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In motion winter14_final

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Explore Winter 2014 issue of IN Motion, a quarterly magazine offering articles on best business practices in the areas of finance, HR, technology and more.

Explore Winter 2014 issue of IN Motion, a quarterly magazine offering articles on best business practices in the areas of finance, HR, technology and more.


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  • 1. motion Elevate Performance Issue 3 �� Winter 2014 The 2014 Scene 14 Business Trends for the New Year Retirement Planning Getting Back to Basics Co-Sourcing IT Delivering Innovation and Results
  • 2. A LETTER from the CEO Every year, businesses and organizations prepare for new challenges. However, many organizations don’t include disaster preparedness in their annual plans or even operational procedures. What would happen to your organization in a flood, motion tornado, earthquake or fire, or even a human-based disaster, such as embezzlement, hacking or a prank on YouTube? Your planning for 2014 is likely finalized, but now that we’ve entered the New Year, Elevate Performance Issue 3 this is a great chance for you to examine your annual business plan, prepare for �� Winter 2014 www.sikich.com known and unknown challenges, and make it your best year yet. To help you get started, we’ve compiled a list of 14 business topics we think you should know about for this year (page 4). From employee misclassification to ever-changing technologies like the cloud and ERP, we hope these help you make informed, positive decisions for the year to come. Finally, don’t forget to take a look at the back cover. Start 2014 out right by attending one of our upcoming virtual or in-person events! James A. Sikich, CPA CEO and Managing Partner LEARN more: TABLE of Contents �� Realize your organizational goals through the one-of-a-kind solution set Sikich, a leading accounting, advisory, investment banking, technology and managed services firm, brings to your unique challenges and needs. With more than 550 associates, we rank as one of the country’s top 40 largest Certified Public Accounting firms and are among the top 1% of technology Value-Added Resellers worldwide— yet you receive the personalization and attention you need to grow and experience success. Get to know Sikich by reading IN Motion and taking a look at our website, sikich.com. You’ll find out how you can gain value for your organization through our dedicated industry teams, client commitment and extensive list of services: �  ccounting & A Assurance � T Services I �  arketing & Public M Relations �  usiness Valuation B �  ispute Advisory D FEATURE STORY 4 The 2014 Scene 9 Co-Sourcing IT Delivering Innovation and Results 2 �� inmotion | WINTER 2014 Retirement Planning Getting Back to Basics 10 �  etirement Planning R �  RP & CRM Software E �  upply Chain S �  uman Resources H Consulting �  alent Acquisition T � nvestment Banking & I Corporate Finance �  ealth Management W EDITOR �  ax Planning T Rebecca Miller DESIGNER Colleen Hughes PHOTOGRAPHER Matt Stout IN Motion is published four times a year by Sikich. 1415 W. Diehl Rd., Suite 400, Naperville, IL 60563 Request or update your subscription by emailing rmiller@sikich.com. ©2014 Sikich LLP, All Rights Reserved. Advisory services offered through Sikich Financial, a Registered Investment Advisor. General securities offered through Triad Advisors, Member FINRA/SIPC. Securities are offered through Sikich Corporate Finance LLC, a registered broker dealer with the Securities Exchange Commission and member of FINRA/SIPC.
  • 3. inspire PARTNER Profile Meet Christina Immelman A Kansas native, this is Christina’s first year at Sikich. Find out how this tax partner is connected to bookbinderies, South Africa and the Rolling Stones. What I like most about Sikich: The multifunctional teams. It is fun to go to market with non-CPAs. It is also a distinguishing factor for Sikich to be able to offer a variety of professional services to our clients. Organizations I belong to: I am a board member for Choose DuPage, a member of the Federal Tax Committee for the Chicago Tax Club, a planning committee member for the Morton Arboretum, and a member of the Illinois CPA Society and the AICPA. Partner at Sikich LLP CPA Naperville, IL Office Quick Tips My first job was: Babysitting for a neighbor when I was 10 years old. From there, I went to work in a bookbindery. There are not too many bookbinderies left in the U.S., but that one still exists in my hometown. In another life, I would be: Working on Wall Street. The excitement and stress has to be very energizing. Alerts Quick Tips Question of the Qtr. QUICK TIPS Estate planning is complicated. It is crucial to consider several factors when selecting the best estate planning strategies for your needs. Who should inherit your assets? Which assets should they inherit? When and how should they inherit these assets? Quick Stats Estate planning is not only about reducing taxes, it is an essential part of an overall plan. There are several strategies you may use to increase the amount of your estate that is passed on to your heirs, including the marital deduction, life insurance, annual gifting and charitable contributions. For more information about these strategies and to gain insights on planning for the distribution of your assets, download our Estate Planning Guide at sikich.com/ estate-guide. The guide also touches on tax planning strategies that may help you to achieve your estate planning goals at a lower tax cost. Alerts My favorite place in the world is: South Africa. You have the game parks, ocean and mountains all within easy driving distance. The people are incredibly warm and friendly, and the country has the best climate that I have experienced. WHAT I’M LISTENING TO Three words that describe me are: Energetic, results-oriented and personable. One would usually hear BBC World playing in my car. I find travel time is a great time to stay connected and up-to-date on world news. My go-to person for advice is: My husband. He understands me like no one else. He is also in professional services, so he understands some of the challenges I face. People would be surprised to know that: I have been chased by a very angry bull elephant and nearly drowned in Madagascar. Three things you’ll always find in my fridge: Garlic, chiles and wine. Anything can be made flavorful by adding one or all of these ingredients. The last book I read: “Life” by Keith Richards of the Rolling Stones. It’s inevitable that I will: Be adventurous. Question Quick Tips of the Qtr. Alerts ALERTS On September 13, 2013, the U.S. Department of Treasury and the IRS released final Section 162 and 263(a) regulations regarding the repair and capitalization rules for tangible property. Several of the modifications from the temporary and proposed regulations are Quick Stats “taxpayer friendly.” The final regulations went into effect January 1, and any taxpayer who owns or leases tangible personal property will be impacted by these final regulations. For more information, view the on-demand webinar, “Adopting the Final Tangible Property Regulations,” at sikich.com/ tangible-property-final. According to the U.S. Consumer Product Safety Commission (CPSC), an average of 34,000 individuals in the U.S. are killed each year from product safety-related causes. To assist in counteracting these occurrences, the International Organization for Standardization (ISO) has released new guidance. Read more on this topic at http://bit.ly/iso10377. Question of the Qtr. OF THE QUARTER Why do I need cloud backups? Imagine that you spent all night working on an important client proposal. You get to the office, work on making it just perfect and hit the save button Quick Stats before heading out to lunch. Upon returning from lunch, you’re ready to send the proposal—but the document is completely blank. A professional cloud backup service can back up data at specified timing—every 15 minutes, for instance—so that organizations can restore data from a precise point in time. The situation described here happens every day to organizations worldwide, yet many are still unfamiliar with the value cloud backups can provide. Learn more about the benefits of cloud backups at http://bit.ly/cloudbackups. WINTER 2014 | inmotion �� 3
  • 4. innovate The 2014 Scene 14 Business Trends for the New Year I 1 f you’re like many other business leaders, chances are that you spent the better part of the last few months reviewing 2013 goals, assessing your organization’s performance, examining challenges faced, and developing new goals for the new year. Just like past years, 2014 will host its own set of challenges, trends and issues that will impact your organization. And while planning for 2014 has likely already been finalized, there are a number of hot topics that may surface throughout the year—and we recommend learning more about each so you can be prepared. 6 1 2 Keep Your PCs Secure 3 12 8 13 9 1 14 6 10 2 11 11 7 12 7 On April 8, 2014, Microsoft will no longer support Windows XP, meaning that PCs running on this system will be without critical updates and patches. 1 2 3 and spam. One option to mitigate this risk is to simply upgrade to the newest version, but this event is actually a great opportunity for your organization to re-evaluate its approach to IT. Solutions such as virtualization, Virtual Desktop Infrastructure, cloud email, thin clients and more could improve both the efficiency and effectiveness of your technology. Learn more at http://bit.ly/xp-end-of-life. 6 inmotion | WINTER 2014 7 8 11 4 �� 3 12 13 4 5 Review Retirement Plans to Mitigate Tax Increases In the current environment of uncertainty and increasing taxes, now may be an ideal time to review your organization’s retirement plans and explore the possibility of increasing deductible contributions. You may be able to add or increase profit-sharing contributions that would be favorable for key employees without adding significant cost for rank and file. It may also be an ideal time to consider establishing a Cash Balance pension plan in addition to a 401(k) plan. Cash Balance plans could potentially be designed to add substantial tax-sheltered contributions favoring key employees. 7 8 While planning for 2014 has likely already been 11 finalized, there12 a 13 are number of hot topics that may surface throughout the 4 5 year—and we recommend learning more about each so you can be prepared. Thirty-eight to 45 percent of PCs connected to the Internet are still on Windows XP, and with this operating system reaching its end of life on April 8, 2014, organizations need to develop a new plan. When a system reaches end of life, it means that it will no longer be supported. This means that on April 8, machines using Windows XP will no longer receive critical updates and patches that protect your computers and network from malicious malware, viruses 6 2 3 4 9 10 14 5 C  onsider Moving to the Cloud One common question organizational leaders are asking right now is: Should we go to the cloud? According to CIO magazine, one in two mission-critical applications will be in the cloud by 2015. But there are a number of important aspects to think about when considering a move to the cloud. Do you have a need for increased security levels? How tolerant are you of downtime? Have you considered the integration of your current systems and applications? Which parts of your business would make sense for the cloud? The cloud is a powerful means to deliver technology, but it’s not simple. Moving to the cloud is a decision that needs to make sense for your organization now and in the future. Learn more at sikich.com/grow/cloud.html. 8 9 13 14 4 10 5 Develop a Well-Crafted Succession Plan Even successful business owners often overlook the need to have a succession plan in place. It’s not easy, it’s time consuming and it involves many complex issues. With many Baby Boomers retiring, this year is a prime time to make important decisions and ensure your business will continue long after you’re gone—it’s time to craft a succession plan. There are several steps you can take to get started. Assemble a team of trusted 9 14 10
  • 5. 3 advisors who can help you plan. It’s never too early to begin doing this. Evaluate your options, which can include passing the keys to a family member, selling to a partner or buyer, or creating an Employee Stock Ownership Plan. If you decide that selling is the most viable option, determine what your business is worth. Finally, consider tax and other financial implications. Read more about crafting a succession plan at http:// bit.ly/succession-plan. 4 8 9 13 14 5 Defense-in-depth, using multiple layers of security controls throughout your IT system, is one way to reduce risk in your network. Create a BYOD Policy Ninety-one percent of U.S. citizens are within reach of a mobile device 24/7. With the rise of mobility, the Bring Your Own Device, or BYOD, trend—using personal mobile devices for business purposes—is still getting considerable attention. BYOD carries many opportunities, from improved productivity and happier employees to saving on up-front costs of mobile devices for new employees, but there are risks associated with it as well. Organizational leaders need to consider the risk in mobile malware, as well as what they can do when an employee quits or loses his or her device that houses company data. Without permission, 64 percent of people in the U.S. use their personal devices for work, so it is essential to begin thinking about a BYOD policy. Learn more at sikich.com/byod-whitepaper. 10 1 1 6 2 7 3 8 2 4 6 5 7 9 11 10 12 Strategize Your Content Marketing In the last few years, developing relevant and valuable content has become a part of many organizations’ marketing plans. In fact, more than 90 percent of marketers are using content marketing, according to Content Marketing Institute (CMI). But creating this content is not only becoming a popular marketing activity, it’s becoming a necessity for organizations. It’s more than just a tactic attached to a generalized marketing plan—it’s strategic. CMI notes that 86 percent of organizations have or plan to have a dedicated person to oversee the content marketing strategy, which will aid in the number-one challenge indicated by these organizations: the lack of time they are able to dedicate to a strategy. Get your strategy started by answering the questions at http://bit.ly/ content-questions. 11 6 11 2 7 3 8 13 14 1 1 12 2 3 6 4 7 5 8 11 9 12 10 Reinforce with Defense-in-Depth 13 According to a Kaspersky Lab survey, 91 percent of organizations directly experienced at least one cyber threat in the year leading up to the survey. The most common threats are in the form of viruses, spyware and 12 13 14 other malicious programs, and 31 percent of malware attacks resulted in data loss. The reality is that you can never be completely secure, so you want to take actions that will reduce your risk. You likely want to implement a defense-in-depth approach, a concept where multiple layers of security controls are placed throughout your IT system. These could include antivirus software, biometrics, firewalls, training and more. Learn more about defense-in-depth and get six tips to be safer on the Internet at sikich.com/internet-security-ebook. 3 8 4 5 9 10 Crack Down on Compensation The Department of Labor (DOL) and the Internal Revenue Service (IRS) will focus heavily this year on pay compliance. In fact, over the past two years, the DOL’s Wage & Hour Division hired 350 new investigators with the goal of uncovering more wage and hour violations. Common violations include employing minors who work prohibited duties or too many hours, not paying minimum wage, not paying overtime to part-time employees, etc. Fines and penalties may go back two years—sometimes three years, if the violation is found as willful. Furthermore, organizations get penalties for each occurrence—not each worker. So, when one part-time worker has not been paid owed overtime from five instances, organizations may expect five separate penalties. 13 14 4 5 9 10 Properly Classify Your Workers Another common wage and hour violation is the misclassification of workers. There are two types of misclassification: exempt v. non-exempt and employees v. independent contractors. Any time a worker is paid hourly, he or she is considered non-exempt, thus eligible for overtime (see #13: Compensation). To clarify further, consider the “Duties Test”: 14 �  hat is the relative importance of the worker’s W exempt duties? Continued �� WINTER 2014 | inmotion �� 5
  • 6. 3 8 13 The 2014 Scene CONTINUED… �  ow much time is spent performing exempt work? H �  ow much freedom does a worker have from H direct supervision? To determine whether a worker should be classified as an independent contractor, you can look at the degree of control and independence they have while working for your organization. Does the worker have the experience and training necessary to step into the position? Does the worker have his or her own tools and equipment? Does the worker have other clients who pay him or her for similar work? Does the worker have a written contract with the organization? If you answered yes to these, he or she is likely an independent contractor. Learn more at http://bit.ly/misclassify. 4 5 9 10 14 6 �� Terminate Risky Business When organizations continue to use disparate or old enterprise resource planning and financial solutions, reaching long-term success—or even just surviving— can be a significant challenge. Using these can also affect your organization’s ability to adjust as market demands change and keep up with competition. You can determine if your organization is at risk with your current system by asking six questions: inmotion | WINTER 2014 Organizations should properly classify their workers (exempt v. non-exempt; employee v. independent contractor) in order to avoid penalties. 1. Are your systems dependent on one or two key  individuals? 2. Is it difficult to incorporate new technologies into  your systems? 3. Is it unlikely that your business could support new  compliance or regulatory requirements? 4. Is your data stored in silos so all employees do not  have access to key information? 1 2 3 4 5 5. Does accessing key information require IT support? 6. Does an executive’s request for information disrupt  the entire organization? 6 7 8 9 12 13 10 14 If you answered yes to most of these questions, your organization is at a moderate to severe level of risk associated with disparate systems. Learn more at http://bit.ly/disparate-erp. 11 Connect with Customers Whether you have 10 or 10,000 individuals in your organization, a customer relationship management,
  • 7. 1 6 11 or CRM, solution can help better manage future growth and profitability. The new version of Microsoft Dynamics CRM, for example, should make marketers around the world happier, as it focuses on engaging with customers. According to Bob Stutz, corporate vice president of Microsoft Dynamics CRM, customers are 60 percent through the sales cycle before they contact a company they are researching, which “magnifies the importance of marketing.” Luckily, Microsoft Dynamics CRM 2013 has new features that will benefit both the sales and marketing teams, including an improved dashboard, enhanced social collaboration, a new marketing automation solution and more. Learn more at http://bit.ly/crm-2013. 2 3 4 5 7 8 9 10 13 14 12 Qualify for R&D Tax Credits We have worked with several clients in various industries to obtain significant federal and state tax credits for research and development (R&D) expenditures. Companies in many industries can qualify, and one doesn’t even need to be inventing new products— modifying an existing product or improving a process can qualify. Additionally, organizations can go back three years and file amended tax returns to claim the credit. For more details on the R&D tax credit, visit http://bit. ly/rd-tax-credit. 1 1 6 11 2 3 2 3 4 5 Companies in many industries can 6 8 7 qualify [for R&D tax credits], and one doesn’t even need to be inventing new products—modifying an existing product 8 9 10 12 7 or improving a process 11 qualify. 13 can 12 click-through arrangement. However, New York law compels ABC to collect the New York tax from the New York purchasers. At this time, approximately half of the states have a click-through nexus law in place. The Illinois Supreme Court has issued an opinion stating that the state’s click-through provisions are in violation of the Federal Internet Tax Freedom Act. Since courts in both Illinois and New York have issued decisions that are at odds with one another on the legality of their respective states’ click-through laws, this matter might eventually be decided in the U.S. Supreme Court. 13 14 Understand Click-Through Nexus Under a click-through nexus law (also known as the Amazon law), an Internet seller may have to collect tax from residents of a state even if its only contact with the state is a click-through arrangement it has made with another website whose owner has nexus in said state. Let’s look at an example: Online Retailer ABC contracts with Online Retailer XYZ for a click-through arrangement. XYZ has a presence in New York, but ABC does not. Through their arrangement, New York residents click a button on XYZ’s website that takes them to ABC’s website, where they buy merchandise at retail price. ABC compensates XYZ a fee for the 4 5 9 10 Organizations modifying an existing product or improving a process may qualify for the research and development tax credit. 14 Private Companies: Find Relief through the PCC The Private Company Committee (PCC) was developed by the Financial Accounting Standards Board (FASB) in 2006 to represent all non-public business entities. In late 2013, the PCC approved its first Generally Accepted Accounting Principles (GAAP) exceptions for private companies, and forwarded those exceptions to FASB for final endorsement. According to the Journal of Accountancy, the exceptions would allow private companies to “choose a simplified hedge accounting approach to their financial reporting when they enter into interest rate swaps to economically convert their variable-rate interest payments to fixed-rate interest payments” and “amortize goodwill acquired in a business combination.” On November 25, 2013, FASB endorsed these exceptions that will provide relief for private companies. � Advisory services offered through Sikich Financial, a Registered Investment Advisor. General securities offered through Triad Advisors, Member FINRA/SIPC. WINTER 2014 | inmotion �� 7
  • 8. involvement Team Building & Volunteering Feed My Starving Children More than 800 million people in the world don’t have enough to eat. Photo courtesy of Feed My Starving Children Hundreds of volunteers sign up each year to help combat this global problem through Feed My Starving Children (FMSC), a non-profit organization that provides handpacked meals to hungry children across the globe. Last month, Sikich’s Internal Marketing team volunteered at the nonprofit’s Aurora, Ill. location. “What a gratifying experience Feed My Starving Children is every time,” said Tea Kurpalo, marketing coordinator at Sikich. “You feel leaving like you have directly had a hand in changing someone’s life—but they have done much the same for you.” Photo courtesy of Feed My Starving Children While at FMSC, the team packed 21 boxes (more than 4,500 meals) comprised of raw ingredients—soy, rice, vegetables and a flavoring mix full of vitamins—that are specifically formulated for malnourished children. According to FMSC, 92 percent of total donations to the organization go directly to the food program. The meals specifically packed by the Internal Marketing team will be sent to Ghana, though many other third-world countries in need of nutrition also receive meals from FMSC. � FIRM News 8 �� inmotion | WINTER 2014 The Sikich Scoop Sikich appoints COO Sikich recently announced that Tom Luken, CPA has stepped into the position of Chief Operating Officer for the firm, effective January 1. As COO, Luken will lead the firm’s operations, focusing on client satisfaction, process improvement and growth, and he will continue to cultivate and enhance the firm’s unique culture among all Sikich offices. Previously, Luken was the partner-in-charge of the firm’s Milwaukee office. While assuming his new responsibilities as COO, Luken will remain a familiar face and continue to drive business forward in the Milwaukee market. Mark Sobczak, CPA has succeeded Luken as partner-in-charge in Milwaukee. Learn more at sikich.com/luken-coo. Sikich merges with OBCPA Effective September 1, Sikich merged with St. Louis-based public accounting firm O’Donnell, Bonebrake & Co. (OBCPA). Mark J. O’Donnell, CPA and James M. Bonebrake, CPA joined Sikich as partners and brought with them decades of experience in accounting, audit and tax services, as well as a team of talented accountants and auditors. Read more at sikich.com/obcpa. �
  • 9. influence Retirement Planning Getting Back to Basics W hen you close your eyes and imagine your own retirement, what do you see? Most of us imagine retirement as a happy time; a reward for a lifetime of hard work, full of possibility and potential. Many of us look forward to pursuing hobbies and traveling, while others may see the opportunity to go back to school or start a new career or business. We have good reason to see retirement in a positive light. After all, Americans are living longer, healthier lives than ever before. In fact, for some of us, retirement will make up a full third of our lives. Of course, this also means that our retirement assets will have to do more for us over a longer period of time. This makes planning for retirement critical. Many people assume they can hold off saving for retirement and make up the difference later, but this can be a very costly mistake. The further off retirement is, the more time your investments have the potential to grow. Waiting too long can make it difficult to catch up, and only a few years can make a big difference in how much you will accumulate. For example, if you invest $3,000 every year starting when you’re 20 years old, and you retire after age 65, you will have accumulated almost $680,000 (assuming a 6% annual growth rate and no tax). If you wait until age 35 to begin stashing away $3,000 annually for retirement, you will accumulate far less—about $254,000. And if you wait until age 45 to start saving, you will end up with only about $120,000 by the time you retire. Americans are living longer, healthier lives than ever before. In fact, for some of us, retirement will make up a full third of our lives. Of course, this also means that our retirement assets will have to do more for us over a longer period of time. But all of these numbers and dollar signs beg the question: How much money do you actually need for retirement? You may have heard that you should plan on needing anywhere between 60 and 90 percent of your pre-retirement income—but what does that mean to you? Instead of basing your estimate of expenses on a percentage of your income, focus on your actual expenses today and think about how they will change by the time you retire. Consider that: �  our housing costs may decrease if you have paid off Y your mortgage before retirement. �  ou will likely pay less in overall taxes—specifically Y income and Social Security taxes—once you stop receiving a paycheck. �  ou may eliminate some costs associated with your Y current job, such as commuting, clothing and even dry cleaning. Continued �� WINTER 2014 | inmotion �� 9
  • 10. Retirement Planning CONTINUED… Co-Sourcing IT Delivering Innovation & Results �  ou will likely pay more in health care costs, Y especially if you retire before you qualify for Medicare. �  ou may pay more in general entertainment Y expenses, such as dining out. � f you plan on spending your retirement working I on a hobby or traveling, you will likely pay more for these activities. �  epending on the age of your children and/or D parents, you may want to estimate and include projected costs for their support, education, health care and/or housing. Now that you have a sense of how your expenses may change by the time you retire, it’s time to determine how much annual income you may be able to count on during retirement. Every working individual should receive a statement from the Social Security Administration (SSA) each year that estimates your retirement benefits based on your earnings record. You want to see this statement to ensure that the information is accurate and understand how much you can expect to receive in retirement benefits. If you haven’t received a benefits estimate, you can request one on the SSA’s website. The good news is that Social Security will provide a monthly benefit every month of your retirement, and the benefit will be periodically adjusted for inflation. The bad news is that, for most of us, Social Security alone isn’t going to support the retirement you likely imagine. For example, an individual born in 1957 who currently earns $70,000 a year can expect to receive around $24,000 annually at full retirement age (in this case, 66 and six months). Of course, your actual benefits will depend on your work history, earnings and retirement age. With few exceptions, many individuals will find a significant gap between what they think they’ll have for retirement, and what they think they’ll need. This gap represents the amount of additional income needed to make up through savings and investments. The concepts discussed here are only the tip of the retirement iceberg. To learn more about crunching the numbers, how taxes and inflation come into play, and why insuring your future is important, download our Retirement Basics video at sikich.com/retirement-basics. � Advisory services offered through Sikich Financial, a Registered Investment Advisor. General securities offered through Triad Advisors, Member FINRA/SIPC. 10 �� inmotion | WINTER 2014 A ccording to a 2012 Gartner report, approximately 67 percent of an IT department’s budget is spent “keeping the lights on.” When IT departments focus all their funds just keeping the business afloat, innovation will suffer. New and exciting changes don’t happen, efficiency stalls and IT becomes unaligned with overall business goals. Employees may become unengaged and organizations may find it challenging to retain employees. When organizations get to this point, they must consider what can be done to do more than just meet required service levels. In the past decade, the IT managed service provider industry has grown tremendously, offering outsourced IT options that allow organizations to increase profitability, improve efficiency and free up internal employees to rediscover innovation. But the term “outsource” can be a scary word. Some organizations could consider embracing a modified outsourcing, or co-sourcing, model. Explore reasons why at sikich.com/cosourcing-it-whitepaper. �
  • 11. inbox Finding Job Candidates via Social Recruiting DOWNLOAD THIS The 30-Minute Guide to Human Resources In today’s world of recruiting, there is no single source of candidates anymore and no one process will work for all organizations. But as recruiters begin searching for quality candidates and as resources may be limited, hiring managers are more often turning to social media. For more stats and tips on recruiting, creating effective job descriptions and other human resources activities, visit sikich.com/hr-guide. 1 Social recruiting becomes the norm. ORGANIZATIONS ARE QUICKLY MAKING THE MOVE TO FIND AND CONTACT JOB 92 CANDIDATES ON SOCIAL NETWORKING SITES. % 2 LinkedIn tops all sites for social recruiting. 98 % OF RECRUITERS HAVE SUCCESSFULLY HIRED AT LEAST ONE CANDIDATE THROUGH LINKEDIN. 42% OF ORGANIZATIONS ARE REGULARLY USING SITES LIKE OF ORGANIZATIONS HAVE USED TWITTER TO RECRUIT LINKEDIN AND HIRE JOB CANDIDATES. TWITTER 33 APPROXIMATELY 6.8 BILLION (96% OF THE WORLD’S POPULATION) MOBILE SUBSCRIPTION MANAGERS WHO SAY THEY USE SOCIAL MEDIA TO UNCOVER REASONS NOT TO HIRE SOMEONE… MORE THAN ACTUALLY JUST WANT TO FIND OUT IF THE CONDIDATE WILL FIT THE ORGANIZATION’S CULTURE. BUT 34% OF THESE HIRING MANAGERS DID INCLUDED A CANDIDATE BAD-MOUTHING A PREVIOUS EMPLOYER. THROUGH FACEBOOK. 2010 Candidates want to view videos. JOB SEEKERS VIEW POSTINGS THAT INCLUDE VIDEO ICONS 12% MORE OFTEN THAN JOB POSTINGS WITHOUT VIDEO. MOBILE TRAFFIC HAS GROWN BY 2000 1 IN 4 JOB SEEKERS SOURCE: CAREERBUILDER 5 Mobile aids in job searching. THERE ARE OF HIRING 33% OF THESE CASES SOURCE: ONLINEDEGREES.COM SIN CE 4 12 % 50 % SOCIAL MEDIA. IN FACT, HAVE HIRED QUALIFIED CANDIDATES SOURCE: STAFF.COM OF THE NOT HIRE SOMEONE VIA OF RECRUITERS TO RECRUIT THESE CANDIDATES. Social media can prevent job offers. DISCOVER REASONS TO % FACEBOOK 3 sikich.com/hr-guide % SOURCE: HIRERABBIT 6 Social media improves recruiting processes. TIME TO HIRE HAS IMPROVED BY 33%. USE MOBILE DEVICES TO SEARCH FOR JOBS. 33% 57% CANDIDATE QUALITY HAS IMPROVED BY 49%. 49% PLANS WORLDWIDE. CANDIDATE QUANTITY HAS IMPROVED BY 43%. EMPLOYEE REFERRALS HAVE IMPROVED BY 32%. SOURCES: INTERNATIONAL TELECOMMUNICATION UNION; LINKUP 43% 32% SOURCE: JOBVITE WINTER 2014 | inmotion �� 11
  • 12. 1415 W. Diehl Rd., Suite 400 Naperville, IL 60563 RETURN SERVICE REQUESTED 2014 calendar of events SIKICH OFFICES CORPORATE OFFICE 1415 W. Diehl Rd., Suite 400 Naperville, IL 60563 (630) 566-8400 CHICAGO – MONROE STREET (312) 541-9300 CHICAGO – WACKER DRIVE (312) 648-6666 1.201.24 DATES: MONDAY, JANUARY 20FRIDAY, JANUARY 24 TIME: 9 A.M. – 5 P.M. MT DETAILS: DECATUR, IL (217) 423-6000 sikich.com/axproduction MICROSOFT DYNAMICS AX 2012 TRAINING Designed for production managers, supervisors and schedulers with working knowledge of Microsoft Dynamics AX, this course explores new features released in AX 2012. Taking place at our Denver office, topics will include bill of materials, calendars and resources, operations and routes, inquiries and reports, and much more. 1.22 DATE: WEDNESDAY, JANUARY 22 TIME: 7:30 A.M. – NOON CT DETAILS: sikich.com/2014milwaukee WHAT’S ON YOUR 2014 HR TO-DO LIST? Begin 2014 armed with the most up-to-date information regarding upcoming HR issues, trends and changes. Learn what should be on your list of top priorities and how to plan effectively. Topics will include talent availability, employee engagement, employment law and compliance updates, and the latest on the Affordable Care Act. DENVER, CO (720) 200-0142 HOUSTON, TX (832) 831-3549 1.22 DATE: INDIANAPOLIS, IN (317) 842-4466 WEDNESDAY, JANUARY 22 TIME: NOON – 1 P.M. CT MILWAUKEE, WI (262) 754-9400 OWNING YOUR GASB STORY Join us on January 22 to gain a better understanding of Governmental Accounting Standard Board’s (GASB) new standards on financial reporting for pension plans, and receive guidance on how to best communicate to media and key stakeholders the impact of these changes. This webinar will feature topics such as primary issues employers and plan administrators may face; a GASB Statement No. 68 overview; public relations tactics to control your own story; and more. DETAILS: sikich.com/gasb-webinar ROCKFORD, IL (815) 282-6565 SPRINGFIELD, IL (217) 793-3363 For more events, visit sikich.com/events. ST. LOUIS, MO Advisory services offered through Sikich Financial, a Registered Investment Advisor. General securities offered through Triad Advisors, Member FINRA/SIPC. Securities are offered through Sikich Corporate Finance LLC, a registered broker dealer with the Securities Exchange Commission and a member of FINRA/SIPC. (314) 275-7277