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CIMA Indiapart qualified salary survey 2011
Table of contents
Foreword 1
Executive summary 2
Economic context 3
Main findings 5
Overview of remuneration packages and the career ladder 5
Satisfaction with current pay and conditions 8
Expectations for future pay and conditions 10
Improving employability and opportunities 14
Attracting candidates and retaining employees 16
One word to describe...management accounting 22
Appendix 23
Table of salaries and bonuses 23
Technical information 24
Further information 24
Acknowledgements 24
Global offices 25
Table of figures
Figure 1: India GDP and inflation – forecasted trend 3
Figure 2: Annual remuneration by number of years’ relevant experience 5
Figure 3: Annual remuneration by age category 7
Figure 4: Annual remuneration by CIMA level 8
Figure 5: Satisfaction with salary – trend 8
Figure 6: Expectations for the business environment – trend 11
Figure 7: Personal expectations for salary and job security 12
Figure 8: Expectations for increase in personal salary 13
Figure 9: Hours worked in a typical week 13
Figure 10: Expectations for working hours and reasons for any increase 14
Figure 11: Attitudes towards the CIMA qualification 14
Figure 12: Proportion planning to move job, to emigrate 15
Figure 13: Planned migration destinations 15
Figure 14: Proportions planning to move job, to emigrate − trend 16
Figure 15: Trend of reasons for migrating – top 8 17
Figure 16: Additional benefits received versus importance 18
Figure 17: Skill sets part qualified students wish to develop − trend 20
Figure 18: Motivators in employment 21
Figure 19: Words used to describe…management accounting 22
Figure 20: Table of salaries and bonuses 23
1
Foreword
Welcome, on behalf of the Chartered Institute of Management Accountants (CIMA), to our third global part qualified salary survey. The results in this report will provide you with an insight into the current employment experiences and career aspirations of the business leaders of tomorrow – CIMA’s Indian student community. Despite continuing economic uncertainty in many regions around the world, our 2011 report reaffirms the strong relationship that exists between our students and their employers. The survey reflects the strength of CIMA’s reputation, and how its focus on global business offers our students a greater sense of confidence and job security. In general terms, our 2011 survey reveals that CIMA’s students have increased confidence in the buoyancy of the economy and the resilience of business to adverse global pressure. For example, the number of students who believe the profitability of their organisations will fall in the coming year has reduced from 52% in 2009 to 14% in 2011. Our 2011 survey again demonstrates that the majority of our students believe they are recession-proof. Globally, 92% do not expect to be affected by redundancy in 2011: the same high level of confidence felt by students in our 2010 survey. Moreover, nearly two thirds remain positive enough to consider a job move in the next two years. This report, which focuses on CIMA students in India, identifies a number of significant trends. During the next 12 months far fewer Indian students expect further deterioration in economic conditions such as, budget cuts (8% in 2011, by comparison with 75% in 2009); or a fall in the overall profitability of business, (4% in 2011, 54% in 2009). However, in spite of this growing confidence in India, those who believe they may be affected by redundancy, has risen from 2% in 2010 to 4% in 2011. More positively, 82% of Indian students expect to receive a salary increase in the coming 12 months. In India, the average annual student remuneration package (salary and bonuses) is Rs. 9.38 lakh per annum. The 2011 report reveals that Indian students’ level of satisfaction with their remuneration packages remains the same as 2010, at 50%. Our Indian report reflects the global survey’s conclusions that a growing number of students believe CIMA’s professional accountancy qualification is the best way to develop their career potential, with 87% of Indian students in agreement that studying for CIMA creates career opportunities; 86% believing that the CIMA qualification enables them to move across all areas of the business and 92% in agreement that CIMA strengthens their ability to develop their careers internationally. Please read through the following pages to find further highlights of our students’ working lives. I hope you find it informative reading.
Charles Tilley Chief Executive CIMA
2
Executive summary
This report details the findings of the third annual CIMA part qualified salary survey for India. The first survey was conducted in 2009 and comparisons with this and the 2010 study are provided where relevant. The 2011 CIMA survey reveals that part qualified students in India are earning on average Rs.8.47 lakh in basic annual salary, plus Rs.0.91 lakh in bonus payments. However, there is considerable variation, with one-fifth (22%) earning under Rs.2.50 lakh, and one in ten (11%) expecting no bonus payment in the next 12 months, while one-third (33%) earn above Rs.10.00 lakh, and one-third (32%) expect to earn over 10% of salary in bonus payments. Almost half (46%) are classified by our survey as earning a mid-tier basic salary of between Rs.5.00 lakh and Rs.10.00 lakh. There is a heavy reliance on bonus payments to boost salary, with the vast majority (89%) expecting to receive one in the next 12 months. Furthermore, after five years of experience, there is a steep rise in average salary, with part qualified students earning Rs.3.73 more in salary and bonus than those at the early stages of their career and 62% of them earning over Rs.10.00 lakh in basic salary alone. Compared to 2009, confidence in economic conditions for the coming 12 months in India seems to have improved dramatically amongst CIMA part qualified students. Overall there seems to be a renewed business confidence, with negligible proportions recorded for measures of subdued business activity. In particular, there are anticipated increases in business profitability, increased investment activity, and greater expenditure on staffing costs, including headcount and salaries. While 39% 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 82% anticipating an increase over the next 12 months, at an average of 14%. However, with inflation currently running high, in real terms, salary increases will be lower. The CIMA qualification is held in high regard as it is seen by 87% of part qualified students to create career opportunities, and 86% believe the qualification strengthens the ability to move across all areas of business. The vast majority (92%) perceive the CIMA qualification strengthens the ability to move internationally. Indeed, the majority (84%) of part qualified students are planning to move job within the next two years, including almost half within six months. Of those planning to change jobs, a high proportion (49%) plan to emigrate, with English-speaking destinations and the Pacific region being preferred − in particular the UK, USA and Singapore. In order to retain the best talent, employers in India will need to ensure that salaries, bonuses, additional benefits and working conditions meet the needs of CIMA students in a dynamic and competitive international environment.
3
Economic context
Overall, the past decade has been a positive period in the development of India’s economy as the global economic crisis of 2009 appears to have had only a temporary impact on GDP growth. In 2008 and 2009 GDP grew by 6.4% and 5.7%, down significantly from almost 10% in the preceding two years. However, GDP estimates for 2010 and 2011 place growth at 9.7% and 8.4% respectively and therefore the effect of the crisis is expected to be short-lived, with the pace of growth in the South Asian region as a whole increasing. Figure 1: India GDP and inflation – forecasted trend
Although inflation is forecast to fall back by the end of 2011, in the medium term, GDP growth could be hampered if monetary policy fails to dampen inflation (which ran into double figures in 2009); this despite successive rises in interest rates during 2010, reversing the reductions of 2008 and 2009.1 Any increases in salaries and wages will be largely offset by the high level of inflation (which was running at 9.3% in January 2011).2
In particular, energy and food prices will need to stabilise in 2011 to bring inflation back to target. Nevertheless, within a global context, India continues to enjoy robust economic growth.
1 UN World Economic Report 2010, p. 123. 2 Labour Bureau, Government of India, http://labourbureau.nic.in/PressIW%20New%20series.htm, accessed March 2011.
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
GDP Est. GDP Inflation Est. inflation
Source: IMF World Economic Outlook October 2010
‘The effect of the global economic crisis is expected to be only temporary, with the pace of growth in the South Asian region as a whole increasing.’
4
There is a wide disparity of wealth distribution in India − although the agricultural sector employs more than half of the working population, it accounts for 18% of GDP. In contrast, the growing service sector accounts for 54% of GDP and there is a large, highly educated middle class of more than 50 million Indians with a disposable income ranging from Rs.2.00 lakh to Rs.10.00 lakh per year, and this population is estimated to grow ten-fold by 2025.3
Key components of rapid growth in India are the technology sectors and trade liberalisation. Market-oriented economic reforms began in 1991 and include the modernisation of the financial sector and other trade-friendly measures. Following a sharp decline in 2009, trade activity increased significantly in 2010, by about 25%, mainly due to strong demand from East Asia.4
The ICT, technology, telecoms and software services industries are growing − in financial year 2009, software exports exceeded $35 billion and business process outsourcing revenues were $14.8 billion. The United States is India's largest investor, accounting for 13% of foreign direct investment, which is particularly sought-after in large infrastructure projects such as telecommunications, ports and roads, and in the power generation, oil and mining industries.
5
3 US Department of State http://www.state.gov/r/pa/ei/bgn/3454.htm#econ. Accessed April 2011. 4 UN World Economic Report 2010, p. 123. 5 US Department of State http://www.state.gov/r/pa/ei/bgn/3454.htm#econ. Accessed April 2011.
‘There is a large, highly educated middle class of more than 50 million Indians and this population is estimated to grow ten-fold by 2025.’
5
Main findings
Overview of remuneration packages and the career ladder Survey shows significant increase in salary with experience The 2011 CIMA survey reveals that part qualified students in India are earning on average Rs.8.47 lakh in basic salary per annum, plus Rs.0.91 lakh in bonus payments (10.7% of basic salary). However, there is considerable variation, with one-fifth (22%) earning under Rs.2.50 lakh, and one in ten (11%) expecting no bonus payment in the next 12 months, while one-third (33%) earn above Rs.10.00 lakh and one-third (32%) expect to earn over 10% of salary in bonus payments. Almost half (46%) are classified by our survey as earning a mid-tier basic salary of between Rs.5.00 lakh and Rs.10.00 lakh. Figure 2: Annual remuneration by number of years’ relevant experience
Furthermore, after five years of experience, there is a steep rise in average salary, with part qualified students earning Rs.3.73 lakh more in salary and bonus than those at the early stages of their career and 62% of them earning over Rs.10.00 lakh in basic salary alone. There is a heavy reliance on bonus payments to boost salary, with the vast majority (89%) expecting to receive one in the next 12 months. The overall national average bonus is 10.7% of salary, and there is no significant variation by demographics, bar those with under a year of experience, who are expecting a bonus in the region of 15% of salary.6
6 Caution, low unweighted base, under 30 responses.
India Total Up to 5 years 5+ years*
Total
Bonus
Salary
‘After five years of experience, part qualified CIMA students in India earn on average Rs.3.73 lakh more in salary and bonus than those at the early stages of their career.’
Lowest base: 5+yrs (23*) *Caution: Low base, under 30
Rs. 8.47 lakh
Rs. 9.38 lakh
Rs. 7.84 lakh
Rs. 8.68 lakh
Rs. 11.15 lakh
Rs. 12.41 lakh
6
Part qualified students in India receive a range of benefits in addition to their basic salary and bonus; those most commonly received are:
• healthcare (44%), • life assurance (35%) and • mobile phone/Blackberry/PDA (31%)
.
Comment:
Although figures are only indicative, there is some evidence to suggest salary variations by industry sector:
Base
Salary (Rs. lakh)
Bonus (Rs. lakh)
Total package (Rs. lakh)
ICT, technology and telecoms 30 9.88 0.81 10.69
Manufacturing and engineering* 23 7.23 0.61 7.84
Accountancy* 21 6.32 0.80 7.12
Furthermore, there are indications of salary variations by major city:
Base Salary
(Rs.lakh) Bonus
(Rs. lakh) Total package
(Rs. lakh)
Delhi* 21 10.79 1.36 12.15 Chennai* 23 8.51 0.98 9.49 Mumbai* 20 8.68 0.99 9.67
Bangalore* 18 9.26 0.80 10.06
*Caution: Low base, under 30
7
As one would expect, average basic salary and bonus also tend to increase with age. Those who are aged 35 and over earn on average 53% more than the national average (equivalent to Rs.4.95 lakh annually). Bonus as a proportion of basic salary ranges between 10% and 13% across the age groups and this differential tends to inflate the total salary package of those in the older age category exponentially. Figure 3: Annual remuneration by age category
Salary varies depending on CIMA level. In comparison to the national average for part qualified students, those at the T4 professional competence level earn 29% more, followed by those at the strategic level (2% more). Those at the operational/management level earn on average 10% less than the national average salary. On average, part qualified students at the T4 professional competence level can expect to earn Rs.3.64 lakh per year more than their peers at the early stages (operational/ management level) of their qualification. This could be because CIMA level is often closely linked with number of years of experience – as a student’s career progresses with experience and knowledge, so their salary increases. Figures indicate that bonus payment as a percentage of basic salary is lowest for those at the strategic level (8.1%), in comparison to 11%−12% on average recorded for those at other levels of attainment.
India Total <25 years* 25-34 years 35+ years*
Total
Bonus
SalaryRs.8.47 lakh
Rs. 9.38 lakh
Rs.4.74 lakh
Rs. 5.31 lakh Rs. 8.32 lakh
Rs. 9.14 lakh
Rs. 12.71 lakh
Rs. 14.33 lakh
Lowest base: <25yrs (17*) *Caution: Low base, under 30
8
Figure 4: Annual remuneration by CIMA level
Satisfaction with current pay and conditions Overall satisfaction with salary fell between 2009 and 2010 and has remained stable since then – one-half of respondents are now satisfied with their current salary level. There is some evidence that the total average salary package in India fell in 2010 (from Rs.9.31 lakh to Rs.8.80 lakh) but has since risen to above the 2009 figure (Rs.9.38 lakh).7
Figure 5: Satisfaction with salary – trend
7 Comparisons with 2010 should be treated with some caution 2010 data is not weighted by CIMA level.
India Total Operational/ Management
Strategic T4 professional competence*
Total
Bonus
Salary
60%
50% 50%
2009 2010 2011
‘On average, part qualified students at the T4 professional competence level can expect to earn Rs.3.64 lakh per year more than their peers at the early stages of their qualification.’
Rs. 8.47 lakh
Rs. 9.38 lakh
Rs. 7.55 lakh
Rs. 8.47 lakh
Rs. 8.88 lakh
Rs. 9.60 lakh
Rs. 10.88 lakh
Rs. 12.10 lakh
Lowest base: T4 professional competence (20*) *Caution: Low base, under 30
Base: 2009 (57), 2010 (154), 2011 (119)
9
Comment: Survey indicates a significant pay differential between males and females
Our survey indicates that a significant pay differential exists between male and female part qualified students in India, with females earning 45% less in basic salary than males and 47% less when bonus payments are taken into account.
Gender Base Salary (Rs. lakh)
Bonus (Rs. lakh)
Total package (Rs. lakh)
Male 108 8.86 0.97 9.83
Female* 11 4.84 0.38 5.22
*Caution very low base
Only 11% of part qualified students in India are female and our survey represents one in seven of them.
Figures indicate that females are more likely than males to be in the lower salary tier, (half of females versus one-fifth of males) and less likely to be in the higher tier (no females versus one-third of males).
Factors which could explain at least some of the observed pay differential are differences in the CIMA level and the age profile between the sexes; the majority of female respondents are at the operational/management level of attainment, compared to around half of males, and no females in our sample are aged 35 or more, compared to one-fifth of male respondents.
Females are less likely than males to be satisfied with their salary (seven in ten are dissatisfied versus half of males).
Females are also less satisfied with their benefits package (eight in ten are dissatisfied versus two-fifths of males) but one-third of females cite the benefits package as a key motivator in employment, compared to only one in ten males.
*Caution very low base
10
Expectations for future pay and conditions
Compared to 2009, confidence in economic conditions for the coming 12 months in India seems to have improved dramatically amongst CIMA part qualified students. Overall, there seems to be a renewed business confidence with negligible proportions recorded for measures of subdued business activity. A high proportion anticipate an increase in the overall profitability of the business in which they work (50%) versus those anticipating a fall in the overall profitability of the business (4% in 2011, down from 54% in 2009) – this is indicative of robust business confidence. Around one-quarter of part qualified students expect more money to be available for future investment (28%) and increased merger and acquisition activity (26%). The proportion expecting less money available for future investment is down to a negligible 2%, from a significantly higher figure of 29% in 2009. Additionally, there are expectations for greater investment in human resources, with over half (52%) expecting an increase in staff recruitment and only 4% expecting a recruitment freeze, compared to 56% in 2009. Increased spend on staff training is expected by one-third, while only 4% expect cuts in staff training budgets. Furthermore, salary increases across the board in the businesses in which they work are expected by two-fifths (39%), while only 7% are now expecting salary freezes, down from 48% in 2009.
11
Reduced expenditure and headcount
Reduced performance, increased caution
Increased expenditure on staffing
Increased performance, more investment
50%
28%
26%
25%
Increase in the overall profitability of business*
More money available for future investment*
Increased mergers/ acquisition activity
Increase in outsourcing
52%
39%
31%
Increase in staff recruitment*
Salary increases*
Increased spend on staff training*
2011
33%
24%
4%
3%
3%
2%
45%
26%
54%
29%
Business process/ policy changes
Greater focus on regulatory issues
Fall in overall profitability of business Less outsourcing
Restricted mergers/ acquisition activity
Less money available for
future investment
2011 2009
8%
7%
4%
4%
2%
2%
75%
48%
56%
30%
35%
Budget cuts
Salary freezes
Recruitment freeze
Cuts in funding for staff training
Job cuts
Salary decreases*
2009 2011
Base: 2011 (119)
Figure 6: Expectations for the business environment – trend
2011
12
Renewed vigour in Indian economic activity and a positive business sentiment is also reflected, to a greater extent, in personal future expectations for salaries. While 39% 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 82% anticipating an increase over the next 12 months. This is compared to just one in ten who are expecting their salary to be frozen, facing the prospect of redundancy, and/or anticipating a shorter working week over the next twelve months. Figure 7: Personal expectations for salary and job security
The average expected increase in salary is also quite high at 14%, with one-third expecting an increase of 20% or more, one-quarter expecting an increase in the range of 11% to 20% and another quarter expecting an increase in the range of 9% to 11%. However, any increase in salary will largely be offset by the high level of inflation plaguing the Indian economy – 9.3% in January 20118
.
8 Labour Bureau, Government of India, http://labourbureau.nic.in/PressIW%20New%20series.htm. Accessed March 2011.
82%
4% 4% 2% 0%
15%
Salary increase Salary freeze Redundancy Shorter working week
Salary reduction
None of these
‘While 39% 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 82% anticipating an increase over the next 12 months.’
Base: (119)
13
Figure 8: Expectations for increase in personal salary
Currently one-half of part qualified students in India work 41–50 hours per week while another quarter work 51–60 hours per week. Just under one in ten work more than 60 hours per week.
Figure 9: Hours worked in a typical week
While two-fifths of part qualified students expect their working hours to remain the same, over half anticipate an increase in their working hours. The primary reasons for increased working hours are related to career growth – taking on more responsibility (69%; with one-third also mentioning a change in job role) followed by business-environment factors, such as company growth (51%) and understaffing (43%).
0% 1%
9% 9%
27%
12%
5% 5%
32%
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
3%
20%
47%
24%
7%
Up to 35 hours 35-40 hours 41-50 hours 51-60 hours More than 60 hours
Base: All those expecting a salary increase over the next 12 months (97)
Mean average increase expected: 14.0%
Base: 2011 (119)
14
Figure 10: Expectations for working hours and reasons for any increase
Improving employability and opportunities The CIMA qualification is perceived to be a catalyst for career growth among part qualified students. There is a high level of agreement that the CIMA qualification enables employment internationally. Furthermore, there are similarly high levels of agreement that the qualification enables movement across all areas of business, and more generally that the qualification creates career opportunities. Figure 11: Attitudes towards the CIMA qualification
Increasing,55%
Staying the same,
43%
Decreasing 2%
5%
8%
27%
31%
43%
51%
69%
Other
Current f inancial climate
Company culture
My role has changed
Understaf f ing/lack of resource
Company growth
Taken on more responsibility/more pressure
2%
3%
3%
86%
87%
92%
Strongly disagree/ Disagree Agree/ strongly agree
Creates career opportunities for you
Stregthens your ability to move across all areas of the business
Strengthens your ability to move internationally with your career
Base (119) Base: All those expecting an increase in working hours outside normal hours (66)
15
The majority of part qualified students are planning to move job within the next two years, almost half within the next six months. Furthermore, of those planning to change jobs, a high proportion (49%) plan to emigrate.
Figure 12: Proportion planning to move job, to emigrate Planning to move job:
Among those seeking employment overseas, English-speaking destinations and the Pacific region are generally preferred, with the UK being by far the most popular country, followed by Singapore and the USA.
Figure 13: Planned migration destinations
Base: Those planning a move to another country within the next two years: (51)
Not currently 16%
Yes, in ....
0-3 months 22%
4-6 months 23%
7-11 months 15%
1-2 years 24%
84% are looking to move job within the next two years, of which...
Within India 51%
Abroad 49%
Canada 17%
USA 40%
UK 74%
UAE 11%
Singapore 45%
Switzerland 10%
Malaysia 10%
Australia 29%
New Zealand
11%
16
Attracting candidates and retaining employees
Compared to previous years, a higher proportion of part qualified students are planning to move jobs within the next two years, and a greater proportion of those will be seeking employment within India, compared to 2009. Economic revival could be a factor in this increased mobility within India.
72%
56%
75%
45%
84%
49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Planning to move within 2 years Planning to move to another country
2009 2010 2011
Figure 14: Proportion planning to move job, to emigrate – trend
Base: 2009 (57), 2010 (154), 2011 (119) Base: Those planning a move in the next 2 years, 2009 (41), 2010 (116), 2011 (101)
17
Indeed, there has been a dramatic decrease in the search for better employment opportunities overseas − down from 83% in 2009 to 63% in 2010 and 54% in 2011. A similar pattern is seen for seeking an improved salary, although to a lesser extent. In 2011, improved quality of life (70%) and an improvement in salary (70%) are the key reasons for migrating overseas, followed closely by experiencing a different culture 64%).
Figure 15: Trend of reasons for migrating – top 8
Although only 14% cite additional benefits as a key motivator in employment, the benefits package is an important part of remuneration. All the benefits we looked at are important for students; i.e. all benefits scored 3 or more out of 5 on an importance scale. There is a match between the top three benefits desired and those provided – healthcare, bonus and life assurance − 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. In particular, study leave, pension and a pay rise as an incentive for passing exams are provided to relatively few part qualified students, although they score highly on desirability, scoring 4.2, 4.2 and 4.1 out of 5 on our importance scale respectively.
70%
70%
64%
55%
54%
41%
24%
23%
60%
78%
55%
65%
65%
51%
31%
22%
82%
85%
54%
64%
83%
50%
42%
32%
Improved quality of life
Improved salary
New career opportunity
Work promotion
Stronger economy
2011 2010 2009
Improved employment conditions
Better employment opportunities
Experience a different culture
Base: 2009 (23*), 2010 (52), 2011 (51) * Caution: Low base, under 30
18
As an improved quality of life is a major motivator for part qualified students wanting to move overseas, we could infer from these findings that employers in India may benefit in terms of retaining talented candidates by making the additional benefits package more internationally competitive. Figure 16: Additional benefits received versus importance
Lowest base (all answering): Mortgage relief (102)
44%
36%
35%
31%
25%
22%
19%
19%
19%
19%
12%
9% 8% 8% 6% 6% 4% 4% 3% 2% 1% 1%
4.74.5
4.2
3.63.4
4.04.2
3.7 3.83.6
4.23.8
3.63.4 3.5 3.4
4.13.9
3.23.0
3.3 3.2
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)
19
Comment:
21% of Indian-owned businesses are SMEs, versus only 4% of international businesses based in India, which could help to explain the key differences in remuneration offered by international versus Indian-owned businesses:
Base Salary (Rs. lakh)
Bonus (Rs. lakh)
Total package (Rs. lakh)
Indian owned 49 8.00 0.77 8.77 International 70 8.90 1.10 10.00
Furthermore, international businesses are more likely than Indian-owned businesses to provide the following additional benefits:
• bonus (95% versus 80%) • life assurance (47% versus 16%) • study leave (25% versus 11%) • working from home (25% versus 10%).
Indian-owned businesses are more likely to provide the following additional benefits:
• product/service discount (14% versus 4%) • mobile phone/Blackberry/PDA (41% versus 24%).
20
With the exception of IT software skills (29% in 2011, up from 23% in 2010), the desirability of skill sets has either remained stable or undergone a decline − significantly in some cases. One reason for this decline in demand may be that whereas recession forces people to create new skill sets in order to compete for relatively scarce jobs, during economic revival there is an abundance of jobs for all skill sets. Hence, there is an overall decline or stability in skill sets desired. Skill sets that part qualified students most commonly wish to develop over the coming 12 months are leadership, followed by strategic planning and implementation, reporting and analysis, personal development, and decision making. Figure 17: Skill sets part qualified students wish to develop – trend
26%
43%
20%
34%
41%
60%
52%
40%
54%
44%
52%
69%
53%
54%
61%
60%
25%
32%
23%
34%
38%
43%
42%
42%
55%
44%
44%
57%
58%
52%
56%
66%
17%
26%
29%
31%
34%
38%
41%
42%
43%
44%
45%
50%
52%
54%
55%
66%
Internal audit and control
Persuading and influencing
IT software (e.g MS Excel, Powerpoint)
Skills for developing others (e.g. Assessing performance, coaching)
Budgeting
Problem solving
Time management
Team building
Communication (e.g. Negotiating, writing, presenting)
Risk management
Project management
Decision making
Personal development (e.g. Career planning, time management)
Reporting and analysis
Strategic planning and implementation
Leadership
2011 2010 2009
Base: 2009 (57), 2010 (154), 2011 (119)
21
Promotion prospects, followed closely by a good working environment, challenging workload, and scope of role/projects are all key motivators for two-fifths of part qualified students in the workplace. Perhaps surprisingly, other potential motivators such as financial reward and job security are cited by just one-third and one-quarter of respondents respectively.
Figure 18: Motivators in employment
46%
44%
43%
40%
35%
31%
22%
14%
13%
Promotion prospects
Good working environment
Challenging workload
Scope of role/projects
Flexibility/work life balance
Financial reward
Job security
Benefits package
Training and development
Base : 2011 (119)
22
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 19: Words used to describe…management accounting
Decision-making
Necessary Essential Critical All-rounder
Exciting Good Great
Business
Useful Important Strategic
Excellent
Management
23
Appendix Figure 20: Table of salaries and bonuses
India Base Salary
(Rs. lakh per annum)
Bonus (Rs. lakh per
annum)
Total package (Rs. lakh per
annum)**
Total 119 8.47 0.91 9.38
Salary tier
Lower* 24 3.07 0.25 3.32
Medium 55 7.27 0.64 7.91
High 40 13.71 1.74 15.45
Age
<25 years* 17 4.74 0.57 5.31
25-34 years 79 8.32 0.82 9.14
35+ years* 23 12.71 1.62 14.33
Years of relevant experience Up to 5 years 96 7.84 0.84 8.68
5 years or more* 23 11.15 1.26 12.41
Gender
Male 108 8.86 0.97 9.83
Female* 11 4.84 0.38 5.22
Level
Operational/Management 59 7.55 0.91 8.47
Strategic 40 8.88 0.72 9.60
T4 professional competence* 20 10.88 1.22 12.10
Ownership
National 49 8.00 0.77 8.77
International 70 8.90 1.01 10.00 *Caution: Low base, under 30 **Figures may not sum due to rounding
24
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 119 from India.
The response data presented in this report has been weighted to reflect the profile of the CIMA part qualified membership 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, 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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