Internal auditors get modest raises in US, Canada
US organisations gave internal auditors slightly more generous base-salary increases in the past 12 months, but the magnitude of raises fell slightly in Canada, according to a new survey report.
The percentage of US organisations that gave internal auditors base salary increases of 4% or more grew to 16% from 10% the previous year, according to the 2013 Internal Audit Compensation Study released by the Institute of Internal Auditors (IIA).
More modest raises – 2% to 3.9% – were given to US internal auditors by 67% of organisations in the past 12 months, compared with 74% the previous year.
In Canada, the magnitude of pay increases for internal auditors represented in the survey dipped. In the past year, 23% of Canadian organisations gave internal audit employees raises of 4% or higher in the past 12 months. That’s down from the previous year, when 31% of Canadian organisations gave internal audit employees raises of 4% or higher.
The percentage of Canadian organisations giving internal auditors of 2% to 3.9% also dropped to 54% from 58%.
Pay practice information is summarized for 352 organisations in the United States and 35 organisations in Canada. It showed that internal auditors fared better with pay increases in the past year than their non-audit colleagues.
US organisations surveyed gave raises of 4% or greater to more internal auditors (16%) than non-audit employees (9%). The Canadian organisations responding to the survey also gave more raises of 4% or more to internal audit employees (23%) than non-audit employees (16%).
“Although there’s certainly room for improvement in the job market, this data also shows that internal auditors are demonstrating unique value to their organisations,” IIA President and CEO Richard Chambers said in a news release. “It’s definitely encouraging news.”
The percentage of US organisations surveyed awarding pay raises to 90% or more of internal auditors remained at 72%, the same as the previous year. In Canada, 82% of organisations surveyed – slightly down from 83% the previous year – have awarded pay raises to 90% or more of their internal auditors in the past 12 months.
Pay increases for internal auditors in the next 12 months are expected to be similar to the past 12 months. Three-quarters of US organisations surveyed expect raises of 2% to 3.9% for internal auditors in the next 12 months, while 68% of Canadian organisations responding to the survey forecast raises of 2% to 3.9% for internal auditors.
A summary of the report is available at the IIA’s website. The full report is available for a fee.
—Ken Tysiac (email@example.com) is a CGMA Magazine senior editor.