Bonuses outstripping salaries in accountancy roles
Growth in bonuses is outstripping the average increase in salary in accountancy roles as employers make retaining top talent a priority, according to data from the Chartered Institute of Management Accountants (CIMA) and finance recruitment agency Global Accounting Network.
The data showed that average salaries increased by 1.9 per cent, up from £62,791 in 2015 to £63,991 this year, whilst average bonuses saw a much bigger increase, up from 8 per cent of annual salary to 12 per cent over the same period.
The data also showed that the average annual salaries increased nationally for CIMA members. However, the increase for different regions was varied, with London being found to have the highest annual salaries in the UK. There was a year-on-year increase of 3.5 per cent in the city, with accountants now earning an average of £77,174.
Wales had the biggest increase in percentage points, with average salaries rising by 8.7 per cent to £52,572, whilst average salaries in the Republic of Ireland increased by 26 per cent to €102,243, which is equivalent to £88,663 in November 2016 with the fall in value of the British pound.
CIMA members in banking roles were found to have the highest average salary at £85,553, whilst CIMA members in accountancy roles were found to have the lowest average salary at £50,877.
Commenting on the data, Global Accounting Network Founding Partner Adrian O’Connor said: “A national shortage of outstanding qualified management accountants means that the retention of talent is becoming increasingly important for organisations. This data confirms that employers are incentivising great performers with larger bonuses to ensure that they stick around.”