CIMA SALARY SURVEY 2013

Republic of Ireland

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ForewordCIMA’s members and students are looking forward to rapid career progression and salary rises well above the national average - despite the continuing economic uncertainty. This optimistic outlook reflects the growing demand for professionally qualified management accountants who are focused on helping organisations – in both the public and private sectors - to develop strategies that are successful and sustainable in the long term.

Overall, our members and students told us that they are heading for a dynamic future with promotion and attractive earnings packages on the horizon. Their confidence may well have been boosted by CIMA’s joint venture with the American Institute of Certified Public Accountants. The result of this alliance is a new global designation, the Chartered Global Management Accountant (CGMA). The CGMA designation is rapidly gaining globally acceptance as a mark of unparalleled excellence in business and financial management.

On average, CIMA members in the Republic of Ireland are earning just over €89,000 per annum while our students earn over €44,000 on average; well above the national average.

However there is still a considerable gender gap among members where, on average, women earn €22,337 less than their male counterparts. This is a slight drop from last year’s figure and CIMA is working hard to address this issue. There are signs that the younger generation is beginning to close the imbalance: the gap between male and female students is significantly lower at just under €1,400.

Ambition is a key driver for both members and students. 38% of members and 35% of students said they want to develop their leadership skills. The vast majority of our members and students (93%) expect to be in a different role in three years’ time. Almost half (47%) expect to be in a senior, finance-related role. The growing diversity of CIMA members as business partners is reflected by members, 20% of whom anticipate being in a very senior, non-finance role such as CEO or leading a non-finance division.

Our survey also revealed a preference for a more flexible approach to career progression. Key workplace motivator is a desire for flexibility/work-life balance (50%), followed by a good working environment (47%), financial reward (42%), and a challenging workload (39%). Combined, these responses give a clear indicator to employers of what they should be offering if they want to attract the very best in management accounting expertise.

Denis McCarthy Director CIMA Ireland

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Salary survey results

Ireland average salary figures

In 2013, qualified CIMA members in Ireland are earning on average €81,733 in basic salary plus €7,399 in bonus payments, totalling €89,132 per annum. Part qualified students in Ireland are earning on average €41,958 in basic salary plus €2,264 in bonus payments, totalling €44,221. This compares with a current average national Ireland salary figure of €35,924.1

Robust salary satisfaction

Overall 65% of all CIMA members and students are satisfied with their current salary, compared with 67% in 2012 and 68% in 2011. The 2013 figure is highest among students at the operational level of their CIMA qualification (70%).

Substantial salary increases anticipated

CIMA members and students are optimistic about their personal salary rises over the next 12 months. A 2.7% overall rise in the salaries

of qualified members is anticipated. However, among the two-thirds who are expecting an increase, the average anticipated rise is much higher at 4.3%, which in real terms will be well above inflation forecasts of around 1.5%.2

Among part qualified students, salaries are expected to increase largely in line with CIMA level attained – from 3.8% at operational level to 5.6% among those at T4 professional competence level. Among the 70% at T4 professional competence level who are expecting a salary increase as fully qualified CIMA members, the average anticipated increase is 8%.

Qualification boosts salary deals for CIMA students

The CIMA qualification boosts salary deals, and the effect is strongest for students at operational level, with 76% saying it helps strengthen their position in salary negotiations.

Figure 1: Annual remuneration by CIMA level

Salary patterns

‘On average CIMA Fellows (FCMA) will earn c. €131k and Associates (ACMA) c. €84k in 2013.’

‘76% of part qualified students at operational level say the CIMA qualification strengthens their position in salary negotiations.’

1 Annual average earnings for 2011. Central Statistics Office. Statistical Yearbook of Ireland 2012 Edition. Chapter 17, Earnings. Available at: www.cso.ie/en/media/csoie/releasespublications/documents/statisticalyearbook/2012/c17earnings.pdf Accessed 11 June 2013.

2 Economic and Social Research Institute (ESRI) Spring 2013 Quarterly Economic Review. Available at: www.esri.ie/UserFiles/publications/QEC2013SPR_ES.pdf Accessed 16 June 2013.

3 Figures for students at the management level of the qualification should be treated with some caution as they are based on the responses of 24 students.

€131,486

€84,481

€42,970€39,127€44,039 €50,915

CIMA memberFCMA, CGMA

CIMA memberACMA, CGMA

Strategic T4 professionalcompetence

Management3Operational

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Salary patterns

Annual remuneration by job role

Among qualified members, management accountants earn an average total salary of €63,641. However, CIMA members at more senior levels earn substantially more

on average: financial controllers and finance managers earn on average c. €89,000 per annum (up from €84,000-€86,000 in 2012) while financial directors earn c. €130,000 (up from €127,000 in 2012). CFOs earn on average c. €136,000 including bonus.

Figure 2: Qualified members – annual remuneration by job role

‘Financial controllers and

finance managers earn on average c. €89k per annum.’

€89,326€82,292

€89,208€81,695

€87,239€80,231

€66,544€62,275

€63,827€60,366

€63,641€61,190

€55,695€54,135

€129,792€113,876

€89,132€81,733Republic of Irelandtotal - qualified members

Financial director

Finance manager

Financial controller

Manager (other then finance)

Financial accountant*

Finance/Business analyst

Management accountant

Accountant

*Caution: Low base, under 30.Lowest base: Financial accountant (22)Highest base: Financial controller (65).

Basic salary Bonus Total

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‘Part qualified students working in Leinster and Dublin are earning €45,000 in average total salary.’

Annual remuneration by region

Total annual salaries (including bonuses)

across the provinces appear to have equalised

somewhat in 2013. This is perhaps due to a

clustering of financial services and banking

sectors in Leinster, where bonus payments

are lower this year than in other key sectors,

bringing them to below the average bonuses

reported for Connacht and Munster.

Part qualified students in Leinster and Dublin

are earning on average over €45,000 per

annum in total salary. The comparable figure

for Munster is just below, at €39,000.

81% of qualified members in Connacht and

75% of those in Munster are satisfied with

their current salary, perhaps reflecting higher

bonus payments this year than in previous

years.

Figure 3: Annual remuneration by province and major city

ConnachtPart qualified: **Qualified: €86,439

GalwayPart qualified: **Qualified: €88,468*

LeinsterPart qualified: €45,347Qualified: €90,875

DublinPart qualified: €45,465Qualified: €91,371

MunsterPart qualified: €39,107*Qualified: €85,516

CorkPart qualified: **Qualified: €82,952

*Caution: Low base, under 30.

** Data unavailable due to low base numbers

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Annual remuneration by sector

Industry sector has an impact on salary and in particular on bonus levels, at a time when basic salaries have seen little change from a year ago. Compared to the national average total salary package for qualified members (€89,132), those working in banking are earning 11% more, in healthcare and pharmaceuticals 7% more and in ICT, technology and telecoms 4% more. Earnings in the latter two sectors are boosted by annual average bonuses in excess of €10,000.

While those in the public sector earn no or very little bonus, their average basic salary is higher than those of key private sector industries (bar banking, and healthcare and pharmaceuticals) resulting in a competitive average total salary despite a fall of 6% since 2012.

Annual remuneration by business size

For qualified members, the size of average basic salaries and bonuses tends to increase with business size. The availability of senior and very senior roles in large multinational corporations is likely to be driving this. Those working in very large businesses with 10,000 or more employees (which covers the high-paying banking sector) are earning c. €96,000, including c. €10,000 in annual bonus payments.

Those in senior and very senior roles are highly likely to be working up to 50 or 60 hours per week, with around one-third anticipating increasing working hours.

Figure 4: Qualified members – annual remuneration by sector

€95,744€85,231

€92,399€82,397

€89,426€82,057

€87,628€80,029

€87,100€79,707

€83,444€83,123

€75,924€70,442

€89,132€81,733

€99,374€95, 452

Republic of Irelandtotal - qualified members

Banking

Healthcare and pharmaceutical

ICT, technology and telecoms

Manufacturing and engineering

Financial services

Retail, consumer goods

Public sector

Business services*

*Caution: Low base, under 30.Lowest base: Business services (19*)Highest base: ICT, technology and telecoms (64)

Basic salary Bonus Total

‘The banking, healthcare and

pharmaceutical, and ICT, technology

and telecoms sectors are tending

to pay higher than average total annual

salaries across the CIMA qualified

membership.’

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Business and the economy

Expectations for future pay and conditions

Although there have been dramatic improvements since 2009, lingering questions over Eurozone economic performance and weak GDP growth of just under 1% for Ireland3 are manifesting in a stable but continued cautious outlook among CIMA members and students. However, there are some glimmers of optimism.

The percentage expecting a fall in business profits has reduced slightly from 26% in

2011 to 21% this year, while the percentage expecting less money available for future investment has decreased from 24% to 19% over the same period. Outsourcing activity is on an increasing trend.

At the same time, expectations for budget cuts (36%), recruitment freezes (27%), salary freezes (34%), salary increases (22%), and increasing profitability (31%), all appear to moving slowly in a positive direction.

Figure 5: Expectations for the business environment over the coming 12 months − selected

indicators36%

38%38%

71%

27%29%30%

73%

26%27%

30%59%

25%22%

19%13%

22%22%22%

22%20%19%

21%22%

26%62%

19%21%

24%42%

13%12%

15%

34%41%

39%78%

31%30%

27%

Budget cuts

Salary freezes

Increase in the overallprofitability of the business*

Recruitment freeze

Job cuts

Increase in outsourcing

Increase in staff recruitment*

Salary increases*

Fall in the overall proftability of business

Less money available for future investment

Salary decreases*

20122013 2011 2009*Indicator not featured in 2009.

3 Economic and Social Research Institute (ESRI) Spring 2013 Quarterly Economic Review. Available at: http://www.esri.ie/UserFiles/publications/QEC2013SPR_ES.pdf Accessed 16 June 2013.

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Working conditions

Working hours

On average, members and students work 44 hours per week, although 35% work less than the average.

Longer hours are linked to seniority: 52% of students are working more than 40 hours per week, compared to 66% of qualified Associate members and 80% of Fellows. Furthermore, 87% of financial directors, 78% of financial controllers and 75% of finance managers work more than 40 hours per week, compared to 40% of accountants and 29% of financial accountants.

Overall, two-fifths (41%) of members and students expect their working hours to increase over the coming 12 months, while more than one-half (56%) expect no change.

Those working in micro/small businesses are less likely than average to face increasing working hours (23%), while the percentage is higher in medium (37%) and large businesses (45%).

The primary reason for increasing working hours is related to career progression – taking on more responsibility was cited by 68% of students and members and 87% of finance managers. A secondary factor, mentioned by 56%, is understaffing/lack of resource.

Motivators at work

The key motivator at work for both members and students is flexibility/work-life balance (50%), but this is more important for females (58%) than males (45%) as they may be more likely to need to juggle work and non-work commitments. A good working environment (47%), financial reward (42%) and a challenging workload (39%) are also important motivators in general.

Promotion prospects are especially important for part qualified students (mentioned by 38%), taking precedence over work-life balance and a challenging workload.

‘In smaller businesses,

company growth and the financial climate seem to

be requiring more input from staff.’

The CIMA qualificationstrengthens my ability

to move internationallywith my career

90%agree

The CIMA qualificationcreates career

opportunities for me

87%agree

The CIMA qualificationstrengthensmy ability

to move across all areasof the business 81%

agree

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Career plans

Seeking new opportunities

Only 7% of members and students see themselves in the same role in three years’ time, further suggesting the presence of a high degree of mobility and promotion prospects.

While almost one-half (47%) anticipate being in a senior finance-related role such as finance manager, financial director, financial controller, CFO, head of accounting/finance or self-employed practitioner, 11% anticipate being in a very senior non-finance role such as CEO/MD, head, director or manager of a non-finance division.

Among those already working as a management accountant, 45% expect to progress to finance manager or financial controller in the next three years.

Among all qualified members and part qualified students, 20% are planning to find another job over the next six months and a total of 49% are planning to move job within the next two years. Of those, 84% plan to stay within Ireland.

The propensity to seek a new job decreases with seniority: Students at the management (71%), strategic (72%) and T4 professional competence levels (67%) are significantly more likely than average to be seeking a new role within the next two years compared to 46% of Associates and 34% of Fellows.

A global career

Among members and students who plan to seek employment abroad, the UK is the most frequently named destination (42%), followed by the USA (38%). Canada (26%) and Australia (24%) are each favoured by around one-quarter of those wishing to relocate and the UAE by 18%.

In 2013, seeking a new career opportunity is the key reason for planned relocation (60%), largely to secure a bigger salary (57%) and improved quality of life (52%).Wanting to experience a different culture is mentioned by 42% and better employment opportunities by 40%.

Figure 6: Proportion planning to move job, to emigrate

‘93% anticipate being in a new role within the next three years.’

49% are looking to move job within the next two years, of which…

84% plan to stay in Ireland

16% plan to move abroad

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Building skill sets

Over the coming 12 months part qualified students will be focusing on developing their technical skills, especially financial reporting (39%) and data analysis (35%). However, interpersonal qualities such as communication skills (34%) and leadership (35%) will also be important to them, along with personal development skills (37%), such as time management.

However, for students at the strategic level

of the CIMA qualification there is a different set of priorities: strategic planning and implementation (54%) and communication skills (51%) take precedence, followed by personal development (46%) and leadership skills (44%).

For qualified CIMA members, developing strong leadership skills and strategic planning and implementation are the twin priorities, with soft managerial skills being important areas for development for around one-third to one-quarter.

Figure 7: Top skills that students and members wish to develop

Part qualified students Qualified members

37% Personal development

38% Leadership

35% Data analysis35% Leadership

31% Personal development34% Communication

33% Persuading and influencing

39% Financial reporting

36% Strategic planning and implementation

30% Strategic planning and implementation

23% Communication23% Decision making

26% Skills for developing others

23% Persuading and influencing23% Problem solving

28% Project management

22% Project management

24% Relationship management 24% Change management 29% Decision making

‘Communication and interpersonal

skills are important development areas

for both members and students.’

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Appendix

Part qualified students Qualified members

Ireland Base Basic salary (€ per

annum)

Bonus (€ per

annum)

Total package (€ per

annum)**

Base Basic salary (€ per

annum)

Bonus (€ per

annum)

Total package (€ per

annum)**

Total 142 41,958 2,264 44,221 418 81,733 7,399 89,132

Age

<25 yrs ***

25–34 yrs 78 39,743 1,759 41,501

35–44 yrs 46 46,972 3,177 50,149

45+ yrs ***

Age

< 31 yrs 24* 50,521 3,241 53,761

31–35 yrs 81 66,142 5,365 71,507

36–40 yrs 117 79,395 7,658 87,053

41-50 yrs 151 89,110 8,587 97,697

51+ years 45 105,535 8,456 113,991

Gender

Male 82 42,708 2,491 45,199 284 87,714 8,523 96,237

Female 60 40,962 1,962 42,925 134 68,911 4,989 73,900

Level

Operational 37 37,432 1,695 39,127

Management 24* 40,938 3,101 44,039

Strategic 39 41,218 1,752 42,970

T4 professional competence

42 48,214 2,701 50,915

Associate 383 77,696 6,785 84,481

Fellow 35 118,500 12,986 131,486

Size of organisation

Micro/small (1–50 employees)

20* 46,278 3,205 49,483 66 76,349 3,878 80,227

Medium (50–249 employees)

23* 36,349 1,193 37,541 58 78,762 5,296 84,058

All large (250+ employees)

99 42,370 2,319 44,689 294 83,547 8,616 92,163

250−999 19* 39,676 1,718 41,394 58 80,217 6,080 86,297

1,000–9,999 22* 43,242 2,974 46,216 103 81,990 7,939 89,929

10,000 or more 58 42,924 2,266 45,190 133 86,201 10,247 96,448

Experience since enrolling

Up to 2 years 32 38,981 2,833 41,814

2–4 years 40 38,950 4,144 43,093

4+ years 47 47,658 2,790 50,448

*Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers

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Part qualified students Qualified members

Ireland Base Basic salary (€ per

annum)

Bonus (€ per

annum)

Total package (€ per

annum)**

Base Basic salary (€ per

annum)

Bonus (€ per

annum)

Total package (€ per

annum)**

Total 142 41,958 2,264 44,221 418 81,733 7,399 89,132

Experience since qualifying

Up to 1 year 18* 48,333 3,714 52,047

1–3 years 55 55,136 3,623 58,760

4–5 years 52 66,250 5,998 72,248

6–9 years 60 75,500 6,912 82,412

10–19 years 166 92,601 8,389 100,990

20+ years 67 101,629 10,349 111,979

Industry

Banking *** 21* 95,452 3,922 99,374

Business services *** 19* 70,442 5,482 75,924

Financial services *** 57 80,029 7,599 87,628

Healthcare and pharmaceuticals

*** 50 85,231 10,513 95,744

ICT, technology and telecoms *** 64 82,397 10,002 92,399

Manufacturing and engineering

*** 37 82,057 7,368 89,426

Public sector *** 36 83,123 321 83,444

Retail and consumer goods *** 39 79,707 7,392 87,100

Transport, distribution and storage

*** 21* 97,977 12,324 110,301

Province

Leinster 105 43,077 2,270 45,347 289 83,698 7,177 90,875

Munster 28* 37,179 1,928 39,107 84 77,442 8,074 85,516

Connacht *** 38 78,485 7,953 86,439

City

Dublin 89 43,076 2,389 45,465 241 84,251 7,121 91,371

Cork *** 43 74,792 8,160 82,952

Galway *** 24* 78,899 9,569 88,468

Job role

Accountant 19* 42,639 1,317 43,955 26* 54,135 1,560 55,695

CFO *** 14* 121,077 14,594 135,671

Financial analyst/business

analyst

35 39,637 1,633 41,270 41 60,366 3,461 63,827

Finance manager *** 50 82,292 7,034 89,326

Financial accountant *** 22* 62,275 4,269 66,544

Financial controller *** 65 81,695 7,514 89,208

Financial director *** 31 113,876 15,917 129,792

Management accountant *** 49 61,190 2,451 63,641

Manager (other than finance) *** 30 80,231 7,008 87,239

*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 part qualified students between 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 over 21,000 part qualified students and 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 560 from the Republic of Ireland.

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, contact yourvoice@cimaglobal.com

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.

CIMA Ireland5th Floor, Block E, Iveagh Court, Harcourt Road, Dublin 2T: +353 (0)1 643 0400E: cima.ireland@cimaglobal.com

© September 2013, Chartered Institute of Management Accountants