Africa Salary Survey

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The Association of Accountants and Financial Professionals in Business

2015 Middle East / Africa Salary Survey

2015 Middle East/Africa Salary Survey

About IMA® IMA, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking, and advocacy of the highest ethical business practices. IMA has a global network of more than 80,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe, and Middle East/ Africa. For more information about IMA, please visit www.imanet.org.

© August 2016 Institute of Management Accountants 10 Paragon Drive, Suite 1 Montvale, NJ, 07645 www.imanet.org/thought_leadership

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2015 Middle East/Africa Salary Survey

About the Author Kip Krumwiede, CMA, CPA, Ph.D., is the director of research for IMA. Kip received his Master of Accounting degree from Brigham Young University and his Ph.D. from the University of Tennessee. Prior to joining IMA, Kip spent 18 years as a management accounting professor at universities, including Brigham Young University, Boise State University, and the University of Richmond, and worked for two Fortune 500 companies in a variety of positions. In addition, Kip has published more than 20 articles in both practice and academic journals. He can be reached at (201) 474-1732 or [email protected].

2015 Global Salary Survey For many years, IMA® (Institute of Management Accountants) has conducted the very popular salary survey of its members around the world, enabling its members to compare their compensation to others, assess the value of education and certification, and more. The global report presents high-level results from this survey and compares compensation levels and job satisfaction across the globe. This is the second year IMA conducted a single global salary survey, making global trends easier to track and enhancing regional comparison. Additionally, we also look at other factors that contribute to job satisfaction, such as hours worked, opportunity for advancement, and work-life balance. Using the survey data, IMA is also able to provide country- and region-specific reports, such as this report for respondents in the Middle East/Africa. All the reports will be posted on IMA’s Thought Leadership website at www.imanet.org/salary_survey.

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IMA 2015 Salary Survey: Middle East/Africa

How We Conducted the Survey

For the second consecutive year, IMA has conducted a single,

In October-November 2015, survey invitations were sent to 9,051 IMA members in the Middle East/Africa (MEA) region. For the purposes of the salary results, we considered only respondents who indicated that they were either full-time employees or self-employed and included salary information. The survey was completed by 782 members (8.6% response rate). This report provides a summary of those responses.

combined global salary survey of its members. This report examines in detail the responses of members located in the Middle East/Africa (MEA) region. Not only does this analysis include comparisons to last year’s survey results, but it also incorporates the results from previous salary surveys that were focused only on MEA members. Key findings for MEA respondents in 2015 include: • O  verall, the median base salary for IMA members in the MEA region is highest in the United Arab Emirates (UAE), and the median total compensation is highest in the Kingdom of Saudi Arabia (KSA). • W  omen in the 20-29 age group report higher overall median compensation than men, but a gender pay gap continues to exist in the older age ranges.

• F  ifty-eight percent of the respondents received raises in the past year. The average raise was 15%. Seventy-five percent of respondents are expecting raises in the coming year. The raises in this year’s survey are more modest compared to last year. • T  he average work week reported this year is 45.9 with a median of 45.0 hours, which is about the global average. • A  bout half of the respondents are satisfied with their jobs. The most important factors overall to job satisfaction in MEA are opportunity for advancement and salary. • T  he number of respondents with the CMA® (Certified Management Accountant) credential increased from 44% last year to 50% this year. CMAs in MEA earn 30% more in median salary and 33% more in median total compensation than their non-CMA counterparts. That’s about $10,000 to $12,000 more per year.

Respondent Demographics Table 1 presents the demographic characteristics of the survey respondents. Compared with respondents globally, MEA members are slightly younger and more likely to be male (86%). Nearly all (99%) possess at least a baccalaureate degree, and 33% have an advanced degree. Compared to last year, there is a slightly higher concentration of respondents in senior management positions and fewer in lower management positions. They have spent about the same number of years in their field (10) and with their employer (four) as respondents globally. Overall, 50% are CMAs, which is a significant increase over last year’s 44% and about the same percentage as respondents globally.

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Table 1: Respondent Demographics Female Male

Mean

Median Baccalaureate Advanced

Top management

This Year

Gender

Last Year

Global

14% 12% 35%

86% 88% 65%

Age

36 35 39 35 34 37

Degree

99% 99% 96%

Management Level

33% 34% 41% 9% 10% 10%

Senior management

30% 27% 23%

Lower management/entry level

16% 19% 28%

Middle management

Academic position in college/university Current position

43% 43% 32%

Years of Experience (Median)

Current employer Years in field CMA

1% 1% 7% 3 5 3 4 5 4

10 11 11

Certification

50% 44% 53%

CPA

9% 7% 15%

Salary Results The mean base salary for IMA members in MEA is $43,652, and the median salary is $28,865.1 Mean total compensation (salary and additional compensation) is $54,137, and median total compensation is $34,841 (see Table 2). These results are down 13%-18% over last year, likely a reflection of the sharp decline in the price of oil.

All compensation data is reported here in U.S. dollars. To convert to UAE dirham (AED), multiply the U.S. dollar amounts by the exchange rate prevalent at the time the survey was conducted (approximately 3.67 AED per U.S. dollar on average for the month of November 2015. For other currency exchange rates, see www.x-rates.com). 1

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Table 2: Salary and Compensation

Current Survey



Median Mean

Base Salary ($)

Total Compensation ($)

43,652

54,137

Prior Survey

Base Salary ($)

Total Compensation ($)

28,865 34,841 35,000 40,030 49,767

60,032

Table 3 presents the annual base salary and total compensation for respondents by country for those MEA countries that represented at least 1% of survey respondents. Together, UAE, KSA, Egypt, Kuwait, and Qatar accounted for 80% of the respondents. Of those countries, UAE shows the highest median salary at $39,197, and KSA has the highest median total compensation ($50,369).

Table 3: Compensation by Middle East Country*

Salary

Total Compensation



Percent Mean Median Mean Median

KSA

23.3% $51,010 $35,978 $66,791 $50,369

UAE

33.1% $53,371 $39,197 $65,075 $45,500

Egypt

12.0% $12,632 $6,576 $16,634 $8,252

Qatar

5.8% $54,376 $36,234 $69,310 $40,626

Kuwait

5.8% $39,768 $35,596 $44,533 $38,067

Jordan

5.5% $28,290 $14,061 $32,463 $15,045

Oman

2.3% $39,393 $28,708 $42,274 $28,772

Lebanon Bahrain

3.5% $36,009 $27,720 $42,220 $31,800

2.0% $40,515 $19,189 $50,186 $31,567

All Middle East $43,652 $28,865 $54,137 $34,841

* Countries with less than 1% of survey respondents include Pakistan, Palestine, Nigeria, Angola, Kenya, Syria, Uganda, Ghana, Iraq, South Africa, Botswana, Congo, Malawi, Namibia, Seychelles, Tanzania, and Yemen.

Gender Pay Comparison This year’s study indicates a significant difference between the salary and compensation for men and women in MEA (see Table 4). The median pay values for women are 61% and 60% of those for men, respectively. These results show that the gender pay gap still exists. Last year’s results for MEA also showed a significant salary gap between women and men.

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Table 4: Compensation by Gender

Base Salary



Total Compensation

Mean Median Mean Median

Women

$26,256

Men

$46,730

Women as a percentage of men

$19,958 $31,980

$31,757

$22,253

$58,024

$37,240

56% 61% 55% 60%

Traditionally, the gender pay gap has been narrower among younger respondents—those in the early stages of their career. The median salaries and total compensation for women in MEA are significantly higher than those of men in the 20-29 age range (see Table 5), with women earning 55% and 44%, respectively, more than men. Last year, women’s median values in that age group were 20% and 16% higher, respectively.

Table 5: Women’s Median Compensation as a Percentage of Men’s* Age Range

Women

30-39

$26,785

20-29 40-49

Base Salary Men

$16,406

$10,576

$38,499

$63,960

$32,664

Women % of Men

Women

Total Compensation Men

155%

$17,498

$12,126

60%

$39,282

$74,620

82%

$32,936

Women % of Men 144%

$39,975

82% 53%

* There were too few female respondents over the age of 50 to make a meaningful salary gap comparison. Unfortunately, women’s median salaries and compensation are lower than men’s in the 30-39 age range (82%) and considerably lower in the 40-49 age range (60% and 53%, respectively). The gender pay gap in the latter age group is a bit worse than last year. It should be noted, however, that here are only 16 women in this age group compared to 143 men, which can lead to more variation in the women’s results. So these numbers should be used with extreme caution.

Compensation and Certification As is true throughout the world, CMAs in the MEA earn substantially more than their non-CMA counterparts. CMAs in Middle East/Africa report a median salary of $35,089 and median total compensation of $41,746, compared to $25,584 and $29,794, respectively, for non-CMAs. Thus, members with the CMA designation earn about $10,000 (37%) more in salary and about $12,000 (40%) more in total compensation than non-CMAs (see Table 6). This is a significant increase over last year’s premiums of 22% and 28%, respectively.

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Table 6: Compensation by CMA Designation

CMAs

Non-CMAs

CMA premium

Salary

Mean Median Total Compensation

Salary

Total Compensation

$48,311 $60,982 $35,089 $41,746 $39,064 $47,397 $25,584 $29,794 24% 29% 37% 40%

Besides higher salary, respondents with a CMA designation find value with the certification in other ways. When asked whether the CMA designation “creates career opportunities for me,” 90% agree. Ninety percent also agree that the CMA “strengthens my ability to move across all areas of business,” and 84% said that their CMA certification strengthens their position in salary negotiations. All of these percentages are higher than those from last year. Given all the benefits of the CMA designation, it’s no wonder that 93% of non-CMA respondents in MEA plan to pursue the designation in the next year. A senior auditor wrote, “I am trying to get the CMA in order to get a chance for a better opportunity.”

Compensation and Education Table 7 shows that respondents with an advanced degree earn about $20,000 more in median salary and overall compensation than those with only a baccalaureate degree. It’s clear that education pays—a higher level of education leads to higher earnings.

Table 7: Salary and Compensation by Level of Education



Baccalaureate degree Advanced degree

Base Salary ($)

Total Compensation ($)

Mean Median Mean Median

43,768

29,164

54,332

34,954

60,602 48,996 76,993 54,366

Supervisory Responsibilities The higher a respondent’s supervisory responsibilities, the higher his or her compensation. For those who head a major department and report directly to the CEO or board, total median compensation is $51,182. As shown in Table 8, there are distinct drops in total median compensation at each lower level of responsibility. The mix of supervisory categories is similar to last year. The largest group is respondents who have some supervisory responsibility but do not head a major department (33%), followed by those who head a major department (22%-26%).

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Table 8: Supervisory Responsibilities

Age



Head of a major department and reports directly to a CEO or board of directors

Mean

Base Salary

Mean

Median

Total Compensation Mean

Percentage of Respondents

Median

This Year

Last Year

38.8

$59,083 $46,018 $71,717

$51,182

26%

26%

Head of a major department but does not report directly to a CEO or board of directors

38.2

$51,093 $38,108 $65,818

$45,076

22%

22%

Little or no supervisory responsibility and reports directly to a CEO or board of directors

32.0

$32,337 $26,131 $38,272

$35,000

7%

7%

Some supervisory responsibility but not head of a major department

33.6

$36,228 $25,529 $43,563

$30,221

33%

32%

No supervisory responsibility

30.9

$24,183 $14,686 $31,400

$19,249

12%

13%

Responsibility Area Figure 1 shows the median salaries and total compensation by area of responsibility (for those areas with more than five respondents). Employees working in the areas of government accounting, risk management, education, and general management are the highest paid (median total compensation exceeding $60,000). After these areas, there is a big drop in compensation for the other areas. Those working in cost accounting and public accounting are the lowest paid (median total compensation of less than $20,000). The highest median additional compensation is reported by those in general management ($12,000), followed by that in education ($11,764). Government accountants report the highest median base salary but relatively low additional compensation ($5,754). The lowest median additional compensation is reported by those in cost accounting ($2,427).

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Figure 1: Median Total Compensation by Responsibility Area n A dditional compensation

$90,000

n B ase salary

$80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000

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Salary Increases Fifty-eight percent of MEA survey respondents received a raise in the past year. The average raise was 15%, and the median raise was 10% (see Table 9). A larger percentage of respondents (75%) expect a salary increase in the coming year, with the amounts of the expected increases similar to those received this past year. This is illustrated in Figure 2, which is based on the values of the right two columns of Table 9).

Table 9: Raises Received and Expected

Raise Percentage

At Least (%)

Less Than (%)

Received a Raise in the Past Year

1 5 5 10 10 15 15 20 20 25 25 50 50 100 100 >100

2015 Middle East/Africa Salary Survey

8% 17% 13% 7% 6% 7% 0% 0%

10

Expect a Raise in the Coming Year 8% 21% 20% 7% 8% 8% 2% 1%

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Figure 2: Salary Raise Percentage: (Cumulative) Past Year vs. Next Year* 80% 70% 60%

— Past year — Next year

50% 40% 30% 20% 10% 0%

5

10

15

20

25

50

100

>100

* The horizontal axis represents the percent raise while the vertical axis represents the percentage of respondents receiving or expecting that percent raise.

Employee Satisfaction Compensation levels, while important, are only one factor contributing to employee satisfaction. Other factors examined in this survey include the number of hours worked, job satisfaction, and employee benefits. Hours Worked The average work week for MEA respondents is 45.9 hours (median 45.0 hours), which is almost the same as the global average (46.0). When asked how their hours worked had changed in the past year, 5% indicated a decrease in hours worked, 73% indicate their hours have stayed the same, and 23% indicate they are working more hours. The reasons for working more hours varied, and respondents often cited multiple reasons. Of those reporting an increase in hours worked, 72% identified taking on more responsibility/ more pressure on the job as contributing to their increased workload (see Figure 3). Hours worked also varied somewhat by supervisory level. Those who are a head of major departments or who have some supervisory responsibility have a median of 48.0 hours per week (mean 46.4 hours). Those with little or no supervisory responsibility have a median of 40.0 hours per week (mean 45.2 hours).

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Figure 3: Reasons for Increase in Hours Worked Taking on more responsibility/more pressure Understaffing/lack of resources Company growth Company culture Change in role Current financial climate 0%

20%

40%

60%

80%

Job Satisfaction This year we asked respondents to assess their overall job satisfaction. Overall, about half of them reported being very satisfied or more satisfied than dissatisfied with their job. Only 7% said they were very dissatisfied, 19% said they were more dissatisfied than satisfied, and 27% were neutral. We also asked respondents to rate their satisfaction and the importance of various job attributes to their career satisfaction in management accounting. Figure 4 indicates the percentage of respondents rating various job factors as satisfied or very important to their career satisfaction. Overall, opportunity for advancement and salary are most important (77% and 75%, respectively), followed by job security, employee benefits, and how their employer handles ethical issues.

Figure 4: Job Factor Satisfaction and Importance* n S atisfaction

0%

10%

20%

30%

40%

50%

60%

n Importance

70%

80%

90%

Opportunity for advancement My salary Job security Employee benefits How employer handles ethical issues Acknowledged for performing well Working relationships with others Included in decision-making process Interesting and challenging work Overall job satisfaction * Satisfaction is defined here as rated “Very satisfied” or “More satisfied than dissatisfied.” Importance is defined here as rated "Very Important." 2015 Middle East/Africa Salary Survey

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Respondents rated their satisfaction with opportunities for advancement as lowest overall. Only 26% said they were mostly or very satisfied with their opportunities for advancement, while 40% were satisfied with their salary and 51% with their job security. They were most satisfied with their working relationships with others (75%). Although these results provide overall trends, it’s important to remember each individual has his or her own unique needs and talents. For example, a group vice president commented, “More than salary, it is the job content and the overall atmosphere that is important and keeps me in the current organization. I have been fortunate enough to have been provided with the opportunity to challenge a new area of work every couple of years or so within the finance field.” Desire for Job Change About 51% of survey respondents plan to look for another job in the short term, and 33% are considering it. Last year’s survey found 57% looking to change jobs within a year and 26% considering it. This continuing high percentage of job seekers reflects the dynamic nature of the accounting profession in MEA. The two most commonly identified reasons for considering a job move are improved salary (69%) and seeking a new career opportunity (64%). As shown in Figure 5, the two other reasons commonly mentioned are an improved quality of life and better employment opportunities. Of those planning to look for another job, 35% are very confident and 48% somewhat confident they will be able to find one in the next year.

Figure 5: Reasons for Considering a Job Change Improved salary New career opportunity Improved quality of life Better employment opportunities Experience a different culture Work promotion Improved employment conditions Stronger economy Friends and family Take time off/travel Internal company transfer To learn a new language 0%

2015 Middle East/Africa Salary Survey

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20%

30%

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40%

50%

60%

70%

80%

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Employee Benefits Historically, the most commonly received benefit has been healthcare or healthcare insurance. This year, 84% of respondents report receiving this benefit (and another 15% desire it). As illustrated in Figure 6, the other most common benefits are bonus (62%), company car (48%), travel benefits (46%), mobile phone (42%), and life insurance (38%). Figure 6 also shows the difference between benefits received vs. those identified as very to extremely important. The biggest gap between benefits rated as important and those received include pension benefits, share options, life insurance, and flexible hours.

Figure 6: Benefits Currently Received or Desired n C urrently receive this benefit

n V ery or extremely important

Healthcare/health insurance Bonus Company car/allowance Travel benefits/allowance Mobile phone Life insurance Pension Flexible hours Extra holiday Payment of IMA dues Working from home iPad or tablet Share/share options

0%

2015 Middle East/Africa Salary Survey

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20%

30%

40%

14

50%

60%

70%

80%

90%

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Final Thoughts The median base salary in the UAE and median total compensation reported by IMA members in the KSA are the highest for Middle East/Africa countries. The majority of MEA respondents received moderate raises this year, and about three-fourths expect similar increases in the coming year. Overall, salaries and compensation in MEA are down 13%-18% compared to last year, likely a reflection of the sharp decline in the price of oil. Although the gender pay gap in base salary and total compensation continues to exist later in their careers, the good news is it disappears for women in their 20s. Respondents reported an average work week this year of 45.9 hours, which is about the global average. About half of the respondents said they are satisfied with their jobs. Clearly the most important factors overall to job satisfaction in MEA are opportunity for advancement and salary, followed by job security, employee benefits, and how their employer handles ethical issues. More than half of MEA respondents are considering a job change in the next year, citing a desire for improved salaries, new career opportunities, and improved quality of life as primary motivations. The value of participation in the CMA program continues to be clear: The median salary for CMAs is 37% more—and the median total compensation is 40% more—than that for non-CMAs in the Middle East/Africa region. A lower-level manager commented, “I will be looking for new employment soon, and I will use my CMA qualification to search for the position.”

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