Fall 2014 issue of Horizons

PUBLIC SECTOR

In one of the most cited studies on employee engagement, psychologist Frederick Herzberg published his findings on what motivates employees. Herzberg found that three of the most important motivators for employees are challenging work, responsibility, and recognition. Transitions that result from retirements can create opportunities which provide employees challenging work and additional responsibilities. Recognition can come in the form of identifying high potential employees and providing them with unique leadership development opportunities such as formalized mentoring relationships with key personnel in the organization, attending outside trainings, and assigning them to be part of a team for an important project. An equally important outcome from demonstrating the “recognition” of high potential employees by providing these types of leadership opportunities is, of course, the benefit itself of the mentoring, trainings, and experience from working on an important project. The development of current employees also requires an understanding of the desired characteristics of leaders in the organization. Additionally, it would be in the best interests of most organizations to promote those who have demonstrated those desired characteristics over a long period of time and in challenging circumstances. Organizations can find themselves in difficult situations if they find that they have promoted someone based on a skill set that was projected on an individual rather than validated (for example, she attended the same graduate school as me, and we have a lot in common and I like her, so she will be a good fit for the job). Likewise, having to hire outside the organization can also prove to be disruptive if the experiences and behaviors of the new hire do not mesh well with the established employees.

Ted Williamson, CPA, primarily serves public sector clients and presented on GASB’s Fair Value Initiative during the GFOA National Conference in Minneapolis.

Common areas that are outsourced include:

∙ Human resource functions (screening for hiring, payroll, benefits, and health and wellness programs)

∙ Aspects of accounting and financial reporting

∙ Internal audit

∙ Significant portions of information technology and data warehousing

∙ Litigation support

∙ Public works

∙ Parts of parks and recreation programs (especially golf courses and recreation center management)

Development of Current Employees A positive result of turnover in the senior ranks is the opportunity for younger employees to fill those positions. For employees who are driven to reach more senior roles in an organization, it can be demoralizing to feel like there is limited or no upward potential in an organization.

page 50 | horizons Fall 2014