Survey: Certified government finance personnel earn significantly more

Finance personnel who hold Certified Government Financial Manager designations earn as much as 55 percent more than those who don't, according to a new survey.

The 2010 compensation survey, sponsored by the Association of Government Accountants, found employees with CGFM certification earned an average annual salary 34 percent higher than employees without it -- $105,815 compared with $78,905.

When the salaries of CGFM-designated employees were compared to those holding no professional designations, such as a certified public accountant license, the difference was 55 percent.

The survey showed that holding a CGFM certificate correlated more strongly to salary than other factors, such as education, age, the number of years respondents have been in their current position, the number of employees they supervise, or whether they held a CPA license. The only factor that had a higher correlation to salary was respondents' number of years in government financial management.

The survey was conducted between February and April by Insights Inc., an independent research firm. Of 14,000 AGA members contacted, 3,537 completed the survey for a response rate of 25 percent. One-third of respondents were from federal agencies; half worked in state and local government. The two most common designations held by those surveyed were CGFM (44 percent) and CPA (38 percent); 25 percent had no certifications or licenses.

Twelve percent of respondents said they had received special consideration for hiring as a result of their CGFM credentials.

The most common job title among survey respondents was accountant. The average salary of accountants was $71,028. But the average salary of accountants with CGFM designation was $89,769, while the average salary of accountants without such designation was $64,548, a difference of 39 percent.

"In addition to pay raises and bonuses, employers recognize the CGFM certification in a number of ways," the survey said. "When asked about the benefits that their employers offered to CGFMs in general and for their position, the most common benefits selected were being a preferred credential or reimbursement of fees."

AGA has long advocated the value of CGFM designation for government finance personnel.

Certification "can be a valuable addition to your resume and a significant factor in your professional development," Relmond Van Daniker, AGA's executive director, said in a statement.

Not surprisingly, the survey also showed that government financial managers have not been immune to fallout from the economic downturn. Sixty percent reported vacant positions in their organizations left unfilled. More than 40 percent reported a moratorium on new hires and salary freezes. While the average salary increase in the last 12 months was 2 percent, 46 percent said they had received no increase and 2 percent had taken pay cuts.