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Inside TalkSalary Isn’t Everything - Looking at What 2012 Has in Store for Businesses and Talent Acquisition

Trent BeekmanDoug Greene, Jr.

January 11, 2012

Inside Talk Webinar Series© 2011 Institute of Management Accountants. All rights reserved.

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Moderator

Steve ShannonDirector, Business Development

IMA


Featured Presenter

Trent Beekman Senior Vice President Accounting Principals


Featured Presenter

Doug Greene, Jr.Vice President- Search

Accounting Principals


Upon completing this webinar, you will be able to:

1. Explain how the economic environment is impacting the way employers are hiring

2. Recognize the most sought after positions in the industry 3. Understand how retaining talent can help your

company’s bottom line 4. Identify what attracts new talent to an organization 5. Describe best practices for performance management to

ensure effective evaluation of top talent

Learning Objectives


A Look at Today’s Economic Environment(Based on December, 2011 BLS Report)

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• Current unemployment rate – 8.5% The private sector gained more than 200,000 jobs This kind of job growth has not been seen since

April 2006• Professional and business services added 12,000 jobs

Accounting and Bookkeeping sector saw a gain of more than 3,000 jobs

Financial activities sector saw a gain of 2,000 jobs


Job Gains and Losses in One Year

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Source: BLS


Education Remains the Job Differentiator

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8.5%

4.1%

7.7%

8.7%

13.8%

National average

College educated

Some college

High school diploma

Less than high school

Source: BLS


What is happening to compensation in your company for 2012?

a) Salaries will stay the same or decrease but other benefits will increase

b) Salaries and benefits will increasec) Salaries and benefits will decreased) Not sure, market is too unpredictable e) Salaries and benefits will stay the same

Polling Question 1


Cities Seeing an Increase in the National Base Salary Average From 2011 to 2012• Deerfield, IL - 0.88%• Cincinnati, OH - 2.1%• Parsippany, NJ - 2.16%• Princeton, NJ - 2.99%• Paramus, NJ - 3.51%• New York, NY - 4.18%• Raleigh, NC - 4.41%• Charlotte, NC - 5.93%

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Heading Into 2012 The Most “In Demand” Positions for Accounting and Finance• Accountant (Public and Private)• Accounts Payable/Accounts Receivable Specialist• Accounting Clerk• Financial Analyst• Controller

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Salary Increases (1 of 2)Using our internal compensation information we found a few positions that showed an increase in base pay for 2012:

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2011 Base Average

2012 Base

AveragePayroll Specialist $ 35,300 $ 36,200

Accounting Supervisor $ 67,900 $ 69,700

Compliance Manager $ 92,500 $ 94,300

Cost Accounting Manager $ 91,400 $ 94,000

CFO $ 359,600 $ 363,400


2011 Base Average

2012 Base Average

Increase percentag

eMortgage Underwriter, Sr. $ 55,300 $ 66,100 20%

Inventory Control Supervisor

$ 45,500 $ 56,300 24%

Financial Reporting Accountant, Sr.

$ 60,400 $ 76,100 26%

Private Banker, Sr. $ 77,000 $ 102,400 33%

The following positions showed the largest increase in base pay for 2012.

Salary Increases (2 of 2)


Where Are All The Positions?• Q1 typically sees a spike in demand for accounting

and finance professionals with the tax deadline looming.

• Early predictions show that hiring for public accounting will be on the upswing.

• Additional sectors seeing an increase in hiring will be: Wealth management Compliance/Risk management

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What additional tools does your company use to retain employees?

a) Company cultureb) Managementc) Additional benefitsd) Salarye) All of the abovef) Other

Polling Question 2


Retention- The Bottom Line (1 of 2)Turnover by Industry, 2010

BLS - June 2011

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• Maintaining employees is critical to productivity, morale and profitability!

• In a recent study, replacing employees can cost (annual salary):

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Retention- The Bottom Line (1 of 2)

30 – 50% for entry-level employees 150% for mid-level employees Up to 400% for high-level

employees


Analyzing the True Cost of Turnover for a Firm

Consider the following categories of cost to replace just one employee and hiring another if not carefully managed.

+ =

• Search firm / contingency fee• Recruitment costs• Advertising costs• Hiring bonus costs• Relocation costs• Temporary help costs• Testing, reference &

verification paperwork• Management costs (interviews,

orientation, on-the-job training)• Employee referral bonus• New employee’s higher salary

Pre-hiring and

• Lost productivity costs• Overtime cost for co-workers• HR support costs• Train cost for new hire• Cost of co-worker during

training• Project or design delays

costs• Opportunity costs• Travel costs (e.g. field offices)• Potential lost of client/s

Total True Cost

of Turnover

Hiring CostsOn-boarding Costs


Engaging and Motivating Your Employees(1 of 2)• Most important is to be proactive and have the right

strategies in place• Communication is key

Employees want to be in the know Eliminates fear and helps channel energy into

helping their company reach important goals Employees will become more engaged and willing

to go the extra mile if they know how they impact the organization

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Source: Forbes.com


• Most important is to be proactive and to have the right strategies in place

• Communication is key Employees want to be in the know

Eliminates fear and helps channel energy into helping their company reach important goals

Employees will become more engaged and willing to go the extra mile if they know how they impact the organization

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Engaging and Motivating Your Employees(1 of 2)

Source: Forbes.com


• Training is the new 401k Continuous learning in one of the best motivators It’s important to teach employees how to work and

how to lead in challenging times Encourages employees to stay focused and

develop new solutions

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Engaging and Motivating Your Employees(2 of 2)

Source: Forbes.com


How Do You Keep Your Best Employees?(1 of 2)• Look at your managers and supervisors

Employees tend to leave managers and supervisors more often than they leave companies.

Anything the supervisor does to make an employee feel unvalued will contribute to turnover.

Make sure employees are aware and given a framework of how to succeed.

• Open door policy Employees need to feel like they can speak their mind without

punishment. If they feel a vested interest in the company they will be more

apt to feel like they play a part in what happens to the company.

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• Get to know your employees Take a look at special skills and previous experience. Employees want to feel needed outside of just doing their

“normal” job duties.• Fair treatment

A job well done should be rewarded but make sure you are encouraging one employee and discouraging another.

Avoid playing favorites.• Recognize and reward

Employees like to feel appreciated. A simple “thank you” goes a long way.

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How Do You Keep Your Best Employees?(2 of 2)


If talent is a top priority, why are “The Office” (television) and “Dilbert” (comic strip) so popular?

• Talent is a top priority (or should be), but both of these pop culture pieces hold some truth in day-to-day office irritations.

• Most companies are focused on attracting and retaining but what about developing?

To keep and attract top talent, it is imperative to have a well developed training program. Internal- make sure employees are aware of in-house

sources of development. External- encourage employees to attend training

courses given by associations or continuing education at a local university.

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Don’t Get Caught in the “Dilbert Paradox”


1. Create support by mentoring2. Invest in development3. Focus on morale4. Show your appreciation5. Make performance reviews more meaningful6. Help employees manage their workloads

Proven Strategies to Enhance Productivity, Engagement, and Retention


Best Ways to Attract New Talent(1 of 2)• Referrals

Trust your employees• Associations

Best place to find professionals with the required experience

• Recruiting Firms Normally they are plugged into the community

and have access to some of the best talent

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• Benefits Consider offering one of a kind benefit or having

new hires pick their most desired benefits.• Get creative

Let the employees you are trying to attract know that you have a vested in them and their success.

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Best Ways to Attract New Talent(2 of 2)


How effective are performance evaluations?

a) Extremely effectiveb) Somewhat effectivec) Could be more effective with the right

type of evaluationd) Not effective at all

Polling Question 3


• Critical incident method- identify and describe something the employee does well and what he/she can improve.

This is a method that should be performed every quarter• Performance ranking method- look at how the

employee performs compared to co-workers. • Forced ranking- performances are ranked in terms of

forced allocations. 10 – 20% highest 60 – 70% middle 10 – 20% lowest

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Different Appraisal Methods (1 of 2)


• Management by objectives- managers and employees set objectives and assess on a regular basis.

Rewards are based on the achieved results.• 360 degree evaluation- employees give confidential and

anonymous assessments of colleagues. This is becoming one of the most used forms of

appraisal methods• Rypple- Facebook-like application which delivers feedback

in real-time. Managers “like” tasks. Reward employees with badges. Solicit feedback through a “post” or “message”

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Different Appraisal Methods (2 of 2)


To keep your best employees it is imperative that you have an accurate form of evaluation• Everyone needs to be on the same page- from the top down.• Employees should play an active role in the evaluation

process.• Include only the categories that can accurately assess the

employee’s contribution, not only to job duties but to his/her team and the company.

• Set clear expectations- a review should not be a surprise to the employee.

Constant feedback on performance what the employee is doing well and what he/she should improve.

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Keys To Performance Evaluation- Best Practices


Check Out Our Articles in Strategic Finance Magazine

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To obtain these articles, visit:

• IMA’s Resources and Publications website page

• AccountingPrincipals.com Or

• Contact your nearest Accounting Principals office


2012 Salary Guide - Workforce Insights

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• The latest, most comprehensive salary data and job descriptions

• National salary averages broken out by base salary, total cash compensation, and company size

• Localized salary figures• To obtain a copy please contact

your local Accounting Principals office or log on to accountingprincipals.com to request a copy

This valuable resource features:


• Staying current with industry standards when dealing with salary is important but it is also important to stay on top of what your workforce desires out of a job.

• Get to know your current employees and find out what your company is doing well and what you could do better.

• When searching for the best and the brightest to add to your team, ask for referrals and research the most desired benefits.

This could be as easy as asking your employees what charity they would like to get involved with or raise money for in their local community

• Encourage your employee to develop.• Constantly evaluate your company’s performance appraisal

methods and find the method that works best for your employees.

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Conclusion


Questions & Answers Use the Q & A Panel to send your questions to our panelists

Steve ShannonDirector, Business

DevelopmentIMA

Doug Greene, Jr.Vice President - Search


Trent BeekmanSenior Vice PresidentAccounting Principals


Thank You to our Featured Presenters!

Doug Greene, Jr.Vice President- Search


Trent BeekmanSenior Vice PresidentAccounting Principals


Notification of Future Webinar Schedules

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Next Inside Talk Webinar:• Automating Financial Reporting & Disclosure Management

Wednesday, January 18, 2012 1PM EST

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