RHMR 0409 IIA RetentionStrategies Final

8/10/2019 RHMR 0409 IIA RetentionStrategies Final

1/18

Retention Strategies

Maintaining a Motivated Internal Audit StaffDuring Challenging Times

roberthalfmr.com1-888-400-7 474


2/181Retention Strategies | Robert Half Management Resources

Overview ............................................................................................................................2

Risk of Losing Staff ............................................................................................................3

Success Strategies .............................................................................................................4

The Role of Communication ............................................................................................ 7

Tracking Progress ............................................................................................................ 11

A Final Word .................................................................................................................... 13

Survey Demographics ......................................................................................................14

About the Company .........................................................................................................17

Table of Contents



When Robert Half Management Resources issued its Quest for Talent report in 2007,demand for internal auditors was at record-high levels. While economic conditionshave changed dramatically since that time, the need for internal audit staff continues.These professionals are highly valued today as shareholders and government agenciesexpect greater corporate governance, more control and transparency over nancialreporting, and thorough assessment and management of risk to the enterprise.Because these roles are so critical, employers must not only work hard to recruit topinternal audit talent, but they are also challenged with the task of keeping them onboard.

Motivating and retaining staff can be demanding for managers under the best ofcircumstances, but when business conditions are deteriorating and budgets are underpressure, it takes on greater signi cance. How are organizations keeping internalauditors motivated?

To learn more about the ways companies are addressing employee retention ina down economy, Robert Half Management Resources issued an online surveyto participants of The Institute of Internal Auditors (The IIA) Global AuditingInformation Network (GAIN). Respondents to the GAIN survey included 341 auditexecutives and directors.

The majority (59 percent) of those polled work in publicly held companies, compared

to 25 percent in private and 16 percent in non-pro t organizations. The top veindustry sectors represented in the survey include nancial services/banking/real estate (20 percent), manufacturing (13 percent), insurance carriers/agents (9percent), educational services (7 percent) and health services (7 percent).

The survey examined a variety of issues related to motivating and retainingtodays internal auditors and identi ed strategies that have proved successful forrespondents. The ndings con rm that money alone is not the determining factor inwhether employees decide to stay with an organization.

Overview



According to the Robert Half Management Resources survey, nearly 59 percent of auditexecutives are concerned about losing top-performing internal audit staff to other jobopportunities within the next year. The top two reasons respondents believe employeescould leave are (see Figure 1):

Limited opportunities for advancement within their current place of employment

Inadequate salary and bene ts

Risk of Losing Staff

While they recognize the need to address these factors, many audit executives notedthat in the recession, their hands are tied in some areas. They are less able to offerincreased salaries and bene ts, and advancement opportunities. Regarding the latter,some explained that their departments were too small or limited in scope to allowthem to offer many promotions.

Figure 1: Which one of the following is most likely to cause your internal audit professionals toaccept an offer from another rm?

- 42%Limited opportunitiesfor advancement

- 2%Lack of recognition

- 10%Unhappiness withmanagement

29% - Inadequate salaryand bene ts

17% - Other



Focusing on areas they can more easily enhance, organizations are implementinga variety of measures to better retain employees (see Figure 2). The strategy citedmost often by survey participants was providing training or continuing professionaleducation (CPE) opportunities. Firms that want to provide training or CPE options buthave limited nancial resources might consider the following budget-friendly choices:

Mentoring programs. Pairing a more experienced staff member with an individualwho wants or needs to learn a particular skill offers bene ts to both employees.Those being mentored build their knowledge, while mentors enhance leadershipand training abilities.

Trade association events. Seminars, conventions and local monthly chapter meetingsare just a few of the educational offerings available through The IIA and otherprofessional organizations. The IIA training programs are customized for internalauditors and are typically provided at low member rates.

E-learning. Web-based instruction at the desktop can be an effective way to trainemployees, while saving the time and expense of sending people off-site.

Success Strategies

Audit executives were also asked what creative or alternative retention strategies theyhave used or seen other companies use to retain skilled internal auditors. Restructuringwork hours to suit particular individuals on the team was a common theme.

One respondent said, We are allowing some employees the opportunity to workless than full-time (at a reduced salary), so that they can take large blocks of timeoff to travel and do other personal things.

Figure 2: Which of the following traditional retention strategies have been effective for you insuccessfully retaining internal audit staff?

Note: Multiple responses were allowed.

70% Providing training or CPE opportunities

67% Offering exible schedules

59% Increasing salaries

31% Offering telecommuting options

28% Providing mentoring opportunities

He was planningto resign his positionuntil I offered himsome exibility, saidthe respondent. Now,hes back working full-time and hasbeen in the of ce for15 years.



Another noted that the company allowed a staff member to work a three-quarterswork schedule for a few years until a child began kindergarten. His spouse traveledfrequently for business and the family wanted to avoid daycare. He was planningto resign his position until I offered him some exibility, said the respondent.Now, hes back working full-time and has been in the of ce for 15 years.

Flexible schedules were cited as the top alternative work arrangement offered bycompanies surveyed (see Figure 3). This nding indicates many rms are supportingemployee requests for greater work-life balance. However, nearly 20 percent saidtheir organizations offer no alternative scheduling options, suggesting many are

overlooking a valuable strategy for improving retention.

Scheduling options are most commonly offered to internal auditors at the staff level,according to the survey. Ninety-two percent of respondents said staff-level employeesare given exible work choices and 77 percent reported the same for management-

level auditors. Only half (50 percent) of internal auditors are offered schedulingoptions when they move into the executive ranks.

Leaders in accounting, nance and internal audit have suggested some changes thatwould improve employee retention efforts:

Flexible work arrangements could be enhanced to accommodate a greater range ofworkers. Some nancial executives have noted that men and women at all levels ofan organization and in different life situations value these programs.

Figure 3: Which of the following scheduling options, if any, does your organization offer yourinternal audit staff?


74% Flexible schedules

38% Telecommuting

21% Part-time work

19% Organization does not offer scheduling options

4% Job sharing

8% Other



Businesses should be aware there is no one-size- ts-all approach to exibilityappropriate for all companies and that the most bene cial options are frequentlyemployee-driven.

Executives also often recommend re-recruiting the best employees before theyget a better offer. This can be accomplished by reinforcing their value to theorganization and providing well-de ned career paths.

Audit executives surveyed cited additional strategies for retaining skilled internalaudit candidates. I have a unique management philosophy, said one respondent.Take care of your people and your people take care of your work. That encompassesall the traditional reasons why people leave, but ultimately focuses on individualrespect and dignity. The executive added, People are more important than programs get the people part right and the work takes care of itself.

Another respondent noted the value of tuition reimbursement: The most creativeretention strategy that I have seen is the 100 percent payment of a graduate degree ina related eld of study with only a one-year commitment upon completion.

People are moreimportant than programs ... get the people part rightand the work takescare of itself.



Respondents to the survey suggest that companies wanting to bring out the best intheir employees should look at the way they are communicating with them. Whenasked which non- nancial methods are most important in keeping internal auditstaff motivated, the top responses were (see Figure 4):

Frequent communication with staff (57 percent)

Flexible work arrangements (49 percent)

Training opportunities (45 percent)

Offering increased responsibilities (41 percent)

The Role of Communication

Figure 4: Other than nancial rewards, which of the following are most important in keepingyour internal audit staff motivated?


57% Frequent communication with staff

49% Flexible work arrangements

45% Training opportunities

41% Offering increased responsibilities

21% Opportunities for advancement

19% Recognition programs

12% Off-site team-building and social events

11% Tuition reimbursement

2% Access to wellness programs

1% Employee sabbatical program

6% Other



Many audit executives explained that frequent communication with staff isparticularly important during uncertain times so employees are aware of whatis going on in the market and its impact on their organizations. Others saidcommunication is critical to team-building, sharing company news, keepingperformance on track, and enhancing trust and respect with staff.

Most businesses rely on departmental meetings to communicate organizational newsand updates, the survey found (see Figure 5). Fifty- ve percent of audit executivespolled believe these meetings are the most effective option, while 17 percent saide-mail messages from the chief executive of cer or equivalent is best, followed by 12percent who cited one-on-one communication.

Figure 5: What do you believe is the most effective method for communicating organizationalnews and updates?

- 55%Department meetings

- 4%Internal newsletter- 7%Intranet site

17% - E-mail message fromchief executive of cer orequivalent

12% - One-on-onecommunication

- 5%Other



While department meetings can be a useful resource for conveying criticalinformation, they can also be time-wasters and de-motivators if not managedeffectively. Here are some success strategies:

Schedule only when necessary. Often, meetings become such a habit that no onestops to ask whether there is even still a compelling reason to hold the session.Dont meet weekly simply because that is the way things have always been done.

Have an agenda. Provide it to participants ahead of time so they have a clear idea ofwhat will be covered before they attend and can prepare accordingly.

Start and end on time. People faced with growing workloads and fewer resourceshave little time to waste, so make sure those in charge of meetings stick to theschedule. If topics come up that require further discussion, consider schedulinganother meeting.



Respondents reinforced that during challenging economic periods it is even morecritical to maintain open and frequent communication with employees. When people

are given minimal information about developments, anxiety and rumors may spread,leading to declines in motivation and retention.

Managers may not be able to share all of the details about the companys nancialand business decisions, but they should do their part to keep people informed. Theyalso should encourage staff involvement in changes by asking for their ideas andsolutions. When employees feel they can affect the outcome of a project or situation,they will be less apprehensive about whats ahead and inspired to make positivecontributions.

Figure 6: What do you believe is the biggest mistake managers make when communicatingorganizational news and updates to their internal audit staff?

- 41%Not communicatingfrequently

- 4%Other

- 12%Not being honest

28% - Not beingstraightforward

15% - Not communicatingin person



Many rms are taking steps to learn more about what motivates their employees.Sixty-nine percent of audit executives said their companies survey staff to gauge theirsatisfaction or engagement with the company. Results indicate that organizationsunderstand that while they may have a winning strategy for motivating and retainingemployees today, there is no guarantee that strategy will be just as effective a yearfrom now. Monitoring staff opinions lets rms know when it is time to modify effortsfor keeping employees ful lled.

While nearly half (47 percent) of audit executives polled said their rms surveyemployees once a year, more than one-third (35 percent) take longer with the process.Twenty-two percent of respondents said their organizations poll staff biannually, 12percent said every three years, and 1 percent reported a four- to ve-year gap betweensurveys.

Given the rapid pace of change today, these responses may indicate an area in whichbusinesses could improve. It could prove unwise to wait more than a year to solicitfeedback on how a company is doing as an employer. Many rms nd greater valuein conducting employee satisfaction surveys more frequently than annually.

Tracking Progress

Figure 7: How often does your organization survey its internal audit employees to gauge theirsatisfaction or engagement with the organization?

- 47%Annually

- 12%Other

- 1%Every four to ve years

22% - Biannually

12% - Every three yearsSemiannually - 6%



Organizations also are learning more about how they can better keep staff motivatedand satis ed by soliciting feedback when employees leave. Eighty-nine percentof audit executives said their rms conduct exit interviews upon termination of

employment.For exit interviews to be useful, rms need to encourage departing employees to givecandid feedback. Staff may have reservations about explaining why they are reallyleaving, worried they may burn bridges. Here are some techniques that can help elicitconstructive input:

Set the stage. Schedule meetings in a quiet, neutral space. Have someone otherthan the individuals direct supervisor conduct the interview to increase thechances of a frank discussion.

Make a case. Explain the rationale behind conducting the exit interview andhow an employees insights can lead to improvements for those still working inthe auditing group. Even if the individual is leaving on bad terms, the personmost likely has some connection to others at work and will want to contribute tochanges.

Ask the right questions. If an employee is overly positive in his or her responses,ask why the individual decided to look for another position. It is also useful to ndout what the new job offers that the current one does not.

Figure 8: Does your rm conduct exit interviews upon termination of employment?

- 89%Yes

11% - No



While todays employment market is experiencing challenges not seen in decades,demand remains strong for the most experienced internal auditors. As a result,motivating and retaining internal audit staff are not just goals for a time of economicprosperity, but concerns that must be addressed now as well.

There is no single approach to motivation and retention that guarantees success,however. Employers are taking a variety of measures to keep their auditingstaff satis ed. Many view providing educational opportunities to employees asa key strategy a move that not only can boost loyalty, but also give people theskill enhancements they need to make more meaningful contributions. Otherorganizations are nding positive results in offering audit professionals greaterwork-life balance through exible schedules and promoting open, ongoingcommunication.

While implementing proven strategies can help, companies should invest time inidentifying what is most meaningful to their staff. Telecommuting opportunitiesmay be a desired bene t to one group of employees, but not another, for instance.Regularly soliciting feedback from employees can help organizations stay on topof what matters most to the individuals on their teams. Firms that customize theirapproaches to suit employee preferences will have the greatest chance of retainingvalued performers in any economy.

Companies may also need to broaden their concept of retention. In the past, it mayhave meant maintaining an employer-employee relationship for 30 years. Today,retention may involve internal auditors transitioning in and out of employmentwith an organization over time. Firms that maintain communication with formeremployees can foster goodwill and increase the chances of rehiring top performers astheir career and personal needs change.

A Final Word



Invitations to take the Robert Half Management Resources survey were sent by e-mailto participants of The IIAs GAIN ash survey program. Respondents included 341global audit executives and directors.

Annual Revenue (in U.S. dollars)

Less than $10 million 2%

$10 million to $49 million 5%

$50 million to $99 million 3%$100 million to $499 million 21%

$500 million to $999 million 16%

$1 billion to $9 billion 42%

$10 billion or more 13%

[NOTE: TOTAL DOES NOT EQUAL 100% DUE TO ROUNDING]

Full-time Employees in Organization

Less than 101 1%101 500 13%

501 1,000 8%

1,001 5,000 38%

5,001 20,000 24%

20,001 50,000 9%

50,001 100,000 5%

More than 100,000 4%

[NOTE: TOTAL DOES NOT EQUAL 100% DUE TO ROUNDING]

Survey Demographics



Audit Staff Size (Full-time Employees)

1 2 11%

3 6 34%

7 15 32%

16 20 9%

21 30 3%

More than 30 11%

Organizations Primary Location

Afghanistan

Australia

Bahrain

Brazil

Canada

Germany

Mexico

Netherlands

Puerto Rico

Saudi Arabia

Singapore

South Africa

Thailand

United Kingdom

United States



Industry

Aerospace and Defense 1%

Communication/Telecommunication Services 3%

Construction/Engineering/Architecture 2%

Distribution 1%

Educational Services 7%

Energy/Oil and Gas 3%

Financial Services/Banking/Real Estate 20%Gaming/Lotteries 1%

Health Services 7%

Hospitality/Entertainment/Restaurant 2%

Insurance Carriers/Agents 9%

Local Government 3%

Manufacturing 13%

Mining 2%

National/Federal Government 1%

Nonpro t Sector 2%

Pharmaceuticals 1%

State/Provincial Government 3%

Technology 3%

Transportation 3%

Utilities 6%

Wholesale/Retail 5%

Other 2%


18/18

Robert Half Management Resources, a division of Robert Half International, is theworlds premier provider of senior-level accounting and nance professionals on aproject and interim basis.

Our consultants have extensive skills and experience in a variety of areas, includingnance and accounting, treasury and cash management, information technology,

International Financial Reporting Standards (IFRS) conversion, taxation, internalaudit and compliance, administration, and operations. Often, our consultants arebrought in to ll executive nancial positions on an interim basis, such as chief

nancial of cer, vice president of nance, internal audit manager, tax director,controller and systems conversion manager.

As an industry leader, Robert Half Management Resources maintains closerelationships with businesses worldwide, helping them meet complex projectneeds on a cost-effective and timely basis. We have a vast network of experiencedaccounting and nance professionals who possess the credentials and specializedskills required by companies today. This expanding pool of professionals enables usto meet the growing demand for independent nancial consultants to perform a widerange of non-attestation services.

The companys global network, unparalleled reputation and proven practicesdeveloped over 60 years give us access to highly skilled nancial professionals to

successfully meet our clients business objectives.For more information about our services, please contact your nearest RobertHalf Management Resources of ce at 1.888.400.7474 or visit our website atroberthalfmr.com .

About the Company

2009 Robert Half Management Resources. An Equal Opportunity Employer. RH MR -0 40 9

RHMR 0409 IIA RetentionStrategies Final

Documents

Transcript of RHMR 0409 IIA RetentionStrategies Final