compensation: money and beyond

chef garnishing a plateplus 6 types of bonuses and 12 extraordinary benefits.

by marc rosenberg
on staffing

every cpa industry survey i’ve seen for decades shows that compensation is #1 to staff.

more on staffing: 6 keys to advancement programs | making flex time work in the real world | 10 winning traits of accounting firm leaders | the importance of great bosses | the 12 reasons your staff hates your firm | what happened to the relevancy of the cpa profession?
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for example, the aicpa/pcps 2011 top talent survey showed:

  • salary was #2 for what attracts staff; #1 was career growth opportunities.
  • salary was #1 for what retains staff.

my feeling is that compensation is ante to enter or stay in the game.
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6 keys to advancement programs

six vintage keysplus 7 ways to make staff jobs more challenging.

by marc rosenberg
on staffing

a great table-setter for this topic is an aicpa/pcps top talent survey, conducted in december 2011.

more on staffing: making flex time work in the real world | how to make mandatory saturdays a thing of the past | what staff mentoring is and isn’t | do flexible hours help or hurt us? | 8 keys to keeping staff engaged | staffing: what cpa firms are learning the hard way
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the following were noted as keys to retaining cpa firm staff:

  • career growth opportunities
  • interesting and challenging client projects

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10 winning traits of accounting firm leaders

businesswoman sitting in front of business meetingbonus: 3 partners talk about what they learned on the way up.

by marc rosenberg
on staffing

let’s examine the look and feel of leadership at cpa firms.

more on staffing: what staff mentoring is and isn’t | staff need meaningful recognition | the importance of great bosses | do flexible hours help or hurt us? | why flexibility for staff works (and how) | the 12 reasons your staff hates your firm | 8 keys to keeping staff engaged | how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
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i’m probably the millionth person to form a list of important leadership qualities, but i want to share what i have learned from working with cpa firms for over 20 years.
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what staff mentoring is and isn’t

man pointing at computer screen while woman works, both smilingchecklist: 11 things mentors do.

by marc rosenberg
on staffing

the existence of a mentoring program is a statement by the firm that it doesn’t want to leave the retention, development and success of its staff to chance. instead, the firm wants to be proactive about helping staff succeed and grow.

more on staffing: staff need meaningful recognition | the importance of great bosses | do flexible hours help or hurt us? | why flexibility for staff works (and how) | the 12 reasons your staff hates your firm | 8 keys to keeping staff engaged | how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

a mentor is a neutral sounding board for the staff person.  ideally, a mentor should not be a staff person’s supervisor on work projects.

a mentor helps staff navigate office politics and shows them the ropes, helping guide them to their next roles.
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staff need meaningful recognition

two people talking and smiling in office12 ways to recognize staff.

by marc rosenberg

suppose you ask staff (or partners, for that matter), “how important is it for the firm or your boss to recognize your accomplishments and efforts?”

more on staffing: the importance of great bosses | do flexible hours help or hurt us? | why flexibility for staff works (and how) | the 12 reasons your staff hates your firm | 8 keys to keeping staff engaged | how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way

a knee-jerk response may be: “it’s nice but not that important. i’m self-motivated and don’t need others to tell me when i do something good.”

i usually regard these responses as somewhat defensive and automated because everyone wants recognition. it’s a fundamental human need.
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the importance of great bosses

businessman leaning on railhighlighting a built-in flaw of the traditional cpa firm structure.

by marc rosenberg
on staffing

in most organizations, everyone reports to a specific individual.

more on staffing: do flexible hours help or hurt us? | why flexibility for staff works (and how) | the 12 reasons your staff hates your firm | 8 keys to keeping staff engaged | how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

early in my career, i was the controller of a valve manufacturing company. the company grew to the point where i needed to hire an assistant controller. guess who that person reported to 100 percent? guess who was totally responsible for the success of that assistant controller?
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the 12 reasons your staff hates your firm

bonus worksheet: calculating the high cost of turnover.

by marc rosenberg
on staffing

let’s examine the state of cpa firm professional staff turnover.

chart on staff retention
staff turnover rates, annualized, by firm size. source: rosenberg map survey at store.www.g005e.com

more on staffing: 8 keys to keeping staff engaged | how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
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the high cost of turnover

much has been written about the high cost of turnover. almost all estimates range from 1 to 1.5 times an employee’s annual compensation.
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8 keys to keeping staff engaged

talent management modelplus 3 steps each on leveraging and retaining talent.

by marc rosenberg
on staffing

we used to think the primary driver of staff productivity and retention was job satisfaction. but more important is employee engagement where staff think: “i get to go to work today,” instead of, “i have to go to work today.”

more on staffing: how to create a talent management strategy | what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

while satisfaction is important, an engaged employee is more productive, produces higher-quality work and is less likely to leave your firm. equally important, engaged staff create engaged clients. these clients spend more money with you by purchasing more services your firm has to offer.
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partner comp pearls of wisdom

woman holding paper and standing next to seated man in officedon’t forget how you got where you are.

by marc rosenberg
partner comp: art & science

during my 20-year consulting career, i have been privileged to meet many amazing managing partners, who were very generous in sharing their knowledge with me. i wanted to share them with you.

“the best way to make a lot of money is to build a great team beneath you.”

rosenberg’s take: eat-what-you-kill may work out fine for small firms, and may maximize short-term earnings for all firms. but cpa firms operate much more effectively and profitably with the one-firm concept, with all firm personnel working as a team.

more on partner compensation: paying for current vs. historical performance | partner pay in retirement transition period | how to pay non-equity partners | how large and small firms allocate income | partner pay: recapping the compensation systems | 3 tiers of compensation | partner compensation: an art, not a science
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

“if you’re weak at client service and good citizenship, you flunk and you’re out.”

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how to create a talent management strategy

smiling businessmen listening to young female during interview5 steps to acquiring the right employees.

by marc rosenberg
on staffing

what is talent management?

more on staffing: what happened to the relevancy of the cpa profession? | staffing: what cpa firms are learning the hard way
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it’s an umbrella term for how firms acquire talent, engage people in their firm, develop their skills and retain them. among many things, it addresses:
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what happened to the relevancy of the cpa profession?

college students listening to lecture17 ways to make accounting careers relevant to staff.

by marc rosenberg
on staffing

the business graveyard is littered with major organizations that missed the boat by failing to see cataclysmic game-changers happening right before their eyes.

more on staffing: staffing: what cpa firms are learning the hard way
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  • ice companies failed to get into refrigeration because they saw themselves in the ice business.
  • railroads missed out on autos and aerospace because they didn’t see themselves in the transportation business.
  • a ceo of digital equipment corporation (dec) said he couldn’t imagine why people would want a computer in their own house.
  • it took the wright brothers five years to get the u.s. government to even talk to them about their invention.

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staffing: what cpa firms are learning the hard way

marc rosenberg, "when firms excel at making their firms great places to work where staff stay and thrive, client service always improves."4 reasons staff are the #1 key to firm success.

by marc rosenberg
on staffing

the ancient greek philosopher heraclitus said:  “there is nothing permanent except change.”

more from the author: how to identify partner potential in staffers | 15 ways to develop staff into partners | staff best practices … for the firm | staff likes and dislikes about the accounting profession | keys to bringing in new partners

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

people fly and drive cars instead of using horses and carts. technology has replaced calculators, slide rules and how books are written. food is purchased at grocery stores instead of grown on the farm.
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5 cautionary tales in partner compensation

older man reading newspaper by fireplacedo you see your firm here?

by marc rosenberg
partner comp: art & science

here are five case studies to illustrate potential problems in partner compensation.

more on partner compensation: does compensation motivate performance? | why compensation and buyout plans must be synchronized | when partner vacation becomes excessive | management stipends: who, how and why | the 8 basics for data-based partner performance evaluations | crash course: operating a compensation committee | 11 points in designing a partner comp system | what partners earn and how they earn it
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the stressed-out mp.  this seven-partner firm had recently changed from having the “mp decides” method of income allocation to usage of a compensation committee because the burden of allocating income was too stressful for the mp. the ensuing problems with the compensation committee, all solvable, were:

  1. mandatory rotation of cc members resulted in people on the cc who were not credible and used their role to boost their own income.
  2. no communication between the cc and the individual partners about expectations and income allocation.
  3. frequent, bitter arguments among cc members.

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