As businesses strive to find new ways to gain a competitive edge in today’s dynamic environment, offshoring is becoming an increasingly attractive option. One key area seeing interest is finance roles, particularly in the realm of auditing.
This article looks at South African auditing salaries vs the UK, highlighting the substantial cost savings for UK businesses when hiring South African talent.
Audit Practice Roles
The audit function plays a crucial role in maintaining the financial integrity and compliance of a business. Here are the key roles within this sector:
Costs Involved In Employment
In the UK, employers are required to pay National Health Insurance (NHI) and National Pension Contributions (NPC). To give you a better comparison of cost, we’ll take this into consideration.
South Africa only requires a small UIF contribution of around £7,56 per month and a 1% Skill Development Levy.
Overall, these costs have a very small effect on total employment costs.
South African Auditing Salaries Vs The UK
Let’s break down the different roles, their responsibilities, and compare the salaries in South Africa against those in the UK.
Audit Seniors
Also known as Senior Audit Associates, Audit Seniors play a vital role in leading audits and ensuring all regulatory standards are met. They’re typically professionals with 3 – 5 years of experience, and have completed a bachelor’s degree, as well as a professional training program.
- The average annual salary for newly qualified Audit Seniors is around £52,000 a year in the UK.
- The total cost of employment after employer contributions is £59,829.
- Now compare this to South Africa, the salary is around £30,079 a year.
- The total cost after including employer contributions totals £30,472 in South Africa.
By hiring an Audit Senior from South Africa, a UK firm can achieve cost savings of approximately 49%, translating to around £29,358 per year.
Audit Managers
Audit Managers are responsible for managing audit teams, developing audit plans, and maintaining the overall quality of audits. As seasoned professionals, they usually have anywhere from 7 – 10 years of experience, with extensive knowledge of auditing standards.
The average salary for an Audit Manager is:
- Around £60,000 a year in the UK – £69,273 after contributions.
- Around £34,367 per year in South Africa – £34,804 after contributions.
The total savings is around 50% (roughly £34,461).
Why Offshoring To South Africa Is A Smart Financial Move
Offshoring audit roles to South Africa offers UK firms a cost-effective solution by leveraging several key advantages:
Competitive Compensation Packages
South African audit professionals receive competitive salaries that are substantially lower than those in the UK. This difference in compensation expectations translates into direct cost savings without compromising the quality of work.
Lower Operational Expenses
By offshoring, UK firms can minimise the need for maintaining extensive in-house resources such as office space, IT infrastructure, and administrative support.
Access To Skilled Talent Pools
South Africa boasts a large pool of well-trained audit professionals who are experienced in international standards and practices.
This access to a diverse talent pool allows UK firms to enhance their audit capabilities without the high costs associated with domestic recruitment.
Conclusion: The Cost Savings Add Up
Offshoring audit roles to South Africa offers UK firms substantial financial benefits. When comparing the costs of employing Audit Seniors and Audit Managers, businesses can save a total of over £157,803 per year by hiring South African professionals.
Ready to get started? Take a look at our article on how to hire international employees or our super simple guide to remote employee onboarding.