Workers in business and financial operations at nonprofits earned significantly more than their counterparts in state government in 2007, but slightly less than people doing similar work in local government. Wages of business and financial workers were the greatest in private industry.

Source: Bureau of Labor Statistics, Wages in the Nonprofit Sector: Management, Professional, and Administrative Support Occupations, www.bls.gov.

CFOs are seeing their glasses as less and less full, according to a survey by Financial Executives International and Baruch College’s Zicklin School of Business.

The CFO Optimism Index for the U.S. economy fell to 41.73 in the third quarter, down from 48.92 in the second quarter, an all-time low and the largest quarterly decline in the history of the survey.

Also, the index for CFOs’ own companies dropped to 61.74, another all-time low and a decline from 67.06 in the previous quarter.

Respondents said they plan to make cuts in technology, capital, hiring and inventory.

Source: Bureau of Economic Analysis, www.cfosurveys.com.

The ethical—or unethical—behavior of an organization is a critical factor for new college graduates seeking jobs, according to the National Association of Colleges and Employers.

The NACE’s 2008 Graduating Student Survey found that current graduates are much more likely to avoid employers they perceive as engaging in unethical behavior than graduates in 1982.

While respondents from both years studied tended to agree on what was considered unethical, they differed on which employer behaviors would be deal-breakers.

The following shows the percentage of respondents who said they were not willing to work for an employer that committed the selected unethical actions:

Source: National Association of Colleges and Employers, www.nace.org.

Almost 65% of accounting firms believe that paperless processes are critical to their firm’s future success, according to the recent findings of the online 2008 CCH Accounting Trends Survey.

Moreover, 62% of the firms surveyed said their use of paperless solutions will evolve quickly over the next year.

The most commonly used paperless approaches are:

• Scanning source documents (78%).
• Storing scanned documents on a network drive (77%)
• Performing on-screen reviews of tax returns (71%)

The firms surveyed say the top benefits of adopting paperless technologies are:

• Improving client service (76%)
• Improving competitiveness (71%)
• Increasing efficiency (67%)

Source: CCH Group, www.cchgroup.com.

As uncertainty continues to buffet the economy, companies are looking for ways to keep employees feeling valued while maintaining their compensation policies.

A Deloitte survey shows lower earnings and falling stock prices decimated the value in some companies’ annual and long-term incentive plans in 2008, leaving them searching for ways to help employees feel valued and motivated.

Of 151 companies of all sizes and industries surveyed in Retention Strategies During Difficult Economic Conditions:

• 53% are planning to adjust this year’s annual incentive plans due to current economic conditions.
• 19% will modify their plans’ performance targets.
• 14% will change the performance measures, such as including more strategic, operational or individual goals.

Source: Deloitte Consulting LLP, Retention Strategies During Difficult Economic Conditions, www.deloitte.com/us/retentionsurvey08.

The best IT security policies are only effective if employees abide by them, and these days that can be a big “if.” More than half (53%) of employees in a recent international survey said they work around their company’s IT security policies to get work done.

Other findings included:

64% frequently or sometimes send work documents to their personal e-mail address to work on them from home.

One in 10 has lost a laptop, smartphone and/or USB flash drive with corporate information on it. For U.S. employees, only 5% reported such a loss.

43% have switched jobs internally but still have access to accounts and/or resources that they no longer need.

37% have stumbled into an area of their corporate network to which they believe they should not have had access.

15% have held a door open for someone at work whom they did not recognize. Among U.S. employees, almost one in three (31%) has let a stranger into the workplace.

The survey by RSA, the security division of EMC Corp., polled more than 400 attendees at industry conferences in the United States, Mexico and Brazil.

Source: EMC Corp., The 2008 Insider Threat Survey, www.emc.com.

The hiring outlook for 2009 remains bright for many workers in the accounting and finance fields, according to a salary guide released by Robert Half International. The guide forecasts salaries will rise 3.4% for finance and accounting staff.

The top three positions, according to the Robert Half International 2009 Salary Guide for accounting and finance positions, are:

Staff and senior accountants. Demand is strong for those who have one to three years of experience. Starting salaries for these positions at large firms (more than $250 million in sales) are projected to range from $44,500 to $57,250.

Public accountants. Firms are seeking experienced accountants who can replace retiring baby boomers. Starting salaries for senior accountants in tax services at small public accounting firms (less than $25 million in sales) are forecast to be $54,000 to $69,250.

Credit and collections clerks. Firms are looking for those who can help cut inefficiencies and enhance profits. Hires at midsize companies ($25 million to $250 million in sales) are expected to have starting salaries of $29,250 to $37,500.

Source: Robert Half International, www.rhi.com.

Percentage of CFOs surveyed who said international experience will be necessary for accounting and finance professionals five years from now. That number is up from 2002, when 56% of CFOs said some international experience was necessary.

Source: Robert Half Management Resources, www.rhi.com.

The unstable economy can lead to business challenges for some companies and opportunities for others.

To help you and your clients make difficult decisions, Protiviti Inc., a business consulting and internal audit firm and a subsidiary of Robert Half International, has formed the Financial Crisis Team.

The team suggests the following steps to help companies prepare for future market disruptions:

• Review financial condition, focusing on asset quality, liquidity, capital strength and financing.
• Evaluate options available under various government programs and private-sector alternatives to determine which are viable.
• Prepare financial projections and forecasts based on the best options available.
• Stress-test financial models, including resulting credit and market risk exposures.
• Review the current risk management framework, with a focus on processes for assessing credit and counterparty risk and liquidity risk.
• Adjust and take actions to mitigate unacceptable financial risk.
• Assess financing and capital adequacy and options for raising additional capital, if necessary.
• Conduct due diligence research on underlying assets considered for disposition and acquisition.
• Explore strategic alternatives, including options for mergers, acquisitions and restructuring.

Source: www.protiviti.com/economiccrisis

Most CPA firms continue to grow in a sluggish economy, based on the results of the AICPA’s 2008 PCPS/TSCPA National MAP Survey, with many maintaining the high levels of income and billing rates of the previous survey, which was conducted in 2006.

More than a quarter of the responding firms reported 10% to 19% growth (measured in gross fees) in the most recent fiscal year, roughly the same percentage as in 2006.

Another 18% saw 6% to 9% growth; 19% saw 1% to 5% growth.

Among the growth leaders, 8% saw growth of 30% or better (up from 7% in 2006), while 8% experienced growth of 20% to 29% (down from 9% in the previous survey).

Only 10% of the firms in the survey experienced no growth (down from 15% in 2006), and fewer than 10% saw negative growth (same as in the previous survey).

PCPS members can view the survey at http://pcps.aicpa.org.

Meanwhile, accounting firms had the biggest annual revenue growth among professional services firms in 2008, according to an analysis by Sageworks Inc. of firms in its industry database. Law firms and physician practices in the database saw revenue slide in 2008.

Source: AICPA, www.aicpa.org; Sageworks Inc., www.sageworksinc.com.

Company contributions to 401(k) plans averaged 3.2% of pay for the 2007 plan year, according to the 51st Annual Survey of Profit Sharing and 401(k) Plans by the Profit Sharing/401k Council of America. Numerous formulas are used to determine company contributions. For plans with fixed matches, the most common matches are 50 cents per $1 up to the first 6% of pay (26.2% of plans), $1 per $1 up to the first 4% of pay (10.4% of plans) and $1 per $1 up to the first 3% of pay (8.1% of plans).

Source: Profit Sharing/401k Council of America, http://psca.org.