Take a look at key findings in the second comphrehensive staffing study of Minneapolis/St. Paul finance and accounting job markets.

1. In financial staffing, it’s who you know. ™
1

2. Introduction
More than half of Twin Cities’ businesses are being impacted by the economic slowdown. Finance departments are under increased
pressure to meet business demands with fewer resources. Despite a temporary hiatus in corporate expansion plans, there is little doubt that
‘growth’ will re-emerge as a top priority when the economic rebound comes. And when it does, it will be those companies with a pipeline of
qualified candidates that define success.
Now is the time to fine-tune your talent acquisition and retention strategies — especially with groups like GenY and Baby Boomers, each of
which has its own unique needs. At SÁLO, we believe that the best and most successful companies will be those that apply creativity to their
recruiting strategies and adapt their work styles to match the needs of a changing workforce. We recognize that talent management is a
moving target and, as with anything in flux, the key to success is to stay ahead of the issues and capitalize on emerging opportunities. The
SÁLO Forecast is designed to do just that: keep you informed of the most pressing issues and promising opportunities that exist in the Twin
Cities’ talent marketplace.
SÁLO conducts the Forecast exclusively in the Twin Cities to gather feedback from business leaders. Our goal is to understand the unique
opportunities and most critical issues that our business community faces today, and to explore what we can expect to see in the coming
months. The SÁLO Forecast provides actionable intelligence based on the dynamics of the Twin Cities’ finance / accounting talent market.
It includes expert opinions, analysis of the key issues and innovative ideas to help utilize emerging trends.
Tackling the latest staffing shifts is both a challenge and an opportunity for enlightened companies. We expect the SÁLO Forecast to call
attention to the most pressing issues of the day for Twin Cities’ companies. But more importantly, we hope that it sparks new ideas that
continue to make Minneapolis / St. Paul a model business community for the nation, drawing the best and the brightest people to our Cities.
John Folkestad Amy Langer
In financial staffing, it’s who you know. ™
1

3. Short Supply of Top Talent Continues to Worry Twin Cities’ Companies
Ex e cutive s' Re a ction To This Sta te me nt:
Even in the face of the current economic downturn, finance
quot;There W ill be a Shortage of Qualified Professional
and accounting executives throughout the Twin Cities
Finance and Accounting Candidates to Meet Our
anticipate a shortage of qualified professionals to fill the
Business Needs in the Next Several Yearsquot;
metro’s accounting and finance jobs. The most recent SÁLO
Forecast shows a 15 percent increase in concern about the
52%
issue, with larger, publicly-traded companies weighing in 60%
most significantly. 50%
31%
40%
30% 17%
Among the factors 20%
contributing to the 10%
0%
talent shortage
Strongly Disagree Neither / Don't
cited by A gree / A gree Know
respondents in
the most recent • Increased compliance and regulatory requirements
Forecast are:
Despite the fact that many businesses have relegated growth
plans to the back burner due to the soft economy, the time-
• An insufficient
consuming and often complex work of corporate finance
number of qualified
departments continues unabated.
candidates
In the past few years, finance / accounting professionals have
• College accountancy programs that are too small to meet seen sharp increases in compliance and other regulatory
business needs and can’t be expanded requirements. And with the proposed IFRS requirements and
In financial staffing, it’s who you know. ™
2

4. Short Supply of Top Talent Continues to Worry Twin Cities’ Companies cont.
W hen Executiv es Believ e Their Companies W ill
deadlines on the horizon, many companies are anticipating
First be Impacted by a Shortage of Qualified
additional hires in their finance departments to stay ahead of
the curve. Professionals
8%
9%
These facts, combined with the start of the Baby Boom
11%
exodus from the workforce, paint the picture of a challenging
recruiting environment over the next few years.
51%
21%
According to research conducted quarterly by the Minnesota
1-3 Years From Now Currently Impacting My Company
Department of Economic Development, there will be 7,000
job openings for accountants and auditors in the Twin Cities 4-5 Years From Now Don't Know
More Than 5 Years From Now
metro by 2014. Half of these will be new positions created by
local businesses in response to growth or expansion plans.
The other half will be the result of retiring Baby Boomers.
The general expectation is that 8 percent of jobs will go
unfilled because of the tight pool of qualified candidates.
The SÁLO Forecast shows these positions have consistently
been identified for shortages:
• Financial analysis
• Accounting Principles, Policies and Procedures
In financial staffing, it’s who you know. ™
3

5. Gearing Up for GenY: Motivating the Millennials Eludes Most Companies
As GenY enters the workforce, they bring with them a whole
new set of values and a very different work ethic. Despite this
seismic culture shift in the workplace, very few Twin Cities’
employers are adjusting their strategies to accommodate this
new generation.
Born between 1978 and 1990, what motivates the GenY
employee is not long hours in the office, staying in the same
Compared to Previous Gene rations, Ex ecutive s Believe that
GenY:
position for the next 20 years, or going to work
30%
every day just to earn a paycheck. They are
30%
driven to climb the corporate ladder faster than
25%
their predecessors, without the experience.
19%
17%
They want flexibility – to be able to do their
20%
work, but not have their work control their life.
15% 10% 10%
And they want to work in a culture that fosters
10%
a fun, positive, team-oriented environment.
5%
0%
When asked how this generation differs most
Expects Wants Has Sense of Has No Wants 8-Hour
from earlier groups, nearly a third of SÁLO
Faster Work/Life Entitlement Company Workday
Advancement Balance Loyalty Forecast respondents concurred that they want
faster promotions and advancement. Making
In financial staffing, it’s who you know. ™
4

6. Gearing Up for GenY: Motivating the Millennials Eludes Most Companies cont.
matters even more challenging, there’s a sense of entitlement Spe cific Strate gie s To M otiv ate Ge nY
that employers say exists among GenY, along with a lack of
company loyalty. 16%
Employers are confounded by this change but admit they 47%
have no real plan to attract GenY workers or keep them
happy. In fact, 47 percent of those surveyed submitted no
37%
No Ideas Not Doing Anything Different
W ork/Life Balance Initiatives
ideas when asked about their specific strategies.
While many companies acknowledge that GenY is motivated
differently than Boomers, or even GenerationX, few finance
and accounting departments are modifying their environment
and corporate retention strategies. Almost every respondent
in the SÁLO Forecast plans on using compensation and
benefits to keep employees satisfied. Still, what companies
need to change are their retention strategies. They need to
focus on the benefits that GenY employees are asking for:
culture, flexibility, career advancement, and recognition.
In financial staffing, it’s who you know. ™
5

7. As Boomers Bow Out, Businesses Scramble to Retain Knowledge
Yet many of these Boomers have no intention of checking out
This year, the oldest of the 79 million Baby Boomers turn 62,
of the work world. According to the Associated Press, 66
beginning a long exodus from the workforce. And as they go,
percent of retiring Boomers say they plan to continue working
so may go the huge knowledge base that they have amassed
for pay. But as Boomers bow out of their long-term positions,
over the last half century. That said, few Twin Cities’
their employers should take note because much of their
businesses have a plan to keep that knowledge or those
knowledge and experience is critical to the company’s
Boomers from walking out the door. In fact, the majority of
operation. And with demand for accountants / finance
Twin Cities’ companies surveyed have no strategy to keep
professionals expected to remain high in the Twin Cities,
Boomers engaged in their business. “Flexibility” was the only
companies that create a strategy to keep Boomers on-board
idea offered and that was by a mere 10 percent of
in some capacity are likely to fare well in the coming years.
respondents.
Rachel Hillman, Regional Labor Market
Retention Strategies For Retirees Analyst for the Twin Cities at the Minnesota
Department of Economic Development says,
“We certainly see a demand for accountants,
80% auditors and financial analysts. In addition to a
63%
need for new workers, people will be needed
60%
to replace workers who are retiring.” For the
Twin Cities’ business community, that means a
40% 20%
missed opportunity to keep outgoing Boomers
8%
10%
engaged on some level. And it may be as
20%
simple as recognizing the value these people
provide and tailoring a plan that works for
0%
None / Job Flexibility Part Time / Other / Not everyone.
Nothing As Needed Applicable
In financial staffing, it’s who you know. ™
6

8. The Shortage Starts Where the Profession Begins: On the College Campus
Exe cutiv e s Conce rne d About Accountant Supply
There is a growing consensus among Twin
Cities’ business leaders that there are not
37%
enough college students graduating with
accounting degrees to meet current business 40%
demands. The most recent SÁLO Forecast 35% 25%
shows a growing concern among finance and 30%
accounting executives who see the college 25%
pipeline as a central issue in the talent 20%
shortage. That number jumped 12 percent 15%
in 2008 – from 25% to 37%. 10%
5%
While Minnesota college and university 0%
January June
accounting programs continue to operate at
full capacity, the programs can’t be expanded
until schools begin attracting a greater number of PhDs to Kate Mooney, a professor in St. Cloud State University’s
their faculty. Moreover, accreditation requirements call for a accounting program, echoes these concerns: “The programs
certain percentage of credit hours to be taught by are full. And the colleges are having difficulty hiring faculty
academically qualified professionals – PhDs with a record of members. We’re losing three this year out of 14, so we can’t
publication. Unfortunately, the schools are having a tough grow as much as recruiters want us to. There’s a shortage of
time recruiting these individuals, who can earn much more in people coming out with PhDs and we need a certain number
private practice. The result: college programs that can’t keep of them. We still need a critical mass and we’re not there.”
up with the demand for accounting and finance majors.
In financial staffing, it’s who you know. ™
7

9. Profession Versed on CPA Shortage
There’s no question that there is a greater demand for CPAs. Whether working at a
the accounting world public accounting firm or inside a business (public or private),
faces significant problems the breadth and depth of the knowledge that a CPA brings to
with shortages of qualified the table often means the difference between success and
people. In fact, the failure for that enterprise.
Minnesota Society of
Certified Public If there aren’t enough CPAs to go around, it makes it all that
Accountants (MNCPA) much more important to keep the talent that you have. So
has worked on this issue what can you do to keep the good people you recruit?
for quite some time.
Interestingly, in the 1990s, • Realize that competitive compensation and benefits are
the problem was that expected. You won’t attract or keep the best just with money.
students were not choosing You have to have more.
to go into accounting. Now,
there is no shortage of students choosing accounting as their • Walk the talk when you promise work / life balance. They’ll
major. In fact, it’s the number one major after “undecided”. be gone fast if you can’t deliver on the scenario you
promised.
But don’t expect an expansion in college accounting
• Invest in your people. Offer them significant training. They
programs to solve the problem. There are too few PhDs in
want to learn and to grow. Make sure each employee has a
accounting graduating each year to grow program size. Even
professional development plan for the year and then give
full accounting programs won’t serve the needs. There
them the time off to follow through.
simply won’t be enough accountants to meet the growing
demand and the increasing retirements.
• Give them decision-making opportunities and projects they
can run with. Coach them — don’t order them.
As the business world becomes more and more complex,
In financial staffing, it’s who you know. ™
8

10. Profession Versed on CPA Shortage cont.
• Run an ethical organization.
CPAs can take an interest in the college accounting program
from which they graduated. Every business school should
have CPA representation on their advisory committee.
Talented and experienced CPAs with an interest in teaching
should also explore becoming adjunct faculty at a local
program.
This shortage isn’t going to go away anytime soon. In 2010,
we will have a shrinking adult workforce overall, not just in the
accounting area.
By Betsy Adrian
President, Minnesota Society of CPAs
We welcome your comments, opinions and ideas
about issues and emerging opportunities
affecting the Twin Cities’ finance / accounting
staffing market.
Please contact Jacqueline Johnson at
612-230-7256 or by email at:
jacquelinejohnson@salollc.com.
In financial staffing, it’s who you know. ™
9