Category: Management & Leadership

A recent study conducted by the National Association of Colleges and Employers (NACE) posits that many young people are now leaving college without the tools they need to start making their way up meaningful career ladders.

Ed Koc, a research director at NACE, asserts that there is simply a lack of preparation and more students should take advantage of their schools’ career centers and other resources.

“In a competitive job market, new graduates must be prepared to present themselves in a way that translates their academic accomplishments and knowledge to the skills and experience employers are seeking,” said Koc.

However, a separate study – performed by Harris Interactive on behalf of CareerBuilder – highlighted several differences evident in younger generations, specifically pointing to evolving attitudes regarding communication and general work styles.

One of the main findings of this research was that younger workers are more likely to have a mindset that encourages them to “seize any opportunity,” rather than find a defined career ladder and commit to climbing it. This may help explain why graduates’ efforts are less geared toward the “traditional” employment experience.

However, with the much-discussed retirement of the Baby Boomers now in progress, it will clearly be critical for young workers to begin integrating into the corporate world more effectively.

Every business has unique needs as well as its own established organizational culture. New hires must fit in a company’s staffing situation while contributing to its success with their talents and ambitions.

However, finding a perfect fit can be challenging. Partnering with a recruitment firm can help a business assess its specific needs, contact and evaluate candidates and, ultimately, hire qualified professionals that will add value to the company and aid it in achieving current and future goals.

On September 13, the U.S. Federal Reserve Board of Governors announced that the country’s central bank is beginning a new program of asset purchases – dubbed “quantitative easing” by analysts and media commentators – with the goal of fostering an increase in economic activity and employment.

The program will focus on mortgage-backed securities (MBS), with the Fed purchasing $40 billion per month. Reactions from politicians and other public figures have been mixed. Some say they believe the central bank has already overstepped its bounds with earlier easing programs, while others insist that more action is necessary, due to the slow pace of the economic recovery.

In contrast to its previous asset-purchase programs, the Fed has indicated that this time, its commitment to monetary expansion will remain somewhat open-ended.

In a press release announcing the decision, the Board of Governors stated that “if the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved.”

This may be due to decreasing effectiveness of the asset purchases. Testifying in June before a Joint Economic Committee of the U.S. Congress, Federal Reserve Chairman Ben Bernanke admitted that there may be “diminishing returns” as the central bank continues its efforts to stimulate economic growth.

The Fed also announced that the federal funds rate will remain “exceptionally low” – between 0 and 0.25 percent – until at least mid-2015.

It is unclear exactly what effect these actions will have on the economy, but with $40 billion dollars being injected into the system each month, it seems certain that some businesses will see an impact on their operations or outlook.

Companies that are looking to gain insight into how they could be affected may be best served by partnering with a financial project consulting service to analyze areas of concern.

On September 11, Moody’s Investor Service issued an update on its outlook for the credit rating of the U.S. federal government, indicating that rising public debt and Congressional intransigence in budgetary negotiations may lead the agency to downgrade the U.S. rating from its current AAA status.

Last year, Standard & Poor’s (S&P) downgraded its rating of U.S. credit due to “political brinksmanship” surrounding the raising of the statutory debt limit established by Congress. Failure to raise the limit would have forced the government to default on its financial obligations.

At the time, Moody’s upheld its AAA rating of U.S. credit, but changed the outlook to “negative” – indicating that it may consider a downgrade in the future if high spending and political gridlock continued. Fitch, the other major ratings agency, maintained its AAA rating and a stable outlook.

Moody’s cited ongoing negotiations regarding the 2013 budget as the key consideration in its assessment of U.S. creditworthiness.

“If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable,” Moody’s explained in a press release.

It is unclear exactly what consequences would stem from a downgrade by Moody’s, especially given that the projected effect of the S&P downgrade – substantially higher borrowing costs for the federal government – failed to materialize.

However, businesses must analyze the situation and account for the potential effects of a downgrade in order to plan their long-term strategies accordingly. Working with the experts at a financial project consulting service can help companies assess external risk factors and ensure that they are positioned to succeed in the future.

According to new data from the U.S. Labor Department’s Bureau of Labor Statistics (BLS), the country’s economy added 96,000 nonfarm payroll jobs in August.

This number contrasted sharply with the estimates contained in a report released on September 6 by Automatic Data Processing (ADP). The ADP National Employment Report suggested that the U.S. economy added 201,000 jobs in August.

Meanwhile, a group of economists surveyed by CNNMoney had predicted the Labor Department would announce an increase of around 120,000 jobs. One thing this wide divergence between different forecasts shows is that a significant amount of uncertainty continues to surround the trajectory of the economic recovery.

This uncertainty, in turn, is a factor in limiting job growth, as businesses remain unwilling to make substantial long term salary and benefit commitments to new workers without reasonable confidence that future economic growth will uphold a level of demand that justifies investment in expansion.

With businesses electing to keep their headcounts limited, each new hire that a company does make will have an elevated level of importance for the organization. The success of a smaller staff will naturally depend more heavily on the performance of each member.

This means companies need to put an extra emphasis on ensuring that they are reaching top talent in each executive or financial professional search.

Utilizing project and interim resources through a recruiting and interim services firm is another way for organizations to achieve cost savings by adjusting staff sizes up and down based on current business requirements and controlling professional staff costs by using variable cost interim and project professionals.

Corporate recruiters can help a company assess their staffing needs, identify candidates and select the right person for the job. In addition to evaluating prospects’ technical qualifications, recruitment firms can also help businesses hire professionals that will provide a good fit with the established corporate culture, which can be an important factor in achieving high performance levels.

In recent years, a number of U.S. states and the federal Internal Revenue Service (IRS) have begun adopting an increasingly sophisticated array of tools to aid in the identification of companies that attempt to evade taxes or flout other regulatory requirements.

Several states, including Washington and Louisiana, have employed technology developed by software firm SAS. The company first developed the fraud-detection program in the 1990s to help banks discover accounting irregularities that suggested malfeasance.

After implementing SAS’s software, Washington officials increased their identification of companies not complying with the state’s workers’ compensation requirements by 65 percent. This allowed them to collect $18 million in premiums that would otherwise have gone unpaid. Los Angeles County has made effective use of the technology as well, specifically with regard to the detection of individuals illegally tapping into public welfare programs.

The IRS signed a contract with SAS to begin using the software in December 2011. Accounting Today reports that the IRS hopes to use the technology to close an estimated $345 billion gap between the amount of money that should be collected through taxation and the amount that is actually collected.

With state and federal agencies using these sophisticated new tools to catch companies that do not comply with their legal responsibilities, it is increasingly important for business leaders to take steps to ensure that their organizations are in full compliance with tax codes and other regulations.

Working with an internal audit consultant can help a company ensure that it does not have any outstanding liabilities that will lead to legal challenges or expensive penalties in the future.

The Washington Post’s Sarah Kliff recently offered an explanation for a survey showing that zero of 512 companies planned to stop providing health insurance programs to employees as a result of the Affordable Care Act – offering these benefits pays off for employers.

Kliff asserted that these business leaders simply continue to believe that providing group health insurance plans offers a significant advantage in their efforts to recruit and retain talented professionals.

She went on to explain that the Affordable Care Act – “ObamaCare” – does not change the nature of the benefits equation for employers, whose chief concern is remaining competitive against other companies. Although they could eliminate expensive healthcare benefits for a mere $2,000 per employee, it would simply not be advantageous.

“They offer benefits not because any law requires them to but because it serves their interests,” wrote Kliff. “They can remain competitive when recruiting employees and keep their workforce healthier and more productive.”

This is an excellent point. We’ve previously reported on research from Truven Health Analytics, which indicated that employers can benefit significantly from offering health insurance coverage to staff members. And, it appears as though many employers agree with the conclusion that cancelling their benefits programs would have a significant negative impact on their ability to attract and retain top-quality professionals.

Companies that are looking to gain a further edge in their efforts to recruit leading talent should contact a firm of experienced corporate recruiters. Working with experts enables a company to conduct a fast, effective executive or financial professional search and come away with its staffing needs fully satisfied.

According to a new study released on August 28 by the American Psychological Association (APA), the top reasons given by U.S. workers for remaining in their current jobs include the ability to maintain a positive work-life balance and getting general enjoyment out of their work.

The APA’s Workforce Retention Survey was conducted by Harris Interactive and asked 1,240 working adults about the importance of a number of factors that contribute to decisions about remaining in a job rather than seeking a new one. Benefits and pay were cited by a large portion of employees, with 60 percent and 59 percent, respectively, identifying those considerations as key reasons to stay in their current positions.

Meanwhile, 67 percent of respondents said they are motivated to stay with their employer because their jobs fit well with the other things that are going on in their lives. The same percentage said they remain in their positions simply because they enjoy their work.

Despite the economy’s sluggish recovery and the relatively high unemployment rate, only 39 percent of respondents cited lack of alternative job opportunities as a reason for remaining with their current employers.

Business leaders should keep these figures in mind when they are recruiting new workers. The APA’s research highlights the importance of hiring individuals who are not only technically qualified, but will fit well within an organization’s culture.

Partnering with corporate recruiters can help a company conduct a targeted search that matches it with professionals who will be motivated to stay in their positions and deliver strong performance levels over time. Recruitment firms can offer expertise in identifying and evaluating leading candidates in order to select the professionals that offer the best fit for a company.

With Tropical Storm Isaac approaching the Gulf Coast, local enterprises and individuals are being subjected to a variety of warnings and advisory notices regarding weather-related threats to their lives and property. Several local governments have even issued mandatory evacuation orders, according to the Washington Post.

For the past few days, windows were being boarded up all along the shore as home and business owners braced their buildings to survive the storm. Residents packed supermarkets and gas stations as they sought to stock up on vital supplies such as food and fuel.

Oil and gas companies have halted production and pulled personnel from their offshore drilling platforms. Several major ports have been closed down as well, including New Orleans, Mobile, Pascagoula and Gulfport.

In a press release, Port of New Orleans CEO Gary LaGrange said his organization had “taken all of the necessary precautions in anticipation of the worst.”

Citing the city’s experience with Hurricane Katrina, LaGrange added “This isn’t our first rodeo.”

However, once the storm passes, life will continue. That’s why it’s important for business leaders to make comprehensive plans that not only protect buildings and property from the weather, but also account for the need to resume operations afterwards. And, businesses in other areas shouldn’t wait until there’s a storm approaching in order to create comprehensive continuity plans.

The professionals at a financial project consulting service can help companies draft complete plans to prepare for contingencies, including extreme weather. Having a thorough plan in place allows a business to mitigate the disruption caused by a storm, or any other precipitous event.

Many executives are aware of the importance of risk management. However, CFO Magazine recently profiled one problem that businesses must confront – the possibility that focusing on “pet” risks can distract corporate leaders and hinder their ability to address big-picture issues.

Pet risks are those that seem particularly important to certain managers, but do not actually present a significant challenge to the business’s overall health. Sometimes, these issues may be inflated by being associated with known problems or larger general risk factors.

Alyssa Martin, executive partner in advisory services at a Southwest regional accounting firm, told attendees of the recent Institute of Internal Auditors conference that businesses should place a high priority on establishing a comprehensive risk management process. She asserted that such a system should be able to differentiate between a true risk facing the business and a simple operational issue, such as an aging piece of equipment that requires repair or replacement.

“For 23 years I’ve seen company management at all levels try to drive their own issues,” said Martin. “But, when it supersedes more urgent risks, it’s not OK.”

Interim financial professionals can help fill the gap for companies that do not have established risk management practices. Working with an internal audit consultant can help corporations identify and address the most pressing risks that are currently facing them.

Alternatively, companies that are interested in hiring an executive with significant risk management experience should contact professional recruiters to aid in their search. Recruitment firms can help businesses conduct fast, effective searches that match them with talented individuals who have the required skills and will fit with the established organizational culture.

Data management has come to play an increasingly critical role in the operations of many companies. The need to carefully organize and control the flow of information is especially palpable for financial professionals.

According to a study of over 300 C-level executives conducted by Oracle, 93 percent of respondents believe that their organization is losing out on potential revenue due to its inability to fully leverage the data it collects. Given this figure, it follows logically that 97 percent of the executives surveyed say that their organization must make changes to improve its ability to utilize information over the course of the next two years.

The adoption of new technologies will inevitably play a role in shaping the way financial professionals do business. And, the proliferation of mobile devices is rapidly changing the way many professionals conceive of computing technology. Especially now that a number of players have jumped into the tablet market in a serious way, business leaders should expect the pace of innovation in that sector to remain fast and fluid.

Also, with Microsoft scheduled to release its new Windows 8 operating system and an updated suite of Office tools, even users of traditional computers should see an expanding array of options for working with business data.

If your company is not prepared to make use of new tools for managing data, it may be beneficial to hire a financial professional who brings technological expertise to the table. Partnering with a firm of corporate recruiters can help a business conclude a fast, effective financial professional search that leaves it in a strong position to capitalize on current trends.