Hiring Staff 11/16/2015. Hiring, Developing, and Retaining Staff Internal Audit Management Training November 19 20, 2015
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1 Hiring, Developing, and Retaining Staff Internal Audit Management Training November 19 20, 2015 Sarah Beth Hall Director of Internal Audit Department of the Lottery Hiring Staff I am convinced that NOTHING we do is more important than HIRING AND DEVELOPING people. At the end of the day, you bet on people, not on strategies. --Lawrence Bossidy, Former Chief Operating Officer, GE Never hire someone who knows less than you do about what he s hired to do. - - MALCOLM FORBES,FORMER PUBLISHER OFFORBES Round Table Recruitment & Staff Development Survey 53% of respondents stated that they were in recruitment and training mode so often that it affects the Internal Audit activity s performance. 1
2 Hiring Staff Step 1: Needs Assessment Step 2: Recruitment Step 3: Interview Step 1: Needs Assessment Core Principles for internal audit effectiveness Traits of Good Internal Auditors What do you need? Red Book Standard Proficiency Position Description Core Principles for Internal Auditing Demonstrates integrity. Demonstrates competence and due professional care. Is objective and free from undue influence (independent). Aligns with the strategies, objectives, and risks of the organization. Is appropriately positioned and adequately resourced. Demonstrates quality and continuous improvement. Communicates effectively. Provides risk-based assurance. Is insightful, proactive, and future-focused. Promotes organizational improvement. 2
3 Standard 1210 Proficiency Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities. Knowledge, Skills, & Other Competencies Proficiency in applying IA standards, procedures, and techniques. Proficiency in accounting principles and techniques. Knowledge to identify the indicators of fraud. Knowledge of key IT risks and controls. An understanding of management principles. An appreciation of the fundamentals of business subjects. Skills in dealing with people, understanding human relations, and maintaining satisfactory relationships. Skills in oral and written communications to clearly and effectively. Traits of Good Internal Auditors Integrity Relationship Management Interpersonal Skills Communication Skills Socially Adept Understand Materiality Effectively Use Resources Business and Risk Acumen Natural Inquisitiveness / Curiosity Results Oriented Persuasiveness 3
4 Position Descriptions Statement of Purpose and Objectives Description of the Job Reporting Experience and Skills Description of the Ideal Candidate Other Duties as Assigned What do you have? The Gap Integrity Self Starter IT Skills Detail Oriented Help Wanted! Communication Skills Forward Thinker Relationship Management Business & Risk Acumen 4
5 Step 2: Recruitment Step 2: Recruitment Cast a Wide Net Look for Transferrable Skills Be Flexible in your must haves Look for potential and talent instead of just proven skills Recruit from non-traditional sources Job Advertisement and Qualifying Questions Job advertisements - created based on the position description. Include the salary Qualifying Questions should be: Job Related Simple Clear Specific and Legal 5
6 Application Review Initial Review of Applications: Did they follow any instructions given in the job posting? Did they fill in all of the blanks on the application? Did they explain gaps in employment? Did you require attachments to the application and are they there? Does the application show that they meet the knowledge, skills, and abilities in the job posting? Is the application spelling error free and grammatically correct? Two Strike Rule Application Review Continued State HR Practitioner things to look for: Name Education Licensure Employment History Gaps Google the company does it exist Job titles Background Check Interviewing 6
7 Developing Interview Questions Start with the Position Description Ask questions related to knowledge, skills, and abilities Ask questions to determine if the candidate will fit the corporate culture Determine the desired answers in advance Ask questions to clarify any gaps in employment Sample Interview Questions Category: Time Management You are working on a project needed for an audit committee meeting the following day, and a department manager calls about possible fraud in his department. How would you handle the call with the department manager? How would you ensure the project deadline is met for the committee meeting? You arrive for work with a full day s schedule already planned. By 9:00 a.m., you get three additional projects that need to be done right away. How do you cope with this? Describe a situation when you were faced with a deadline that you couldn't meet. How did you handle it? Describe a situation when you had to learn a large amount of material quickly. How did you do it? Sample Interview Questions Category: Organizational Skills - Detail Work Ask candidates to proofread a loan application where mistakes could result in processing delays or rejection of the application Ask candidates to proofread a tax return to ensure that it is free from errors that could result in penalties or delayed refunds Ask candidates to review a written scenario describing a department s control environment to see if they point out details of potential weaknesses Tell me which college course required the most attention to detail. Please tell me how you dealt with the demands of the class. Tell me about a time when you discovered some small item or detail that helped identify a major audit or tax issue 7
8 Sample Interview Questions Category: Interpersonal Skills - Client Relations You are auditing a department where employees are unhelpful and consistently delay getting needed information to you. What would you do? How would you handle an investigation of an accounting employee you trusted and respected for making improper journal entries and falsifying financial statements? Tell me about a time when you had to work closely with someone in a position above (or below) you. Who was the person? What did you have to do? What was the outcome? Tell me about a time when you had to deal with members of the public. Who was involved? What did they do? Tell me about a situation where you detected a client/auditee s needs and how you worked to meet those needs. Describe a situation where you noted internal control weaknesses and how you worked to resolve them. Tell me about a time others (supervisor or auditee) disagreed with your audit recommendations. Were you able to persuade them to agree with your recommendations? If so, how? Sample Interview Questions Category: Interpersonal Skills - Staff Relations You receive a promotion. One of the staff is extremely resentful (as he/she was turned down for the promotion) and is being unhelpful and obstructive. How would you handle the situation? How would you respond to a peer who is preventing your team from completing its project? Assume you are a supervisor, and one of your subordinate employees consistently arrives late to work. What action would you take? Tell me about your most recent group or team effort. Describe a group work situation where you and a co-worker were having trouble getting along with each other. How did you resolve the conflict? Tell me about a situation in which you felt others were wrong and you were right. Describe the worst (best) supervisor you ve ever had. What made him or her so bad (good), in your opinion? Sample Interview Questions Category: Technical Skills What would you do if you were performing a project where you knew you did not have the technical skills to carry it out? How have you applied your technical skills in a practical and helpful way? Tell me about the most difficult work/school problem you ever faced. What steps did you take to tackle it? What were the results? Describe some steps that are performed when developing an audit program. 8
9 Sample Interview Questions Category: Initiative If you had to audit an area in which you had no experience, how would you gain the knowledge to plan and complete the audit? Describe an experience when you had to take charge and get a job done or resolve a difficult situation. What did you do? What happened? Tell me about a situation in which you were expected to do a certain thing, and on your own, you went beyond the call of duty Sample Interview Test Questions Category: Analytical Skills Give candidates a handout with auditee s lengthy, detailed responses to various auditor questions. Ask candidates to summarize auditee responses in a clear, concise manner. Give candidates a handout with a scenario describing a number of internal control weaknesses. Ask them to write a letter detailing the findings and giving recommendations to strengthen internal controls. For a candidate with prior experience preparing workpapers, ask him to write review notes for sample workpapers with a number of needed improvements. Single Interviewer or Team? No right answer, based on research Follow agency requirements An interview team may prevent allegations of inappropriate questions or discriminatory hiring practices 9
10 10 Interview Best Practices 1. Be prepared 2. Allow enough time 3. Diminish interruptions 4. Create comfortable atmosphere 5. Be conversational 6. Ask open-ended questions 7. Do face-to-face interviews 8. Don t ask answered questions 9. Take thorough notes 10. Remember your decision is important Other Interview Recommendations Before the interview, give candidates helpful background information During the interview, listen for red flags Close the interview on a positive note To Test or Not to Test? Follow your agency requirements EEOC guidance: Tests must not exclude protected classes Tests should be properly validated Test must be job-related and appropriate for the position Employers have a responsibility 10
11 Other Testing Tips Conduct tests consistently Minimize distractions Test scores only one element Developing Staff New Employee Development New Employee Welcome New Employee Checklist Buddy/Mentor Program New Auditor Orientation Performance/Expectation Meeting Training Audit On-the-Job Training 11
12 Retention Why Employees Leave 1. Relationship with boss 2. Bored and unchallenged by the work itself 3. Relationship with co-workers 4. Opportunities to use skills and abilities 5. Contribution of work to the organization s business goals 6. Autonomy and independence 7. Meaningfulness of job 8. Organization's financial stability 9. Overall corporate culture 10. Managements recognition of employee job performance How do you transition from This To That! 12
13 Why Employees Stay Financial Incentives Salary Bonuses Stock Options 401ks, pensions and other investment options Cultural Incentives Flexibility Management Training Company Events Training and Development Opportunities Source: What Employees Want From Managers Reliable and Meaningful Communication Performance Management Beyond Annual Reviews Strengths over Weaknesses Employee Retention Strategies Management Training & Performance Coaching Provide Challenging Assignments Build Strong Relationships Provide Opportunities to use skills and abilities Build Employee Engagement Make Learning and Development a Priority 13
14 Employee Retention Strategies Empower Employees Make it Meaningful Instill trust in and respect for Management Instill a Positive Corporate Culture Recognize employee job performance Use Internal Audit as a Training Ground for Management Support Auditors in Face of Adversity 100% Retention Rate? In Summary The golden rule is to treat everyone like you want to be treated. The platinum rule is to treat everyone, as they want to be treated. To do that, you have to connect with them personally and understand what matters to and motivates them. - Larry Harrington 14
15 Open Discussion & Questions 15
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