Interesting insights from the NZICA annual survey

MEDIA RELEASE 27 July 2011 Taking the Accounting Sector’s Temperature

Interesting insights from the NZICA annual remuneration survey.

The annual New Zealand Institute of Chartered Accountants (NZICA) remuneration and employment survey provides the most detailed and up-to-date analysis of trends in the profession.

Completed by over 9,000 of NZICAs 32,000 members and sponsored by Randstad, the survey provides a view on remuneration changes, employer and employee expectations in the current changing market place. NZICA Chief Executive Terry McLaughlin hopes that the results will continue to generate discussion and deliberation in the business arena, and provide greater insight into the broader aspects of our profession. “NZICA members touch every aspect of New Zealand commerce. Its for this reason that we thought it crucial to assess not just remuneration, but the changing advice that members are providing business and the issues that they foresee having to tackle over the next five years.

“Amongst the results I was particularly heartened not to see any significant fluctuations for members living in Christchurch,” says Mr McLaughlin.

The key findings this year are as follows:

Impact of current economic climate

35% of members identified that the advice they are providing has changed over the last two years, the change is reflective of the current economic climate. Respondents identified that they are providing more advice with regard to cost control (15%), more conservative advice (12%) and information about cash flow management (11%). 9% said they are providing advice more focused on „surviving.

Almost two-thirds (63%) of members say they feel pressured to do more for less in the current business environment. The pressure was felt more acutely by members working in large public practice firms (72%) and those in the public sector (73%).

Members in Christchurch The results did not reveal any trends for members in Christchurch that are significant fluctuations or outliers to the national averages.

Perhaps surprisingly, members in Christchurch are less likely to be planning to head overseas - only 4% compared with 6.5% from across the country.

Also of interest is the fact that only 3% of all respondents identified earthquake related recovery as a major issue for the next five years.

Employee and employer expectations in the changing market place

Asked for the first time this year, NZICA prompted respondents to outline whats important to them in a role and contrasted this with the ways employers attract and retain staff.

Chartered Accountants (CA), Associate Chartered Accountants (ACA) and Accounting Technicians (AT)* are all looking for similar attributes from a role with work/life balance rated as most important by all designations (CA 30%, ACA 28%, AT 35%), followed by career advancement (CA 20%, ACA 18%, AT 14%), and earning potential (CA 13%, ACA 16%, AT 11%).

There is however, significant disparity between the value placed on work/life balance by employees and employers with only 6% of employers seeing it as a priority vs. 30% of CAs, 28% of ACAs and 35% of ATs.

Employers are looking to retain and attract staff through salaries, organisational culture, career advancement and training – most of which marry up with the factors employees consider most important.

Crystal ball gazing - the accounting profession over the next five years 47% of members believe economic recovery is 12-18 months away, but that over the next five years the advice they give will become more growth focused (14%) and strategic (8%). These changes suggest members are optimistic about New Zealands future economic outlook. It also reinforces the changing role of New Zealands modern accounting professional – where value for clients and employers is derived from insight beyond the numbers.

When asked about the major issues that the sector will face over the next five years the need to become more strategic (17%), keeping up with technology (15%), expanding areas of expertise (9%) and keeping up with legislative changes (9%) were most commonly identified.

Remuneration in 2011 Remuneration for Associate Chartered Accountants has increased by 4% overall and remuneration for Accounting Technicians has also increased by 2.3% compared to remuneration in 2010. The increases ranged from $126 to $4,358.

The average Chartered Accountants remuneration has decreased slightly (2.5%) in the last year. The decrease is as a result of a small decrease across each of the components of a CAs package – base, bonus, vehicle allowance and other.

Curiously, the KiwiSaver/superannuation component of remuneration has increased for all designations, perhaps suggesting that saving and planning for the future has increased in importance over the last year. The percentage increase in KiwiSaver/superannuation for CAs, ACAs and ATs is 65%, 56% and 98% respectively.

The survey shows wide fluctuations in salary by region, type of position, and sector. Members in senior roles have seen a more significant fluctuation in their remuneration.

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