Win the Talent War Develop the Middle
By Jim Boomer, CPA, MBA, CIO Retaining and attracting talent continues to sit at the top of the list of challenges facing accounting firms. Perks such as flex-time and in-office massage therapists during tax season are bandages rather than solutions. Until firms focus on the root problem—little or no development of the firm’s middle management—they will struggle to keep the best people. The adage—people do not leave bad firms; they leave bad managers— has never been more relevant. Generations X and Y are flooding the workplace, and they are significantly different from Baby Boomers and those who came before them. Instilling loyalty to keep employees around is not enough. A firm must offer the total package—a pleasant work environment, work/life balance, and opportunities to succeed and develop. The best way to make certain they get the total package is to match them up with good managers. They are probably sitting in an office or cubicle somewhere inside your firm. They simply haven’t been given the attention and support to grow from being good to great. Most firms look for the magic bullet, but there isn’t one—they must invest in mid-level employees in order to maximize their potential. Here are some of the most significant issues holding firms back, along with potential solutions. So what are the consequences of not developing your mid-level people? It will affect your firm on multiple fronts. Financial – Obviously, if you lose people—especially the best and most experienced—the firm will have to make a significant investment to recruit and hire replacements. This investment will invariably outweigh the one required to develop those you already employ. Culture – It is burdensome to sustain a thriving work culture when employees come and go. Human Resources – If the HR department is constantly transitioning employees in and out, it is taking away from efforts that pay off in the long run—making the work experience better for existing employees. Process – Certain people have better opportunities for employment because they are talented and possess extraordinary potential. If your firm is like most, it does not plan and document its processes. As a result, even the best employees cannot execute to their full potential. Succession Planning – The sustainability of your firm and its culture are better served by developing leaders from within. Providing opportunities to develop a well-rounded skill set results in a pool of future leaders throughout the firm. Ownership is compensated on a book of business and chargeable hours. Mid-level employees feel pressure to work on clients at the expense of working on the firm and helping employees develop skills. Training plans are technically focused and are only a means to meeting CPE requirements. Succession planning is addressed only as necessary, meaning the firm likely hires from the outside. Develop a goal-oriented compensation system including a balanced scorecard that focuses on financial and non-financial success factors. Include management and soft-skill development. Foster a training and learning culture that focuses on CPE, soft skills, leadership, and management. Shift focus to the future and develop talent at all levels—especially the oft-ignored. Jim Boomer, CPA, MBA, is CIO and Senior Consultant with Boomer Consulting, Inc., a provider of consulting services and intellectual capital to the accounting profession. E-mail him at jim@boomer.com.People Leave Bad Managers—Not Firms
Where Does a Firm Find Good Managers?
Consequences of Not Developing the Middle
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