Spring 2008 issue of Horizons

A P u b l i c a t i o n b y R u b i n B r o w n L L P

S P R I N G 2 0 0 8

Talent: Driving Innovation and Growth

INSIDE GETTING READY FOR THE NEXT GENERATION BUILDING TALENT FROM THE INSIDE OUT Page 5 POSITION YOUR COMPANY TO ATTRACT TOP TALENT Page 7 GOT TALENT? Page 9 GENERATION Y – ARE YOU READY? Page 13 AND MORE

horizons

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

CONTENTS

ii Welcome 1-2 RubinBrown New Hire & Awards 4 For Your Money 5-6 International News: Baker Tilly 7-8 Feature Article: Position Your Company to Attract Top Talent

9-11 General Topics: Got Talent? 13-16 Guest Article: Ginny Barnes, G.B. Communications, Inc.

Industry News

17-18 ARCHITECTS & ENGINEERS 19-22 CONTRACTORS 23-24 HOME BUILDERS 25-26 LAW FIRMS 27-28 MANUFACTURING & DISTRIBUTION 29-30 MORTGAGE BANKING

31-32 NOT-FOR-PROFIT 33-35 PUBLIC SECTOR

INFORMATION Editor: Tim Shannon Graphic Design: Hughes Communications Specialist: Michelle Ward

Horizons, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matters covered. Although prepared by professionals, its contents should not be construed as the rendering of advice regarding specific situations. If accounting, legal or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions. Located in St. Louis and Kansas City, RubinBrown has become one of the largest accounting and business consulting firms in the Midwest. www.rubinbrown.com

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

John F. Herber, Jr. CPA Managing Partner

Welcome Talent. It is what we as business leaders seek for our organizations. It determines if we have the ability to get things done and take our organizations to the next level. At RubinBrown, settling for second best has never been an option, which is one reason we are able to support the growing needs of our clients and our firm with confidence. Managing talent is an ongoing process at RubinBrown. We invest time and resources to find the best and the brightest individuals in the profession. In this competitive marketplace, however, finding them is not enough. We provide opportunities for development within our organization through a dynamic professional environment. In this issue, we attempt to define how recruiting and retaining talented individuals will impact our organizations, our customers and our relationships into the next decade. In addition, Dr. Ginny Barnes, from the University of Missouri, defines generation Y and what we, as future employers and mentors, can expect from this emerging talent pool. I invite you to read this publication and offer us your feedback. Our goal, as always, is to totally satisfy you, our clients and friends. We hope to hear from you – john.herber@rubinbrown.com. Pleasant reading.

St. Louis office RubinBrown

One North Brentwood St. Louis, MO 63105

Kansas City office RubinBrown 9300 West 110 th St. Ste. 600 Overland Park, KS 66210

RubinBrown New Partners

RubinBrown New Managers

Theresa Lynch Ruzicka, CPA , joined RubinBrown as partner-in-charge of its Small Business Group. She has more than 20 years of experience in business. Before coming to RubinBrown, Theresa worked at Ernst & Young, Washington University, ProjectProfessionals LLC, and Medical

Elsa Coronado Fortune, CPA , joined RubinBrown as a manager in its Assurance Services Group. She specializes in the preparation and review of small audit engagements, compilationsandreviews, as well as all aspects of financial statements, tax planning and consulting services for

Billing Review LLC. She is a member of the American Institute of Certified Public Accountants and the Missouri Society of Certified Public Accountants. Theresa is involved in the Creve Coeur Economic Development Commission, St. Louis Forum, the Washington University Olin School of Business Alumni Executive Committee, FOCUS St. Louis and the Junior League of St. Louis. She holds a master’s degree in business administration from Washington University and a bachelor’s degree in business administration from Southeast Missouri State University.

small business clients. Elsa concentrates on a diverse client base, including those in the firm’s Health Care and Law Firm Services Groups. She provides expertise in financial and management consulting, forecasts and projections, business performance analysis, general ledger implementation and financial statement presentation. Prior to joining RubinBrown, Elsa served as a manager with two other St. Louis accounting firms. She is a member of the American Institute of Certified Public Accountants and the Missouri Society of Certified Public Accountants and volunteers at St. Clement Parish, Cardinal Glennon and St. Martha’s Hall. She also coaches a girls’ club basketball team. Elsa holds a bachelor’s degree in accounting with a minor in Spanish from St. Louis University.

Timothy Sims, CPA , joined RubinBrown as a partner in its Tax Consulting and Manufacturing and Distribution Groups. Tim provides several services to RubinBrown clients, including tax planning for mergers, acquisitions and divestitures, tax examination defense, tax litigation

Brenda Hebenstreit, CPA , joined RubinBrown as a manager in its Assurance Services Group. Specializing in SEC reporting, Brenda works on audit and internal audit engagements. She brings more than 10 years of experience to RubinBrown. Previously, she served as

support and overall tax consulting and related tax compliance. He has more than 16 years of experience, working most recently for Charter Communications as the vice president of tax. Prior to that, he worked for 12 years at Arthur Andersen LLP. Tim holds a bachelor’s degree in accounting from Southern Illinois University-Carbondale and serves on the university’s School of Accountancy Board of Advisors. He also serves on the governance board for the Make-A-Wish Foundation and is the current secretary. Tim is a member of the American Institute of Certified Public Accountants and the Missouri Society of Certified Public Accountants.

an audit manager with Arthur Andersen. Brenda is a member of the American Institute of Certified Public Accountants. She holds a bachelor’s degree in business administration, with an emphasis in accounting, from the University of Missouri-St. Louis.

Sharon Latimer, CPA , joined RubinBrown as a manager in its Assurance Services Group. Based in RubinBrown’s Kansas City office, she serves clients in the product distribution, service, restaurant and hospitality industries. Sharon brings more than 20 years of public accounting

experience in Kansas City to RubinBrown. She is a member of the Kansas Society of Certified Public Accountants and holds a bachelor’s degree in accounting from Kansas State University. Sharon also serves on several committees at Church of the Ascension and for the Olathe School District.

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knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Nancy MacDonell joined RubinBrown as a manager in its Tax Consulting Group. Nancy brings nearly 10 years of experience to RubinBrown, having previously worked as a federal tax manager at Charter Communications and senior tax staff at Arthur Andersen. Nancy is a member of

Jeffrey Schuetz joined RubinBrown as a manager in its State and Local Tax Group. In his new position, he manages and provides assistance on all phases of state and local tax compliance. Jeff also offers tax consulting and planning services to clients. He brings nearly 10 years of

the Broadband Tax Institute. She holds a master’s degree in accounting from the University of Missouri-St. Louis and a bachelor’s degree in accounting from Western Michigan University.

federal, state and local tax experience to RubinBrown. Jeff previously worked as a tax manager at Insituform Technologies Inc. and as a field auditor with the Missouri Department of Revenue. He holds a bachelor’s degree in accounting from Truman State University.

David Richert Jr., CPA, CIA, CISA, CQA , joined RubinBrown as a manager in its Internal Audit Services Group. He specializes in working with clients in the information technology and business process assurance industries. David has more than 25 years of accounting

Matthew joined RubinBrown as a manager in its Tax Consulting Group. He provides accounting and tax consulting to closely held companies in the manufacturing, construction, health care and professional services industries. Matt brings 15 years Sprenger, CPA ,

experience, previously working for the Federal Reserve Bank of St. Louis and PricewaterhouseCoopers LLP. He is a member of the American Institute of Certified Public Accountants, the Missouri Society of Certified Public Accountants and the Institute of Internal Auditors. David holds master’s and bachelor’s degrees in business administration from the University of Missouri-St. Louis.

of accounting experience to RubinBrown, most recently working as a tax manager for another St. Louis accounting firm. He is a member of the American Institute of Certified Public Accountants, the Missouri Society of Certified Public Accountants and the Medical Group Management Association. Matt holds a bachelor’s degree in accounting from the University of Missouri-St. Louis.

Shawn Schaefer, CPA , joined RubinBrown as a manager in its Assurance Services Group. He primarily serves clients in the company’s Real Estate, Contractors and Home Builders Services Groups. In his new role, he manages the audit engagement process, identifies new

Awards

business opportunities, and assists in team member development and new talent recruitment. Shawn is a member of the Missouri Society of Certified Public Accountants, American Institute of Certified Public Accountants and University of Illinois Alumni Association. He holds a master’s degree in accounting and a bachelor’s degree in accounting from the University of Illinois at Urbana-Champaign.

Felicia Malter, CPA , a partner in the Assurance Services Group at RubinBrown, has been named to the St. Louis Business Journal’s 40 Under 40 Class of 2008. Featured in the Jan.11, 2008, issue of the St. Louis Business Journal, Felicia was selected as one of 40 honorees out of

nearly 350 nominations. The recipients, recognized for their achievements before the age of 40, were selected by previous 40 Under 40 winners and St. Louis Business Journal editors. They were honored at a recognition dinner and ceremony on Feb. 7.

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Value. With the right financial partner, it all fits together.

For more than half a century, RubinBrown has been making a lasting mark on business. Our one-firm approach means you gain access to a comprehensive chain of services, all managed and delivered by an integrated team of experts. It’s how we’re able to provide the kind of insights and solutions you need to succeed. Firm-wide, specialized knowledge. An unmatched commitment to service. That’s the value RubinBrown delivers. Contact us today and discover for yourself the RubinBrown difference.

www.Rubin Brown.com Certified Public Accountants and Business Consultants

Knowledge. Commitment. Value .

Assurance | Internal Audit | Litigation Support | Qualified Plan Audit | SEC Advisory | Small Business State and Local Tax | Tax and Compliance | Valuations | Wealth Management

4 u winter 2008 issue

For YOUR money

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

responsible to invest the money. Although the parents can guide them and oversee the investment, the children must work together. If the investment does well, maybe the family takes a better vacation. If the investment tanks, maybe the family only goes camping. Other families have had their children run garage sales to teach them how to work together and handle money. It could be interesting to see how children divide up tasks to get the work done. Who will set the prices? Who will get the word out that the garage sale will take place? Who will deal with the customers? How will the profits from the garage sale be split? People with family businesses may want their children to work in the business part-time to gain real world experiences. The point of these exercises is to teach children to work together and make intelligent decisions about money. Simply talking about teamwork and money management may not be enough for children. Tying educational moments to an actual event provides a better chance to have the lesson really sink in. When children reach an appropriate age, it also is important to teach them how the capital markets and investments work and how financial decisions can be made. Providing children with this financial foundation can help them learn to manage money and ensure financial stability when they get older. Your financial advisor can be helpful in this area. The teamwork concept helps strengthen families and prevents hurt feelings. Such lessons are useful for families regardless of their financial status. Any teaching that goes on for several years gives a message to children that it takes time to build a financial base. It also can be useful to teach children your values. Otherwise, the children may adopt the culture of their peers, which might be about undue consumption and spending beyond a person’s means.

Teaching Teamwork

and Financial Management to Children It is not uncommon to see families bicker over finances. One cause of this problem is that some families are completely unprepared to handle money. For children, it is quite possible that the first time they have to make significant wealth decisions together occurs when one or both of their parents die and they are settling their estate. This event is not a good time for siblings to learn about making group financial decisions. Some parents have started to teach their children about teamwork and money management at an early age. For example, a parent can entrust his/her children with a set sum of money (let’s say $5,000) each year. The children (let’s assume they are ages 13 and 15) will be primarily

Questions? Contact:

Mike Ferman, CPA Partner RubinBrown Advisors 314.290.3211 mike.ferman@rubinbrown.com

4 u spring 2008 issue

INTERNATIONAL NEWS Baker Tilly International

Joe Pimmel, RubinBrown St. Louis Office

RubinBrown: Building Talent from the Inside Out What? From the inside out? What do you mean? I mean internationally. RubinBrown is building our teammembers into stronger professionals every year through the Baker Tilly International Secondment Program. Through this innovative approach, RubinBrown sends two to four of its promising team members overseas to network firms across the globe. This past year we sent team members to Glasgow, Scotland, and Melbourne, Australia, to learn about local accounting practices, firm structure and processes, and the local culture. If you ask team members who have traveled abroad in this program, you will hear their excitement in “meeting new people, observing how other people do things, and reflecting on how things are going back home.”

What does the secondment program through Baker Tilly International offer its member firms? For the staff of

RubinBrown, the secondment program: Provides international work experience

• • •

Provides personal and professional development Facilitates partnership through working with others and strengthens personal relationships within the network For RubinBrown, the secondment program: Assists with staff retention and motivation Aids in recruitment Provides international work experience for staff development Facilitates partnerships between firms and strengthens firm relationships in the network As our recent secondment program participants will tell those who ask, “Work was the important part of the experience.” A secondee (as secondment program participants are dubbed) works with firms that vary greatly in areas of expertise and local size. “We learn about other firms, their office size and the work environment (open work tables versus cubicles).” A secondee also learns about how other firms are managed and how they service their clients on a day-to-day basis. “Managers sit with the staff, which differs from RubinBrown.” For smaller firms, “They need paper more than we do. Our approach is moving to a paperless environment.” For secondees visiting larger network offices, they learn “how they (the firm) attempt to meet their objectives – how they handle a paperless audit and how they handle their work papers, audit sampling, scheduling and time off, internships and recruiting, and how they use technology to provide services to their clients.” • • • •

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International World Conference

Chester Moyer, RubinBrown Kansas City Office

The Baker Tilly International World Conference recently was held in “The City of Lights” – Paris, France. Staying consistent with the theme of collaboration and embracing change, member firms from around the world met to discuss issues related to international communications and the global economy. Conference attendees included 340 delegates from more than 70 countries and more than 190 guests. RubinBrown’s Jim Castellano, chairman of Baker Tilly International, provided the session’s opening remarks. The conference formally commenced with a reception in the Pyramide de Louvre, where Castellano thanked everyone for their commitment to the network and congratulated Baker Tilly International on 20 successful years. Castellano commented on the scale of change in the profession over the past two decades. He added that Baker Tilly International has matched the progress of the profession but continues to challenge each region for further growth and to operate as a business. Robin Oakley, European political editor for CNN, provided an overview of the EU as it celebrates its 50th birthday. Oakley discussed whether the EU has been a success story and presented the need to strike a balance between economic reform and social protection. He felt the key test will be how the EU handles Turkey’s Union admission; immigration; the United States, China and Russia; and energy security. To date, Baker Tilly International is the 8th largest accounting and consulting network in the world, with 138 independent firms representing 104 nations and annual aggregate billings of more than $2.5 billion. New members to Baker Tilly International represent Armenia, Azerbaijan, Indonesia, Moldova, Mongolia, Spain and Zambia.

Not only does the secondee learn international accounting practices, new ideas and best practices from other firms, they also grow personally. According to one participant, “Many of the individuals I met during the secondment had a much different view on life than the ‘average American’ – they all seemed to make every available opportunity to travel or experience something new. Many Americans discuss 'back-packing' through Europe, taking long holidays, moving to foreign cultures, etc., but rarely make good on these thoughts. Most of the people I met during this experience had the same thoughts but followed through on them and had incredible stories and experiences to share.” Not only does the experience grow and enrich the team members of RubinBrown and the firm, but RubinBrown secondees also are ambassadors to the world. One of our recent secondees remarked, “I gained an appreciation for the reach of RubinBrown. Those we visited know about St. Louis and our culture through RubinBrown by knowing team members from RubinBrown even if they never travel to St. Louis. Those things that we define as St. Louis or KC, like the Rams or the Chiefs, are little known in foreign lands. It is RubinBrown that is St. Louis and KC to them.” RubinBrown is anactiveparticipant within the secondment program of Baker Tilly International because we focus on building talented professionals to provide services to our clients doing business in a growing global economy.

Questions? Contact:

Jim Castellano, CPA Chairman 314-290-3300 james.castellano@rubinbrown.com

6 u winter 2007 issue spring 8

FEATURE ARTICLE

Position Your Company to Attract Top Talent

building a workforce that is committed and energized to achieving the organization’s goals.

2. Make lifestyle part of your offer. Many employees are just as concerned about quality of life as they are about the amount of money a position offers. Make your company more attractive to potential employees by offering things such as flexible hours and work at home options. Among the more unusual benefits, some of our clients offer their employees an option to bring their pet to work. You may not be able to do this, but add your signature by offering some type of perk that your employees will appreciate. 3. Offer an employee benefit program. In times when employees get to pick and choose companies, an employee benefit program moves from their wish list to their necessities list. For successful employee recruitment, your company needs to offer employees at least life, medical and dental coverage. If your business is small, check with business organizations like the Chamber of Commerce about more inexpensive insurance. 4. Start a profit sharing program and/or a 401(k) plan. There is no better way to give employees a stake in your company’s success. For businesses that are going somewhere, profit sharing and/or a 401(k) plan can be a powerful inducement to work for you instead of someone else. 5. Offer employees upward mobility. Most employees are looking for positions that offer opportunities for advancement. What will your position offer? The chance to develop new skills? A stepping stone to a position with more responsibilities? More money after a certain amount of time on the job? Whatever it is, in terms of attracting employees, be sure to communicate future advancement possibilities. 6. It’s the M word again (money). One common mistake businesses make when creating a position is to base the salary on their budget rather than the market realities. If the going rate for a two-year accounting professional is $55,000 a year, why would someone accept $40,000 a year? Save yourself time, money and training in the long run by paying market rates to get top talent.

Remember the days when you ran an ad and received hundreds of qualified candidates? Demographics, increased accounting college credit hours (to sit for CPA) and, until recently, a strong economy have created a shortage of top talent. That doesn’t mean you should give up. There are many talented candidates – you just need to know how to position your company to attract them. Based on our research and work with employers across the country, we have identified the distinguishing traits of organizations that attract, retain and motivate the best employees. The bottom line is: Money is a necessary – but not sufficient – condition to attract, retain and motivate good employees. You and I will go to work for a paycheck and benefits plan. But we won’t really do work (at least our best work), unless something else is present. It is the quality of work itself and our relationships with others at work that draw us to the best organizations and keep us there, performing at peak effectiveness. Expanding further, here are the detailed steps to make sure your company is ready to draw in the top talent. 1. Get excited about your company. Make a commitment to create a workplace with purpose, excitement and mutual alignment. Refocus your energy on your employees from a whole-life prospectus. Poll your employees on what they appreciate about their jobs and co-workers. Knowing what makes your company unique and communicating that message is the foundation for • •

7 u spring 2008 issue

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

7. Create an employee incentive program. Employee incentive programs not only reward good employee performance, but also give prospective employees something to look forward to if they come to work for you. Whether it’s an annual company-paid retreat or a program in which employees collect points that they can trade in for cash, employee incentive programs can increase your chances of attracting top talent. 8. Sweeten the pot. When competition is fierce, a plain old-fashioned signing bonus may be what is needed to attract the employee you want. If you choose to do a signing bonus, it should be large enough to matter, and the bonus should be contingent on a certain amount of time of employment. (Otherwise you will be running a revolving door as people sign up, take the money and run.) 9. Develop a relationship with a recruiter. Invite the recruiter into your company to learn as much about your company, its culture and a wish list of your needs. When a recruiter gets excited about your company, he/she can be in a constant search mode for quality talent for you. There also should be an agreement that the recruiter will not solicit your own employees. 10. Be transparent. Employees love to be a part of the big picture. Communicate goals and objectives of the company. Develop a mission statement and strategic objectives, then communicate it at all levels of your organization. Attracting and retaining employees is as much a marketing issue as it is a management issue. Developing and promoting a positive organization and reminding employees of the value of being part of it are critical to recruiting and retaining top talent.

Questions? Contact:

Tamara Vasquez President ABACUS Recruiting 314-878-5522 tamara@abacusrecruiting.com

8 u spring 2008 issue

GENERAL TOPICS

Got Talent? If you are struggling to find top finance and accounting talent, you are in good company. Attracting and retaining talent continues to be a leading management issue facing all forms of entities – from banks to accounting firms, from small private to large public enterprises, from not- for-profits to government organizations. The competition for talent is fiercer than ever before, and there is no end in sight. The question is: How do you position your organization to win this battle? Uncovering strategies to forge this war on talent must begin by understanding the underlying issues, and there are a number of them. Demand is at an all-time high due to a perfect storm of economic conditions, demographics and increased regulation.

Although the subprime mortgage crisis is calling into question the current economic stability, the unemployment rates are still relatively low and have been for a number of years. In other words, there is an overall shortage of talent in the marketplace, and the shortage of finance and accounting professionals is much more extreme given some additional complicating factors. The supply of available talent is scarce at all levels of experience. It is the most experienced talent that is most troublesome. More finance and accounting professionals will retire in the next 10 years than in the last three decades combined. We will lose a generation of the workforce that not only has a wealth of knowledge, but also represents a generation of career-minded, loyal employees. This shift occurs at the same time a new generation, generation Y, is entering the workforce. This new generation’s free agent mentality will indubitably complicate the talent issue, as they are much more prone to change employers multiple times over the course of their careers.

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knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

It was with this backdrop that the now infamous corporate scandals of Enron and WorldCom shook the financial markets. The regulators answered with the Sarbanes-Oxley Act of 2002, an unprecedented law virtually doubling the need for finance and accounting talent overnight. In addition, the resulting lack of overall investor confidence has created a cascading effect of similar requirements for both private and public sector organizations. As such, the demand for talent is at an all- time high and likely will continue to increase, straining an already depleted supply. Organizations will need to be creative to win the talent game. Here are a few of the strategies being employed to combat the talent crisis. As with most solutions, the answer doesn’t lie with one big action but a series of small actions. Think about it. More than any other employees, finance and accounting professionals appreciate the value of good corporate governance practices. Given the wealth of employment opportunities awaiting these individuals, why would they settle for an organization that doesn’t embrace these principles? Given the all-too-recent corporate scandals, setting a strong tone at the top for your organization will have the derivative effect of attracting top talent. 2. Revisit your campus recruiting strategy. To get the best graduates, the best organizations are hiring interns from the junior ranks. To get the best interns, these same organizations are now seeking out sophomores for top intern slots. There is a certain stickiness with interns. They are much more likely to accept full-time offers of employment than non-interns. Moreover, you have a low- risk opportunity to evaluate their on the job performance before committing to them for the long-term. Send the heavy hitters to campuses. Don’t just rely on your recruiters to visit campuses and interview. If you want to differentiate your organization, bring members of top management to meet the recruits, and give them first- hand knowledge of your corporate culture and the real opportunities that await them. 1. Embrace superior corporate governance practices.

3. Accelerate the hiring process. Recruits are entertaining multiple employment offers, including offers from your competition. Don’t delay in making hiring decisions. According to a recent Hackett Group (a Boston consulting firm) survey, the average Fortune 2000 company spends 52 days selecting a candidate, whereas the best companies make their hiring decisions 31 percent faster. Accelerate interviews, personality tests and background checks. Try to have all interviews take place in one visit. 4. Consider outsourcing opportunities. The scarcity of talent is so severe that outsourcing may make good sense for some employers. Focus on your business and let professional firms recruit and train top talent so that you can gain access to it when you need it. 5. Employ online recruiting tactics. Organizations need to look beyond their local markets for top talent. Take advantage of the Internet to broaden your search. Look for opportunities to hire talent relocating into your market. 6. Connect with your existing employees. As challenging as it is to recruit new employees, organizations should invest an equal amount of time and energy in retaining existing employees. People don’t quit an entity; they quit people. Leaving is easier for them if there is not an emotional connection between them and your people. Create a mentoring program that focuses on building relationships with staff. The stronger the emotional bond with your staff, the more difficult it will be for them to leave. Create a flexible work environment to attract and retain non-traditional employees, including working mothers. Utilize technology to allow for work outside the office or from home. Embrace diversity and expand your traditional hiring profile. Not only will you open up a new talent pool; your organization will be stronger in the long run.

10 u spring 2008 issue

GENERAL TOPICS Got Talent? (cont.)

the current economic conditions, demographics and regulatory environment, organizations will need to consider alternative strategies to remain successful. We hope the above ideas give you a fresh perspective on this challenge as well as new insights on how to overcome it.

7. Create a leadership development program. Identify your top performers and develop their talent and leadership skills. This investment will not only serve to invest in the future, but also retain this group for longer periods of time. Top management must be actively involved in such a program. Get participants involved in all aspects of the business through special projects and job shadowing opportunities. Involve them in real business problems, not just case studies. 8. Don’t settle for second best. Although it may be tempting to settle for “B” players in a tight labor market, it will damage your organization in the long run. Don’t be too stringent on the specific qualifications and experience you desire; rather, look for candidates with overall intelligence, a desire to learn and energy. You can teach these candidates what they need to learn.

Questions? Contact:

Fred Kostecki, CPA Partner-in-Charge Assurance Services Group 314-290-3398 fred.kostecki@rubinbrown.com

or

Steve Newstead, CPA, FLMI Partner-in-Charge Internal Audit Services Group 314-290-3325 steve.newstead@rubinbrown.com

We are in the midst of a war for finance and accounting talent that will only become more competitive. Given

11 u spring 2008 issue

You’ve gained the knowledge. Do you have the commitment?

Commitment. It’s a special value here at RubinBrown. It describes the professional pride in the work we do. It also defines the personal care we take in the relationships we build – with our clients, with our partners and, of course, with one another. For the career minded individual looking to grow and advance in the accounting profession, it means an unparalleled opportunity to work alongside a team of leading experts. To grow your knowledge by drawing upon the global resources of Baker Tilly International. And ultimately to realize the rewards that come from a firm-wide commitment to being the very best.

We invite you to explore the RubinBrown difference.

www.Rubin Brown.com Certified Public Accountants and Business Consultants

Knowledge. Commitment. Value .

Assurance | Internal Audit | Litigation Support | Qualified Plan Audit | SEC Advisory | Small Business State and Local Tax | Tax and Compliance | Valuations | Wealth Management

Guest Article Dr. Ginny Barnes, G.B. Communications, Inc.

Guess Who Is Coming to Work? Generation Y Are You Ready for Them? Yes, they are here! Generation Y, otherwise known as the millennial generation, has grown up and is now job hunting. Companies are responding to this potential employee market with mixed reactions. On the one hand, the generation Y market exhibits competitive and attractive applicants. On the other hand, this generation comes with a set of expectations and behaviors unlike those of generation X, boomers or the matures. Companies are competing for the best applicant, yet often are unprepared for the recruitment, interview, hiring and coaching process that creates a successful hire. What are the characteristics of this generation, and how can you position your company processes to be successful?

time of economic growth and personal wealth for parents and the country, creating a menu-driven society and options for busy schedules, activities and lots of things given to them. They were the first generation to grow up having the global world view at their fingertips. Sociologists and psychologists disagree about the future of generation Y. They have been described as being the next great “hero generation,” indicating their traits as being extraordinarily well rounded, having high self- esteem, being civic-minded, and raised to believe they could do anything. Others describe them as the next “me generation,” indicating their self-focus, expectation of entitlement, and desire for fame and fortune. While the jury is still out on the future of generation Y, what is most important are the core traits they exhibit as a generation and what can be done in the workplace to support, challenge and prepare this generation for the years to come.

Generation Y – Who Are They?

Members of generation Y, born between 1980 and 1994, are the children of 78 million baby boomers. Reaching numbers of more than 60 million, they are an enormously powerful, savvy and diverse market. They have grown up in a time in which the world was no longer safe and reliable, recalling events such as school shootings, the Oklahoma City bombing, Sept. 11, terrorists’ activities and the Iraq War. They have been exposed to AIDS, drugs, rapidly improving technology, reality TV, talk shows and MTV. They also benefited from growing up in a

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knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Four Core Traits of Generation Y @ Work

also wants seniority to trust them and give them the opportunity to produce good ideas and quality results. Then, generation Y’s goal is to gain recognition (fame) and ultimately fortune. The difficulty for both seniority and this generation is in the timing factor. Generation Y expects this rise to leadership to come faster, while boomers believe one should “pay ones’ dues.” Thus, the conflict for leadership and achievement are strong issues in the workplace with generation Y. It is important for seniority and managers to communicate frequently the pattern for leadership development within the organization, documenting the benchmarks necessary for leadership success. This communication is done most effectively during recruitment, interviewing and at hiring with mentors and coaches, where both parties can share dreams, ideas and conflicts. Strong Parent Connection: Impacts Ability to Problem Solve The term “helicopter parent” has been overused and appeared as front-line news in studying and analyzing generation Y. Parents were described as swooping in to rescue the young adult from problems and situations. Stories proliferated in every college setting as generation Y became a freshman. College admissions counselors and academicians began describing the unwarranted parent interference as “Blackhawk helicopter” because of parental intrusion into grades, faculty decisions and social issues. The relationship of generation Y to its parent is both a positive and negative influence on the young adult and the workplace. Basically, the strong parent connection has been largely responsible for producing young adults who have been sheltered from consequences, have weak problem-solving skills, have a high sense of entitlement and have a high expectation of being cared for and being served. Stories (which may by now have reached fable proportion) abound on both the college campus and the workplace environment about how parents rescue little Johnny or Mary. When Johnny’s mother asks his teacher to give him a wake-up call so he won’t miss class, or mom and dad sit in on the job interview or do the salary

Here are four core traits that, in general, the workplace will focus on as it prepares for recruiting, hiring and retaining this generation Y workforce: 1. Achievement Goals: Fame, Fortune, Leadership and Trust 2. Strong Parent Connection Impacts Problem Solving 3. Desire for Psychological Comfort: Fear of Failure 4. Hyperlink Communication and Impacted Attention Span Achievement Goals: Fame, Fortune, Leadership and Trust Members of generation Y are optimistic about their futures and fairly cynical about current leadership. Because of the current situation of the world (unsafe, war, terrorism, etc.), they do not see that current leadership is producing the type of world they want. So, the status of being a leader is not based on old patterns of hierarchy, title or age. Rather, for generation Y, good leadership is based on trust, which is built one day at a time by the actions of the leader. This criteria for leadership means that the person who leads can be anyone worthy of that trust, and that produces a free agent mindset of “I can do it my way.” Often, other generations like baby boomers misinterpret the questioning behavior of generation Y as a lack of respect for authority or seniority, instead of understanding that the primary quality search for leadership is trust. Generation Y not only seeks a trustworthy leader, but

14 u spring 2008 issue

Guest Article Dr. Ginny Barnes, G.B. Communications, Inc. (cont.)

negotiations for little Mary’s new job, we tend to laugh and shake our heads in disbelief. Yet, this strong connection between parents and generation Y continues in the workplace environment and has resulted in companies opening “parent interface offices” to deal with specific questions related to recruiting, interviewing, hiring and negotiating salary. What implication does this interference have for the workplace and for managers? Often, generation Y anticipates and can benefit from a “surrogate” parent in the form of a company coach or role model from whom to learn the ropes and assist with problem solving. A trusting role model or coach can teach and mentor a generation Y employee to success. As generation Y matures, it will be necessary for them to create appropriate boundaries with their own parents while maintaining good relationships. Having a mentor or coach in the workplace can help the young employee become more independent while being encouraged and supported. Increasing numbers of generation Y are seeking mental health services, with an increase in reported panic attacks and stress. In focus groups, individuals report fear of failing parents, pressure in school and panic when unable to locate parents to help solve problems or have someone to talk to. While generation Y appears to have high self-esteem, it often hides the shallow or fragile lack of confidence that is impacted by dealing with failure. Because of the support of parents who often step in to solve problems for generation Y, there appears to be a disturbing lack of critical thinking and problem-solving skills. Thinking long-term, planning and evaluating risk are weak life skills of this generation, and those inabilities lead to psychological discomfort when problems surface that they do not know how to solve. This generation often received awards, trophies and stars for competing in team activities in which they may or may not have excelled. Just showing up often resulted in an award. As a result of being a recipient of much praise, photography and awards, generation Y often expects immediate feedback Desire for Psychological Comfort: Fear of Failure

and praise when working on a project or simply fulfilling the job description. Silence is often seen as a negative response and has the potential to impact performance. This perception has implications for seniors or managers in a company who believe that simply doing a job is the award in and of itself – not so for this generation, who wants and gives immediate feedback on relationships, work, activities, etc. They are not afraid to challenge authority or speak out. However, they respond negatively to threats of discipline or consequences and are apt to network or negotiate to solve a problem in order to secure comfort for themselves. Both educators and company managers cite examples of parents, officials and friends stepping in to assist with solutions when negativity or stress results. Generation Y’s need for support may go unnoticed in the workplace due to the appearance of high self-esteem initially and only begin to surface when problems or conflict occur or award is not timely enough. Seniority and managers should be observant about potential problems, negativity and depression or decreased work performance due to lack of a company network, feedback or successful progress. Keeping open communications with generation Y employees and helping them understand the operations of a company and where they can go for help within the company will provide needed help. Hyperlinking Communication and Impacted Attention Span This generation is fast-paced and has been exposed to many activities in life, with access to fine-tuned, portable technologies. They are accustomed to being chronically stimulated since childhood and as a result get bored easily and don’t know how to deal with dead time. While their fast-paced, get-it-done attitude is a plus for employers in terms of fast performance, they also exhibit the need for instant gratification, getting it done and moving on to something else. So, commitment to a long project, dealing with slow bureaucratic wheels, long- term decision-making tools and staying the course to pay attention to accuracy and details are not necessarily their best features! As experiential learners, they are

15 u spring 2008 issue

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Ginny Barnes, President/Owner G.B. Communications Inc.

multi-focused, managing many ideas at one time and hyperlinking or hopscotching from one idea to another. They indicate a decline in undivided attention span and, as a result, the old linear patterns of meetings, project organization or communication don’t work as effectively with these generational workers. They want to work quickly, create ideas and projects as they come, in any order, and put many things together to create one. The best way for generation Y to work is in teams, where ideas can be expressed, feedback is quick and members can work on different parts of the whole. When generation Y’s are asked to work on a project solo, they will often network and create their own web of support and communication to hyperlink the project to completion. Maximize the talents of generation Y by creating virtual and real teams for work-related issues and projects. Provide a variety of ways for them to network and communicate on and off the company property. Create a variety of patterns for workdays that are different from the standard 8-5, five days a week model. This variety will maximize their efforts and motivate them to creativity and performance. To prepare for generation Y, companies need to be flexible and analyze why and how they currently conduct business internally. Admit it to yourself! Generation Y brings new ways of thinking, behaving and expecting. This innovation doesn’t have to be a negative thing. The relationship between your company and your new generation employee can be a success by:

Dr. Ginny Barnes is president and owner of G. B. Communications Inc., a consulting and training firm in Columbia, Mo. Barnes specializes in areas of diversity, communication, conflict management and organization development.

She is the author of “Eight Steps of Highly Effective Negotiations: Letting the Other Person Have Your Way” and is the 2006 recipient of the Telly Award for her production of a diversity video titled “Can You See Me Now?”

1. Developing trust in leadership relationships. 2. Improving problem solving and critical thinking skills. 3. Communicating steps for performance success. 4. Developing new ways to work and communicate.

16 u spring 2008 issue

INDUSTRy u

ARCHITECTS & ENGINEERS

The Key to a Firm’s Success Architecture and engineering firm leaders know that talented, motivated employees are the key to a firm’s success. The challenge lies not only in attracting the best personnel, but also in developing and retaining them. So, what are some ways a firm can attract, develop and retain desired employees? Listed below are suggestions in each of these three main categories. Attracting Talent A tried and true method to attract top talent is to recruit. Interviewing may only occur a few times each year; however, recruiting for top talent should be a continuous process. Firms should be cognizant of where to search for talent. Search opportunities should include academic universities and search firms, as well as inquiries among current personnel for acquaintances. If universities are deemed the top talent pool, architecture and engineering firms should establish solid relationships with both professors and students. Firms may offer academic scholarships, give presentations to undergraduate classes, and provide internships to undergraduates as a means of establishing relationships with top recruits. Firms also must value the power of alumni. While no firm wants to lose talented employees, it unfortunately happens. A firm whose alumni are viewed as outstanding talent can take pride in being a developer of such talent. If it becomes widely known that a company actively develops its personnel, recruiting and attracting talent becomes a much easier process.

Firms also may offer incentives such as flexible work schedules. Part-time and alternative work weeks are some examples of flexible arrangements. Developing Talent Developing employees is crucial to the longevity of a firm and its ultimate success. Top executives must make the development of top talent a priority. They also should be involved in the formulation of core competencies that employees must master to excel within the firm. Having a foundation of core competencies enhances the performance review process. Competencies can be referenced in an evaluation session. They also can be used as benchmarks when evaluating top performers. This process allows for open communication in determining where an employee is, where he/she wants to be, and what areas can be improved upon to help him/ her accomplish his/her career goals within the firm. Training, training and more training! There are a variety of avenues to take when increasing training for employees. On-the-job training, in-house courses taught by more experienced company personnel, and tuition reimbursement for academic courses and degrees are just a few examples. Some firms also offer a flexible work schedule to those employees interested in obtaining a more advanced degree with the hope that once the degree is completed, the employee will return to full-time status with increased performance ability. Retaining Talent A “growth from within” strategy allows top talent to see career advancement as a possible reward for their efforts. At times, it is necessary to hire from outside the firm in order to fill key gaps. However, if the standard practice is to promote from within, top employees will see career advancement as an attainable goal within the firm without feeling the need to leave to achieve it. Training, as previously mentioned, is key to developing employees, but it also may be used to enhance cultural integration as a method of retaining employees. Training sessions may be held off-site, and employees may spend as little as a few hours to a few weeks together. These training sessions enable employees to develop bonding relationships while still achieving necessary technical competencies.

17 u spring 2008 issue