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© 2011 Institute of Management Accountants. All rights reserved.1
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Inside Talk
Salary Isn’t Everything - Looking at
What 2012 Has in Store for Businesses
and Talent Acquisition
Trent Beekman
Doug Greene, Jr.
January 11, 2012

© 2011 Institute of Management Accountants. All rights reserved.
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Moderator
Steve Shannon
Director, Business Development
IMA

Featured Presenter
Trent Beekman
Senior Vice President
Accounting Principals

Featured Presenter
Doug Greene, Jr.
Vice President- Search

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 increase
c) Salaries and benefits will decrease
d) 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
Average
Payroll 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
percentage
Mortgage 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 culture
b) Management
c) Additional benefits
d) Salary
e) All of the above
f) 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

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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 Costs
On-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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(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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(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 mentoring
2. Invest in development
3. Focus on morale
4. Show your appreciation
5. Make performance reviews more meaningful
6. 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 effective
b) Somewhat effective
c) Could be more effective with the right
type of evaluation
d) 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
36
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 Shannon
Director, Business
Development
IMA
Doug Greene, Jr.
Vice President - Search
Trent Beekman

Thank You to our Featured Presenters!
Doug Greene, Jr.
Vice President- Search
Trent Beekman

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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