Tag Archives | hire

Hire For Traits, Not For Talent

Hire For Traits, Not For TalentYou have probably heard the term, hire for traits, not for talent.

I can tell you ever since I first heard of this term, I have gone back in time and the different experiences I have had, that related to this term over the last 28 years of my career.  I am convinced more than ever that we should all apply this to ever hire we make.

Hire for traits, not for talent.

Hire For Traits, Not For Talent

You would be surprised, or maybe not, how many times I have worked with accounting, finance, or operational professionals that really knew their stuff.

Technically, they were all there and then some.

But when it came with dealing with these individuals on a personal level, they were very difficult to deal with or even impossible to deal with.


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Case Studies

In my 28+ years of experience, I have had numerous good and bad experiences hiring. Let’s look at a few of them!

“Super Star” Divisional Controller That Knew It All

I worked for a large publicly traded company, and the operating world was divided into regions for the entire world. So, there were several divisional controllers.

Well… There was this “super star” divisional controller that knew it all. He was technically the smartest guy in the room when it came to the latest accounting pronouncements. But when it came to dealing with people, this mad man was impossible to deal with. He was rude, had temper tantrums, and was just a jerk. He got the job because on paper he was a super star. But when it came to working with others, it was impossible.

As a result, he had a short career at the company.

Cancer In the Organization

I also dealt with an operating guy recently who was hired for his technical expertise in a specific operation. He was very talented when it came to the operation of the business. But once again, he was insubordinate, treated others like dirt, and just a cancer in the organization.

Sponge in Learning

On the contrary, I recently hired a young man with very little work experience, smart, and was a sponge in learning about the business or how we did things. This young man has turned out to be a real super star. I did not hire him for his talents, but his traits and ability to work well with others.

Conclusion: Hiring for Traits

The stories above are real and I have another dozen like these.  All of these individuals had “talent” in there area of expertise, but their personal traits varied. Those that failed had horrible personal traits. Those individuals that I have worked with that had excellent personal traits turned out to be excellent employees. An individual with exceptional personal traits can learn anything.

Personally, I would want to always hire that person that has exceptional personal traits, and maybe average on talent.

Why?

Because I know I can train this person and make him or her a super star.

Think about those individuals that you have worked with in your career. Think of their traits versus talent. Someone can have exceptional talent, but if they can not get along with others, work in a team environment or have other horrible traits, then that person will always fail.

Don’t make the same mistakes when hiring your next employee. Learn about our 5 Guiding Principles for Recruiting a Star-Quality Team and how hiring for traits is the way to go!

Hire For Traits, Not For Talent

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Hire For Traits, Not For Talent

2

The Future of the Accounting Workforce

See Also:
Accounting Income vs Economic Income
Accounting Fraud Prevention using Quickbooks
Accrual based Accounting
American Institute of Certified Public Accountants
Auditor

The Future of the Accounting Workforce

Firms who are hiring new accountants or accounting majors have to understand where the newer generations are “coming from,” as a Boomer (born 1946-1964) might say, to target a style that will bring out the next generation’s (the Millennial Generation’s) strengths and maximize their effectiveness. This involves discarding biases and preconceived notions and enjoying our generational differences—and similarities! The future of the accounting workforce is dramatically shifting as we learn more about the different generational preferences and work ethics. The rapid spread of information, more technology, and a culture that is changing faster than ever before will continue to shape the future of the accounting workforce.

A Shift in the Accounting Workforce

There is a shift in the accounting workforce occurring as Baby Boomers continue to retire and Millennials take over management roles in companies. Millennial workers grew up in a technology-driven world. The way we do business has changed dramatically over the last 2-3 decades. As a result, they often operate under different perspectives than older workers do. Companies across North America that recognize that the differentiator is their people will emerge as winners in the battle for talent; therefore, they’ll design specific techniques for recruiting, managing, motivating, and retaining them.

Another thing we are seeing in this accounting workforce shift is outsourcing the bookkeeping of the accounting department.


Click here to download: The Guide to Outsourcing Your Bookkeeping & Accounting for SMBs


Retirement of Baby Boomers

A notable demographic shift began in 2011 when the oldest Baby Boomers (b. 1946) hit the United States’ legal retirement age of 65. As Boomers continue to retire members, Generation X will take roles in middle and upper management, and, Millennials will take management positions in the workforce. That process has already begun since some members of Millennials in their mid 30s (if we use 1982 as the beginning of the Millennial generation).

Convergence of 3 Generations in 1 Workplace

Other scenarios that will become commonplace will include experienced Boomers reporting to Millennials, members of all 3 generations working side-by-side on teams, and, Millennials calling on Gen X clients. And, all this is going to happen while 3 generations (the Boomers, Gen Xers, and Millennials) continue the process of finding a way to get along in an uncertain workplace.

This has made all the more interesting given the gap between these two generations. For example, Gen Xers complain that the Millennials are indulged, self-absorbed, and overly optimistic, while Millennials charge that Gen Xers are cynical, aloof and don’t appreciate fresh ideas and idealism.

The Generational Gaps

A survey of 2,546 HR professionals (mostly Gen Xers with all 3 generations represented) across all industries (“Millennials at Work”) was conducted between June 1 and June 13, 2007. The results indicated that there were pronounced generational gaps in communications styles and job expectations in the workplace:

  • 49% of employers surveyed said the biggest gap in communication styles between Millennials workers and other workers is that Millennials communicate more through technology than in person
  • 25% said they have a different frame of reference
  • 87% said that Millennials feel more entitled in terms of compensation, benefits and career advancement than past generations
  • 73% of hiring managers and HR professionals ages 25 to 29 (Millennials) share this sentiment

Some of the examples of this behavior provided by the employers taking the survey included the following:

  • 74% said Millennials expected to be paid more
  • 61% said Millennials expected to have flexible work schedules
  • 56% said Millennials expected to be promoted within a year
  • 50% said Millennials expected to have more vacation or personal time
  • 37% said Millennials expected to have access to state-of-the-art technology
  • 55% said that Millennials have a more difficult time taking direction or responding to authority than older generations of workers did/do

Generational Preferences: Generation X and the Millennials

So, what is the answer to this frustration? Simply that the 3 generations, especially the Gen Xers and the Millennials, begin to understand and respect each other….

Generation X

There are 51 million members of the Generation X (also known as the “latch-key kids”). These Gen Xers:

  • Were born between 1965 and 1976
  • Accept diversity
  • Are pragmatic/practical
  • Are self-reliant/individualistic
  • Reject rules
  • Mistrust institutions
  • Are politically correct
  • Use technology
  • Are able to multitask
  • Are friend-not family oriented

Gen Xers want a casual/fun/friendly work environment that allows them to be involved, offers flexibility and freedom. They also want an environment where they can continue to learn.

It is important to remember that Generation X grew up in a very different world than previous generations. Divorce and two income families created “latch-key” kids out of many in this generation – which led to traits of independence, resilience, and adaptability.

As a result, it is commonplace to meet Gen Xers who don’t want “someone looking over their shoulder” in a work (or social) environment. They want and are comfortable giving immediate and ongoing feedback, work well in multicultural settings, and take a pragmatic approach to getting things done.

Work Ethic of Gen X

Gen Xers have redefined loyalty after seeing their parents face layoffs and experiencing the recessionary period in the early 1980s when jobs were scarce and job security was poor. As a result, they are committed to their work, to the team they work with, and to their boss, but not necessarily the company they work for. Unlike the Baby Boomer generation which would complain about their job but accept it, Gen Xers send their resume out and accept the best offer they can find.

But that does not mean that Gen Xers do not take their employability seriously. Their career choices are flexible, and they are willing to move laterally, stop and/or start over in their careers. Instead of a career ladder, they have more of a career lattice.

Since Gen Xers dislike authority and rigid work requirements, a hands-off relationship is necessary, coupled with giving ongoing feedback on their performance (it is best to keep them informed of your expectations and the measures you will be using to evaluate their progress) and encouragement to be creative and show initiative in finding new ways to get the job done (in fact, Gen Xers work best when they’re told what the desired outcome is and then told to achieve it). They prefer to work “with” you, not “for” you, and are eager to learn new skills because they want to stay employable.

This is really different from the way to treat Millennials…

The Millennial Generation

Millennials (there are 75 million of them!) are also known as the “Internet Generation.” They:

  • Were born between 1977 and 1998
  • Celebrate diversity
  • Are optimistic/realistic
  • Are self-inventive/individualistic
  • Like to rewrite the rules
  • Want a killer lifestyle
  • Have an irreverence for institutions
  • Are able to multi-task at a rate faster than any prior generation
  • Are nurtured/nurturing
  • Treat friends as family/love family

Unlike Gen Xers, Millennials want a structured, supportive work environment, personalized work, and an interactive relationship with their bosses. This group is technically literate like no one else since technology has always been part of their lives. They are typically team-oriented, work well in groups, are accomplished multi-taskers, and are willing to work hard with structure in the workplace.

They acknowledge and respect positions and titles, and want a relationship with their boss. But this is something that many Gen Xers are not comfortable with, given their desire for independence and their preference for a hands-off style.

Millennials believe that their success will be linked to their ability to acquire as wide a variety of marketable skills as they can, and are looking for mentoring, structure and stability in the firm they work in. Thus, they like to be managed and coached in a very formal process. For example, they like set meetings and a boss who acts like their boss. They also like lots of challenges. Effective management of Millennials requires that you break down their goals into steps and give them the necessary resources and information they’ll need to meet the challenge. In fact, successful managers often mentor Millennials in groups since they work so well in team situations. They use the opportunity to act as each other’s resources or peer mentors.

Understand the Trends that Molded Millennials

To understand the Millennials, it is important to understand the trends of the 1990s and 2000s that molded their behavior:

  • Focus on children and family in the early 90s
  • Scheduled, structured lives as a result of parents and teachers micromanaging their schedules and planning things out for them
  • Multiculturalism – kids growing up in the 1990s and 2000s had more daily interaction with other ethnicities and cultures than ever before
  • Terrorism, Heroism and Patriotism – The bombing Federal Building in Oklahoma City the Columbine High School killings and, the terrorist attacks on September 11, 2001, and the heroes who emerged from these dark days, all affected them and galvanized their sense of patriotism
  • Parent Advocacy – the Millennials were raised by involved parents who did, and often still do, intercede on their behalf

These trends coupled with the consistent messages their parents gave and the school system reinforced had a profound effect on the generation as a whole. Messages they received included:

  • Be smart—you are special
  • Be inclusive and tolerant of other races, religions, and sexual orientations
  • Connect 24/7
  • Be interdependent—on family, friends, and teachers
  • Achieve now
  • Serve your community

Work Ethic of Millennials

All of this has translated into a generation of employees with a different work ethic that is different from their Gen X colleagues/bosses.

From a work ethic standpoint, Millennials:

  • Are confident and have a “can-do” attitude
  • Are optimistic and hopeful, yet practical
  • Believe in the future and their role in it
  • Expect a workplace that is challenging, collaborative, creative, fun, and financially rewarding
  • Are goal and achievement oriented
  • Think in terms of the greater good and have a high rate of volunteerism
  • Are inclusive

Millennial Liabilities and Assets

Millennials’ liabilities include a distaste for menial work, poor people skills when dealing with difficult individuals, a tendency to be impatient, a lack of experience, and over-confidence.

Include in their assets the following facts:

  • Multi-task effectively
  • Goal orientated
  • A positive attitude
  • Work well with others

In fact, they work and learn best in teams. They also thrive in a structured environment that offers experiential learning.

What do Millennials Want from Employers?

So, what do Millennials want from their employers? Millennial want their bosses to:

  • Be the leader – specifically to behave with honesty and integrity and to be good role models
  • Challenge them and to offer them challenging, learning opportunities with growth opportunities
  • Let them work with friends and positive people in a friendly environment
  • Respect them
  • Be flexible
  • Pay them well

So, what do we do with all this information? Well, we have been giving lip service to the concept of internal customer service, specifically treating employees with the same respect and attitude we do customers. Thanks to the new generation, that is about to change – at least in successful firms.

This meansmeetings needs to learn to meet their high expectations, listen to their ideas despite their lack of experience, learn to respond in a positive/respectable manner than a negative one, and embrace their knowledge of technology (and not feel threatened by it). Learn from them.

Ideas for Managing Millennials

Companies such as Procter and Gamble, Siemens and General Electric have set up tutoring for middle-aged executives and or reverse mentoring programs so their executives can better understand new technologies.

Other changes companies are making include offering:

  • Flexible work schedules
  • More recognition programs
  • More access to state-of-the-art technology
  • Ongoing education programs

Guide to Outsourcing Your Business's Bookkeeping and Accounting


Sources
http://www.abanet.org/lpm/lpt/articles/mgt08044.html Generation X and The Millennials: What You Need to Know About Mentoring the New Generations by Diane Thielfoldt and Devon Scheef, August 2004
http://en.wikipedia.org/wiki/Generation_Y Generation Y
http://www.brandchannel.com/start1.asp?id=156 Who’s filling Gen Y’s shoe’s? by Dr. Pete Markiewicz, May 5, 2003 issue
http://www.usatoday.com/life/lifestyle/2006-06-28-generation-next_x.htm The ‘millennials’ come of age, 6/29/2006
http://www.cbsnews.com/stories/2007/11/08/60minutes/main3475200.shtmlThe “Millennials” Are Coming, Morley Safer On The New Generation Of American Workers, Nov. 11, 2007
http://humanresources.about.com/od/managementtips/a/millenials.htm Managing Millennials: Eleven Tips for Managing Millennials, by Susan M. Heathfield,
http://top7business.com/?id=3023 Top 7 Keys to Managing Millennials in the Workplace by Gretchen Neels.
http://www.abc.net.au/news/stories/2007/07/13/1978431.htm Generation Y disappoints employers by Liv Casben
Connecting Generations: The Sourcebook by Claire Raines, published 2003.
Managing Generation Y by Carolyn A. Martin, Ph.D. and Bruce Tulgan, published 2001.
Generation X by Charles Hamblett and Jane Deverson, published 1965

Originally posted by Jim Wilkinson on July 23, 2013. 


Be prepared for how the changes expected in the accounting workplace. But there are a few recruiting strategies that are tried and true – through all generations. Learn what they are in our 5 Guiding Principles For Recruiting a Star-Quality Team whitepaper.

future of the accounting workforce, Generational Preferences

0

When You Know It’s the Right Hire

Hiring is an important aspect in a company’s development. When you know it’s the right hire, it can benefit the company in countless number of ways, such as saving money, increasing productivity, and improving employee morale. However, when done incorrectly, it can damage the company significantly. A company should always be able to determine whether the person they hired is truly beneficial to their organization. Below you can find some tips that can help you know whether your new hire is a correct fit for your company or not.

Is it time to hire?

Is it time to hire? Do you feel theres a need for an extra hand in the workplace? Or maybe you need a fresh mind to help your creativity? If the answer is yes, then it is time to hire. If you are constantly feeling burnt out and frequently running out of creative ideas, then extra help is crucial. Without extra help, the quality of your work may hinder and that could essentially lead to lower company performance.

Adding a new member to your team can have a significant impact. Hiring a new employee can help increase efficiency, performance, and creativity. By hiring a new employee, you decrease project work time, bring in new ideas, and get a brand-new perspective.

If it’s time for you to hire, consider the costs associated with hiring. Our team has created a platform called Short|LYST that connects employers to employees that we would hire ourselves. Learn more about Short|LYST here.

When You Know It’s the Right Hire

A new hire should be an asset to the company. They should provide value and bring in more than they cost. Finding the right hire might be difficult, but once you find the right hire, it will be all worth it.

A new hire should always have the correct skillset, be reliable, and produce quality work. A new employee should be comfortable in the job and everyone in the office should be comfortable with him. A recent hire should be able to provide quality work and should be adaptable to various circumstances and scenarios. He should be easy to train as well as being comfortable to learning new things at a constant pace.

According to Forbes Magazine, the following 15 traits indicate an ideal employee:

When You Know It's the Right Hire

  1. Action oriented
  2. Intelligent
  3. Ambitious
  4. Autonomous
  5. Leader
  6. Fits with Culture
  7. Upbeat
  8. Confident
  9. Successful
  10. Honest
  11. Detail-Oriented
  12. Modest
  13. Hard-Working
  14. Marketable
  15. Passionate

When you know it’s the right hire, you should feel at peace. There shouldn’t be any conflict in your mind. The hiring text books will tell you that there’s a science to hiring. But you have to realize that you are a human dealing with humans. At some point, you have to trust your gut feeling.

Signs It’s NOT the Right Hire

You can tell in the first few weeks of employment whether the new hire is a good fit. Even if they have a superb skillset or amazing abilities, sometimes it could be their mindset that could be unsuitable for the company. Their approach to the job and their character can be a huge predictor whether someone is fit for the company or not.

Here are some signs that he is not the correct candidate:

  • Work for their own benefit and not for the company’s.
  • Show Minimum Effort
  • Unreliable when needed
  • “High Maintenance”
  • Arrogant
  • Do only “good enough”
  • Unambitious
  • Stagnant

When You Know It's the Right HireTips for Hiring the Correct Person

Here are some tips for hiring the correct person.

Define what you’re looking for  Think of what the ideal candidate would look like. Completely define what duties and responsibilities you are looking for and add these to the job descriptions.

Attract a large pool of applicants Attract the maximum number of applicants that your time and budget allow. Research what type of job posting resources would work best for your company and use those.

Compare Applicants Rank the qualified candidates in order from most to least suitable. Implement various levels of screening in order to waste less time with under-qualified applicants. After you narrow down your list of applicants, create an assessment test that measures how they would perform in an actual job situation

Sell your ideal candidate. Once you have your ideal candidate, sell him the job. Remember that hiring someone is a two-way street. Communicate your strong vision and mission for your business with enthusiasm and sincerity. The strongest candidates will always have more opportunities, so make sure you convince the candidate that this job is the one he should be taking.

Hiring the Right Person

Start your hiring process with Short|LYST. Short|LYST offers candidates that we would hire ourselves for various accounting and financial positions. Each candidate is screened, interviewed, vetted, and recommended for hire. Interested? Learn more about Short|LYST here. When You Know It's the Right Hire


When You Know It's the Right Hire

When You Know It's the Right Hire

0

Do You Hire a Controller or a CFO?

Many people use Chief Financial Officer (“CFO”) and Controller interchangeably because they think it is the same position. In some companies, a Controller could be the top financial leader. But that does not mean they are a CFO or CFO-level. Before we answer the question of do you hire a Controller or a CFO, we need to understand when companies need to hire a financial leader.

Do You Hire a Controller or a CFOWhen Companies Need to Hire a Financial Leader

Every company needs a financial leader – depending on the stage or life/size of your company this financial leader may be a bookkeeper, accounting manager, Controller or CFO. For example, some companies over $25 million in revenue may want to consider having both a Controller and a CFO. In this blog, we will focus on the difference between a Controller and a Chief Financial Officer (CFO).

Hiring? Did you know that employee turnover is the #2 reason why most businesses fail? Learn how to hire right the first time with our 5 Guiding Principles For Recruiting a Star-Quality Team!

When to Hire a Controller

You need to consider hiring a Controller once the number of transactions in your company increase and the size of your company increases to the level of needing accounting records based on Generally Accepted Accounting Principals (“GAAP”). This may be $10 million in revenue and more. Why? At that level, you are beyond the basic cash basis bookkeeping. You need accounting records that are based on GAAP and accrual basis so that you can better manage your business. Plus, you may have bank debt that requires you to present your financials based on GAAP.

Role of a Controller

Some of the duties that a Controller has include the following:

As your company grows, you should always maintain the Controller function, eventually as the company gets big enough your company will have the Controller report to the CFO.  The Controller “books the past” and continually works with historical information.

When to Hire a CFO

Once your company gets to needing more than good accounting records based on the past, you may start considering hiring a CFO. Things that may require a CFO include forecasting, maintaining debt covenants, mergers and acquisitions, deeper analysis of the financial statements, managing capital structure, investors, banks, and/or taking your company public.

Many companies find themselves in a stage of growth that I refer to as “transitory” – that is, your company is transitioning from small to medium or large. In this stage, you wish you had a financial professional with great experience such as a CFO, but you cannot afford a full time CFO. That is where an Interim CFO makes a lot of sense. Now, be careful as the Interim CFO market has become a popular market where many have jumped in and they lack the true experience. The problem is that you do not need a license or degree to become a CFO, anyone can call themselves a CFO. If you are seeking an Interim CFO, then call us and we can certainly help you identify a solid Interim CFO.

Remember, a good CFO is a great manager, has good operational experience and is the strategic financial partners to the CEO.

Do You Hire a Controller or a CFO

Role of a CFO

While the role of a Controller puts together all the financials and focuses on the historical transactions, the CFO works with the historical information but uses it as a tool that enables him/her to be a strategic partner to the CEO. The CFO then projects what is going to happen, provide strategy for the CEO to implement, and improve profitability. This can include adjusting pricing, increasing efficiencies, identifying opportunities, and enabling the CEO to make calculated risks. The CFO role goes beyond being a trusted advisor. It also includes:

  • Managing capital structure
  • Manage risk management for the enterprise
  • Acting as a figure head for decisions and taking ownership
  • Usually manages IT, Human resources and tax functions
  • Coaching leadership team and employees to get to best results
  • Being a diplomat with third parties (banks, vendors, auditors, customers, investors etc.)

This is very much a multi-functional role within a company. It is a role that truly demands someone with not only good financial skills, but someone with excellent management skills. And as I already mentioned, a really really good CFO has very good operational experience and that person likes operations.

A fish rots from the head down… Ever heard that saying? It’s absolutely true when dealing with leadership. Learn how to hire your leadership with our 5 Guiding Principles For Recruiting a Star-Quality Team!

Do You Hire a Controller or a CFO

Do You Hire a Controller or a CFO?

The big question is, do you hire a Controller or a CFO? It depends… It depends on the size of your organization. We speak to CEOs and business owners all the time, especially those under $100 million in revenue, they are not sure at what point they need a Controller and then a CFO.

Every business is unique, and I do not want to generalize. But for conversation sake, if your business is between $10 million and $25 million in revenue, then a Controller may suit you well. If you are over $50 million, then you are at the size where you actually should have both functions of Controller and a CFO. Now I left the range of $25 million to $50 million without mention on purpose. That is because it depends. It depends on your complexity, industry, number of transactions and many other things.

We have spoken to business owners of $35 million companies and determined that they can function very well with just a strong Controller.  We have also met with start ups with zero revenue but funded $75 million in CAPEX by investors, well we highly recommend they hire a CFO from day one because they have big plans and complexity from day one of their operation.  So every situation is really unique.

Roles are NOT Interchangeable

Many companies opt to hire a Controller when they really need a CFO. These two roles are not interchangeable. Although in the same area of expertise (accounting and finance), these two roles are different. You cannot hire a Controller and expect them to be your CFO. These are two very different functions.  And it is simply a fact, not all Controllers make good CFOs. As already mentioned, a CFO has certain characteristics that many Controllers simply do not have and frankly do not want to have. Take your time to understand the different roles. You are not alone because all growing companies are facing this dilemma. But we are only a phone call away and can help you sort through this challenge and assist you in making the right decision no matter where in the world you are located.

If you are hiring either a CFO or Controller, then take the time to truly understand the difference between the two. Because the financial function is a sensitive one, it’s important to chose someone who will not only be loyal and trustworthy, but will make your team star quality. Check out our free 5 Guiding Principles for Recruiting a Star-Quality Team now! Then answer the question, do you hire a Controller or a CFO?

 

Do You Hire a Controller or a CFO

Do You Hire a Controller or a CFO

6

What is a Staffing Agency?

See also:
Recruiting vs Staffing
What the Current Hiring Process Costs
When You Know It’s the Right Hire

What is a Staffing Agency?

A staffing agency is an entity that has employees that can be hired out for temporary or long term work. A staffing agency is also referred to as an employment agency. It provides temporary workers. Some agencies are industry focused or specialized. For example, The Strategic CFO’s staffing line focuses on accounting and financial positions.

Staffing agencies are different from placement agencies or retained search services. Placement agencies collect a fee to recruit a full-time employee. Those employees belong to the client company – not the agency.

How Do Staffing Agencies Work?

Staffing agencies conduct both the hiring and firing of employees. They also pay for the employment taxes, Medicare, Social Security, etc. The client company specifies the amount of temporary workers needed and the hourly rate. Frequently, the agency specifies the hourly rate for each worker, but it is negotiable.

Why Hire a Staffing Agency

One would hire a staffing agency if they need employees now and they want to offset employment costs (benefits, employment taxes, etc.). There is either a time constraint or a resource contract. Some of the benefits include getting a number of employees quickly and knowing that they are qualified for the position.

Oftentimes, agencies have run credit reports, criminal background checks, and drug tests on those employees so the client never has to worry.

Difference Between Hiring and Working For a Staffing Agency

Whether you are seeking to work for an agency or hiring an agency, there are several things that you need to know.

Working for a Staffing Agency

When you work for an agency, you can expect to work with companies for anywhere from a couple of months to a couple of years. You are technically an employee of the agent and working with the client. However during your time at a client’s office, you act as a regular employee of the company. In some cases, companies will hire the employee from the staffing agency. This is a great opportunity for those employees as they get exposed to different industries and company cultures. Temporary work also allows you for you choose your own schedule. Only want to work a couple days a week? Or have the summer off? Some agencies will work around their staff.

The Strategic CFO’s staffing line brings each staffer in every quarter to review their work and to further their financial leadership skills. If an bookkeeper wants to become a staff accountant, then there is opportunity to get the training needed to make that leap.

Hiring a Staffing Agency

When you hire an employment agency, you need to choose the right agency. Are you looking for positions that anyone can do or are you seeking for a more specialized trade? There are staffing agencies that supply manufacturing workers, domestic workers, and/or professional employees.

It is important the client company is communicating often with the agency to get the most out of the relationship. If a particular employee doesn’t fit, then the agency needs to know in order to replace that employee. Agencies have access to a variety of staff and make it their goal to pair the right employee with the client company.


Looking to hire a staffing agency to fill your accounting department needs? The Strategic CFO has recruited the best talent to serve your staffing needs. Interested? Click here to learn more about how we can serve you best.


Staffing Agency

Staffing Agency

6

Culture Drives Financial Results

culture drives financial results

As social media and search engines become more intelligent and prevalent, companies are battling the image that others outside the organization see as well as what employees feel. Entrepreneur Magazine even said that, “Company culture is more important than ever. It’s not that company culture was ever unimportant, but it’s quickly proving to be a “must-have” rather than a “nice-to-have.”” Have you ever worked in a company that had a bad culture? I have. I counted down the minutes until I could leave the office. Work for me was not enjoyable. As the financial leader of the company, I was not focused on driving financial results. Simply put, culture drives financial results.

Culture starts with your team. Before you add anyone else into your organization, click here to access your free 5 Guiding Principles for Recruiting a Star-Quality Team.

How Company Culture Drives Financial Results

Before we get into how company culture drives financial results, what is culture? Investopedia defines culture as “the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions.” In other words, you cannot say and it be with culture. Culture is organically developed over months or years. It depends on how is in the organization and how the organization acts as a whole through trials and successes.

Culture is also often created by the corporate governance and leadership of the organization. The tone starts at the top. Cultural changes happen also, especially when there is a change in ownership. A change in ownership can bring a change in governance, personalities, processes, and even language. Depending on the complexity of business, it may take from one year to three years to really complete an integration of an acquisition. The leadership of the organization must know what is going on in the culture of the organization as this has a direct effect on the bottom line.

Increased Performance

If employees are happy in an organization, then they will have increased performance. Some of the causes of increased performance stems from increased flexibility, professional development, and knowing that they are making their mark on the world.

Millennials are the largest generational cohort in the workforce in today’s world. As a result, they are spreading their desires in the workplace to other generations. For example, they value flexibility – the ability to work remotely, to have a standing desk, to work in a co-working space, to have odd-hours instead of the 9-5.

Additionally, they want to be further trained and develop. I once had an employee who told me that they didn’t care about the money if they were able to get professional development. At first, I was hesitant to provide that extra training because they were just going to leave me for more money after I had invested. But that employee didn’t leave. In fact, that employee was the most loyal in my organization.

Millennials are a funny generation! They definitely think outside the box and often bring ideas that the “traditional” worker would have not thought about. A good leader needs to know what drives his employees. What I have learned is that they want to know they are making a difference in people’s lives. They want to know that they are doing more good than harm. This could be supporting the homeless community or sponsoring an orphan. Or it could be storytelling how the organization’s efforts changed a customer’s life. It’s a simply thought, but when you expand work outside of the four walls of your office, those employees have more purpose and passion about their work. Thus, increasing their performance.

culture drives financial results

Increased Productivity

Additionally, you can also expect increased productivity from good company cultures. Think about Google and their office environment. With ping pong tables, napping pods, and playful environments, employees are told that they can have fun. Many times, entrepreneurs and executives think that working hard 8-12 hours a day will result in incredible results. But the employees feel like they can’t relax. There’s increased stress, decreased productivity, and eventually high turnover.

Increased Retention

Staffing, recruiting, hiring, and talent acquisition is both costly and time consuming. When you factor in the time to review resumes, interview, hire, train, onboard, then pay and provide benefits, that individual is an expensive asset on your financial statements. A good company culture will keep and retain those talented assets.

Looking to add more people to your team? Before you start recruiting, download our free 5 Guiding Principles for Recruiting a Star-Quality Team.

Examples of Company Culture Driving Financial Results

One of our team members once helped transition a company through a merger. All hands were on deck. There was no room for mistakes. And every client of theirs seemed angry. The product was great. Clients had great success from implementing the products. But it was clear there was something severely wrong! Employees were either fired or they quit. Within several months after the merger was official, the company was in financial distress. What we found that it wasn’t pricing or the product… Instead, it was the company culture! A good culture has gone bad.

Another example comes from a study that focused on the financial results of companies with and without performance-enhancing cultures. Needless to say, there is a strong correlation between company culture and growth. In the book Corporate Culture and Performance, John Kotter argues “that strong corporate cultures that facilitate adaptation to a changing world are associated with strong financial results.” When we talk about company culture driving financial results, it’s impacts more than just profit – but the shareholders, employees, and economy.

It’s Start With Who You Hire

Zappos has been known for its culture and prides itself in attributing its success to its corporate culture. What they have realized is that it starts with who you hire. Instead of looking at a resume for credentials, the recruiters essentially court them in a relationship. Similarly, we frequently say to our clients that if you can’t have lunch with a potential hire, do not hire them. When you take an employee out of an office and into the real world, you see how they really perform. Are they rude to the waiter? Or are they patient and kind? Do they hold the door open for people or let it fall in their faces?

For example, the CFO position should have discretion, responsibility, and confidence. If they show up to the wrong coffee shop for a meeting due to assumptions or carelessness or if they are indecisive in choosing a meal, then you need to assess whether they are capable for the position of CFO.

Personality Over Credentials

We once had a client that emphasized that trust was by far the most important quality for their CFO to have. It didn’t matter if they had X, Y, and Z qualifications. In fact, the CEO would rather hire someone who maybe wasn’t as qualified but he could trust over someone who was both qualified and untrustworthy. Especially when considering those high level positions, chose personality over credentials. Obviously, we are not saying to hire someone that cannot do their job. But if you had to decide between two candidates with similar credentials, chose the one that will fit your culture the best.

Be Slow to Hire & Quick to Fire

Bad employees can be a huge drain on resources and can potentially cause more damage than anticipated. That’s why the best corporate cultures are slow to hire and quick to fire. Those entities are protecting their most valuable intangible assets. In order to determine which candidates are the right fit for your company, download and access your free 5 Guiding Principles For Recruiting a Star-Quality Team whitepaper.

culture drives financial results

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The Key to Having a Unique Business? Unique People!

Over the years of teaching in an entrepreneurship program, I realized a pattern. As expected, every entrepreneur thinks his business is unique. But in having a unique business, who works for you? What value do they bring to the table? Do they make your business “unique”? To some extent, they probably do! These are questions we will explore, but for now, let’s talk about what really makes a business unique.

Is your business really unique?

having a unique business

Every business or industry has nuances that are peculiar to that market. But is it necessary to restrict your hiring to employees with industry experience?

Business is business is business. Yes it’s different, but you don’t want to make decisions based on pride and skills you don’t have. They don’t make MBAs for each industry, after all. If all businesses were unique, they would make specific MBAs per skill per industry. That’s the beauty of the hiring process… seeing who has the talents and skills, and who doesn’t.

A few tips on having a unique business…

1. DiversifyEver thought about pivoting? Or changing your business model? When we say “diversify”, we really mean looking for something in your company that can be improved. How can you best optimize the assets you already have?

2. Innovate. This includes solving new problems, creating a new product, finding new business partners, and many other factors that go into making new plans for your business. But be careful not to introduce too many things at one time!

3. Hire unique people! Who else is going to implement these changes? Building a better team will help solve new problems that your company might not have seen before. You just have decide from there… will you hire based on degree or drive?

How do you build that unique team? Download our free whitepaper to learn how to recruit the perfect team for your business!

Degree vs. Drive

The term “degree” in this blog is a loose term. It generally means the typical employee who has gone to college, and worked 5-10 years in a job to acquire skills. If you think about it, who knows the nuances of the business better than anybody? It is the entrepreneur and his core team!

In the Strategic CFO, we work primarily with established companies rather than solely start-up companies. Although we don’t always work directly with the entrepreneur, we still see the patterns of pride within the company. Pride, in this context, means more than believing your company is the best and undeniably different than any other company.

Recently, I visited a client that wanted to recruit a CFO. They told me they wanted to hire someone with “industry experience.” How would you interpret this? “Industry experience” can mean one of two things: 1) years of experience in any given industry, 2) knowledge of the industry, or 3) both. Notice that I never mentioned talent or drive in this analysis.

Hiring for Degree

Advantages

having a unique businessNow don’t get me wrong, hiring for experience has its perks. Those with experience are familiar with the industry jargon, and understand the processes. If you’re lucky, you won’t have to train them for longer than a few weeks! Having a more tenured employee also appeals to customers and other partners, because not everyone trusts a young, fresh new hire.

Disadvantages

Experience is often short-sided. If hiring for experience was the main criteria for hiring new graduates, then there might be a lot of holes in the skill set of your company. Take the MBA, for example. You hire this person based on experience and their years of study in the industry. But what if there was a new skill set that not a lot of people have studied in? You’ll be paying a lot more to receive a lot less. Experienced employees tend to go by the book, and generally don’t go outside of what they know. After a while, tenured employees are less innovative, which is an essential part of diversifying your business and solving new problems.

Hiring for Drive

Advantages

Harvard says, “hire for talent, train for skills.” When you have someone that’s talented, you can get that person up to speed in any industry. For example, the marketing specialists in The Strategic CFO staff weren’t always tech-savvy when I first hired them. However, I chose them from a pool of talented people with drive. Within months, they became digital marketing specialists. People with drive are also innovative. They won’t stop until they’ve finished a project or solved a problem. Finally, they’re affordable. If you think about it, they’re usually young hires. Young hires are cheap!

Disadvantages

Although young hires are cheap, they might take longer to train and familiarize with industry jargon. Additionally, you can’t always send millennials out on cold calls or familiarize them with regular clients.

“Teaching tall:” more on hiring for talent

In my opinion, I think hiring for talent is more valuable than hiring for experience. It’s an investment. John Wooden, the famous head basketball coach at UCLA and creator of the “Pyramid for Success,” had this saying… “I can teach anybody how to play basketball. I can’t teach tall.” Basketball players are known to be tall, muscular, and fast. John Wooden showed us that anyone can do something if they have the drive for it. The same can be applied to business and building your company.

Conclusion

So we explored the idea of having a unique business by having a unique team, what other things you can do to make your company unique, and the advantages/disadvantages of hiring for degree and drive. The key to having a unique business: hiring unique people! You can accomplish anything for your business if you have the right resources and make productive decisions. You can get there, it’s just a matter of how soon you and your team are willing to do it. Your business can be unique… and you definitely can’t do it alone.

Don’t do it alone. Download our free 5 Guiding Principles for Recruiting a Star-Quality team today!

having a unique business

Strategic CFO Lab Member Extra

Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs

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