Endangered Species

There is a profound shift happening in the North American workplace.

Employees are becoming an Endangered Species.

Just as Polar Bears in the Arctic are becoming endangered because the environment (weather) in the North is changing, so too are Employees facing similar issues because the environment (workplace) is changing.

The North American workplace, no matter the industry or specialization, faces one continuous constant – Change. Good Change or Bad Change. Growth or Consolidation. Technological change or Global competition. These changes seem to be here for good. The business world moves quickly, and the Labor force needs to adapt.

Generally, from my observation, employees change companies every 3 years (on average). This is because companies either cannot support longer term employees because of Change, or if they do, employees are looking for something “new and improved” as their job gets monotonous (code word for boring).

Companies that will succeed in this environment will need to start treating their employees not as assets they control, but as freelancers they need to continually invest in and work to retain.

Employees that will succeed in this new environment will need to start treating themselves as freelancers rather than employees, working to continually invest in themselves to add value to their employers (current or future).

Employees as we know them are becoming a thing of the past. How does this affect you?

The most overlooked skill in Accounting

Little boys and girls who want to be accountants when they grow up are usually interested in accounting because they LOVE numbers. They love adding, subtracting, number puzzles and like the idea of counting money.

This may have been the ideal profile for an accounting career in the past, but accountants today are required to be much more than analyzers of numbers. Accountants today are looked up to by business people to assist in making business decisions, preferably profitable ones. Successful accountants are not only able to analyze the decision options and make recommendations, but also have strong communication abililities, specifically written communication.

The accountant's involvement with the corporate MD&A (Management Discussion & Analysis) is a great example of how accountants are relied upon to provide analysis that need to be expressed clearly.

From my experience, accounting professionals with solid written communication abilities will have better career opportunities. While looking for your next career opportunity (or your next hire), keep in mind that a resume showcases written communication, a key success indicator.

Economic Outlook 2008: Effects on the Accounting & Finance Job Market

I have always looked at Economic forecasting as something of a voodoo science. Many economists and pundits have opinions of where the economy is going, and the beginning of a new year is always a good time to predict the future.

Thankfully, I’m neither an Economist nor a Fortune Teller. However, the general economic opinion on the North American market for 2008 ranges from “Cautious” to “Pessimistic”. I haven’t come across an opinion that says that 2008 is going to be a gangbuster year.

Being directly involved in the Job market for Accounting & Finance and subjectively watching trends, I do believe the following: No matter the economy in 2008, the Job Market in Accounting & Finance will stay strong.

I am confident in this prediction for the following reasons.

1) If the economy contracts, companies may cut people in core areas of the business directly related to revenue. However, companies, whether profitable or not, still need to produce and prepare their financial information on a timely basis. This still needs competent, intelligent and hard working accounting and finance professionals.

2) Accounting departments are not currently overstaffed. No one we speak to (either client or candidate) will admit to their accounting departments having too many people.

3) There may be fewer companies doing transactions, but I don’t believe that these transactions will grind to a halt. I do believe that companies with strong cash positions may acquire struggling companies at better prices than they could have bought them for in 2006/2007.

4) The strong economy has created a lack of work for Restructuring professionals. Many I have spoken to in 2007 are waiting for their turn for growth. This could be a great area to get new experience for candidates looking for something new and challenging.

One thing I am sure of – 2008 will be an interesting year. And as the Chinese Proverb says, “May you live in interesting times”.

Wishing you a successful 2008…

Samuel