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The Future of the Accounting Workforce

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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 pre-conceived 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.

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 means leadership 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

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

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future of the accounting workforce, Generational Preferences

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. 
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5 Ways to Reduce Costs When Hiring

Hiring is one of the many costs that are often overlooked in a company. Whether a company notices or not, hiring costs can be high. Unfortunately, there is no way to completely avoid them because you need people to run your business. However, there are some things you can do to minimize these costs without affecting the candidate quality.

5 Ways to Reduce Costs When Hiring

Here are 5 ways to reduce costs when hiring.

Screen Candidates

Start from the beginning of the hiring process and screen the candidates. The more ways you funnel out your candidates, the less unnecessary time you will spend on unqualified ones. Start by sorting the resumes between the immediate throw-aways and the potential candidates. Then, call those candidates that you want to learn more about. You can screen candidates in various methods including the following:

  • Having a very clear and detailed job posting that specifically asks for qualified workers and waves off unqualified ones
  • Preparing proper interview questions that can notify right away whether the candidate is suited for the position or not (location, certifications, personality, reason for leaving previous job)

The screening call should only take you a few minutes for each candidate. In addition, you should be able to quickly identify who you want to interview and who you do not want to see again.

Going through this process will provide you with a short list of quality applicants, thus saving your company time and money.

You can also provide an assessment test that puts the candidate in an actual job situation.

Don’t want to screen candidates? Let us to the work for you! Short|LYST completes the hiring process up until the actual hiring of the candidate. Learn more about Short|LYST here.

Utilize Job Boards

Whether you have a job board on your website or have an account with a job board like Indeed, utilize those job boards. If you do not get a lot of traffic to your website or have a huge email list, then use a board like Indeed or Monster.com. However, if your website is already optimized, then use it!

Social Media

In addition, social media is at the palm of your hand. Various recruiters are now using social media to find candidates, whether it is through Facebook’s new job posting feature or LinkedIn’s job board.  Not only can you use these platforms to post and promote company announcements, but you can also use them to communicate directly with potential candidates.

Ask Employees to Refer Qualified Candidates

Instead of wasting so much time collecting various applicants from different sources, ask some of your trusted employees if they know anyone that could be suitable for the open position. In fact in a 2015 SilkRoad study, employee referrals produced more hires than any other source studied. Referred candidates are usually of higher quality and are more likely to feel connected to company culture once hired.

Use Short|LYST

The last way to reduce costs when hiring is to use Short|LYST. What is Short|LYST? This platform is revolutionizing the hiring process. First, the candidates apply to one company (The Strategic CFO). We take care of the entire hiring process up until making the decision to hire. Then employers search Short|LYST for their perfect candidate. These candidates have been screened interviewed, vetted, and recommended for hire. Learn more about Short|LYST here.

Reduce Costs When Hiring

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The Pain of Hiring | How We Are Altering the Hiring Process

When a company decides it is time to hire someone, it can be an exhausting process. From job postings to interviews, a lot of time and money goes into a company’s hiring process. While hiring can be a burden, it is crucial for a company’s development and success. Let’s dig into the pain of hiring.

The Pain of Hiring

Here are some of the potential downsides that come with the hiring process.

Cost

Hiring provides you with new struggles and worries that might really affect your wallet. First, you must pay for the job posting if you sponsor a job ad. Depending on who your target market and outreach is, this costs a hefty buck. No one’s time is free. After that you or your employees have to spend time interviewing them, you have accumulated a lot of paid time focusing on that position. Now, once you have screened your candidates, there are various routine procedures that can add on to the cost, such as assessment tests, drug tests, and background checks.

Time

Not only does the hiring process impact your financials, it also takes a lot of your time. Countless number of hours go into finding the perfect candidate. From the interviews to the training, time keeps ticking. That is valuable time that you could have been spent elsewhere improving the company, making sales, or retaining customers. Time is money!

Hiring the Wrong Person

Even after spending a lot of your company’s time and money, you still run the risk of hiring the wrong person for the job. If you hire the wrong person, then not only do you have to go through the hiring process all over again, but it can also cost the company in a variety of ways. From decreasing company productivity to impacting customer relationships, hiring the wrong person can have large negative effect. In addition, terminating the new hire can also be a difficult task that is avoidable if you screen, interview, and vet properly.

Learn what to look for when hiring with our 5 Guiding Principles to Recruiting a Star-Quality Team.

How We Are Altering the Hiring Process

Here at The Strategic CFO, we have developed our own unique version of hiring that can save you countless amounts of time and money. Instead of screening hundreds of candidates, interviewing dozens more, and risking not even finding the right candidate, Short|LYST does that all for you. Our team of experienced HR and financial executives take the financial and time burden off from the employers. All the employer has to do is pick and choose which recommended candidate they want to take forward. Learn more about Short|LYST here.

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What the Current Hiring Process Costs

It’s hard for companies to realize how much they are actually spending when it comes to hiring a new employee. Once they decide it’s time to pursue a new worker, a lot of resources are used to find the perfect candidate for the job. Finding the perfect candidate within a vast number of people might be very difficult, therefore costing a significant amount of time and money to the company. There are certain steps a company can take in order to minimize these costs. In this blog, we will walk through what the current hiring process costs.

What the Current Hiring Process CostsContemplating Profits and Cash Flow

Hiring and recruiting a new employee costs the company a lot more than just their salary. Recruitment costs are very often overlooked. Recruiters spend countless number of hours trying to find the perfect candidate for their needs, leading them to go through extensive research on countless number of candidates. This research, however, is not free. Finding the perfect candidate comes with a price. Let’s look at what the current hiring process costs:

Suppose you pay your recruiter $75 an hour and he looks through 100 resumes, each for 20 seconds:

$75 x (20s x 100 Resumes) 

Let’s assume that 10% of those applicants now get an interview lasting an average of 1.5 hours:

$75 x (20s x 100 resumes) + (10 x 1.5 hours)

On top of that, lets presume 10% of those interviews make it to a second round:

$75 x [(20s x 100 resumes) + (10 x 1.5 hours) + (1 x 1.5 hours)]

That’s a total of 17 hours and for $75 and hour you ended up paying your recruiter:

17 x $75 = $1,275!

That is not even adding the cost that you spent advertising for the job posting, drug tests, background pre-screenings or assessment tests!

As you can see, hiring a worker is clearly not free, it can come with various unexpected costs that sometimes can go unnoticed. Companies should take proper measures to minimize these costs because as you can see above, each recruiting process can cost a hefty amount.

This poll was administered online in the U.S. by Harris Interactive©

Impact of a Bad Hire

Even after spending countless amounts of time and money finding the perfect candidate, companies still run the risk of a bad hire. Maybe they needed to fill the job quickly, maybe they didn’t have enough talent intelligence, or maybe it was just an honest mistake. But hiring the wrong person can have significant effects on the company’s performance. Hiring a person that does not provide value to the company can be critical hit to the company’s development. Not only does it waste the company money, but it can also have a negative influence on company culture. Be cautious when it comes to hiring a new employee and take proper measures to properly decide on the best candidate.

Tips to Improve Your Recruiting Process

Once you realize it is time for your company to hire someone, it’s a chore finding the correct person for the job. From the marketing to the interviews, it can be very important how you go about this process. Or you risk missing out on great potential candidates when you do things imperfectly. Here are some tips to improve your recruiting process:

Have an Accurate Job Description

Thoroughly define what exactly are the duties and responsibilities you are looking for and add these to the job description. Make sure they are as clear and accurate as possible. Try to have a job posting that will attract qualified candidates and discourages others. This will help you save a considerable amount of time in the screening process.

Advertise Your Job

Do some research on what type of job posting resources will work the best for your company, whether its posting online, in a school placement office, or through an employment agency. The way you find you candidates can have a remarkable difference on the quality of your applicants.

Compare Applicants

Think of what your ideal candidate will look like. Then, have a strict screening process that would weed out applicants that would not be suitable for your company. After this, rank your remaining candidates in order from most to least suitable. You can also choose to have an assessment test that would measure their abilities in an actual job-like situation.

Show Them Why They Should Work For You 

Once you have chosen your ideal candidate, now it’s your turn to sell him on the job. Remember that the strongest candidates will always have more opportunities. Hiring is a two-way street, so make sure you convince your candidate by communicating a strong vision and mission for your business with enthusiasm and sincerity.

Bypass the Current Hiring Process

It’s 2018. With private companies launching rockets into space and technology recognizing faces, the question we asked ourselves was… Why is the current hiring process the same? Everything else from time keeping programs to communication software to automation has allowed businesses to succeed in 2018. There had to be some revolution to the hiring process, but the only changes in the past couple of decades are search firms, head hunters, and recruiters. That’s why we created Short|LYST. It allows employers to bypass the current hiring process and cut the current hiring process at least in half.

Instead of screening hundreds of candidates, interviewing dozens more, and risking not even finding the right candidate, Short|LYST does that all for you. Our team of experienced HR and financial executives take the financial and time burden off from the employers. All the employer has to do is pick and choose which recommended candidate they want to take forward. Learn more about Short|LYST here.

What the Current Hiring Process Costs

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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

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The Next Generation of Financial Leaders

Next Generation of Financial Leaders

As the baby boomers are retiring from the workforce and Generation X are becoming the most senior employees, it’s time to start looking at the next generation of financial leaders. Currently, the Millennial generation is the largest working generation in our economy. They have some quirky habits and behaviors – namely, their use of technology. That leaves some executive clueless on how they will eventually take over the leadership of their organization. With the average age of retirement being 61-65 in America, we are quickly approaching a workforce that is solely comprised of Generation X and Millennials. You may be asking questions… What is your part in raising the next generation? How will you pass on the figurative baton (if you are a Generation X or Baby Boomer)?

It’s important to not neglect the next generation, regardless of how their habits might annoy you. Let’s look at where previous generations have adopted their financial leaders.

The financial leader of the company is responsible for being the strategic partner to the CEO of the company. But there’s no guide. Until now… Access our How to be a Wingman Guide and learn how to be the trusted advisor your CEO needs.

Where the Next Generation of Financial Leaders Comes From

Just like when you acquire talent for other positions in your company (especially high-level positions), there are two options. Either you promote from within or you hire new talent outside your organization. There are benefits to both options. Regardless, as Millennials start to climb the proverbial ladder in your organization and baby boomers retire, it’s critical that you start mentoring and providing some structure for them to climb.

Similarly, last year we wrote a blog about one of our interns going to Japan because the workers were not concerned about who was to take over their positions. Japanese workers were so focused on their work that they weren’t having babies. As a result, the Japanese government was facing a pending economic crisis because there were not enough Millennials to take over. The time is now to start looking at potential financial leaders and how to further develop them.

Baby Boomers          1946-1964          Ages 54-72

Generation X          1964-1980          Ages 38-54

Millennials           1980-2000          Ages 18-38

(Keep in the mind that the above age ranges may be different from what you have read. This is because there are no standard start/finish dates for each generational cohort.)

Next Generation of Financial Leaders

Promoting From Within

The first option to replace high-level leadership is to promote from within. This is a great option because they will have seen multiple areas of the company from different positions. They also know the culture and experience how the organization reacts in good and bad times. Although promoting from within is the ideal option for continuing an organization’s mission, it comes with significant costs. Some of those include training, mentoring, and salary and benefits over the years. It takes time to prune talent to eventually promote them.

There is also time to tone parts of the Millennial down as well as enhance the current leadership’s weaknesses. This not only creates a stronger organization now, but it also prepares the organization for the future.

Hiring New Talent

Conversely, hiring new talent brings in some fresh perspective into the company. This would be ideal for a company who does not have the right talent to promote or needs a change in direction for the organization. Many companies use headhunters, retained search firms, staffing agencies, recruiters, etc. to find the talent take over after the current talent either leaves or retires.

The risk of hiring new talent is not knowing how they react to situations in real time. Unlike promoting from within, you are not able to predict the hire’s reaction (at first).

The Difference Between the Next Generation and the Current Generation

The main difference between the current generation that holds those top roles (Baby Boomers and Generation X) and the next generation of financial leaders (Millennials) is the world they grew up in. For now, we’ll focus on the two largest generational cohorts in the workplace: Generation X and Millennials.

Millennials experienced two economic crises (2000 and 2008), a war on terror, social media, growth of student debt, advanced technology becoming more available, and information at a moment’s notice. They have a reputation for moving around jobs, focusing on technology, and being more risk tolerant. But one of the most important factors in a Millennial career path is that they are mentored, cared for, and valued in an organization. Furthermore, they want to feel a sense of purpose.

Although this description seems far from Generation X, we have found that more than half of Generation Xers want to mentor and give their mentees a sense of purpose. The Association for Talent Development says that, “Through mentoring, Gen X can help Millennials learn crucial people skills—such as empathy, adaptability, group dynamics, employee motivation, communication styles, and relationship building—as well as management and leadership styles. They can therefore increase the odds that younger Millennials will be successful in a future management or leadership role.”

In addition, the next generation of financial leaders are going to be more risk tolerant – knowing that success only comes from failure. They will test more ideas than the current generation. In fact, the current generation could capitalize off of the Millennials to take more risks.

Building the Next Generation of Financial Leaders

When building the next generation of financial leaders, start early and know how to optimize your relationships with the next generation. Deloitte reports that the 6 most important leadership qualities to develop as you are building the next generation of financial leaders include:

  1. Maintain Strong Executive Engagement
  2. Align Leadership Strategy with Business Strategy
  3. Define Tailored Leadership Competencies
  4. Target All Levels of Leadership
  5. Integrate with Talent Management Processes
  6. Apply Blended, Targeted Solutions

As the current financial leader of your company, guide your CEO on how to prune your employees to take over your role when you retire or move onto another position. Download our free How to be a Wingman guide and take your career to the next level and step up into the trusted advisor role.

Next Generation of Financial Leaders

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Next Generation of Financial Leaders

 

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Recruiting vs Staffing

Difference Between Recruiting vs Staffing

The difference between recruiting vs staffing is that recruiting is acquiring talent to be a full-time employee. Whereas staffing is the hiring of an agency to provide temporary workers.

Recruitment / Placement

There are many recruitment agencies or placement agencies. It may also be referred to as a retained search. They typically charge a percentage of the hire’s salary as a placement free. Those agencies then collect resumes, interview, vet, and eventually get the client’s approval for hire. After the client approves and hires the recruit, the agency has finished their job. The client company not only hires the recruit, but is also responsible for the Social Security, Medicare, and employment taxes. In addition, those employees usually expect benefits such as health insurance and 401K.

Staffing Agency

Conversely, a staffing agency fills the gap when a client company needs a number of employees immediately but does not have the resources (capital) to afford all that is involved with hiring an employee. Staffing provides temporary workers that can be specialized to the client and bills them on an agreed to hourly rate

Hiring Process Through a Staffing Agency

A staffing agency has numerous job ads published to recruit the best talent. The agency then reviews the resumes, interviews potential candidates, and eventually, finds the perfect employee to fill a position at a client company. Depending on the demand, agencies can have a significant amount of employees that they can deploy.

Hiring a Staffing Agency

When hiring a staffing agency, it is important to assess your needs. Are you seeking specialized workers? Do you need 80 employees tomorrow or just 2? Different staffing agencies are going to be able to help you with what you need.

Advantages of Hiring Through a Staffing Agency

Some advantages of hiring through a staffing agency include seeing a potential employee in action before making the commitment to hiring them. Companies also are able to offset the costs of hiring to the staffing agency – essentially stretching their dollar. Additionally, companies are able to get a number of employees quickly, bypassing the weeks hiring usually takes.


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. Click here to learn more about how we can serve you best.


recruiting vs staffing

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