CIMA Zambia Part Qualified Salary Survey 2010

CIMA Zambia part qualifiedsalary survey 2010

CIMA salary survey 2010 – ZambiaExecutive summary1Main findings3Salaries and bonuses3Sector3Future3Recruitment and retention4Satisfaction with salary and benefits4Importance of benefits4Working hours5Skill set requirements6Geographical mobility7Extent of movement7One word to describe CIMA difference8Technical information9Further information10Global contacts11

1Executive summaryZambia has, for some years now, continued to experience solid economic growth. Since2006, GDP has grown at a rate of somewhere in the order of 6% per annum. Despite theglobal economic slowdown, Zambia has still managed to register economic growth of anestimated 6.3% during 2009 (according to official government estimates). Zambia recordeda trade surplus valued at K316.3 billion in January 2010 indicating that the economy isperforming strongly and that sustained growth can be expected during 2010.The second annual global salary survey of CIMA students was carried out in February 2010.A total of 2,563 students (who had sat an exam within the last two years under the 2005CIMA qualification structure) contributed to the survey of which 70 responses were fromZambia. This report summarises the results of this survey with a particular focus on Zambia,looking at how recent economic events are impacting on salary levels and benefit packagesexperienced by CIMA students working there. Please note that due to small base numbers,only indicative results are given for Zambia. The results should be viewed with caution whencompared to global averages.Salaries and bonuses The average monthly salary for CIMA students in Zambia is K6.4m. The average bonus across all students is nearly K655k, providing a total remunerationpackage of just over K7m. 36% of students do not expect to receive a bonus in 2010. Therefore, the averageamongst those students expecting to receive a bonus rises to K1.01m. 27% of students worry that they might experience a pay freeze in 2010 and 10% areworried about possible redundancy.

2Recruitment and retention Only 33% of students are satisfied with their salary – this is much lower than othercountries surveyed and well below the global average (51%). The benefits most commonly received by employees in Zambia are study leave (receivedby 57% of students), healthcare (56%), contribution/payment of CIMA fees (49%), andpension (37%). CIMA students place the greatest importance on receiving these same four types ofbenefits, of which healthcare is seen as the most important. 40% of students are satisfied with their current benefits, again a figure that is notablylower than global satisfaction (67%). Students typically work a 43 hour week, although it is unusual for people to be calledupon to work more than 50 hours per week (only 13%). In terms of future skill requirements, strategic planning and implementation (67%), riskmanagement (60%), personal development (59%), reporting and analysis (59%) anddecision making (59%), are the most sought after.Geographical mobility 73% of CIMA students plan to change jobs within the next two years. For the 27% of those students planning a move overseas, South Africa is the most populardestination (64%), followed by the UK (43%). The main reasons for Zambian students looking for work abroad are mainly work focusedbenefits such as improved employment opportunities (79%), new career opportunities(71%), better employment opportunities (64%) and improved salary (64%).

3Main findingsSalaries and bonusesThe average monthly salary for CIMA students in Zambia is K6.4m, plus an average bonus ofnearly K655k, providing a total remuneration package of just over K7m.There is a broad range of salary level in Zambia. At the higher end of the spectrum, 20% areearning a basic salary in excess of K10m per month. At the lower end, 23% are earning lessthan K4m per month.Just under two-thirds (64%) of students expect to receive a bonus during the comingyear, indicating that the practice of offering bonuses is fairly widespread but by no meansguaranteed. The average bonus amongst those who will actually receive one is thereforeK1.01m, which equates to 16% of their package, the highest percentage globally.7% of students in Zambia have less than two years’ work experience, 43% have betweentwo and five years’ experience, and 50% have more than five years. 53% are studying atmanagerial level, 29% at strategic level, 13% are TOPCIMA and 5% are passed finalists1.74% of students live and work in Lusaka.SectorCIMA is important to the broad base of industry in Zambia with one in five students workingin the accountancy sector and a similar proportion working within the banking, insuranceand finance sector and the public/not-for-profit sector.Given the low base numbers it is difficult to make salary comparisons across the sectors.53% work for small organisations with fewer than 50 staff, 11% for those with between 50and 499 staff, and 36% of students are working for organisations with more than 500 staffemployed internationally.FutureThere is some evidence that the tough global trading conditions are having some impacton Zambia. 27% of students worry that they might experience a pay freeze in 2010 and afurther 10% are worried about possible redundancy. Such concerns may indicate that theoptimism of the Zambian government is not shared by some students.Anticipated impacts in 2010None of the below64%Pay freeze27%RedundancyShorter working week10%1%1 For the purposes of this survey, CIMA level data was collected under the 2005 CIMA qualification structure andrefers to those at managerial level, strategic level, TOPCIMA and passed finalists. For comparison under the 2010qualification structure these levels are respectively now known as operational/management level, strategic level,T4 Part B Case Study and exams complete.

4Recruitment and retentionSatisfaction with salary and benefitsOnly 33% of CIMA students in Zambia are satisfied with their salary. This is low comparedwith many other countries – global average is 51% – with only students in Botswana beingless satisfied. Similarly, satisfaction with benefits currently received is low at just 40% –again only Botswana is lower. The global average is 67%.Salary satisfactionExtremely xtremely dissatisfied13%SalaryBenefitsImportance of benefitsThe high level of dissatisfaction with benefits amongst students in Zambia may, in part, beexplained by students’ high expectations there. Respondents were asked to identify thosebenefits which they regarded as the most important by scoring them with marks out of fiveand, alongside Botswana, Zambia rated the highest expectations for some benefits. AmongstZambian students twelve of the benefits scored four or more in terms of importance.Healthcare, contribution/payment of CIMA fees, pension and study leave are the mostimportant benefits sought and are also amongst the benefits most commonly received bystudents in Zambia by 56%, 49%, 37% and 57% respectively.The most obvious gaps between those benefits that people find attractive and those thatare offered are life assurance and, to a more significant extent, pay rise and bonuses asincentives for passing exams.

5Importance of benefits (mean score) by benefits received5 extremely important, 1 not at all important4.94.7 4.7 4.7 4.64.5 4.4 4.470%4.2 4.1 4.1460%3.7 3.63.5 3.4 3.4 3.43.3 3.23.150%2.940%30%20%ImportanceWorking from homeDaily subsidised foodSeason ticket loanLeisure facilitiesSabbaticalProduct/services discountMobile phone/Blackberry/PDAExtra holidaysShares/share optionsFlexible hoursChildcare arrangements/vouchersTravel benefits/allowancesMortgage reliefCompany car/allowanceBonus as an incentive for passing examsBonusLife assurancePay rise as an incentive for passing examsStudy leavePensionContribution/payment of CIMA fees10%Healthcare54.543.532.521.51Benefit receivedWorking hoursZambian CIMA students typically work 43 hours per week at present. It is unusual for anystudents in Zambia to work more than 50 hours per week (only 13%).Very few students believe that their hours will decrease in the future (only 7%). Indeed,50% believe that their working hours will increase over the coming year, compared to 35%globally.Requirement to work outside normal hoursIncreasing43%50%DecreasingStaying the same7%0%

657% of those who expect their working hours to increase cited the fact that they are takingon more responsibility and more pressure as the cause. Understaffing and lack of resourceswas also given as a reason by the same proportion, with a further 29% identifying companygrowth as a factor.Skill set requirementsThe skills that CIMA students in Zambia are keenest to acquire during the coming yearinclude strategic planning and implementation (67%), risk management (60%) – globallythis is 29% showing an above average interest in this area – as well as personal development(e.g. career planning, time management), reporting and analysis, and decision making (all ofinterest to 59% of students in Zambia).In general, students in Zambia appear fairly keen to pick up a variety of different skills withthe average student expressing an interest in six or seven different skill sets they would liketo acquire.Skill sets requiredStrategic planning and implementation67%Risk management60%Personal development (e.g. career planning, time management)59%Reporting and analysis59%Decision making59%Leadership50%Project management44%Budgeting43%Problem solving41%Communication (e.g. negotiating, writing, presenting)34%Team building34%Skills for developing others (e.g. assessing performance, coaching)33%Internal audit and control31%Persuading and influencing27%Time management27%IT software (MS Excel, Word, Powerpoint, etc.)IT (hardware systems)19%10%

7Geographical mobilityExtent of movement73% of CIMA students plan to change jobs within the next two years, with over one-quarterlooking to move in the next three months.Career plans for the next two years20%27%Stay in current jobFind a new job in ZambiaFind a new job abroad53%The majority of students looking to relocate are at present, only interested in looking forwork in Zambia itself but for the 27% of those students considering a move to anothercountry, South Africa is the most popular destination of choice (64%) followed by the UK(43%). Australia, Canada, the USA and Namibia are also likely to be considered.Globally, an improved quality of life is the key driver for relocating, whereas the mainreasons for Zambian students looking for work abroad are mainly work focused benefitssuch as improved employment opportunities (79%), new career opportunities (71%), betteremployment opportunities (64%), and improved salary (64%).

8One word used to describe how CIMA is different from otheraccountancy qualifications.Dynamic veLEADERSHIPThe size of the font reflects the number of times the word was spontaneously mentioned.

9Technical informationData collection for the CIMA Global Part Qualified Salary Survey 2010 was carried outby CIMA itself online during the period 28 January to 14 February 2010. The data wassubsequently rim weighted (by Redshift Research) by country to ensure the profile of thesurvey sample accurately represents all CIMA markets.13,980 CIMA students globally were selected and invited to participate (UK, Ireland, SouthAfrica, Sri Lanka, Malaysia, Hong Kong, Australia, Mainland China, UAE, India, Pakistan, Russia,Poland, Zambia and Botswana). A total of 2,563 completed the study globally (18% responserate) with 70 respondents from Zambia. Please note that due to small base numbers, onlyvery indicative results are given for Zambia. The results should be viewed with caution whencompared to global averages. Basic responses were as follows:Table of responses by age bandTable of responses by CIMA level25-3444Managerial3735-4422Strategic2045 and over4TOPCIMA9Total70Passed finalist4Total70Table of responses by genderMale52Female18Total70