JUST SAY THANKS
A simple “thank you” still goes a long way in motivating employees, according to a recent survey of financial executives conducted by the Accountemps staffing service. Thirty-eight percent of those polled said that, other than monetary rewards, frequent recognition of accomplishments is the best way to encourage staff members. Frequent communication ranked a very close second at 37 percent.
CFOs were asked:
“Other than financial rewards, which one of the following is the most effective means of motivating your employees?”
| Frequent recognition of accomplishments |
38% |
| Regular communication with staff |
37% |
| Giving employees increased responsibility |
14% |
| Offsite team building and social events |
4% |
| All of the above |
1% |
| Other |
1% |
| Don’t know/no answer |
4% |
| None/nothing else motivates |
1%
|
|
100% |
Max Messmer, chairman of Accountemps, said, “By acknowledging your employees’ achievements, you let them know their contributions are integral to the organization’s success.” Messmer offers the following tips for effective motivation:
Give praise in public. This is great for the individual’s morale and motivational to others.
Tailor your reward. Learn what works best for each individual and acknowledge his or her accomplishments accordingly.
Know your team. Interact frequently with your staff and get to know each member on a personal level. Employees are most motivated when they feel valued.
Promote two-way communication. The best managers spend more time listening than talking.
COMFORTABLE AND HIGH-TECH, TOO
La-Z-Boy Inc. and Microsoft Corp. have developed the world’s first “e-cliner,” an adjustable armchair fitted with all the amenities a 21st century couch potato needs. Dubbed the Explorer, the seat comes with a Microsoft WebTV receiver, wireless keyboard and two free months of WebTVservice, which enables Internet surfing, e-mail and interactive programs on a regular TV. The e-cliner features an electrical plug for a laptop computer, as well as jacks for regular dial-up and high-speed digital subscriber line (DSL) Internet connections. A fold-out tray can hold the battery-powered keyboard, which interacts with the WebTV receiver via an infrared beam. The right armrest houses a built-in beverage and magazine holder.
The armchair carries a price tag of $1,049 for the fabric version and $1,299 for leather/vinyl. For those who have managed to avoid getting hooked on the Internet, La-Z-Boy also offers the Oasis, billed as the “ultimate sports-fan chair,” featuring a refrigerated unit in the armrest that holds six beverage cans.
Investors Lost Money in Most Stock Mutual Funds in 2000
Investors lost money in 63 percent of U.S. equity mutual funds last year for an average loss of 4.45 percent, according to Weiss Ratings, Inc., a provider of independent mutual fund ratings and analysis. In contrast, 90 percent of bond mutual funds delivered positive returns to investors in 2000, for an average return of 7.68 percent.
Of the 6,592 equity funds studied, those recording the worst one-year returns included:
|
Fund Type
|
2000 Return
|
|
|
Jacob Internet Fund (JAMFX)
|
Technology
|
-79.11%
|
|
Potomac Internet Plus (PNETX)
|
Technology
|
-77.34%
|
|
Apex Mid-Cap Growth Fund (BMCGX)
|
Mid Cap
|
-75.96%
|
|
ProFunds-Ultra OTC Fund (UOPIX)
|
Agg. Growth
|
-73.70%
|
Equity mutual funds recording the largest one-year returns in 2000 included:
|
Fund Type
|
2000 Return
|
|
|
Deutsche European Equity (MEUEX)
|
Foreign
|
96.70%
|
|
Nicholas-Applegate Global Healthcare (NAGHX)
|
Health
|
96.17%
|
|
Munder Framlington Healthcare Y (MFHYX)
|
Health
|
86.99%
|
|
State Street Research Global Res A (SSGRX)
|
Energy
|
84.14%
|
“Just as we warned, many of the funds experiencing the biggest run-up in 1999 turned out be the most likely to crash and burn in 2000,” commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings. “As a result, investors who ignored risk and chased the latest high-fliers suffered the largest losses. When the stock market is soaring, investors tend to forget about risk as they foolishly concentrate on immediate gratification.”
Women Accountants Entering Management Ranks
More women are assuming financial management posts in companies today, suggests a new survey by RHI Management Resources. Forty-three percent of chief financial officers (CFOs) polled said the number of management-level positions held by female accountants in their firms increased over the past five years. In addition, 58 percent of respondents said they foresee greater numbers of women being promoted to senior financial roles in the next five years.
CFOs were asked,
“Has the number of women accountants who hold management-level positions in your company increased or decreased in the past five years?”
| Increased significantly |
15% |
| Increased somewhat |
28% |
| No change |
49% |
| Decreased somewhat |
4% |
| Decreased significantly |
1% |
| Don’t know/no answer |
3%
|
|
100% |
Women are continuing to rise beyond the proverbial ‘glass ceiling’,” said Paul McDonald, executive director of RHI Management Resources. “For example, a growing number of female accountants are being named to CFO positions and achieving partner status at large public accounting firms. Other professionals are using their finance, management and entrepreneurial skills to launch their own businesses.” According to the U.S. Department of Labor Women’s Bureau, women comprised nearly 60 percent of the accountant and auditor workforce in 1999. In addition, research conducted by the American Institute of Certified Public Accountants shows that women now earn more than half of all undergraduate degrees in accounting.
ADMINISTRATIVE SALARIES TO RISE IN 2001
Average starting salaries in the administrative field are expected to rise 3.9 percent in the United States this year over 2000 figures, according to the 2001 OfficeTeam Salary Guide, published annually by staffing firm OfficeTeam. Steady economic growth and sustained low unemployment rates are expected to increase the need for skilled support staff, and place increased emphasis on candidate recruitment and retention.
Senior office assistants (professionals who provide general office support throughout an organization) will note the biggest starting salary increase of any single job classification in 2001, with base compensation expected to rise 6.4 percent, to between $20,750 and $24,750 annually. “Senior office assistants are highly sought after, as the skills and support they provide company-wide are critical to keeping office operations running smoothly,” said Diane Domeyer, executive director of OfficeTeam. Average starting salaries for data entry specialists, senior data entry specialists and customer service representatives are all projected to increase 6.3 percent this year.
Other key findings in the 2001 OfficeTeam Salary Guide:
Average starting salaries for word processors will rise 5.9 percent, to between $22,500 and $26,750 per year.
Starting salaries for marketing assistants will range from $26,250 to $31,250, a 5.5 percent increase over last year.
Senior administrative assistants are expected to see a 3.7 percent increase in salaries, to the range of $26,500 to $37,250 annually.
Base compensation for executive assistants is projected to rise 2.8 percent, to the range of $29,000 to $36,000 per year.
Office managers will see a 2.1 percent salary increase, to between $27,000 and $34,250 annually.
Starting salaries for senior executive assistants are expected to range from $34,000 to $46,500, a 1.3 percent increase over last year.
U.S. Executives Optimistic About Downturn
An estimated 70 percent of companies are not fully prepared for an economic slowdown, according to a survey by Bain & Company, an international consulting firm. In fact, among the Fortune 500 executives surveyed, half don’t expect their industry growth rate to slow or decline, and only 10 percent believe that if a downturn hits, their performance will fall below the industry average, an assumption Bain labels “a mathematical implausibility.” In addition, 59 percent think they can outperform their competitors in a downturn.
Bain interviewed 100 U.S. senior executives from various industries and found during a downturn in their industry, the majority would make easy fixes and take short-term actions as opposed to finding long-term, lasting solutions. Only a handful of business leaders in the survey state that they are likely to use a downturn to their long-term advantage.
Actions executives are likely to perform include:
55 percent would reduce capital expenditures
48 percent would push for price cuts from suppliers
44 percent would reduce marketing and advertising expenses
41 percent would reduce sales and earnings targets
39 percent would implement layoffs
31 percent would exit some businesses
30 percent would reduce R&D spending
24 percent would close facilities
Bain’s 2001 findings and analyses of previous industry downturns and recessions reveal four practices of successful recession-proof executives that create long-term opportunities:
Have an Escape Key – Always prepare a contingency plan and have the ability to foresee and adapt to marketplace changes.
Honor Thy Talent – Carefully examine the short-term vs. long-term costs of training and retention.
Troll for Acquisitions – Even the greenest of investors can recite the formula for successful investing: “buy low, sell high.”
Focus on the Core – The successful executive fully understands the downside of diversification into other businesses and the risks of diluting market share in times of turmoil.
