Month: March 2018

2018 Orange County CFO Awards Nominations Now Open

Orange County CFO Awards Nominations Now Open Nominations are now open for the Orange County Business Journal’s 2018 CFO of the Year Awards. Century Group is proud to once again sponsor the event, which honors area financial professionals who have shown the highest level of talent and commitment as corporate stewards for their respective companies in the preceding fiscal year.

 

Click here for the Nomination Form

Nomination Deadline: November 10, 2017 

AWARD CATEGORIES

  • Public Company
  • Private Company
  • Not-for-Profit Organization
  • Rising Star
  • Lifetime Achievement 

The Dinner and Awards Program will be held on Thursday, February 15, 2018 at the Hotel Irvine. Click here for details.

For more information or to nominate a CFO, contact Tim Calley at [email protected] or (714) 708-5100.

When to Leave the Big 4

By David Liebman, Director, Executive Search

Congratulations! You’re wrapping up your second or third busy season. All of your audit hours are complete, CPA exams nearly finished and your license number will be in the mail soon. The calls from recruiters are so frequent they’ve morphed into a staccato background noise you’ve learned to tune out. Your experience in Big 4 public accounting has awarded you the accounting equivalent of a top-school graduate degree. But are you ready to graduate?

The Senior Managers and Partners at your firm tow the party line. They tell you what they tell everyone else: That you’re special. That you have a great chance of making Partner if you stick with it — that you want to advance to manager before leaving the firm.

To give them the benefit of the doubt and assume they are only saying what they believe to be true, know this: They don’t know what they are talking about.

What they don’t know — and what you need to understand before it’s too late — is that when leaving Big 4 public accounting, you are most marketable just after two or three busy seasons. And, you’ll be even more marketable to potential employers than your peers who stayed in public accounting to make Manager.

The Managers and Senior Managers who tell you otherwise didn’t know any better (perhaps, they still don’t). Many of them are now working with recruiters who are struggling to get interviews for them. And when they do get interviews, they are passed up for another — more marketable — candidate.

THINK ABOUT IT FROM A HIRING MANAGER’S PERSPECTIVE

If you are the Controller hiring for a Manager or a Senior Manager position, which of the following candidates would you hire:

  • Candidate A – This person is currently a Manager in Big 4 public accounting. For the last six years, he’s become better and better at conducting audits. Mentoring and managing staff who conduct audits. Creating audit plans, reviewing audit working papers and presenting audit results to clients. If you hire this person, he will need time to learn the job and your systems. And he will never be a hands-on manager without first learning all of the roles and responsibilities he will oversee.
  • Candidate B – This person left Big 4 public accounting after two busy seasons. She completed her CPA and has spent the last two years in a hands-on role learning financial reporting, month-end close and all of the other tasks that you are looking for your Manager to supervise. She’s used her Big 4 experience to become a mentor in the company, and is recognized as a top performer.

Is there any doubt the safe hire is Candidate B? No one has ever gotten into trouble for making the safe hire.

THE BOTTOM LINE

The longer you stay in Big 4 after the Manager level, the more you price yourself out of the market for a move into industry. At the Senior level, expect a pay increase in a move to industry. At the Manager level, expect a small increase in salary — and, perhaps, be willing to accept a lateral for an opportunity with advancement potential. By the time you are promoted to Senior Manager, virtually any transition to industry will involve a pay cut. If you transitioned into industry sooner, you wouldn’t have to worry about how much of a pay cut to accept.

Every individual’s situation is different. There are various career paths, types of companies and personal goals to take into consideration. But the most important thing to understand is that staying in Big 4 public accounting will make you no more marketable once you have hit the three-year mark. The earlier you understand that vital piece of information, the earlier you can explore your next career opportunity on your terms. And the more leverage you have to secure the best offer at a break-out position.

Are you an accounting and finance professional looking to explore new career opportunities? The placement experts at Century Group are here to help. Click here to find your next career move.

Q1 Accounting & Finance Employment Report

By Ron Blair, COO & Managing Director

Are We At Full Employment?

The Wall Street Journal surveyed 68 economists to weigh in on this very question — they answered as follows:

  • 42% — YES
  • 48% — NO, but it’s close
  • 9%  — NO, and it’s not close to full employment

So what does this mean for financial professionals and the employers who need them? COO and Managing Director, Ron Blair, provides his insight and expectations for Q1 and Q2 2018.

Unemployment Rate: 4.1%

 

THE ECONOMY & EMPLOYMENT BY THE NUMBERS

The current economic statistics are telling. The momentum in interim and project services continues to be positive due to GDP growth and the expected effects of lower corporate tax rates. And with GDP forecasts of 2.5% growth in Q1 and Q2 of this year, employment growth is anticipated to follow suit.

Breakdown by the numbers to help put the market in perspective:

  • 3.2% GDP Growth Rate — Q3 2017
  • 4.1% Unemployment Rate — lowest since late-2000. The rate is below what the Federal Reserve forecasts as the economy’s long-run average, suggesting a tight labor market
  • 2.1% Unemployment Rate — Bachelor’s degree or higher
  • 2.1 million new jobs added in 2017
  • 6 million jobs remain unfilled monthly
  • 87 consecutive months of net-job gains (longest streak on record)
  • 2.102% Temp Penetration rate in December (temp as percentage of total workforce) is at an all-time high
  • 62.7% Labor Participation rate didn’t change in December 2017, despite 2 million jobs added

 

HOW DO COMPANIES ATTRACT AND RETAIN PROFESSIONAL TALENT?

For our clients, candidates and interim professionals in the accounting, finance, audit and tax fields — we are in a full-employment economy. The competition for professionals remains strong. So companies that are looking to attract and retain professional talent are working hard on three key areas:

  • Hiring process
  • Company culture and reputation
  • Compensation plans

COMPENSATION PRESSURES INCREASING

Many economists have lowered estimates for the lowest sustainable unemployment rate in recent years. And for the most part, unemployment has declined without creating strong wage gains or salary increases. In 2017, the average hourly paycheck for private-sector employees grew 2.5% in 2017 — a modest gain compared with prior expansions and ahead of the inflation rate (1.7%). So, the professional labor market may still have some slack despite the low unemployment rate. But expect this trend to change as we move through 2018.

DEMAND FOR TEMPORARY PROFESSIONALS ACCELERATING

According to the Palmer Forecast™, demand for temporary workers is forecast to increase 4.3% for Q1 2018 compared with Q1 2017. The Bureau of Labor Statistics (BLS) reported a 4.1% increase in Q4 2017. And marked the 32nd consecutive quarter of year-over-year increase in demand for temporary workers.

According to the BLS, 136,000 temp jobs were added in 2017 (an average of 11,300 per month) versus 32,000 temp jobs added in 2016 (an average of 2,600 per month). In 2015, the agency reported approximately 97,000 temporary jobs added — compared with 162,000 new temp jobs in 2014, 139,000 in 2013 and 142,000 additional temp jobs in 2012.

 

CENTURY GROUP FORECAST

At Century Group, we’re projecting a continuation of trends that started in 2017. Accounting and finance professionals will have multiple career opportunities as the number of job openings far surpasses the supply of qualified individuals. And this will put upward pressures on compensation, with companies competing to attract and retain valued team members.

Additionally, this demand for talent will accelerate the use of temporary professionals to execute interim roles while companies conduct searches for full-time employees. It will also drive demand for talent and expertise on a just-in-time basis to complete key projects during peak periods or periods of fast growth.

Contact us today to help with your recruiting needs or search for a new job.

 

6 Steps to Maximize Your Team’s Effectiveness With a Good Consultant

By Ron Blair, COO
For a time, that viewpoint held some truth: consulting was often a euphemism for unemployed. Today, consulting is an increasingly viable and attractive option for talented and energetic professionals, so hiring an independent project consultant is no longer a distant second choice to hiring a conventional CPA or specialty consulting firm. Borrowing from a sardonic cliché, the prevailing theory toward consultants used to be, “Those who can, do; those who can’t, consult.”

In fact, the abundance of qualified consultants presents a new dilemma: How do I choose the right person for the job, and how do I optimize the contributions of this critical human resource? The following six steps will help you sort through the various actions you should take to ensure that your experience with your consultant — from beginning to end — is positive and productive.

Step 1: Plan Before You Shop

Before you talk to a single potential consultant, take the time to thoroughly understand the requirements of your project. First, consider the nature of the project:

  • Are you looking for an extra hand during a peak period, such as audit or tax preparation, SEC reporting, budgeting season, or the end of a fiscal cycle?
  • Do you need a consultant because of limited staff resources, the lack of subject matter expertise among your staff, or the recent loss of a key team member or executive? Next, examine the required logistics and resources:
  • What is your estimated budget for this project?
  • How many consultants do you need for this project? Who on your staff will be working with the consultant(s)?
  • What is your project’s estimated time to completion? Do you need a part-time or full-time consultant to meet this deadline?

Step 2: Tap the Stream for Candidates

Since 2003, the demand for experienced executives and professionals, particularly in the financial arena, has exploded. Here are a few suggestions for how you can find a reliable and effective consultant:

Former employees — Recently retired or laid-off employees know your company culture and the key players, so they have a much shorter learning curve than other consultants. Obviously, there can be challenges in bringing back former employees; but if you can work it out, this can be an excellent way to fill your need.

Conventional consulting firms — You’ll have the advantage of an established firm with the backing of expert managers and partners, but unless you’re a major client, you’ll probably get the firm’s more junior (and less experienced) consultants. This is also a typically more expensive approach than other options.

Independent contractors — Referral is the best way to find a competent and trustworthy independent contractor for your project since these professionals typically do little or no marketing. It is also difficult to verify the capabilities of an independent contractor without talking with someone who has used his or her services.

Temporary staffing agencies — Although this is a less-expensive option, temp agencies often have trouble attracting the best consultants. Caveat emptor certainly applies here.

Project consulting firms — This approach helps to eliminate the potentially negative characteristics of conventional firms, temp agencies and independent consultants, while retaining their best qualities. Businesses like these are a new breed of professional services firms.

With a large client base, firms are able to attract and retain experienced professionals who are not interested in being perceived as temps, but also do not want the pressure of client development and marketing that independent contractors face.

As former executives and top-level employees in leading firms and Fortune 500 companies, these men and women have the technical expertise, industry experience and communication skills to seamlessly integrate into client teams and lead the way to project success.

Step 3: Make the Cut

After you’ve found a few qualified candidates to fill your consultancy position, hone in on the specific expertise and experience you need for your particular project:

Industry experience — How much does the candidate know about your specific industry, especially as it relates to the project at hand? How important is industry- specific knowledge for the successful completion of this particular project?

Functional skills — What are the functional (technical) skills this candidate absolutely must possess in order to add value to your team and project? What functional skills would be a nice asset, but are not an absolute requirement?

Step 4: Prepare for Your New Team Member

Nothing makes a staff more jittery than when a new face suddenly appears on the scene — and more so if that person seems to have a hotline to the boss and the power of persuasion. Therefore, it is extremely important that you discuss the impending arrival and role of the new consultant before his or her first day in your office. Here are a few issues to cover with your staff:

Team membership and roles — Anyone who will work with the consultant should be involved in discussions about the consultant’s responsibilities and key objectives. People get nervous when they believe they’ve been left out of the loop.

Supervision — Clearly define the consultant’s reporting structure, which will help to nip hurt feelings, power plays and confusion in the bud. Remember that the higher the level of person to whom the consultant directly reports, the greater the empowerment of the consultant in the eyes of your staff. This key decision can move the project along by eliminating internal tensions and turf battles.

Job responsibilities — Clearly defining the consultant’s job responsibilities can reduce the sense of threat your staff members may feel. When they know the limited scope and duration of your consultant’s activities, they are less likely to go into self-preservation mode. In addition, you will save precious time and hassle if you prepare your consultant’s workspace and take care of employment logistics (security, parking, computer login and so forth) before he or she arrives.

Step 5: Start off on the Right Foot

On your consultant’s first day, devote a block of time to ease his or her transition into your organization. During this kickoff meeting, cover the following issues:

Introductions — Make sure the consultant meets everyone on your staff and other key people in your organization. Explain each person’s role and responsibilities within the project (if any), as well as the level of access the consultant will have to that person.

Company overview — Discuss pertinent company policies and procedures, including hours of operation, dress code, reporting structure and so forth.

Role review — Reiterate with the consultant his or her responsibilities for the project, key objectives and resources, such as information, computer/data access, people and so forth.

Communication plan — Clearly define your expectations regarding project status reports, meetings, and the level of feedback you require.

Step 6: Follow-Through for Success

How a project concludes is the key measure of its overall success. Projects that have a true impact on your organization have a way of changing the landscape. Therefore, it is crucial that you ensure the success of the project by minimizing resistance and keeping people focused on the desired outcome. Here are a few ways you can ensure — from the beginning — that you’ll reach your project goal:

Lead by example — You may be tired of hearing this, but a leader’s impact on team dynamics is undeniable. Your team is watching you at all times, taking cues from your commitment, enthusiasm and drive toward your goal.

Communicate constantly — Your team needs feedback from you on a regular basis to know that what they are doing is on track and contributing to the project goals. When you see that changes brought about through the project may negatively affect some of your employees’ job roles or responsibilities, acknowledge this fact and communicate it immediately to your entire team. This practice disbands the rumor mill before it even has a chance to form.

Reinforce your project’s purpose and benefits — Occasionally go back to your purpose statement for your project and review this with your team. Remind everyone of the benefits of the project.

Generate involvement — Make sure that everyone on the team has a meaningful role to play so that they will feel invested in the project and its successful outcome. Leaving out employees who should really be part of the team can cause frustration or fear.

Manage resistance — Prepare for resistance — or even all-out sabotage. Plan ahead for your response to potential areas of resistance, and remember that some resistance is perfectly normal. It just needs to be managed. Often, the difference between success and failure when working with a consultant comes down to simple planning and preparation. When you choose the right person for the job, set up your staff and consultant for success and follow- through with integrity and strong leadership, you’re on your way to positive growth and development for your organization.

Ron Blair is COO of Century Group, a firm that specializes in providing senior finance and accounting professionals to middle market, Fortune 500 and Global 1000 clients for project engagements and interim roles.

 

Everything You Need To Know About the Salary and Criminal History Bans

It’s a new year. And for California employers, that means one — well two — new things to consider: laws AB168 and AB1008.

Effective Jan. 1, the salary history ban outlaws employers from asking job applicants about their salary history. While the criminal history ban (also known as “Ban the Box”) prohibits companies from inquiring about an applicant’s criminal history on employment applications or before making them a conditional job offer.

From a candidate’s perspective, these are a welcome changes in the hiring process. For employers and staffing firms, it’s a new way of doing business. Century Group’s Managing Director of Human Resources and General Counsel, Francesca Brooks, helps break down both laws, and provides best practices moving forward.

THE LAWS

Salary History Ban
The California Labor Code now provides section 432.3, which restricts employers from seeking applicants’ prior salary information. The bill bans recruiters and employers from asking candidates verbally, in writing or through searches or an agent.

On request, candidates should be given a pay scale for the position sought — whether it’s by a specific wage, salary level or compensation formula. “If they voluntarily disclose to you — without any prompting — how much they’re making, you can use that information,” Brooks explains. “Once we or an employer has that amount, we can use it to make a decision of what we’re going to pay.”

Criminal History Ban
AB1008 is a new section added to the Fair Employment and Housing Act, which prohibits discriminatory employment practices. The law renders it illegal for employers to inquire about an applicant’s criminal history on employment applications. It also requires employers to delay background checks on candidates until a conditional employment offer has been made.

When rescinding a conditional offer, employers need to ensure it’s not based “solely or in part” on the candidate’s conviction history. “They have to justify denying the application. It has to be relevant,” Brooks says. “In our case, what would be relevant for people in accounting is embezzlement. If someone has a DUI, it’s not going to be as relevant.”

If the employer chooses to move ahead with the withdrawal, they must notify the applicant in writing.  Five business days should be allotted for the candidate to appeal the decision before filling the position. But Brooks notes that this isn’t necessarily the case for staffing firms that take on consultants as their employees to complete key roles and interim projects.

“If it’s a temporary position, we can go ahead and fill the position while we’re considering whether or not to bring the temp on as our employee,” she says. “We don’t have to wait five days because that’s not specifically the position they’re interviewing for. They’re applying to join our talent pool.”

WHAT IT MEANS

Salary History Ban
When it comes to the goal behind both laws, there’s no question about it: they fall heavily on the employee-side of the spectrum. Demographics, such as women and minorities, who have historically been underpaid for positions can expect their salaries to meet those of their professional counterparts working in the same role. It’s a way to bridge the wage gap, so to speak.

But for employers and staffing firms, the approach to properly placing applicants in suitable positions is less clean-cut. Instead of viewing this is as a challenge, Brooks suggests professionals use this to ensure their candidates are seeking a fair wage and clients are maintaining compliance with the law.

Criminal History Ban
This is another measure created to help counter bias and discrimination within the hiring process. Many employers automatically reject applicants with a conviction history — eliminating qualified candidates without giving them an opportunity to prove their worth. Banning the box on employment applications gives applicants that chance.

“Employers have access to a talent pool they may not have considered before,” Brooks says. “It also helps qualified candidates out there who are self-selecting.”

BEST PRACTICES

Salary History Ban

  1. Develop a script. “Have some kind of script where you tell the candidate, ‘I’m not asking you for your salary history or what you’re making right now. I’m only asking what your expectations are,'” Brooks says.
  2. If the candidate — without any prompting — voluntarily discloses their salary, establish a process where you document the circumstances of the disclosure.
  3. If the candidate discloses their salary information and it benefits them, you should also note you received authorization from the candidate to disclose this information to the employer.

Criminal History Ban

  1. Implement training with your human resources department detailing legal interview questions for candidates.
  2. Don’t inquire into a candidate’s criminal history, verbally or on the employment application.
  3. A conditional job offer cannot be denied solely on the part of the applicant’s conviction history, unless the employer is able to link the offer withdrawal to specific job duties required of the position. Employers must also notify the candidate of their decision in writing, and explain they have five business days to respond and/or submit evidence in their defense.

Are you a candidate or client seeking assistance with your search? Century Group’s team of placement experts is equipped to help find your next hire or career move. Contact us today.