Executive Corner Good recruitment procedure reduces retention problems by Mabel Sieh Competition for finance and accounting executives is heating up The rejuvenated economy has been instrumental in creating ever greater demand for finance and accounting professionals, and made holding on to good staff that much harder for current employers. Not only are there new jobs available as companies and accountancy firms continue to expand but organisations are also switching certain roles back to Hong Kong in a search for experienced staff with an international outlook. "Employers can find a strong business infrastructure here and a mature, well-educated workforce to meet their needs," says Michelle Hui, manager of KPMG's executive recruitment practice in China and Hong Kong. Companies that had frozen recruitment and laid off staff are working hard to bring their finance departments up to full strengths. Core competence in demand includes business intelligence to support the operations of a company to compete in a rapidly moving economy, and financial and internal control professionals to assure the effective and efficient running of the company to achieve the business objectives. "Organisations are looking for talent who can act as an advisor to the management, individuals who can proactively provide an independent view of the financial implications of the changing market environment." Ms Hui says. Those matters include the pursuit of a market strategy and alternating the pricing mechanism, entering new markets or industry categories, obtaining new financing or listing on a stock exchange." Corporations need all-round executives who can deploy an analytical, knowledgeable and disciplined approach to the business," she says. Retention is considered especially imaportant for positions with unique skill profiles Respecting regulations For example, the Sarbanes-Oxley Act, which became law in the US in 2002, broadened the scope of US securities laws and regulations. It brought in tighter rules on corporate governance, disclosure, reporting and accounting requirements, and put in place penalties for failure to comply. In its turn, the Hong Kong Stock Exchange has introduced a Code on Corporate Governance Practices and regulatory requirements relating to the Corporate Governance Report of companies listed locally. "The new regulations and requirements have increased demand for compliance professionals," notes Ms Hui. "Both local corporations and multinationals are strengthening their control and compliance functions and the Big Four accountancy firms are having to battle hard to retain staff who are offered attractive incentives to move elsewhere." She adds that such positions are best filled by candidates who are technically sound and understand the importance of applying the appropriate laws and regulations. The roles can entail travel if offices or manufacturing sites are located around the region. People working in control or compliance jobs need to be good communicators and to have excellent interpersonal and negotiation skills. They may potentially be drawn into differences of opinion with line managers in the course of investigating departmental processes, or when implementing better workflow arrangements to comply with corporate and statutory requirements or best market practices. "The teams which carry out internal audit and compliance functions are often small and they have to make sure their recommendations are followed and implemented by line departments," Ms Hui says. Attractive compensation In the current market, if employers want to hire high-quality professionals, they must clearly identify the specific job requirements and be ready to offer competitive remuneration packages. If assistance is needed in either respect, experienced executive search and selection companies can always be called on for advice. When recruiting, it is particularly important to look for people who can identify with the company's mission and seem able to fit in with the general work culture. "We look for candidates who not only have the knowledge and skills but genuine interest in the business of our clients. This will drive a higher commitment to the corporations and the position," Ms Hui explains. "In terms of retention, an effective plan should consist of a well structured career development programme and attractive staff reward and incentive schemes. This helps to provide a clear future for employees," says Ms Hui. "Retention is considered especially important for positions with unique skill profiles requiring years of experience to build up the professionalism, technical knowledge and market standing." Ms Hui reckons that the biggest incentive for employees today might not be the salary or bonus. For instance, reasonable working hours is also a consideration. To retain staff in China, sponsorship for an MBA is often attractive for candidates as the tuition fees could be as high as one-third of the employee's salary. Similarly, companies have used housing loans as a retention tool. The latter will generally tie employees for a longer period of time. Taken from Career Times 26 May 2006 Your comments are welcome at [email protected]