staff shortage? or just bad management?

the best way to compete for talent begins with re-thinking your business.

by rick telberg
at large

the battle for scarce accounting and finance talent is reaching unheard of proportions. firms are turning away work. finance departments are paralyzed. the profession’s leaders routinely inveigh solemnly about the future.

but if you’re looking at the scarcity as simply a labor-side supply-and-demand problem, you’re probably looking at it the wrong way.

it’s beginning to emerge among a widening group of forward-thinkers that the solution to the profession’s staffing issue lies in smart marketing and visionary management ? not simply waiting out global demographic trends.

if your organization ? an accounting firm, finance department or anyplace else where tax, accounting and finance work is done ? is facing a staffing shortage or high turnover, don’t blame the market. and don’t blame the recruiters.first, ask yourself how competitive overall your organization is. is it profitable? growing? secure? challenging?

“the best way to compete is to re-think how you run your firm,” says bruce w. marcus, a nationally known practice management consultant.

“in recruiting, the firm with satisfied employees is a honey pot to recruits,” postulates marcus, publisher of themarcusperspective.typepad.com, and an associate of bay street group llc, which has conducted expansive research into cpa workplace trends.

“a firm that’s well-managed, and relevant to the needs of its clientele ? and offering the opportunity to participate and grow with that kind of firm ? will attract the best of the profession,” says marcus.

“in all of advertising, the best advertising and promotion won’t long sell the second-rate product, nor will the poorly run accounting firm be sold by the best advertising,” says marcus.

at a time when prospects can be selective about where they work, organizations known as superior places to work have the advantage. and management that is intelligently sensitive to worker needs may be the greatest fringe benefit because, marcus says, “benefits, which can be generous, seem not to cancel out the discontents.”

a bay street group survey that asked accountants (49% from public accounting and 36% from business or industry) what they liked or disliked about their jobs shows that:

? 53 percent complain of work overload;

? 36 percent complain about pay, and

? 34 percent feel they don’t get sufficient recognition.

in another bay street group workplace survey, 40 percent said they could be persuaded to consider a new job, and only 11 percent said they “love it here.”

in a separate survey that asked accountants if they were excited about going to work, 44 percent said no. asked if they clearly understood what their bosses or clients expected of them, 32 percent said no, and 55 percent said they suffered from too much work, and no time for a life.

“the environment and structure of the traditional accounting firm, and perhaps the traditional accounting department in a corporation, not only breeds discontent in a vast number of personnel, but certainly paints no attractive picture to prospective recruits,” marcus says.

other key workplace issues and highlights of marcus’ insights:

— compensation: “examine the growing number of alternative compensation plans, and be prepared to depart from traditional methods.”
— recognition: “give good people more responsibility, and cite them in promotional material, such as advertising, brochures and web sites.”
— exciting work: “give people opportunity to expand responsibilities.”
— balance: “in a buyer’s market for accounting positions, the firm that can offer better balance between work and family will win out every time.”
— internal communications: “you give up nothing by sharing information and you gain a great deal.”
— expectations: “every employee on every level is entitled to know the firm’s objectives, the client’s objectives and the quality of work expected.”
— the good news: it’s manageable

workplace attitudes and their impact on recruiting are manageable, however. marcus says all the major areas of discontent ? overload, compensation, job excitement, recognition, internal communications and expectations ? are functions of management skill.

still, applying those management skills can be a quantum leap for much of the profession. “the problem is that in today’s economic environment, the old paradigm of small- or medium-sized firm authoritarian management doesn’t work well anymore.” marcus says, adding the problem is compounded by many partners’ “i-own-the-company-and-we’ll-do-it-my-way” philosophies.

here’s the good news: “a trained manager of even the smallest firm can make the firm attractive.” marcus advises firms to gauge their management skills against each workplace problem area as identified in the bay street group research.

for example, work overload can be a function of lack of project organization and workaholic managers who don’t see how their demanding attitudes affect others. “organization of workflow is a learnable management skill,” marcus says.

“learn it,” he says. we agree.

[first published by the aicpa]

posted on june 25, 2006