Highlights from the Human Capital Symposium

• Look for the smartest people and bring them into your organization… it is not about just having an accounting degree.  Start thinking about hiring non-accountants into various positions in the firm.
• Are most “chargeable” staff in a firm expected to bill 90% of their time?  No, and we believe you have to get away from this mentality.  Many firms are starting to manage through other statistics, such as revenue per FTE.  The average Revenue per FTE in Circle firms has been $130,000 per FTE in 2004.
• The #1 thing that we hear today from the “up and comers” is Balance, Balance, Balance!  We look at it as integration of work and personal life.
• How many firms give “weekends off” during tax season?  Most are getting away from specific times or days off, they are going to more “flex time” that is best for the individual.
• Get your partners out of administration today!  Let the people that know the work – do the work.  Hire professionals that know how to manage for the positions like Marketing, HR and Firm Administration.
• Recruiting bonuses are running at $2,000 to $10,000 at this time.
• You must change the attitudes if you are going to change the culture!
• Communication is absolutely a key within the firm.  Tell the staff what they want to hear and they will perform better!!
• Most firms’ leadership is in the Senior, Builder and Baby Boomer arenas.  Gen X is coming up soon and Gen Y is finding their way.
• There will be an increasing challenge for firms because the Gen X and Gen Y generation don’t understand why they have to come to the office!
• Generation X really enjoys “team” projects with “team” rewards. 
• How do we make the professional “fun”?
  • Economic Contests as a Team… Party at end!
  • Fun Friday during tax season
  • Employee Lunches -OFTEN
  • Health Quest
  • Staff Yearly Meeting (Lots of laughter)
  • Weight Loss Challenge
  • United Way Work Day…. Entire firm
  • Adopt a Family
  • Every Holiday “decorate big”
  • “Blow out” end of year party with awards and monetary gifts
  • Send a gift to the “new hires” home
  • Send a note and gift to the spouse of the employee!
  • Series of summer activities for different stages of life
  • Firm Skydiving trips! 
  • 5 star training
  • Pass the “plant” in recognition of something that someone does very well. 

• To connect the Human and Training function, you must have an excellent Orientation program that is developed in both in the HR area and the training area combined. 
• Why is mentoring important? 
  • Because the shortage of people is so severe that you could loose some of your best to other firms if you are not taking care of the people you have.
  • There is Burnout at the Big Four.  The new people are being asked to work up to 1000 hours of overtime and the staff does not want to do this.  You have to do things that will show that you are BETTER than that and you care about the staff members’ Quality of Life.
  • There are 2 words that are concerning here – Desperate and Mediocre – these are getting more familiar to our profession and it is very sad!  We want OUTSTANDING firms.
  • The number 1 MAP concern for 8 years in a row is finding, attracting and retaining staff.
  • There has been an increase in accounting majors in colleges today.  This is GREAT news!  The shortage now is in college professors.
  • Change is a great concern – the accountants do not want change!  They are resistant to it. Firms must develop a culture of change that is just a part of who they are.

• What is the definition of a mentor?  A mentor is someone who helps someone else learn something that he or she would have learned less well, more slowly or not at all if left alone.
• What is the difference between a mentor and a coach?  Coaching is more of a “team role” and mentoring is much more “one on one”. 
• What are the reasons for a mentoring program?
  • It helps people make the most of their careers.  You should take the staff with you when you do your job!  Drag them along!!
  • It is a way to reinforce key defining elements of the firm:  our vision, values and performance standards.  Is your mission, vision etc… exciting… if not, if you can’t remember what it is… re-do it! 
  • It is a way to develop greater commitment and profitability.
  • It helps us to retain our best and brightest people.  They are more likely to stay if they know that they are important.
  • One firm she knows sets only one goal each trimester – and they accomplish that one goal before they set the next one.

• You must find out what success means to the person you are mentoring.  If they don’t see that they can obtain success… what is the point?
• What are the beliefs of the young people coming into our firm today? 
  • Achievement focused
  • Constantly driven and asked to succeed their entire lives
  • Average age of mom’s are 27
  • Grew up on Baby Gap and Limited II
  • They might ask you if you have a “mentoring” program
  • They are optimistic
  • They are very influential

• A good author to look at is Claire Raines – wrote the book “Generations At Work.”
• Performance Standards must be set for yourself, your career and your team.
• Have team meetings.  Make sure that everyone is hearing the same thing at the same time.
• Who is the mentor in the firm?  Shareholders?  They assign the short term person and then they choose their own after 3 months.
• Do you rotate the mentors?  They have made it easy for them to change so they don’t feel “stuck” if they need someone with a different skill set.
• Make sure you encourage and thank the mentors.
• Not everyone should be a mentor!
• What does your firm do to attract the best of the best?
  • Tell prospective recruits about the culture of the firm and the mentoring program.  Environment.  Clients, etc.  For on-campus recruiting, take remote applications of paperless office to showoff the technology.  Impresses both students and professors.
  • Focus on regional recruiting, target those schools with highest test scores.  Recruit from schools all over, but focus on students with ties to the Northeast or NYC.  Requires a lot of research to get the right targets
  • Four universities nearby, largest local firm.  Interviews with students show the Career Path approach which has the most appeal. 
  • Start early in the process (Sophomore year).   Use newer staff (younger) as recruiting contacts.  Get to know the professors.  Build a relationship with the college as much as the students.  Presentations to accounting club, etc.
  • Partner with Outward Bound.  Meet students in fun activity environment.

• Why did your staff leave?  What did you find out in the exit interview?
  • Someone other than the supervisor or HR person should do the interview
  • Money is usually not the reason (even though they may be getting more)
  • Lack of appreciation is most likely
  • Won’t learn the truth in an exit interview.  Follow up after six months.  Nothing to lose and will be more open and honest.  Might get one or two back.
  • Too much travel is often a reason.  Working on how to reward for excessive travel.  Also looking for ways to minimize travel (technology).
  • Take compensation in combinations of time and money.  Let employees have some choice in the matter.
  • Recognize the “pain” people go through with travel.  Recognizes spouse contributions as well
  • Paperless office allows staggered work.  Check email/voicemail from home, and then drive in after the traffic dies down.
  • Using remote work centers.  Cuts down commute time in LA area.

• What programs will you put into place to combat the turnover in 2005?
  • Looking at radical review of salary range.  Focusing on year to year increases.  Level off at Manager Level.  Shift to bonus structure at that point.  Lose staff to clients rather than competitors.  (Nykiel Carlin has no poaching language in engagement letters)
  • Money is AN issue, but not THE issue.  Clients will out bid you.  Issue is to address the other irritants.  Engage HR consultant to meet with staff for ideas.  Strategic HR plan.
  • How do you get realistic competitive salary data?  Hard data is hard to get. 
  • Good relations with recruiting services (headhunters) will get good data
  • Make sure those who claim they will get higher pay are comparing total benefit packages.  Total packages may not be comparable.

• What benefits do people think are the most valuable?
  • Varies between tax season and other.  Time is more important than money.  At least one weekend off during tax season.  Bank 120 hours in lieu of money. 
  • Flex time, medical (company pays half)
  • Health insurance
  • Consider training program as a benefit
  • Tuition Reimbursement

Now…. Do yourself a favor… take a few of these valuable snippets and implement them in your firm!  Don’t waste the value that 21 professionals have provided you!