The Tax Section of the American Bar Association is pleased to announce its latest publication, Careers in Tax Law: Perspectives on the Tax Profession and What It Holds for You.  In this very informative publication, 75 tax professionals share their knowledge and experiences to create a compilation of essays in reference to the different types of opportunities in tax law.  Chapters include: An Evolving Profession, Finding a Fit, Roads Less Traveled, Smaller Firm Practice, Larger Firm Practice, Cases and Controversies, State and Local, Going In-House, Serial Careers, Academia, Public Service, Lawyers and Accountants, The Cross-Border Lawyer, Other Ways, The Greater Good, From the Bench, Points of View, Certain Constants and finally, The Recruiter's Perspective.

I contributed the essay on page 285 which is titled: Pathways to an In-House Career. This is a very interesting and valuable publication and I recommend it to any individual who may be thinking of entering the field of Tax Law.

This publication is available to Law Students for $40 and is also available to members of the Taxation Section of the American Bar Association for $55. This publication is available to non-members for $70.  To order, reach the ABA directly at 800.285.2221 or visit the ABA Store here.

Lastly, I would like to send out a special thanks to Tom Herman, Wall Street Journal contributor on Tax matters, in appreciation for his effort to put the spot-light on tax issues for 30 years, we wish him the best in his retirement!

~Tony

Kudos to PwC and I hope all the service providers reconsider their policies of using reduced headcount as their primary means of managing costs in a down economy.

~Tony 

In the last blog entry (New Year – Same Trend) I discussed the disparity and challenges that exist in the tax field as the demand for quality candidates continues to rise in a shallow pond of talent, even in this down market where other non-tax industry professionals are just happy to remain employed. The fact is, tax departments leaders, HR and many of the tax industry insiders need to step up to the plate in 2009 and recognize that the employment gaps in tax are not going to go away by themselves. So what can be done to remedy the situation?

The first step in dealing with this industry talent crisis is for tax department heads and even HR professionals to become educated that they must invest in managing the increase in tax work which is forthcoming in this new administration. The need for new incremental revenue in the US, the pressures on regulatory scrutiny and the push for International tax practices is opening a huge need for management to look at tax in a whole new light. An effective tax department is an oasis for companies looking to save and even make money in troubled times. Through effective tax planning or even minimizing audit liabilities, tax departments can make a huge impact to the bottom line of an organization. The challenge is having the right staff in place and having them motivated to do more with less.

Service sector firms (public accounting, tax consulting and law firms) were playing catch up as usual to the demands of their corporate clients. Their tendency to overreact and layoff too aggressively in a down market and be late in adding staff once the market recovers was evident again throughout the 2006 to 2008 period.

~ Tony

Have a very Happy Thanksgiving!

~Tony

While some might feel that taxation is not analogous to freedom, we must always remember, that in this country, the majority of the taxes that we pay are still based on an honor system, and that through the representatives that we vote into office, we are empowering those representatives to determine the level of taxation necessary, so that our country might still prosper and grow.

Today, take time to thank those who participated in helping defend this country and honor them today in any capacity that one individually chooses to.

To make my case, let’s look at several past domestic economic downturns. In the early 80’s the gas and oil markets were in complete turmoil. In the late 80’s it was the financial services markets that shut off lending and recalled billions in loans. In 1991 and ’92, it was the Gulf War that caused a ripple effect through the markets. In the late 90’s, we encountered the end of a huge dot com bubble which turned back the progress of a promising but unsubstantiated technology industry. In 2001 with the delivery of 9/11 and the psychological chaos it created, we saw tremendous market apprehension and overall economic panic. Today, we sit in the middle of mortgage lending collapse, government bailouts of institutional financial services companies and a market that is clearly operating from a fear factor position.

It is true that with every significant downturn, there are certain markets that are going to have casualties; however, the key is simply not to overreact. When looking at these turbulent market cycles from a tax perspective, it is clear that in most cases the tax industry and those professionals working in the field are generally sheltered from the direct effects of the downturns. One reason for stability for tax professionals is that Tax has the ability to make companies money even when those companies are not making money. No matter what economic downturn you examine, you have yet to see any large pool of unemployed tax people.

It’s times like these that require non-traditional thinking. Though it may seem like it’s the right time to run to the hills from certain industries, it is proven that stamina in turbulent times can pay off. Those people that stayed in the financial service meltdown in the late 80’s went on to be part of a huge economic boom for the rest of the decade. Those people that weathered the lending crisis and Gulf War impact went on to be part of the largest technical boom in history. Those people that stayed in technology after the crash into the new millennium have reaped large rewards as the tech space continues to fuel our economy in so many ways. The point is, don’t allow fear and the doom and gloom thinking to direct your career path. Sometimes the bottom is only a representation of the beginning of the top. It’s true that the financial services market is in a difficult state but don’t imagine a world without financial services. It just won’t happen.

The good news for tax professionals within any industry is that you have options. Your flexibility, business skills and technical skills will always be of value in the market so if you are looking to make a move, do the homework and make it a power move. Examine your options, do the appropriate research on the company you are looking to join and remember that much of the success of tax professionals is based on their own individual abilities and work ethic.

One thing that I can assure you of is that if our government is going to “print money” and continue bailouts, the need to collect tax revenue will increase as well which means further job security for those of us in the tax industry. For now, keep your head high and don’t get caught up in the doom and gloom thinking.

It seems the shortage of tax professionals in the public and private areas are not the only places where accounting talent is needed. According to the American Institute of Certified Public Accountants Foundation (AICPA), over the last ten years there has been a significant decrease in the number of Ph.D accounting faculty in U.S. colleges and universities. In response to this serious shortfall, the AICPA in conjunction with more than 70 of the country’s biggest firms and several state CPA societies have committed $15 million to recruit top employees for an Accounting Doctoral Scholars program to become accounting professors in the audit and tax disciplines.

The program stems from a report developed by the Subcommittee on Human Capital of the U.S. Department of Treasury’s Advisory Committee on the auditing profession. The new program will provide the funding for up to 30 new candidates each year for three years for a total of 120 newly trained Ph.D.s in both the audit and tax fields.

The tax industry’s need for contract staffers has greatly increased but there is a general fear that purveys through the field in regards to utilizing an independent contractor (1099). Boomerang seniors coming back into play coupled with a high demand for project based tax professionals is beginning to force the 1099 issue within the tax industry. Staffing and recruiting companies within the tax field are addressing the concern by offering clients a choice of selecting a contractor on an independent contractor (1099) basis or utilizing a 3^rd party company that employs the tax professional and handles all of the employee withholdings to cover the potential IRS exposure.

As high level tax recruiters and online resource providers, we are frequently asked by tax professionals about the best methods of addressing personal compensation with current employers. The idea is to maximize your financial position without over leveraging your job security and coming off as a threat to your employer. Before you even consider approaching upper management to address your own situation, it is critical that you gather all of the relevant data both externally & internally to ensure that you have the ammunition to make your compensation case. Once you have done your homework properly, you stand a much better chance of attaining your wants and needs without risking your relationship with your reports and the company as a whole.

A recent TaxDiversity survey of over 100 diverse tax professionals revealed that the tax industry is facing a serious challenge to attract, develop and advance candidates of diversity. Although women in tax have become better represented in the field over the last ten years, the survey showed a significant void when addressing professionals with racial diversity. It has become a growing concern to many tax organizations, media and key leaders that something must be done to correct the imbalance which continues to widen. To date, there has been little organized effort to increase the promotion of tax to diverse candidates and within the tax field, diverse candidates are still challenged to reach more senior positions.

http://www.kpmg.com/Services/Tax/Business/IntCorp/CTR
 
 
~Tony

 
KEY FINDINGS

 
In the last three reports, we have examined the fundamental disciplines to developing a more effective hiring process utilizing the Job Search Analysis methodology. These primary areas have included:
 
1.     The Job Description
2.     The Candidate Profile
3.     The Company Profile & Position Offer
 
We have discovered that in order to effectively match an appropriate candidate to a position it is imperative that all three of the key areas must be identified with transparent disclosure. Additionally, all vested parties involved in the hiring and employment process must participate up front in the Job Search Analysis in order to effectively cultivate and organize the information required to market to, attract and communicate to the target candidate.
 
Whether the decision is to hire internally or engage a third party in the search and marketing of a particular position, these hiring fundamentals are valid to ensure efficiency within the hiring process and to protect from over or under hiring for a specific position. Without a proper hiring process, resource drains, opportunity loss and potential employment brand damage may occur. It is critical to organize and connect all three hiring elements bringing them all in sync to meet the needs of the company and the target candidate.
 
 
Resulting Factors of Disorganized Hiring Practices
 
Many companies and departments do not take their hiring process seriously and the resulting damage can be far greater than one may assume. Without integrating the methodology of the Job Search Analysis up front prior to marketing and interviewing candidates, there are several potential loss areas which may include:
 
1.     Inability to identify the (right) candidate
2.     Candidate offer turndowns
3.     Counter-offer situations
4.     Short-term turnover
 
Without internal consensus on a position and candidate profile, there will be a disconnection between the search, the interview and the needs of the hiring authority resulting in an inability to identify and/or agree upon the (right) candidate. Lack of up front internal consensus can significantly delay finding the right candidate or end up placing the wrong person in the wrong position.  Additionally, lack of unity on the needs and wants of the organization can be easily detected by strong candidates resulting in offer turn-downs or counter-offers which end up costing the company valuable time and resources.
 
The worst results of poor hiring practices may not reveal themselves for longer periods of time. These factors can include short term employment where candidates take a position but later realize the position is not what they assumed or what the company disclosed up front causing very costly turnover situations which reflect negatively on the company or department. Lastly, a poor hiring record or history can do extensive public relations damage as a tax employer of choice as the industry is generally a tight-knit community. It does not take long for word to spread that your organization is not prepared for quality personnel based on the level of organization in the hiring process. Each hiring mishap can have longer term damage that could be easily avoided if the proper work was put in up front to minimize the risks associated with poor hiring practices.
 
 
Internal Versus External Hiring Practices
 
After absorbing the Job Search Analysis process, you may be faced with the decision to internalize or outsource the hiring process. Regardless of your decision, the principles of the Job Search Analysis cross over with either scenario. Should you internalize this process, be sure the hiring authority is driving the process with the proper HR support that gathers and organizes all the necessary information that must be communicated in the marketing and interview process. If you feel you have the ability and drive to initiate and manage this process then give it a try and assess your performance but remember that mistakes in the process are not always revealed until much later.
 
Should you decide to outsource the hiring process, be advised that you will still be required to put the necessary time in to gather the information, build internal consensus and process interviews effectively until the right candidate is right in front of your organization awaiting an appropriate offer. Third party hiring assistance may also be instrumental in developing market penetration for a specific position. Remember it is one thing to have all your job profile and hiring ducks in a row but marketing to target the perfect candidate is something that cannot be minimized.
 
 
Effective Hiring Administration
 
To engage and maintain the interest of the hiring authority, it is imperative that he or she be supported in the job search and hiring process. Administrative support will be required to canvass all vested parties for their input, gather all the required documents and marketing and interview materials, assist the position marketing and candidate communications as well as provide fact checking and general research activities to ensure that the offer made to the target candidate is appropriate with consideration of every detail.
 
Once all the information is gathered in the Job Search Analysis, it is wise to research salary benchmarks and comparatives that can help determine an appropriate level of compensation for the candidate of choice. Many of these research tools for the tax field can be found on TaxTalent.com. Remember that each candidate will have specific hot buttons that will attract them to a position. It is vital that the HR person in the hiring process communicate all candidate details to the hiring authority so an effective compensation strategy can be developed that will secure the applicant’s interest. 
 
 
Effective Hiring Is A Process Not an Event
 
Whether you internalize, outsource or combine multiple hiring efforts it is important to recognize that developing effective hiring practices is a process and not an event. It takes up front commitment, transparency, communication and unified consensus to ultimately drive an effective hiring process and that can take time for any organization to achieve even with external assistance. The faster a company or department recognizes and implements many of the methodologies of the Job Search Analysis, the faster their hiring results will turn positive creating an environment as the employer of choice.
 
The hiring process is a dynamic situation but one that can be controlled. It is vital to gather as much information internally about the position and then about each individual candidates. Match significant jobs to significant people is not easy; however, with the right information, communication strategy and business minded offer, your chances of successful hiring outcomes will greatly increase.
 
It is important to recognize how vital hiring practices are to your organization. Many businesses and departments act on a hit or miss hiring method and fail to recognize that there can be effective methods placed into the madness of finding the right candidate for the right position. In the end, shaping an effective hiring process can become a very effective contributor to the overall health and vitality of any business looking to grow or improve their performance.

PART 3: COMPANY PROFILE & POSITION OFFER

Once the candidate profile and job description are properly developed, it is critical to complete a comprehensive company profile and position offer that will serve as the basis to attract appropriate candidates.

The company profile provides a macro view of the organization.  The profile gives candidates a true perspective and comprehension of the mission, scope and complexity of the company and the specific department they will be joining.  The company profile demands transparency and full disclosure so there are few surprises throughout the interviewing process. The company profile should be written in a manner that provides answers to the logical questions a candidate will inevitably ask. During the development of the Company Profile, be sure to reference the job description and the candidate profile to keep from missing any items that were important in those sections and that may have bearing on the completed company profile.  Remember you are making a positive but accurate  statement about your company to the candidate who will ultimately best fit your needs.   

Specifications of the company profile

In the company profile, you will need to disclose specific information that will demonstrate a well packaged company. You do not want to be caught having a well-qualified candidate asking questions in an interview that you can not readily answer. Information in the profile should include total company revenue, the approximate number of legal entities and the number of foreign countries in which your company does business.

The total revenue must break out the percentage of international revenue from domestic revenue. Doing this gives the candidate a flavor of your company as well as an idea of the complexity of your reporting and compliance issues.

Many companies have multiple entities operating in both domestic and international markets.  The candidate also needs to know the number and type of entities as well as the countries in which they are organized.

Next you need to state the countries in which your company operates.  In each instance break out this list by sales and manufacturing. The more you can disclose to a candidate up front, the faster the communication and information exchange process will go during the interview and hiring process.

Reporting lines     

You will need to prepare a tax department flow chart with brief descriptions of the department’s structure including titles and positions.  However, you need not supply this in the company profile but keep it ready to provide to the prospect after initial screening. This will provide the candidate information to understand the structure and reporting lines and how they impact the position for which they are a prospect.

Qualified candidates will want to examine just where they stand in conjunction to other team members as well as understand what opportunities or liabilities may exist based on the deliverables and objectives required in the position.

What makes your offer attractive?

In order to create an effective offer, it is important to think like a candidate and proactively determine what it is he or she will desire as part of the position.  During the formation of the offer, ask what makes this specific position attractive to a candidate who may ultimately fit the candidate profile?  What would induce them to leave their current position and come to work at your company?  Your goal is to answer the questions the candidate (who fits the profile) will have about the non-tangible aspects that may be very important in a candidate becoming interested or finally accepting the open position.

Additional questions to consider as part of the offer process is to know what opportunities for advancement or growth exist at the company. Is there a mentor within the organization to help facilitate the growth process for the business and the candidate? Is there a flexible work environment? Can the candidate telecommute? Does the position offer interaction with other business units or offices that could involve travel?

Most strong candidates will also want to understand their opportunity for advancement.  Is there chance to move up in the corporate structure or within the tax department itself?  What would that timeline be for such advancement and are there any assurances or performance benchmarks that can be tied into the key deliverables?  For example, if your company seeks to hire a #2 person who can move up to the #1 position within two years, is there anything that might interfere, such as a current employee who will also be considered for the #1 position? Is it assured that the #1 is moving on? The candidate needs to know if this is a guaranteed move-up or if they must compete with the current employee. If the #1 has no plans to move up or retire, and the chance for the prospect to move to the #1 position is only the C-level officer creating bench strength or providing succession planning, your candidate’s chances of move up are less likely and should be disclosed as such.  

In another example; if the candidate is to anchor the tax planning department but wants to be working in compliance in five years, then you have a mismatch between personal goals and job description.  You want to be sure to bring out where and how the person can grow and in what sections of their job responsibilities that growth might be possible.  

Just as you considered the corporate culture in the creation of the candidate profile, the Company Profile should describe the culture of both the tax department and company and how they affect the atmosphere in which the candidate will work.  As an example, for younger candidates it will be important to understand the level of informality versus the level of formality inherent in the culture.  Can they work from home some days or do you have a relaxed dress code or flextime hours?

Finally you also need to consider your company reputation. Is your company perceived in a good light?  Are there any issues that must be anticipated and for which information must be provided in advance?  Are there challenges for the new hire as they begin work?  Any issues need to be honestly and transparently outlined to reduce those last minute surprises that cast doubt on the value of a position.

Compensation package

Salary and bonus

It is essential that the offer is in sync with the required job description and candidate profile.  In order to make an acceptable offer, the company must do some salary benchmarking.  Outline when increases can be normally expected and what the increase history is for top achievers.  Also, anticipate the prospective candidate’s need to know what types of bonuses have been provided and when they have been awarded.  Be prepared to give the candidate a bonus history that covers the last five years.  Also be prepared to answer questions about equity options (both restricted and non-restricted), their nature and timing as well as when they vest.

Non-cash compensation and benefits

Next, you must have the details of the non-cash compensation package delineated, so the candidate that fits the described candidate profile will have a full picture of your offer package.  Will he or she be provided a company car or car allowance?  What is the medical benefits package?  Provide a benefits summary for the candidate with your company profile and the offer.

You expect the candidate to work hard, but most every person looks forward to vacation and some even to the day when they can retire. Define for the candidate the vacation plan and number of holidays as well as sick leave.  Are there other benefits such as health club membership or an executive dining room, childcare or healthcare on premises?  These perks are often the touches that say as much to the candidate as salary.

Finally, review what comprises the relocation package your company can give the ideal candidate who fits the profile to do the job as described in the job description.  The company must see if they can offer what the ideal candidate needs. In these days of tight real estate markets, are you prepared to ease your ideal candidate’s relocation?  Will the company purchase the candidate’s current house, pay real estate taxes and pay closing costs on the new home so they can move quickly?  Will you provide door-to-door moving service and temporary living arrangements until they can move to a new home?  If your candidate will be moving to a city such as San Francisco or New York where the cost of living is higher than other cities, will you provide a cost of living adjustment (COLA)?

Summary

In our first two steps we created a job description and a template for the ideal candidate.  If those two items were well-crafted and contained the contributions of all on the hiring team including the final decision maker, it should be easy to write the company profile and set a compensation package.  The hallmarks of these two pieces are clarity, transparency and self-examination.  The company profile and compensation package are the final elements that are needed to help the ideal candidate understand the nature of the company and how their work will fit into the tax department and the corporate culture.  It will also allow them to comprehend how they will be compensated for the work you are asking that they do and what their expectations are for their future.  Ultimately, the analytical enumeration of these items will benefit both the company and the candidate.  You will be assured of the right hire that will flourish in your corporate culture and perform well for your company.

PART 2: DEVELOPING THE CANDIDATE PROFILE 

The next stage of making the right hire is developing a candidate profile. The candidate profile is a detailed breakdown of the educational background, technical tax knowledge, communication, management and leadership skill sets that are necessary for the candidate to possess. It is critical that these are in sync so that your company and search firm are not over or under hiring for the position for which you just developed the job description.

The candidate profile is, therefore, a template of the right candidate that fits the job as specifically outlined in the job description.  It includes a candidate’s

        Professional experience

        Education and critical tax technical expertise

        Accomplishments

        Personality traits

        Management and leadership experience and skills

Additionally all members of the company who have any participation in the hiring process must be closely involved in creating this picture of the ideal candidate.  This means that the HR person, the direct supervisor and the final decision maker must agree on the candidate profile.  It is imperative that if a C level officer of the company is the final decision maker, he or she must provide their input.  Without this essential voice the profile is not complete.

Professional experience

Describing the ideal candidate’s experience should encompass two areas.  These are years working in the field of tax; at what responsibility level, the candidate’s specialties and critical tax technical knowledge.  If you don’t have a real understanding of the levels of experience your candidate should have, you run the risk of misusing everyone’s time by finding candidates who aren’t actually qualified to perform job tasks or accomplish deliverables.

Determine at a maximum and minimum the requisite experience you expect of the candidate in each part of their career history; responsibility, specialty, and technical tax knowledge.  Then determine what is required or preferred in each area of tax. This includes specialty tax areas such as federal, state, local and international tax experience.  Be sure to include specific areas of critical technical tax experience.  Critical technical tax experience can be broken into the functional areas of tax which includes compliance, audit, accounting and tax planning.  All required experience should align with and flow from the specific job responsibilities that you've already outlined in the job description.  As you now comprehend, each part of your candidates' profile is built on your earlier work in the job description.

Education

As you create the profile, you should expect to specify the educational background of your candidate.  This includes undergraduate, graduate and specialized education or licensing.  If your candidate must have higher professional education such as an LLM, be sure to list these particular criteria.  If you want a candidate who has demonstrated high achievement in their educational career, specify their class rank (upper 10% for example), or grade point average (GPA), or grade point ratio (GPR).  If you need an attorney who is admitted to practice in more than one state, or other credentials that are particular to more than one country, remember to state this as well.

Are there other skills such as software skills or language skills which are desirable, but not required, to be successful in this position?  If your candidate will be interfacing with international divisions or working with outsourced departments in other countries; foreign language skills might be a bonus.  If your company uses specialized software be sure to include as a requisite, knowledge of this software in the candidate profile.

Accomplishments

Perhaps the most important section, but potentially the most overlooked section of the candidate profile, is the one regarding accomplishments.  This section is a verification of the skills needed to meet the job description.

Everyone involved in hiring this candidate including the final decision maker must enumerate the candidate's skills.  There must be complete agreement about the necessary skills as revealed through accomplishments to create an accurate candidate profile.

If for example, the company requires this hire to establish a new tax division, the prospective candidate’s accomplishments section must reflect a need for the candidate to have start-up experience, the ability to hire, motivate and establish priorities.  Review the accomplishments section of the candidate profile against the deliverables as listed in the job description to be certain you have detailed the specific accomplishments to be sought.  There must be tight linkage between what you expect to be delivered and what someone’s prior accomplishments say of their skills.

Personality traits

Understanding your corporate culture will help as the team determines the personality of your candidate.  For example, consider whether or not you will need a self-reliant individual who requires little outside structure.  If yours is a highly structured company, a self-reliant individual may not be comfortable in such an environment.  Instead your candidate profile should specify the need for a candidate who is comfortable with corporate structure.  As another example, consider how innovative you need the candidate to be. Hiring someone who seeks new ways of doing things but who will be placed in an atmosphere of predictable routine will create a candidate who will not mesh with the corporate culture.

Describe the styles necessary for effective communication and colleague relations.  Will the candidate be required to provide counsel to other staff members?  Can the candidate manage towards deliverables as spelled out in the job description?  What self-management style is necessary? Must they be a strong leader or must they be a compromise builder? How will the candidate manage stress?   

Management and leadership experience and skills

Before you determine what management abilities your candidate needs, review the job description.  How many people will be supervised and at what levels will they be?  What are the deliverables?  Reviewing these criteria from the job description will clarify the breadth of management responsibilities essential to the candidate.  As was discussed earlier, the input of the final decision maker is vital. Not knowing or correctly delineating these specific management abilities is often where a hiring process can go off course.  It has happened that the final decision maker, when reviewing a candidate, will reject that candidate.  This most often happens when the final decision maker’s management criteria have not been included in the candidate profile’s management section. To prevent this occurrence, you must include all aspects of management experience from all involved in the hiring process, especially the final decision maker.

Enumerate the prospect’s desired management skills in three areas; 1.) Project management, 2.) Administrative management, and 3.) Leadership.  Not every position will require a prospect with all these strengths. You may need a candidate who is strong in only one or two of these areas.

Drive down into the details of what everyone expects from the candidate.  If your job description reflects a project oriented set of deliverables, you naturally will be seeking an individual whose experience reflects project management.  When it comes to administrative management if your division or department's reporting requirements are particularly heavy, you may require a candidate that understands the top-to-bottom organization that serves your reporting requirements. Does this job demand a person who will need to show leadership strengths beyond the normal scope?

Summary

While seemingly simple at first thought, the creation of an accurate candidate profile may not be so.  It is predicated on a well-crafted job description that fully encompasses all areas of prospect responsibility and deliverables.  The candidate profile demands the input of all who have a stake in this candidate’s success, including the final decision maker.  It must be tightly aligned with the job description and be comprehensive of all the tax skills and abilities necessary for success in the position.  The candidate profile must create an accurate picture of the professional, educational, technical tax, management skills and abilities imperative for selecting the candidate best suited for your company.

 

Objective: The Job Search Analysis

The hiring process can be one of the most challenging aspects of growing and maintaining any department or business. It takes many factors to connect the right candidate to the right position and many times the hiring authority or HR team is left to conduct the process without the proper knowledge of just how to hire the right way. In this four part series, we will examine the framework of developing an effective job search analysis which encompasses the necessary disciplines to more effective hiring practices. The Job Analysis includes the development of a powerful job description, a detailed candidate profile, an insightful company profile and description of what the position offers as well as all the administrative processes required to secure the proper hire for any given position. 

Developing An Effective Job Description

The development of an effective job description should cover five basic aspects that can be easily understood from the candidate’s perspective. These areas include:

Company description Job responsibilities (multi-year)
Key deliverables (12 – 18 month goals)
Workload, resources and organizational chart
Reporting lines

Underlying these five main areas, it is very important to understand that throughout the entire hiring process, the objective is that both the candidate and employer are as transparent as possible in all of their   communications. At first, this may seem to be a somewhat uncomfortable change from the traditional method of hiring; however, when both the candidate and employer communicate with transparency, there is a reduction in the amount of errors that are commonly caused through misunderstandings and unrealistic expectations. Without transparent communications up front and across the board, the chances of a solid long term hire are greatly reduced. In most cases, the symptoms of a bad hire generally do not surface until the candidate is deep into their employment experience which brings many additional problems to the company.

Company Description

Job applicants often go into interviews with only a vague idea of what their prospective company is all about. By providing details of the company in the job description, the applicant will be able to more fully understand the business scope and mission of their prospective employers. The description of the company should include details such as the number of the company’s active legal entities, number of countries that the company operates in including overseas productions and any other facts that would help the candidate shape an accurate picture of the company.

Job Responsibilities

Job responsibilities should be graphed out over a three year period using a percentage system to describe exactly how much time the employee will be expected to spend in each area of their given responsibility. Doing this will ensure two things; it will force the company to clearly communicate the specific amount of time they expect the employee to spend over a 12 month average in each area and second, by showing years one through three, the prospective employee can identify how their job might evolve in the future. Breaking down the areas under the employee’s responsibilities also helps to give the applicant a good sense of the overall workload. Above all, a thorough job responsibility list helps to avoid any miscommunication in regards to what the employee will be responsible for implementing.

Key Deliverables

By providing a detailed list of the position’s key deliverables over a 12-18 month period, the candidate will be able to fully understand what the company will expect them to accomplish within a given timetable. Each of these deliverables should be reflective of specific projects or tasks that this person will be responsible for competing each within a defined time frame. Examples of tax deliverables for a Director of tax could include decreasing 1120 filing times by 25%, hiring two new department members or even identifying and implementing a tax provisions software solution.

Workload, Resources & Organizational Chart

The job description should also include a list of the job’s workload and resources as well as a company organizational chart. Preparing an outline of the volume of work expected to be done in the position is essential. By listing the resources of the job’s department, the applicant will be able to better understand exactly what and who they will be working with and just how those resources will be utilized in the workflow. The list should also include all of the tools available to the department such as tax software (return, planning, provisions, etc.), online tax research services and department subscriptions to tax research materials. Additionally, a tax department organization chart that lists each current employee’s title will ensure that there is little confusion as to who has what responsibilities within the department. It will also help ignite discussion during the interview process.

Reporting Lines

Reporting lines are an important area to disclose so the prospective employee understands the hierarchy of his/her position before starting the job. Even dotted line relationships should be included so that there will be little confusion at any point in the future. An example of this would be a job description for a Director of Tax that would outline how that position interfaces directly with one or more members of senior management. The reporting line could also further detail that the tax position of all major business transactions and corporate strategic initiatives and would work directly with the Vice President of Tax and other tax professionals to assure that the tax positions provide the optimum benefit and risk profile for the company.

Summary

The hiring process is never easy; however, there are ways to make the process more effective. The most important areas to remember are to organize the process, expect transparency in all communications to and from the candidate and be sure to have all the internal hiring resources on the same page as to the needs and wants of the organization before you start the interview process. Clarity and attention to detail in the hiring process can only serve to enhance the quality of the hire and ensure that there are as few misunderstandings about the position’s responsibilities as possible. Remember, the goal in hiring is not just to fill a position for today but to secure an employee that will evolve with the growth expectations of both the position and the entire organization.

My phone lines have been ringing a lot lately from the tax professionals within the housing and financial services sector. I would not characterize these as panic calls but there is no doubt insiders within these industries are nervous about the next 2 to 3 years. We will be watching closely to see how the NYC offices of the Big 4 and major law firms are being impacted specifically by their financial services clients.

That being said, we have not seen this spread to other industries albeit US automotive was hit before financial services. The next 6 months will be very important in that we will either see this slowdown stabilize and contained within industries mentioned or we will see it start spreading to other industries. No matter what, unless this is a total meltdown which is very unlikely, people in the tax field, due to the pent up demand and limited supply, will find it to be a “soft” landing at most.

~ Tony

Nearly every senior level search we conduct for clients, we are instructed to provide them with a diverse pool of candidates. Human Resource leaders face a major challenge with a serious lack of availability in some demographics within the diversity pool of tax professionals.

The fact is that while we have made progress in attracting, developing and promoting tax professionals from within the female gender pool, we still have a major issue relating to minority candidates.

African American, Hispanics, Asian and other candidates of color are disproportionally less represented within the tax profession in contrast to their numbers in the general population. The numbers of those at the senior executive level in tax are even less representative.

Any of us who have attended the annual or mid-year TEI conferences can scan the crowd and confirm these observations. What needs to be done to correct this?

First, in my opinion, we need to start ATTRACTING more minority candidates at the undergraduate level. Additionally, there needs to be stronger promotion of the Masters in Tax, as well as the LLM in tax programs to the minority tax population.

The industry needs to be at the schools where minority candidates have a higher percentage of enrollments. The AICPA, ABA-Tax section, TEI and all the major hiring entities (Public Accounting, Law Firm, Corporate in-house, Government agency, etc.) need to focus their efforts at these schools. Targeted scholarships would be a good starting point! Assigning mentors to each of these targeted schools also makes sense. Let the minority students be exposed to successful minority tax professionals and get the insight they need to formulate positive thoughts about the tax field.

Next, we must DEVELOP these new minority hires in a way that they will be seriously considered for senior executive level tax positions. Well rounded tax technical foundations must be built (compliance, tax accounting, audit and planning skill sets).

As I have mentioned in an earlier post(January 29, 2008) , leadership and communication skills are non-negotiable for serious consideration at the chief tax officer level. These candidates must be developed long term, not just in the hard technical skills of tax but also to have their communication, project management, leadership and overall business understanding equally developed throughout the stages of their careers.

This will require that the targeted minority candidates themselves be highly motivated and talented individuals to start with. They will be breaking new ground just as certain female tax professionals had done in the 80’s and 90’s resulting in the considerably larger number of female chief tax officers that we have today.

As the nation’s demographics change, our profession must be prepared to adjust to workforce makeup. There is no need to panic and overreact. The free market system will work- we simply need to give it a push to start!

 ~Tony

When evaluating new employment options should I consider accepting a counter-offer from my current employer to remain on board?

No-it is not a good idea to entertain a counter-offer however including your current employer in your career options is generally a wise strategy.

This involves communicating with your current employer before you start interviewing outside. You should consider making them aware of what you want and need to stay motivated and content in your current position and additionally what future opportunities might exist for you down the road. This process must be done in a manner that is non-offensive or threatening but direct enough that management will not be surprised if you eventually open yourself to career alternatives should your discussion bear little fruit.

We have a saying in the recruiting business that happy candidates are always the toughest to recruit. If your current employer by their actions or lack of actions fail to meet your needs then you can evaluate other opportunities without hesitation.

If your employer does a 360 degree turn after they hear you are interviewing or after you give notice, you may be hearing “a promise made under duress” that is unlikely to ever be kept and generally these situations come with a certain level of resentment or future political scars.

When addressing new options, it’s never in your best interest to have the talk with your employer after you let them know you already have an offer. This is like sticking a gun to their head and it places employers under duress to do things they never intended. Give your employer a chance to meet your needs without placing them under this type of strain. If you play your cards right, you will be able to read your employer’s reaction and get a sense of where they stand when it comes to your value in the organization. Remember, you are part of a team and management knows what ultimate value you have. Your goal is to maximize that value!

For employers that have to manage the HR and operational side of this equation, recognize how important it is to communicate with your staff - understanding and addressing their needs and wants before they come in to resign or advise you they are interviewing elsewhere! The current market conditions will require this type of proactive employer action so stay ahead of the curve on this one.

 

~Tony

Let’s face it, nothing is perfect.  But now is not a bad time to be in this profession.

 

    * Demand at an all time high!
    * Supply cannot keep up with the demand!
    * Salaries are escalating rapidly!
    * Upper management clearly recognizes tax has a place at the table!
    * Department budgets are growing as management and the audit committee understands the risk mitigation and the tax savings issues!

While we can always see the glass half empty, it is important to keep things in perspective.  As I approach my twenty-eighth year in the tax recruiting field, I am amazed at how fortunate we all are and what tremendous opportunities available to those who choose to enter the profession at this time.

~Tony