personally. The words below show the most popular responses, with the size of font denoting frequency of mention. Figure 11: Words used to describe management accounting

60%

50%

38%

33%

33%

33%

24%

19%

5%

Financial reward

Good working environment

Scope of role/projects

Promotion prospects

Challenging workload

Flexibility/work life balance

Training and development

Job security

Benefits package

Base: (42)

Support Knowledge Flexibility

Interesting Leadership

Creativity

Information Significant

Key Entertaining

Performance Opportunity

Awesome Improve Thrill

Credibility Reliable Comprehensive

Management Decisions

Assurance Challenging

Analysis Priceless

Strategic

Powerful Freshness

Business

Efficiency

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Appendix

Technical information

Survey responses were collected by CIMA among active part qualified students between 2 and 20 February 2011, via an online survey. The data was analysed and reported by an independent specialist consultancy.

Just over 13,000 part qualified CIMA students were selected and invited to participate in the international study which covers 15 markets. Within the study period 2,121 responded internationally, including 42 from Poland.

The response data presented in this report has been weighted to reflect the profile of CIMA part qualified students by market. All base numbers quoted in Figures report the lowest unweighted base i.e. the number of responses. Due to the relatively small response, the figures presented in this report are indicative only and cannot reliably be compared to the 2010 survey.

Further information

For further information on technical matters relating to this survey, contact [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 Market Research Society Company Partner. Both CIMA and Spotlight abide by the Market Research Society’s Code of Conduct and the Data Protection Act.

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Global contactsCIMA UK – Head Office26ChapterStreetLondonSW1P4NPUnitedKingdomT.+44(0)2088492287F. +44(0)[email protected]

CIMA AustraliaSuite1305109PittStreetSydneyNSW2000AustraliaT.+61(0)293769900F.+61(0)293769905E. [email protected]/australia

CIMA BotswanaPlot50374,Block3,FirstFloorSouthernWing,FairgroundsFinancialCentreGaborone,BotswanaPostaladdress:POBox403475Gaborone,BotswanaTelefax.+2673952362F.+2673952362/[email protected]/botswana

CIMA ChinaUnit1508A15thFloor,AZIACenter1233LujiazuiRingRoadPudongShanghai200120P.R.ChinaT. +864008204080+86(0)2161601558F.+86(0)[email protected]/chinawww.cncima.com

CIMA Hong KongSuite2005,20thFloorTower1,TimesSquare1Matheson,StreetCausewayBayHongKongT.+85225112003F.+85225074701E.hongkong@cimaglobal.comwww.cimahongkong.com

CIMA IndiaUnit1-A-1,3rdFloorVibgyorTowersC-62,GBlockBandraKurlaComplexBandra(East)Mumbai-400051T.+91(0)2242370100F.+91(0)2242370109E. [email protected]/india

CIMA Republic of Ireland5thFloor,BlockE,IveaghCourt,HarcourtRoad,Dublin2,IrelandT.+353(0)16430400F.+353(0)[email protected]

CIMA MalaysiaLots1.03band1.05,Level1KPMGTower8FirstAvenue,BandarUtama47800PetalingJayaSelangorDarulEhsanMalaysiaT.+60(0)377230230F.+60(0)[email protected]/malaysia

CIMA Middle EastOfficeE01,1stFoor,Block3POBox502221DubaiKnowledgeVillageAlSofouhRoadDubai,UAET.+97144347370F.+97144341998E.middleeast@cimaglobal.comwww.cimaglobal.com/middleeast

CIMA PakistanNo.201,2ndfloorBusinessArcadePlotNo.27A,Block6,P.E.C.H.S.Shahra-e-FaisalKarachi,PakistanT.+922134322387/89F.+922134322390E. [email protected]/pakistan

CIMA Singapore51GoldhillPlaza,#08-02Singapore308900T.+6565356822F.+6565343992E.singapore@cimaglobal.comwww.cimaglobal.com/singapore

CIMA South Africa1stFloor,198OxfordRoadIllovo,JohannesburgSouthAfricaPostaladdress:POBox745,Northlands2116SouthAfricaT.+27(0)117888723/0861CIMASAF. +27(0)[email protected]/southafrica

CIMA Sri Lanka356ElvitigalaMawathaColombo5SriLankaT. +94(0)112503880F. +94(0)[email protected]/srilanka

CIMA Zambia6053,SibweniRoadNorthmead,LusakaZambiaPostaladdress:POBox30640,Lusaka,ZambiaT.+260211290219F. +260211290548E. [email protected]/zambia

CIMA Zimbabwe6thFloor,MichaelHouse62NelsonMandelaAvenueHarareZimbabwePostaladdress:POBox3831,Harare,ZimbabweTelefax. +263(0)4708600/702617F.+263(0)4708600/[email protected]/zimbabwe

CIMA’sglobalofficesmaychangeduringtheyear,sopleasevisittheglobalweblinksforthemostup-to-datecontactdetails.Forafulllistofglobalcontacts,pleasevisitwww.cimaglobal.com/globalcontacts

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Chartered Institute of

Management Accountants

26 Chapter Street

London SW1P 4NP

United Kingdom

T. +44 (0)20 7663 5441

F. +44 (0)20 7663 5442

E. [email protected]

www.cimaglobal.com

© June 2011, Chartered Institute of Management Accountants CMI004V0611