The Pay Gap

Writes Cathy Arnst on BusinessWeek's Web site:

A study released this week by the American Association of University Women Educational Foundation found that a dramatic pay gap emerges between women and men in the U.S. the year after they graduate from college, and widens over the ensuing decade.

One year out of college, women working full time earn 80% percent of what men earn. Ten years later, women earn 69% percent as much as men.

Then, she moves into some analysis:

However, the researchers do suggest that women themselves may be partly to blame for the gap: "Women expect less and negotiate less pay for themselves than
do men."

I hate to blame the victim, but that sounds plausible to me. I know far too many women who think it is somehow unseemly in the workplace to promote themselves, or demand more money. I think many women consistently undervalue themselves and their skills, which may be why many of us take on the bulk of the household chores even though we hold demanding jobs. Do we too easily assume that somehow the husband's job is more important, either because he works more hours (and how much of that is by choice?) or earns more? Perhaps its time to re-evaluate our worth, both on the job and at home. Or at the very least teach our daughters to be more demanding.

What's interesting is that many of the people weighing in with comments aren't buying either the thrust of the report or Arnst's analysis.

Remember that in February, SmartPros reported a significant pay gap between male and femail accountants - 44 percent: "Men reported an average of $101,203 and women an average of $70,520," SmartPros said.

Working Parents [BusinessWeek]
SmartPros Salary Survey Results [SmartPros]

The Value of Overseas Experience

Edward Prensky, an accounting and tax manager at Boyle & Co. P.A., in Frederick, Md., has some advice for young accountants:

"I would recommend working overseas to anyone," he said. "The experience taught me other peoples' perspectives on issues and problems. I learned about life under communism, food shortages and how they reacted to problems.

"I loved it, and I hope my daughters (Clara, 8, and Hannah, 7) are better for it."

Prensky was speaking to his local newspaper, the Frederick News Post, which recounts in some detail his years spent overseas, first with PricewaterhouseCoopers, then as a financial controller for manufacturer Reckitt Benckiser in Warsaw. All in all, it's an interesting career case study.

Tax manager brings European perspective to accounting firm [Frederick News Post]

Tidbits from Around the Web

• "Management and Business/Financial occupations account for more than 1/3 of online ads in some regions." [Conference Board]
• Reznick Group Launches Reznick Talent Solutions Accounting and Financial Professional Recruiting Source [Reznick Group via PRNewswire]
• Startup accounting group lures more SEC staffers [MarketWatch]

What Were They Thinking?

Did anyone at E&Y's management really think this was going to get people excited? Or wasn't embarrassing?

If I were, say KPMG or PWC, I'd call it "Join Us and We'll Never Make You Do This."

What to Say When They Make An Offer

Debra Feldman, an executive talent agent who works with senior finance professionals under the moniker "the JobWhiz," sent us these tips for addressing what she calls "the million dollar question." And that is "What will it take for you to join our team?" Negotiating your terms of employment requires preparation, she says. Here are her tips for getting yourself ready.

1. Do your homework. Be prepared with figures and facts demonstrating your value to the prospective employer. Know your worth in the market. Research what comparable positions with similar responsibilities command in your industry and in your locale.
   
2. Make it clear that your goal is fairness. You want to be compensated commensurately with what your colleagues are paid for comparable responsibilities, and you want to be rewarded for superior performance.
   
3. Show that hiring you is not an expense but a smart investment. Prove that you will be able to add to the bottom line through increased sales, cost reductions, revenue gains, enhanced productivity, etc. Have tables or charts to illustrate the impact your expertise will have. Use actual data if available.
   
4. Never reveal an exact number for your desired salary or what you are currently making. Give a range that will allow you more room to negotiate for bonuses, benefits, time off, etc. because no two jobs are the same, no two candidates are alike. See Tip # 6 below.
   
5. Have a bottom line in mind. What is this opportunity worth to you? What will you give up? What can you exchange to make the numbers work? Is there a necessity, must have, uncompromising need? Then, be willing to be flexible on the rest. Think about time off vs. salary, educational opportunities vs. conference attendance, etc.
   
6. Remember that this should be a win-win for you and your future employer. Make sure that they understand that you want this job and you are confident that if they also agree that you are the right choice, together you can make this happen. Take the focus off the dollars and put it on the chance to have an impact, find solutions, move forward, etc.
   
7. Work this out with your future boss rather than their HR staff person. Only your future boss knows what they need and will go to bat to get this deal together for you. It's their budget — show them your "other" skills right from the beginning with your abilities to negotiate for yourself!

The JobWhiz

Return-to-Work Discussions

Last fall on eFinancialCareers, we covered the launch of "Back in Business," a program from Dartmouth's Tuck School of Business designed to facilitate the return of women to the workforce after they'd taken time to have children, focus on their families or address other personal issues. (The program is actually designed for men and women, but in reality most of the people who step out of their careers for a while for family reasons tend to be women.)

The pilot program did well, and now Tuck is sponsoring a series of discussions in four cities on the issue. Our coverage is here, and Tuck's information is here.

Risk Management, IT Audit Skills Need Improvement?

Risk management and IT auditing are the areas most in need of improvement within internal audit departments, according to a survey by Protiviti, a Robert Half subsidiary that consults on risk and internal audit services. "Given the constantly changing nature of IT and the specialized expertise required to audit these processes, it is imperative for internal auditors to acquire and keep current with IT audit skills," said Bob Hirth, who heads Protiviti's global internal audit practice. "In addition to improving baseline IT audit skills, internal audit organizations may also look to outside expertise to guide them in this technically difficult, dynamic and complex area."

Though you've got to work a bit to find the meat, the press release is worth reading.

Risk Management and IT Audit Skills Most in Need of Improvement Within Internal Audit Departments, According to Protiviti Survey [Protiviti via PRNewswire]

Added Value from Tax Departments

Here's something interesting from the Big 4 newsletter:

A KPMG International study of trends in tax management, The Governance of Tax, argues that over-cautious boards may risk losing value to competitors who look a tax as a source of competitive advantage.

According to KPMG International, leading tax-oriented organizations should mention clearly in a defendable position on how tax and risk are managed; should maintain well-documented, board approved tax strategies; should construct an enterprise resource planning system for providing useful tax information and maintain transparency (read tax information) with internal as well as external stakeholders.

It makes me wonder if there's a potential evolution in the role of tax departments, which are already trying to show they add value to a business's bottom line in a variety of ways. It's one thing to maintain the effective tax rate, it's another to be part of a competitive advantage.

KPMG Global Study Shows Tax Management Can Boost Corporate Value [Big 4]

News for CPAs in California

We've introduced a new feature to JobsintheMoney: A twice-monthly wrap-up of goings-on in the California CPA and auditing communities. It comes to us from our Los Angeles-based writer James Rubin. This week, he looks at accounting and finance opportunities at non-profits, colleges and school districts, and previews the California CPA Education Foundation's upcoming conference for young professionals.

Calif. Wrap-Up: Non-Profits Can Be Intense [JITM]

You're SO Good...

Last week, The Wall Street Journal ran a story about how younger workers are so used to being bathed in praise from parents and teachers, they're stunned if they don't get the same treatment at work:

Employers are dishing out kudos to workers for little more than showing up. Corporations including Lands' End and Bank of America are hiring consultants to teach managers how to compliment employees using email, prize packages and public displays of appreciation. The 1,000-employee Scooter Store Inc., a power-wheelchair and scooter firm in New Braunfels, Texas, has a staff "celebrations assistant" whose job it is to throw confetti -- 25 pounds a week -- at employees. She also passes out 100 to 500 celebratory helium balloons a week. The Container Store Inc. estimates that one of its 4,000 employees receives praise every 20 seconds, through such efforts as its "Celebration Voice Mailboxes."

And my favorite line:

The average college student in 2006 was 30% more narcissistic than the average student in 1982.

OK, an amusing story. Worth a smug chuckle from those of us who missed that particular boat. And today came some letters to the Journal, just to underscore what some older folks in the business world are thinking:

I read with disbelief, then with laughter about the techniques for managing the younger generation of workers. Rather than calling in one of the balloon and confetti work force consultants, I think I'm going to call the offshore, outsourcing consultants.

John Seus
Gloucester, Mass.

So the wimps of the baby-boom generation have raised a wimpier generation that needs constant praise for just showing up at work? I remember a time not so long ago if you couldn't be at work on time or at all, you just lost your job. Now I have to praise some pup because he got out of bed today? Oh please, spare me the superlatives. The fascists won't have to fire a shot to take over our country. All they have to do is not praise us and we will kowtow to their every whim.

Bob Stocker
Lyman, S.C.

Those curmudgeons have no empathy. Anyway, which are you? Praise-dependent or just hunkered down and doing your job? It matters to your firm, if retention is on their minds.

Am I Good Employee? Huh, Boss, Am I? [WSJ - $]

The Most-Praised Generation Goes to Work [WSJ - $]

Broker/Dealer Information for CPAs

New York area CPAs who want to get leg up on the hedge fund or broker-dealer arena should consider attending the Foundation for Accounting Education's 2007 Broker/Dealer Conference on May 16 in New York. Myra Thomas provides the details. You'll even get continuing education credits.

N.Y. Conference Focuses on Broker/Dealer Accounting [JITM]

Internships Count

Internships play an important role in the hiring decisions made by many CFOs. A survey by Accountemps found that fully half say internships count most in their evaluation of entry-level candidates, "aside from functional knowledge." A good internship carries more weight than referrals, college, or even grade point average.

Survey Suggests Internships Play Key Role in Hiring Decisions [Accountemps via PRNewswire]

Some Average Salaries

Surfing around, I found this list of average salaries on PayScale.com's blog:

• Internal Auditor - $47,934
• Certified Public Accountant (CPA) - $59,108
• Risk Management Analyst - $58,271
• Financial Analyst Accountant - $51,212
• Financial / Securities / Investments Analyst - $64,602
• Compliance Analyst - $51,021
• Manager of Financial Accounting - $68,993
• Cost Accountant - $46,048
• Senior Accountant - $52,731

Remember, these are averages. You'll find a lot of people making more, or less.

Hot Jobs: Where the Money is in '07 [PayScale.com]

The Controller's Career Path

CFO takes another look at the obstacles that can block a controller from moving into the CFO's office.

There once was a time that ... controllers could safely assume that they would move up to the job of CFO, either via an internal promotion or an external recruitment. Today that career path isn't so certain.

Many of the challenges surround the changing role of the CFO, who today are often looked on as possible successors to the chief executive. Meanwhile, controllers have to pay more attention to compliance issues and internal controls, and so can be perceived as being too "internally focused."

However, notes CFO Europe's Janet Kersnar:

Amid the discussion about whether controllers make good CFOs, there's one more question to be addressed: do controllers actually want to be finance chiefs? Not necessarily, says Gerrit Bonnema, a former Big Four auditor who's now group controller of ING Real Estate, a division of ING bank in The Hague which oversees a $120 billion property portfolio.

Today, he says, controllers have a lot of attractive career options, including moving up to the role of managing director or CEO, largely because their skills as auditors are now in greater demand. And besides, he says, the CFO's job has changed just as much as the controller's, and not always for the best. As Bonnema sees it: "The CFO is the target, your head is on the block continuously. I don't know if it's really worth it."

Big Shoes to Fill? [CFO]
CFOs Wanted: Controllers Need Not Apply [CFO]

Eide Bailly Picks Up Sioux Falls Firm

South Dakota's largest accounting firm, Eide Bailly, is acquiring Henry Scholten & Co. The deal merges two of the leading firms in Sioux Falls, and positions the combined operation "to secure more business from national firms," Eide Bailly's Kevin Doyle told the Argus Leader.

The nine partners and 45 staff members from Henry Scholten will increase Eide Bailly's ranks to more than 170. The company will continue hiring throughout the year, with plans to open a new building in the next two or three years, Doyle said.

Eide Bailly has 14 offices in eight states from Arizona to Minnesota. The firm had revenue of about $84 million in 2006, according to Public Accounting Report, making it the 23rd largest firm in the country. It has about 56 partners and more than 530 professionals on-staff.

Accounting merger could create jobs [Argus Leader]

Looming Retirements Spur Recruiting at IRS

The IRS is stepping up recruitment to fill anticipated gaps in a number of specialized fields, including information technology and appeals officers, ahead of a wave of retirements.

Among 13 occupations which the IRS lists as "mission critical" for future hiring, a few start at the relatively high civil service category GS-11 and fall outside the revenue agent and tax examiner slots that traditionally dominate IRS job postings. Along with IT specialists and appeals officers, the list also includes engineers, economists and tax law specialists.

Our story, by Jon Jacobs, is on JobsintheMoney.

IRS Seeks IT, Appeals Specialists [JITM]

Government, Non-Profits Actively Recruiting

As private employers find it increasingly difficult to fill openings in a tight labor market, governmental agencies and non-profits seem to be having a harder time than ever.

Federal agencies like the IRS and big not-for-profit employers like the YMCA used to do relatively little recruiting of experienced accountants and other financial professionals in the New York area, says Dr. Barry Miller, manager of alumni career programs and services at Pace University and an adjunct associate professor at Pace’s Lubin School of Business. “Now, that job market has skyrocketed,” Dr. Miller says.

He says twice as many public agencies and non-profits are set to participate in Pace’s Spring 2007 job fair as at the same event a year ago. The job fair, aimed at Pace alumni and graduate students as well as graduating seniors, takes place this Wednesday, April 25 at the university’s Lower Manhattan campus. (Details here.)

Miller said 76 employers and 500 candidates had signed up as of last week. Most of the candidates are experienced professionals, he said.

The federal government has acknowledged that it faces a staffing crunch in the next five years, as the best-trained segments of the work force in many agencies approach retirement. Meanwhile, the pool of new applicants is shrinking: as Wall Street and Main Street continue to hire at a healthy pace, candidates who formerly might have gone to the public or non-profit sectors are increasingly moving into private-sector careers instead.

Helping Women Succeed

The long-term success of women in the accounting workforce isn't only about encouraging more women to join the profession, but to ensure the older white males who lead the profession communicate with them in ways that encourages their success.

“We have all these women being drawn out of accounting schools and we’re not developing them and they’re dropping out of the profession. Firms are investing millions of dollars in women and they’re just walking out the door,” says Gale Crosley, CPA, founder and principal of Crosley + Co., which serves as consultants to CPA firms looking for practice development assistance, including establishing programs to help women excel in their careers. “Women aren’t taught to be initiators. You have to be an initiator to be a good rainmaker.”

In May, Cosley, a CPA, will host a forum for Women in Accounting with the theme "Becoming All You Can Be." Details are here.

Women on Top? [WebCPA]

Recruiting Season Opens Early

Some college career officers say accounting and finance firms are looking for soon-to-be graduates earlier and earlier:

Bethany Cooper, associate director of the UNH Advising and Career Center, said job recruiters in industries like finance and accounting started their push for candidates in the fall.

The three most popular majors nationwide are business administration and management, psychology, and elementary education, according to Princeton Review, a for-profit educational preparation company.

Cooper said the competition between firms for good candidates has perked up so much in recent years that recruiting efforts seem to have started earlier than ever.

"They are looking for that fantastic student before they get snatched up by someone else," Cooper said.

Hunting for work: College grads, employers starting job push earlier [Foster's Online]

Other Hits from Around the Web

Third of Euro Accountants 'Frustrated Entrepreneurs' [AccountingWeb]

The Most-Praised Generation Goes to Work [WSJ -$]

5 dealmakers follow diverse paths in real estate [Arizona Republic]

Gender Pay Gap in U.S. Starts Right After College, Study Says [Bloomberg]