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CIMA Chinapart qualified salary survey 2011
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 8
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
1
Table of figures
Figure 1: China real GDP and inflation − forecasted trend 3
Figure 2: Annual 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 7
Figure 6: Expectations for working hours 7
Figure 7: Attitudes towards the CIMA qualification 8
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
2
Executive summary
This report details the findings of the second annual CIMA part qualified salary survey for China. The 2011 CIMA survey indicates that part qualified students in China are earning on average RMB220,172 in annual basic salary, plus RMB22,823 in bonus payments (10% of basic salary). However, there is notable variation, with one-quarter classified by our survey as earning a lower tier basic salary of up to RMB149,999, almost one-half in the mid tier of RMB150,000–RMB299,999 and one-quarter in the higher tier of above RMB300,000. Among CIMA part qualified students, confidence in economic conditions for the coming 12 months in China is optimistic. Over two-fifths expect the organisations in which they work to embark on a strategy for increased growth with an increase in merger and acquisition activity and availability of more money for future investment. Additionally, two-fifths anticipate an increase in the overall profitability of the business. Confidence in China’s economic activity is also reflected in expectations for personal salaries, but to a much greater extent. While 59% 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. 86% are anticipating a personal salary increase over the next 12 months at an average of 14.3%, although there is considerable variation, with one-half expecting salary growth of between 9% and 16.9%, and a further one-third expecting a salary increase of over 17%. The CIMA qualification is perceived to be a catalyst for career growth by enabling employment internationally and strengthening the ability to move across all business areas. A majority (65%) of part qualified students are planning to move job within the next two years, including one-fifth within six months, although the proportion planning to emigrate is low at 16%.
3
Economic context Following almost three decades of sustained annual economic growth of almost 10%, China is now the world’s second largest economy, despite the global economic downturn in 2008/2009. China’s impressive growth record is expected to continue unabated, with GDP growth forecasts of 9%–10% for 2011 and 2012.1
While the state-owned sector accounts for about 40% of GDP, mining, manufacturing and construction accounts for almost half of GDP, as China has become a preferred destination for global manufacturing facilities.
2 Along with the global export market, foreign direct investment (FDI) is highly important to the Chinese economy and the presence of multinational manufacturers is welcomed: China is now one of the leading recipients of FDI in the world, with FDI income totalling US$105.7 billion in 2010, representing a 17% increase in foreign investment on the previous year.3
The next five years (2011–2015) are expected to bring rising incomes, increased domestic consumption and a much larger proportion of affluent households. But with this, there is the potential for increased downside effects of labour shortages and wage inflation. Credit Suisse Group AG forecasts that wages may rise by 19% per year.4
Continued strong performance within a stable economy will partly depend on keeping inflation under control, including rising property prices, as well as continuing to work on creating a friendly environment for FDI. Although substantial market reforms have been undertaken to attract foreign investors, issues remain around regulations and the legal environment.
1 IMF World Economic Outlook, October 2010, p.182. 2 US Department of State, Bureau of East Asian and Pacific Affairs, http://www.state.gov/r/pa/ei/bgn/18902.htm#econ. Accessed May 2011. 3 Bloomberg News, January 18 2011. http://www.bloomberg.com/news/2011-01-18/foreign-direct-investment-in-china-in-2010-rises-to-record-105-7-billion.html. Accessed May 2011. 4 Cited by Bloomberg News, January 18 2011
- 2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2003 2004 2005 2006 2007 2008 2009 2010 2011
GDP Est. GDP Inflation Est. inflation
Source: IMF World Economic Outlook October 2010
‘China’s impressive growth record is expected to continue unabated, with GDP growth forecasts of 9%–10% for 2011 and 2012, and this performance is reflected in the personal salary expectations of part qualified students.’
Figure 1: China real GDP and inflation − forecasted trend
4
Main findings Overview of remuneration packages Survey shows significantly higher proportion of students in mid tier salary bracket The 2011 CIMA survey indicates that part qualified students in China are earning on average RMB220,172 in basic annual salary, plus RMB22,823 in bonus payments5
(10% of basic salary). However, there is notable variation, with one-quarter classified by our survey as earning a lower tier basic salary of up to RMB149,999, almost one-half in the mid tier of RMB150,000–RMB299,999 and one-quarter in the higher tier of above RMB300,000.
Figure 2: Annual remuneration and salary tier
In addition to the basic salary and bonus the most widely provided benefits are:
• healthcare • pension.
Satisfaction with current pay and conditions
With average annual earnings of RMB220,172, a total of 55% of part qualified students in China are satisfied with their salary.
5 Figures may not sum due to rounding.
RMB220,172
RMB242,996
China mean average
Total Bonus
Basic salary
28%
45%
28%
Lower tier
(up to RMB149,999)
Mid tier (RMB150,000- RMB299,999)
Higher tier
Base: (29)
‘The 2011 CIMA survey indicates that part qualified students in China are earning on average RMB220,172 in basic annual salary, plus RMB22,823 in bonus payment.’
(RMB300,000+)
5
Expectations for future pay and conditions
Confidence in economic conditions for the coming 12 months in China is optimistic. Over two-fifths expect the organisations in which they work to embark on a strategy for increased growth with an increase in merger and acquisition activity and availability of more money for future investment. Additionally, two-fifths anticipate an increase in the overall profitability of the business. Furthermore, three-fifths anticipate salary increases across the board, while two-fifths expect increased headcount. However, one-third of part qualified students anticipate business process/policy changes while one-quarter are expecting budget cuts.
Figure 3: Expectations for the business environment
Reduced expenditure and headcount
Reduced performance, increased caution
Increased expenditure on staffing
Increased performance, more investment
45%
41%
41%
17%
Increased merger/ acquisition activity
Increase in the overall profitability of business
More money available for future investment
Increase in outsourcing
59%
38%
14%
Salary increases
Increase in staff recruitment
Increased spending on staff training
34%
21%
17%
10%
7%
3%
Business process/
policy changes
Greater focus on regulatory issues
Fall in overall profitability
Less outsourcing
Restricted merger / acquisition activity
Less money available for future investment
24%
14%
14%
10%
10%
3%
Budget cuts
Job cuts
Cuts in funding for staff training
Salary freezes
Salary decreases
Recruitment freeze
6
Confidence in China’s economic activity is also reflected in expectations for personal salaries, but to a much greater extent. While 59% 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 86% anticipating an increase over the next 12 months. This is compared to just one in ten who are expecting their salary to be frozen over the next 12 months. Figure 4: Expectations for personal salary and job security
86%
10% 3% 3% 0% 3%
Salary increase Salary freeze Redundancy Shorter working week
Salary reduction
None of these
Base : (29)
‘There is much optimism in terms of personal salary expectations, with 86% anticipating an increase over the next 12 months.’
7
The CIMA survey 2011 reveals that nine in ten part qualified students are expecting an increase in salary and the expected average increase is quite high at 14.3% in the next 12 months. Just one in six expect an increment of less than 9%; whereas one-half of part qualified students are expecting growth between 9% and 16.9%. A further one-third of respondents expect a salary increase of over 17%.
Currently over one-half of part qualified students in China typically work 41–50 hours per week, while another two-fifths work 35–40 hours per week. Just under one in ten work more than 50 hours per week. While three-fifths of part qualified students expect their working hours to remain the same, about two-fifths anticipate an increase in their working hours. The primary reason for increased working hours is related to career growth – taking on more responsibility (73%) – followed by business-environment factors, such as understaffing (45%), company culture (45%) and company growth (27%).
Increasing38%Staying the
same62%
Figure 6: Expectations for working hours
Base 29
0%
4%
8%
4%
24%
4%
20%
4%
28%
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
Mean average increase expected 14.3%
Figure 5: Expectations for increase in personal salary
*Caution: Low base Base: All those expecting a salary increase over the next 12 months (25*)
8
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 strengthening the ability to move across all business areas Figure 7: Attitudes towards the CIMA qualification
A majority (65%) of part qualified students are planning to move job within the next two years, including one-fifth within six months. Figure 8: Proportion planning to move job, to emigrate
7%
7%
7%
83%
69%
86%
Strengthens your ability to move internationally with your career
Creates career oppotunities for you
Strengthens your ability to move across all areas of the business
Strongly disagree/Disagree Agree/Strongly Agree
Base (29)
Figures may not add to 100% due to rounding
Not currently 34%
Yes, in...
0-3 months 17%
4-6 months 3%
7-11 months 17%
1-2 years 28%
65% are looking to move job within the next two years, of which....
Within China 84%
Abroad 16%
9
Attracting candidates and retaining employees
Although only 34% cite additional benefits as a key motivator in employment, the benefits package is an important part of remuneration. Most of the benefits considered are important for students; i.e. 19 out of 22 benefits scored 3 or more out of 5 on our importance scale. There is a match between the top three benefits desired and provided – healthcare, bonus and pension − suggesting that employers are also aware of the importance of these benefits. However, in general, there seems to be higher importance placed on individual benefits relative to the proportions receiving those benefits. Figure 9: Additional benefits received versus importance
Skill sets that part qualified students most commonly wish to develop over the coming 12 months are leadership (59%), followed closely by strategic planning and implementation (52%), decision making (45%) and communication skills (41%).
45%
41%
38%
31%
31%
28%
28%
28%
24%
24%
21%
14%
14%
14% 7% 7%
3% 3% 3% 0% 0% 0%
4.24.6
4.2
3.1
3.8 3.93.6 3.7 3.6
2.8
3.7
3.03.2 3.1
3.4
3.03.2
2.5
3.23.5 3.6
2.8
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%Received Importance (mean average)
10
Financial reward, followed by promotion prospects and a good working environment are the key motivators for part qualified students in the workplace. 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
52%
45%
38%
34%
34%
28%
21%
17%
10%
Financial reward
Promotion prospects
Good working environment
Scope of role/projects
Benefits package
Training and development
Challenging workload
Flexibility/work life balance
Job security
Base: (29)
Interesting Useful Rationality
Systematic
Communication Clear Consideration Strategic
Fun
Management
Excellent Business Magic
Planning Professional Opportunity
Practical Carefully
11
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 29 from China.
The response data presented in this report has been weighted to reflect the profile of the CIMA part qualified membership by market. All base numbers quoted in Figures report the lowest unweighted base; i.e. the number of responses.
Please note that due to the small base of 29 respondents, the data is only indicative of salaries and opinions of part qualified students in China; therefore results should be viewed with caution and cannot reliably be compared to 2010 and 2009 results.
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.
36
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