The 2011 South Africa Rewards & Attitudes Survey

The Macdonald & Company

SOUTH AFRICA REWARDS & ATTITUDES SURVEY 2011

The Property Recruitment Professionals

Friends in

High Places?

We Have.

At Macdonald & Company we’ve completed search assignments at the highest levels through UK, Europe, Middle East, Asia Pacific and Africa.

Julie Teague: +2711 361 5900 jteague@macdonaldandcompany.com

www.macdonaldandcompany.com Preferred Recruitment Partner

02

2011 EXECUTIVE SUMMARY Now in its third year, the Annual South Africa Rewards & Attitudes survey is the most comprehensive survey undertaken for the property sector.

The survey continues the success of last years survey, with 1,017 South African property professionals participating online in January and February 2011, making this the largest and most comprehensive survey of its type in the industry.

We would like to thank all the participants who took time to complete the online survey.

Besides statistics on current salaries, recent salary increases, bonuses and employment package benefits, the results give insight into wider issues that are important to professionals in their role and their attitudes toward employment. This executive summary sets out the key findings of the survey.

Foreword The local economic climate is showing very good signs of improvement, both within the property sector and without. This is certainly reflected in the 8.1% increase in basic salaries which the average property professional has enjoyed over the past 12 months.

Whilst bonuses & commissions have not been as generous, this has been offset by a good increase in additional benefits, such as medical aid contributions & mobile phone allowances, as companies strive to retain key staff in less certain times.

The optimism felt a year ago in the industry has flagged somewhat, as we come to realise that the recovery from the global recession is steady but slow.

However, South Africa still boasts one of the strongest performances globally in the property sector in terms of earning and career satisfaction growth; as can be witnessed when comparing this to the same studies we have conducted in other regions.

Julie Teague | International Director Macdonald & Company Recruitment (Proprietary) Limited Autumn 2011

For further information or analysis please contact: E: salarysurvey@macdonaldandcompany.com or call our South African office.

An online statistics package for the 2011 survey is available at a cost of R4,500.

In addition to the South Africa Rewards & Attitudes Survey, Macdonald & Company undertake remuneration and attitudes surveys for the following regions: UK, Middle East, Asia, and Europe, all reports are available at www.macdonaldandcompany.com For the third year, the results have been collated and analysed by BluSky Research (a research trading name of BluSky Marketing Limited – www.bluskymarketing.com).

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03

• Average salary up from R379,718 to R427,533, due to more experienced and more senior respondents than last year • However, real salaries across the property sector have risen by 8.1% and illustrates one of the strongest performances globally in the property sector • Those employed in Fund Management (R1,025,000), Retail Development (R731,429) and Asset Management (R715,641) enjoy the highest average earnings • 62% of respondents received a base salary increase (versus 64%*) • 35% of respondents had no change made to their base salary (versus 34%*) • Lower bonuses paid overall, those receiving bonuses fell from 53% to 52%, with an average bonus dropping from R84,080 to R75,750 per annum • Mobile phones (46%), contributory pension (37%), health insurance (33%) and performance related bonus (26%) continue to be the most popular benefits offered in the indsutry • 15% are not satisfied overall with their current job and the most likely reason for leaving an employer is in pursuit of a better career prospect, better salary and better benefits package • 66% of respondents class their current employer an “employer of choice” (versus 63%*) with business vision and future potential being the leading factor • 54% of respondents believe that the property market will get better over the next 12 months (versus 64%*) *Last Year

900

1363 1017

1041

1299

1446

1033

1,200

1195

1,500

803

1,800

949

In only the third year, with 1,017 respondents, the survey is the most robust and respected survey of its kind in South Africa and is securing a response rate comparable to other regions who have been operating for a longer period.

1536

Salary Survey regional comparison only year on year comparison

-25.4% 10/11 -21.7% 09/11

2,100

1090

Survey Response Rate Total

2083

RESEARCH SAMPLE PROFILE

600

300

0

Middle East

12% 0%

Black

Asian

White

Mixed

7%

6%

23%

7%

35%

8%

47%

9%

The ethnic origin of the survey respondents has seen an increase in the percentage of White respondents (increase from 53% to 61%) and decrease in the percentage of Black and Asian respondents.

12%

58%

2011

23%

Are you?

28%

70%

27%

Ethnic Origin

2010

58%

2009

South Africa

61%

Europe

53%

Asia

The 2011 South Africa Rewards & Attitudes Survey

KEY FINDINGS

04 Gender Are You?

Female 39% (-5%)

A lower percentage of females participated in this year’s survey (down from 44% to 39%), and the majority of respondents continue to be male (61%, up from 56% the previous year).

2009

2010

Male 61% (+5%)

2011

30%

30%

27% 23%

25%

28%

28%

24%

24% 23%

22%

Level of Responsibility What is your level of responsibility within the organisation for which you work?

20%

24% of the respondents are either an Equity or Salaried Director/Partner within the organisation, in comparison to 12% last year.

14%

15% 10%

10%

5%

9%

7%

8% 6%

5%

6% 6%

0%

Assistant/ Trainee

Staff/Other

Senior

Associate/ Manager

Principal/ Director/ Partner - Equity

Partner/ Director/ Salaried

2011 0% Less than 99K

100K to 199K

Spread of Current Salaries

200K to 299K

Excluding Bonuses The percentage of survey respondents who earn a salary of R500,000 or more has jumped from 26.2% last year to 32.8% in 2011.

300K to 399K

400K to 499K

500K to 599K

600K to 699K

700K to 799K

more than 800K

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4%

8%

2010 13%

2009 17%

21%

25%

05

Average SA Property Salary (R,000)

R450.000

What is your current annual base salary? (exclude all benefits such as bonuses, car, etc)

R380.000

R427,533 R415,148 R379,718

The average salary (excluding bonuses and other benefits) of the respondents to this year’s survey is R427,533, up from R379,718 (or +12.6% year on year).

The increase in the average salary could be attributed to the higher percentage of “senior” respondents in comparison to last year. While in real terms (real industry change) the average salary across the industry has also risen by 8.1%.

+12.6% 10/11 +3.0% 09/11

R310.000 R240.000 R170.000 R100.000

2009

Average Salary Increase

Real Industry Change

2010

No Change

2011

Average Salary Decrease

Real Industry Change

15%

10.5%

What change (if any) was made to your annual base salary at your last pay review?

8%

(*= average increase of those respondents who reported a salary increase offset against those who reported a salary decrease as a %) (Please note: 275 respondents did not respond to the question and not included within % figures)

-9.1%

10.1%

8.1% 0.0%

0%

-8%

459 0r 62%

259 or 35%

Average across

of respondants

of respondants

742 respondants

-15%

-23%

-29.8% -30% 24 or 3% of respondants

Middle East

10%

10.5%

Asia

Europe

8.9%

UK

-9.1%

8%

4.1%

4.3%

4%

0%

8.1%

Real Industry Change by Global Region What change (if any) was made to your annual salary at your last pay review?

6%

2%

South Africa

1.6%

The real industry change in salaries (respondents who report a salary increase offset by those who reported a salary decrease) illustrates one of the strongest performances globally in the property sector when compared to other regions where a similar survey has been undertaken during the last 12 months. (*= average increase of those respondents who reported a salary increase offset against those who reported a salary decrease as a %)

The 2011 South Africa Rewards & Attitudes Survey

AVERAGE SOUTH AFRICAN PROPERTY SALARY

06 Change in Salary Up by 15%+ 9.4% (+1.2%)

What change (if any) was made to your annual salary at your last pay review?

62% of respondents received a base salary increase marginally down from 64% last year, 3% of respondents had a base salary reduction up from 2% the previous year, while 35% of respondents had no change made to their base salary (versus 34% last year).

Up not disclosed 2.0% (-1.8%)

Up by 10-14% 12.7% (-3.4%)

Unchanged 34.9% (+0.6%) Up by 5-9% 34.6% (+3.7%)

Reduced 3.2% (+1.1%) Up by <5% 3.1% (-1.4%)

Average Salary Increase: By prime professional activity Based on the survey respondents, those employed in Fund Management, Retail Development and Asset Management enjoy the highest average earnings (e.g. > R700,000 per annum), while at the other end of the spectrum those employed in Interior Design, Leasing Consultants, Brokerage and Property Administration earn the lowest earnings within the property industry (e.g. < R300,000).

Those employed in Corporate Finance, Property Administration, Fund Management and Accounts/Finance secured the highest average salary increase across the property industry.

2009 Average Salary R,000

All participants Accounts/Finance Architecture Asset Management Brokerage Construction Management Corporate Finance Corporate Real Estate Development Management Facilities Management (In-House) Facilities Management (Service Provider) Facilities Management Consultant Fund Management Interior Design Leasing Consultants

R R R R R R R

Legal Marketing & Sales Planning Project Management Property Administration Property Management Quantity Surveying Research/Analysis Retail Centre Management Retail Development Valuation Other

R R R R R R R R R R R

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R R R R R R R

2010 Average Salary R,000

2011 Average Salary R,000

415,148 R 379,718 R 344,737 R 319,469 R 305,356 R 426,917 R 614,615 R 570,506 R 247,600 R 313,619 R 349,125 R 432,294 R 396,645 R 343,742 R NA R 550,422 R 637,125 R 629,991 R 387,183 R 336,662 R 351,365 R 340,506 R 500,000 R 413,534 R 452,822 R 721,756 R 244,333 R 389,714 R 324,954 R 351,419 R

427,533 432,880 358,941 715,641 264,625 474,133 611,455 511,740 597,217 346,016 362,191 522,286 1,025,000 275,219 273,438

455,667 R 313,333 R 605,118 R 529,154 R 191,259 R 441,868 R 399,308 R 230,000 R 274,583 R 469,897 R 432,578 R NA R

474,909 339,073 305,063 515,499 264,046 354,941 405,976 571,667 315,323 731,429 460,511 380,114

375,947 R 308,634 R 245,154 R 543,295 R 170,921 R 376,851 R 374,741 R 443,073 R 244,703 R 731,480 R 373,949 R 303,110 R

Change +/-

2010 Survey Responses

12.6% 1017 35.5% 53 -15.9% 23 25.4% 24 -15.6% 12 9.7% 22 77.9% 12 -7.0% 22 -5.2% 37 2.8% 55 6.4% 43 26.3% 8 42.0% 6 -29.4% 7 -22.2% 20 26.3% 16 9.9% 27 24.4% 19 -5.1% 58 54.5% 39 -5.8% 88 8.3% 79 29.0% 3 28.9% 14 0.0% 11 23.1% 139 25.4% 67

Percent

100% 5% 2% 2% 1% 2% 1% 2% 4% 5% 4% 1% 1% 1% 2% 2% 3% 2% 6% 4% 9% 8% 0% 1% 1% 14% 7%

07 07 The 2011 South Africa Rewards & Attitudes Survey

BONUS & OTHER BENEFITS 100K+ 10% (=%)

Bonuses Received (R,000) 50K to 99K 7% (-1%)

What was the approximate value of your annual bonus (or bonuses) over the last 12 months?

Nil 48% (+1%)

52% of the survey respondents received a bonus 1% less than last year while 48% received no bonus, with 10% receiving R100,000 plus as a bonus.

25K to 49K 10% (-1%) Up by 24K 25% (=%)

-9.9% 10/11 -16.9% 09/11

R91,180

R100.000 R84,080

R75,750

R83.333

Average SA Property Bonus (R,000)

R66.667

What was the approximate value of your annual bonus or bonuses over the last 12 months?

R50.000 R33.333

Of those who did receive a bonus (52% versus 53% last year), the average bonus was R75,750, compared to the R84,080 last year an overall decrease of 9.9%.

R16.667 R0

2009

0%

8%

17%

2010

25%

2011

33%

42%

Mobile phone Contributory pension

Benefits Package Which of the following additional benefits are included in your current salary?

Overall there is an increase in the benefits provided, with mobile phones, health insurance, professional subscriptions and performance related bonuses seeing increases from last year. However contributory pensions took a decrease from 41% to 37%. 20% of survey respondents did not receive any additional benefits this year, down from 22% last year.

Health insurance Performance related bonus Professional subscriptions Company car allowance Flexitime Other insurances Lunches/LVâ&#x20AC;&#x2122;s Company car Profit share Share option scheme Paid overtime Club membership Flexible benefits package None Other

2011 2010

50%

11 Holiday Entitlement Do you utilise your full annual holiday entitlement?

No 52% (-2%)

Only 48% of respondents use their full annual holiday entitlement, which is up 2% in comparison to last year.

Yes 48% (+2%)

MARKET ATTITUDES

2011 0%

Importance within Job How important are each of the following to you in your job?

Responsibility (81%), career progression (79%) and management style (79%) are the top three factors when it comes to job satisfaction, which is consistent with last year’s results. Range of interesting work slipped back from 81% to 76% this year.

18%

2010

36%

2009 54%

Responsibility Career progression Management style Salary Interesting work Job security Working environment Training/development Latest technology Range of clients Location Travel opportunities

Employer of Choice Do you consider your current employer an employer of choice?

No 34% (-3%)

Yes 66% (+3%)

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Overall 66% of the survey respondents consider that their current employer is an “employer of choice”, which is up from 63% last year.

72%

90%

09 How important are the following factors in making your current employer an employer of choice?

Of the 66% of respondents who consider that they are working for an â&#x20AC;&#x153;employer of choiceâ&#x20AC;?, the key factors are business vision/future potential (82%), company values & ethics (82%) and leadership management style (80%). Interestingly reward & recognition dropped from 74% last year to 72% this year.

2011 0%

18%

2010 36%

2009 54%

72%

90%

Business vision & Future potential Company values/ethics Leadership/management style Rewards & recognition Brand values Work life balance Internal communication Promotional opportunities Support in gaining your qualifications Colleagues/Social Dimension C.S.R Relocation possibilities

Not at all 7% (-3%)

Overall Job Satisfaction How satisfied are you with your current job?

The majority of survey participants (78%, up 4% versus last year) are fairly or very satisfied with their current employment.

22% say that they are not satisfied (down 4% from last year).

Not Very 15% (-1%)

Very 30% (+7%)

Fairly 48% (-3%)

The 2011 South Africa Rewards & Attitudes Survey

Employer of Choice

10 Reasons for leaving Employer If you were to leave your present employer, what would your main (important) reason be?

After better career prospects (84%) the most likely reason for leaving an employer is better salary (76%, a 2% decrease from last year), followed by a better benefits package (61% versus 64%).

2011 0%

2010

2009

18%

36%

Better career prospects

Better salary

Better benefits package

Management style

Change of career

Relocation

Work in a different country

Redundancy

Retirement

Economic Activity Change In your chosen professional activity, do you anticipate economic activity in the next 12 months to: Though the majority of respondents believe that economic activity will improve during the next 12 months, their business sentiment or confidence has dropped slightly, with 54% anticipating an improvement in economic activity during 2011, versus 64% last year.

70

64% 54%

56 42

41%

39% 30%

29%

28 14

6%

30%

7%

0 Increase

Decrease

2009

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2010

Remain Unchanged

2011

54%

72%

90%

11

Macdonald & Company is the leading professional recruitment consultancy to the property industry and built environment. We have offices in the United Kingdom, Dubai, Hong Kong, Australia and South Africa enabling us to offer global reach with local knowledge.

We act for a diverse range of clients, these include developers, investors, institutions, property companies, funds, banks and consultancies â&#x20AC;&#x201C; indeed any organisation that occupies, owns, develops, invests in, finances or advises on property and construction.

Annual surveys of remuneration and attitudes are undertaken for the following regions, UK, Middle East, Asia Pacific, Europe & Africa. www.macdonaldandcompany.com.

Macdonald & Company Recruitment (Property) Limited 52 Grosvenor Road Fairway Office Park Gleneagles House, Ground Floor Bryanston, Gauteng South Africa T: +27 (11) 361-5900 E: salarysurvey@macdonaldandcompany.com

A full online statistics package is available at a cost of R4,500 In addition to South Africa, Macdonald & Company & RICS undertake remuneration and attitudes surveys for the following regions: Middle East, Asia Pacific, UK and Europe. All reports are available at www.macdonaldandcompany.com.

For the third year, the results have been collated and analysed independently by BluSky Research (research trading name of BluSky Marketing Limited â&#x20AC;&#x201C; www.bluskymarketing.com)

The 2011 South Africa Rewards & Attitudes Survey

Further Information

SOUTH AFRICA

LONDON

MANCHESTER

DUBAI

HONG KONG

Gleneagles House, Fairway Office Park, 52 Grosvenor Road, Bryanston, South Africa T: +27 11 361 5900 F: +27 11 706 6713 E: southafrica@macdonaldandcompany.com 40a Dover Street, Mayfair, London W1S 4NW T: +44 (0) 20 7629 7220 F: +44 (0) 20 7629 3990 E: london@macdonaldandcompany.com York House, 20 York Street, Manchester M2 3BB T: +44 (0) 161 605 0500 F: +44 (0) 161 605 0505 E: manchester@macdonaldandcompany.com Office 206 - 207, Barsha Valley Building, Al Barsha 2, PO Box 282196, Dubai, UAE T: +971 4 430 9233 F: +971 4 430 9232 E: dubai@macdonaldandcompany.com 16th Floor, 1 Duddell Street, Central, Hong Kong T: +852 2248 3000 F: +852 2526 9150 E: hongkong@macdonaldandcompany.com

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