Category: Management & Leadership

Just last week, this blog reported on the importance of auditors remaining skeptical in every facet of their jobs. A report detailed in the post called for auditors to use context clues instead of management opinions to assess misstatements, thoroughly document completed work and, perhaps most importantly, come to understand the business on an intimate level. There are other skills that auditors should have in their arsenals though.

According to a recent Institute of Internal Auditors (IIA) study cited by CFO.com, the hiring rates of internal auditors is increasing this year, which will necessitate that executives understand the traits that should be exhibited by these business professionals as they assess both operating and compliance risks.

The study also determined that auditing teams are becoming increasingly more diverse in their composition, as a variety of skills in addition to rigorous accounting knowledge must now be displayed by these financial professionals.

Nearly 75 percent of businesses that responded to the IIA survey cited analytical and critical thinking as skills they desired in auditors, while communication skills were mentioned by 61 percent, data mining by 50 percent, general IT skills by 49 percent and a high level of business knowledge by 46 percent.

A sense of objectivity was not cited by companies in the survey, but even the most casual observers of the business world should understand that objectivity is of critical importance for auditors. Still, no matter how objective an internal auditor may be, there is always the chance that not enough professional distance exists between management and those individuals.

For some tasks, a company may need to solicit help from an internal audit consultant in order to ensure that their auditors are doing their jobs correctly. Companies may even be best served working with this service provider from day one, when they initially begin recruiting for auditing positions.

The days of employees working for the same company for 30 years are well in the past, as the American workforce appears more mobile than ever before. The explosion of small businesses has provided consumers with boundless opportunities, while technological advancements have exposed workers to many of these openings. Is it possible, though, that this abundance of opportunities has created disloyal workers who are unlikely to be hired by new businesses?

This phenomenon of “job-hopping” is a relatively new trend brought on by the aforementioned issues, in addition to workers from Generation Y who have been shown to be quite willing to switch jobs if their expectations are not met.

Many business writers have cautioned that workers avoid this temptation, including Forbes contributor Chrissy Scivicque, who referred to the resumes of job hoppers as “scattered, incoherent mess[es].” In a piece written for CNN last January, contributor Dan Schawbel said that his lateral moves at EMC Corporation were ultimately more beneficial than job-hopping would have been.

“I gathered new skills, expanded my network and got a better sense of the company based on my experiences,” Schawbel said. “More importantly, I learned a lot about myself in the process. If I had jumped to three different companies during that time frame, I would have had to rebuild my network, visibility and go through months of additional training for each job.”

Hiring managers generally avoid these job hoppers because of the perceived likelihood that they will switch jobs again, leading to costly turnover. But, a new study released this week by Evolv suggests that the number of jobs, including short-term assignments, that a worker has had in any five-year period is in no way indicative of how long they will stay with different companies in the future.

Businesses decision makers may take this study to heart and adjust their hiring processes accordingly or they may simply rely on professional job search firms when recruiting accountants, managers and other financial professionals.

With Apple expected to unveil its much-anticipated iPhone 5 this month, a number of analysts have been exploring the company’s market position and speculating about different trends and events that may affect the company’s performance.

Ashraf Eassa, a contributor for Seeking Alpha, wrote that the company is in “superb financial health,” but faces a number of significant risks, not the least of which is rising competition. Google and Microsoft recently released their first tablets, while third-party manufacturers are also producing devices that run on those companies’ software.

Aggressive price-cutting by competitors is a factor that will challenge Apple’s dominance. The company’s current success depends on maintaining high margins, but as cheap, competing devices come to be seen as “good enough” by an increasing segment of consumers, Apple may be forced to lower its own price.

Eassa asserts that, in the long-term, “either margins will drop or market share will decrease,” thus putting a potentially significant strain on Apple’s current business model.

Every company needs to prepare for this type of inevitable shift in the direction of the markets it serves.

Working with the interim professionals at a financial project consulting service can help a company assess its situation, evaluate long-term options and develop plans that will power future success.

For companies interested in a more long-term solution, it can be valuable to partner with corporate recruiters. Conducting a financial professional search on your own can be time-consuming and cut down on the attention that business leaders have available for other critical tasks. Recruitment firms help a company carry out a targeted search that connects it with the right talent to fulfill its staffing needs.

Mario Draghi, president of the European Central Bank (ECB), recently outlined a proposal that would see his organization engage in purchases of troubled European Monetary Union (EMU) member governments’ bonds.

Draghi portrayed this program as an “effective backstop” that would allow the ECB to address “distortions” in international bond markets and avoid severe price stability issues.

However, countries would still need to request aid in order to receive it and participation in the bond purchasing program would come with strict conditions. Any government that requires extraordinary aid – in the form of bond purchases by the ECB – would be required to make certain domestic policy commitments, including sharply limited spending.

Global events can prove extremely disruptive for a business – even one that is not immediately connected to the troubled area or industry. Earlier this year, this blog reported on how the ongoing European financial crisis has had a widespread effect on many U.S. businesses.

As Europe’s economic problems continue to grind on, the remedial actions undertaken by regional governments and EU institutions will undoubtedly have critical implications for various markets. The exact effect these events will have on different U.S. and international corporations is difficult to quantify, given that each organization has its own long term plans to consider.

Companies can benefit from working with a financial project consulting service to determine the extent to which they will be able to capitalize on or will be required to account for the impact of measures such as the ECB bond-buying program.

Alternatively, a business may find that it is necessary to bolster their long-term analytical capabilities by conducting a financial professional search. Recruitment firms can help companies assess their needs and select the right candidate to guide their financial decision-making going forward.

We recently explored the details of a decision by the U.S. Federal Reserve to purchase mortgage-back securities (MBS) in a policy initiative referred to as quantitative easing.

In addition to making $40 billion in fresh asset purchases each month, the Fed will also continue its current policy of using principal returns from previous investments to purchase new securities. A statement from the central bank’s Board of Governors asserted that this will result in an additional $45 billion in MBS purchases each month.

The ostensive purpose of the program is to reduce the cost of borrowing for U.S. businesses and consumers by injecting money into the financial system. In June, Federal Reserve Chairman Ben Bernanke told Congress that he believed the initiative would facilitate economic growth and the expansion of employment opportunities in the U.S.

However, a recent survey conducted by Duke University and CFO Magazine revealed that corporate finance chiefs in the U.S. and globally remain skeptical about what the ultimate effects of the Fed’s program will be.

Among over 1,400 CFOs, 91 percent said that even if the Fed’s actions led to a 1 percent decline in interest rates, they would not fundamentally expand their investment plans. A less-likely 2 percent decline in rates would be only marginally better, with 84 percent of the finance executives saying that it would not change their plans.

“I think the Fed has pretty much pulled all the levers that it can,” said Greg Bubp, CFO at an Illinois-based industrial manufacturer.

With the economy struggling, each executive-level hire is increasingly critical. Corporate recruiters can help companies get the most out of each executive or financial professional search and ensure that they select candidates who will fill their current staffing needs and fit within the established organizational culture.

This blog has recently discussed a number of positive indicators concerning the trajectory of the U.S. economic recovery, including an uptick in manufacturing activity and rising consumer confidence.

Today, we’ll take a look at how the positive trend in public confidence regarding the economy may be affected by the most recent ADP national employment report, which was released on October 3.

The report showed a significant increase in U.S. nonfarm private sector employment, with a total of 162,000 new positions created.

MarketWatch reported that stocks gained ground in the wake of the release of ADP’s job creation numbers, which exceeded many economists’ expectations. The news source cited an increase in several major indexes, including the S&P 500, Dow Jones Industrial Average and Nasdaq Composite.

The Department of Labor’s Bureau of Labor Statistics (BLS) is scheduled to release its monthly employment situation report on Friday, October 5, which may have an impact on investor confidence. Particularly over the course of the past few months, BLS data has often varied considerably from the estimates produced by ADP.

According to MarketWatch, one of the prime reasons for the wide variation is that ADP’s research only looks at private sector employment, while the BLS also factors in any change in government employment, which has been shrinking significantly due to budget cuts.

The bottom line for businesses

Ultimately, the question facing many corporate leaders is whether or not to prepare for expansion. With the trajectory of the economic recovery remaining somewhat tenuous, it is unclear to companies how hiring decisions should be handled. There is a compelling reason to balance the desire to keep commitments minimal with the need to be prepared for an uptick in economic activity.

One thing remains clear. When businesses are looking to fill critical positions such as CFO jobs, quality is of the utmost importance. Professional recruiters can help any company conduct a fast, effective financial professional search.

 

In a recent report on global economic conditions, the International Monetary Fund (IMF) asserted that the realization of the “fiscal cliff” – a combination of drastic spending cuts and considerable tax increases set to take effect at the end of the year – would most likely lead to a fresh recession.

Many other economists, such as The New York Times’ Paul Krugman, have also voiced concerns about the effect of withdrawing money from the economy so rapidly. Among this group, the consensus is that maintaining growth continues to be the most important priority for current policy-makers.

However, Peter Schiff, president and CEO of Euro Pacific Capital, has a different take on the issue, asserting that the short-term pain of withdrawing federal funds from the economy will be worthwhile if the nation can ultimately emerge in a more solid fiscal situation.

“Our economy is so screwed up from years and years and years of bad monetary and fiscal policy that it’s going to painful to correct that problem, but we have to do it,” Schiff told a reporter from Yahoo! Finance’s Breakout blog. “We can’t keep avoiding the pain and in the process making the problem worse, because then we’re just going to have even more pain in the future to fix an even bigger problem.”

Lawmakers still working to resolve impasse on taxes, spending

Earlier this month, The New York Times reported that a bipartisan group of Senators is working to design a comprehensive, long-term plan that would cut the deficit without the blunt force trauma that going over the fiscal cliff would deal to the fragile economic recovery. Top Senate Republican Mitch McConnell told The Times that the final shape of any deal would depend heavily on the results of next month’s election.

During this uncertain time, sound financial leadership is extremely important for all companies. Recruitment firms can help corporations conduct effective financial professional searches.

We recently discussed the ongoing fiscal crisis in the eurozone. As events have dragged on, there has been an increasing amount of speculation regarding the prospect that Greece – the most troubled nation in the currency union – will abandon the euro.

At the recent annual meeting of the International Monetary Fund in Tokyo, Swedish finance minister Anders Borg said he believes it is “most probable” that Greece will leave the eurozone and observers shouldn’t rule out the idea that it will happen within the next six months.

However, few people have come forward with a practical plan for separating Greece, or any nation, from the eurozone. When negotiating the underlying treaties, the euro’s founders did not establish a process for countries to depart the currency union.

The Boston Globe recently looked at a hypothetical plan put forward by Roger Bootle, head of research firm Capital Economics. Bootle’s proposal has one goal – creating an independent Greek financial system without causing, or allowing, significant capital flight prior to the conversion.

Bootle concedes that his plan would be particularly painful for poorer Greeks, but he says he believes that not taking action would only prolong the period of difficulty and lead to greater hardship.

Barry Eichengreen, a Berkeley economist, told The Globe that he was highly skeptical a plan along the lines of Bootle’s would be effective in abating the current crisis. He concedes that the plan is “beautifully crafted,” but asserts that even careful craftsmanship doesn’t necessarily mean the plan is realistic.

However, Bootle points out that, just because his plan leaves a number of messy, unresolved questions, that doesn’t mean there are any alternatives that would offer a problem-free resolution.

Whatever action is undertaken by European governments, it is clear that companies with interests in the continent will have to keep a close eye on new developments and react accordingly. Financial project consulting services can provide a critical aid in this process.

On October 25, CareerBuilder released its annual assessment of retailers’ hiring plans for the upcoming holiday season. Traditionally, this time of year brings a significant, but short-term, bump in employment as stores expand their staffs to handle extra traffic.

This year, the number of positions being added by employers is up considerably from last year’s figures, according to CareerBuilder’s report.

Harris Interactive surveyed more than 2,400 employers regarding their hiring plans to get the data. Thirty-six percent of respondents indicated that they plan to expand their workforce for the holiday season. This represents a 29 percent increase over 2011.

In addition, 39 percent of those conducting extra seasonal hiring intend to transition some of the new workers into permanent roles.

CareerBuilder CEO Matt Ferguson linked the strong seasonal hiring plans with rising confidence and asserted that the season should see an overall surge in economic activity.

“An increase in consumer confidence is helping to fuel the best seasonal hiring the U.S. has seen in recent years,” said Ferguson. “While the bulk of seasonal recruitment falls within the retail space, companies across industries are hiring for a wide range of positions to support their business operations as they wrap up the year.”

Even a strong holiday season won’t eradicate economic uncertainty

We’ve recently discussed a number of other indications that the economy is strengthening. However, we have also discussed ongoing challenges confronting sustained global growth, including the fragile situation in the eurozone and the looming package of spending cuts and tax increases referred to as the “fiscal cliff” in the United States.

In this time of uncertainty, it is more crucial than ever that companies have sound fiscal expertise on their leadership teams. Filling CFO jobs and other high-level positions is always a delicate process, but in this tumultuous economic climate, it is clear companies do not have time to pour into a protracted financial professional search.

Recruitment firms can help businesses conduct a fast, effective search.

We recently discussed a number of reports that show a strengthening U.S. economy. Both the ADP National Employment Report and the Employment Situation Summary put out by the Bureau of Labor Statistics (BLS) reported that there was a net increase in jobs last month.

In addition, the job creation figures for the previous two months were revised upwards to reflect uncounted employment. Despite these gains, some observers may have been put off by the fact that the national unemployment rate increased slightly in October.

However, there is evidence that the main reason for this shift is that more Americans are looking for jobs. The Boston Globe reports that nearly 1 million workers have reentered the labor market since September.

This is a positive sign. The Globe spoke to Kenneth Rogoff – an economics professor at Harvard University – for further analysis. He explained that these developments fit into the pattern of a “normal recovery.”

“That’s part of the process,” said Rogoff. “People start to smell jobs and come into the workforce.”

Recruitment firms help companies identify and evaluate leading candidates

Business leaders’ spirits may be buoyed by the range of signs that are pointing to a strengthening economic recovery. However, high-caliber talent continues to be hard to come by. There will always be a need for companies to put an emphasis on quality when conducting an executive or financial professional search.

Leaving CFO jobs or other important positions vacant for long periods during a protracted search can prove disruptive for a company. Working with professional recruiters can help businesses quickly connect with leading talent, evaluate individual candidates and recruit the right professionals for their open positions.