CPA/client privilege bill is a positive step for Ohio

Right now, there’s an important piece of legislation being considered in the Ohio Senate that is long overdue for clients of CPAs: S.B. 80. The bill would be a major step forward for Ohio, and for thousands of business owners and Ohio citizens who rely on CPAs to provide qualified financial advice that affects their bottom line.

S.B. 80 would create a very narrow client testimonial privilege that would clear the way for business owners and taxpayers to have confidential, advice-seeking discussions with their CPA on both problems and opportunities before they make critical financial decisions. Right now, businesses and individual taxpayers don’t have the freedom to disclose sensitive details and explore financial strategies with their trusted advisor because their own CPA can be forced via a subpoena to reveal details of these discussions.

But current law puts Ohio businesses and CPAs in a vulnerable position by not giving clients the same testimonial privilege with CPAs — their most trusted financial advisors — as they enjoy with their attorneys, physicians, members of the clergy, and counselors.

The result is that critical conversations are not happening as often as they should, meaning a CPA’s advice is not as accurate as it could be and audit results — which shareholders rely on for investment purposes — are not as comprehensive as they should be.

Further, a business owner can’t have both its attorney and CPA present when trying to get advice on sensitive matters without waiving the attorney/client privilege, and attorneys can’t be as forthcoming as they want to be in the “legal letter” they give to auditors of a business they represent.

The bill cleared the Senate Judiciary-Civil Justice Committee on May 6 with strong support (8-1 vote) and will be put to a full Senate vote in the near future.

Sounds like a no brainer, right? Amazingly, it’s not. OSCPA is facing stiff opposition primarily from prosecuting and trial attorneys who argue its passage would hinder investigators from obtaining necessary evidence to prosecute white collar crime cases.

Nothing is further from the truth. This bill was intentionally written with a very narrow scope — not to protect those who commit crimes but to encourage greater disclosure among clients and CPAs so they can seek qualified financial advice to avoid potential problems or fix past problems.

In fact, investigators would still have access to 98% of the information they now can examine. Literally the only information that would be privileged would be the confidential, deliberative discussions between client and CPA, whether verbally or in writing. All other discussions and documents would be subject to discovery. And even that last bit of protected information could be subject to discovery should the plaintiff’s attorney show the judge (with the 98% of evidence still available) that fraud or crime was involved.

Could it be much ado about nothing on the part of law enforcement interests? While CPAs can be subpoenaed to reveal deliberative conversations right now, this step is very rarely taken. In addition, 17 other states have had a similar or broader statute in place for decades, and white collar crime isn’t running rampant in those locations.

A CPA and former detective/supervisor with the Columbus Division of Police’ Economic Crime unit recently told the Ohio Senate committee that in 15 years of investigating financial crimes, there was not a single case in which investigators in his office questioned an accountant or forced one to testify, and only one such occurrence on the part of the prosecutor. They relied on the financial documents to tell the story for them…documents which remain accessible under S.B. 80.

S.B. 80 is a critical piece of legislation that would encourage clients to more fully disclose strategic plans and discuss problems so they can seek solutions that would keep them in compliance with the law. In today’s troubling economy, Ohioans need all the help they can get.

The bill is supported by The Ohio Society of CPAs (OSCPA), the National Federation of Independent Business (NFIB), the Ohio Chamber of Commerce and the Ohio Manufacturers Association.

Lend your support to this important initiative. Ask your Ohio Senator to vote in support of S.B. 80 this month. For talking points on the issue, contact Barb Benton, OSCPA Vice President, Governmental Affairs at bbenton@ohio-cpa.com.

Tax Season is over, but keep blowing your horn

CPAs everywhere are doing a happy dance. Tax season is over and it was an undeniably tough one. Time to take a deep breath and rejuvenate.

CPAs aren’t the only ones who collectively sigh on tax day. The rest of the public is celebrating because what is a dreaded annual event for many has come and gone. And after April 15, the media doesn’t call as often to speak to members because there’s still a perception that CPAs are the professionals you call only for tax advice.

We’re working hard to change that. Because some of the biggest opportunities lie in what CPAs do for their clients the rest of the year.

CPA. Those three letters make a huge difference when it comes to long-term results and OSCPA is committed to helping the public make that important distinction. CPAs can also get better at tooting their own horns.

Here are a few ways we can jointly promote the role and work of CPAs even before the ink is dry on the tax forms:

April is Financial Literacy Month and a good springboard for building year-round client relationships. Pick up the phone and schedule an appointment to help clients tweak or overhaul their business or personal financial plan.

One silver lining in the recession may be that Americans are quickly changing their spending habits. In a recent AP survey, 54% of taxpayers expecting a refund said they plan to use it to pay bills or reduce debt. Consider sending clients an e-mail with these money-stretching tips for investing their refunds.

At the same time, you can introduce them to the Society’s Financial Fitness Ohio Web site. It includes a wealth of resources for consumers in various stages of life.

Now is a tough time for college graduates entering the workforce. In the latest OSCPA podcast series, “Navigate your Finances in a Turbulent Economy” OSCPA chair-elect Matt Yuskewich, CPA, covers part-time employment options, developing a savings strategy and other important lessons to start graduates off on a solid financial footing.

Changing public perception takes time. But together, we can all help to move the needle. More consumer advocacy groups are demanding that states license and regulate tax preparers. If there’s a movement in Ohio, OSCPA will be in the forefront to ensure that CPAs are NOT subject to any additional levels of regulation or registration.

Therefore, it’s critical that we keep educating the public about why hiring a CPA is really the best year-round financial insurance plan available.

Be part of the conversation

Remember the first time you heard the phrase “think outside of the box?” It was probably by someone at your office who was trying to impress you – as if they were the first person to have this breakthrough idea. Too many times, a catchphrase becomes overused and about as valuable as the hundreds of buzzwords that are floating out there now in the mass media.

But the catchphrase “be part of the conversation” hasn’t caught on yet. It hasn’t been overused and that’s because too many people are not part of the conversation. What conversation you ask? The conversation is the dialogue and exchange of information that is going on 24-7 in cyberspace via social media all around you – at home, at work, even at the supermarket.

What’s more interesting is it’s not just your kids. At first glance, social media is primarily used by tweens, teenagers and college students. Not at all! Yes, that audience is definitely making use of social media. But take a look at a few stats about Facebook users:

• Reports nearly 45.3 million active U.S. users in the last 30 days
• Growing in every age/gender demographic, with the fastest growing segment being women over 55 (up 175.3% in the last 120 days)
• Women comprise 56.2% of Facebook’s audience
• 45% of Facebook’s U.S. audience is now 26+ years old

Sure, you might find your kids on Facebook, but you might just as easily find your mom on Facebook.

Also growing in popularity – especially from a news angle – is Twitter. Simply put, Twitter is texting. In 140 characters or less, you can send a message on what you’re doing, what you’re thinking or what nugget you have found on the Web that you want to share. Twitter is the third largest social network – following Facebook and MySpace.

Who uses Twitter? The better question might be who doesn’t use Twitter. Twitter is becoming the medium of choice for just staying up-to-speed on all issues of interest – whether you are following FASB and their recent fair value guidance, the SEC and the charges pending against Madoff’s auditor or where did Denver trade Jay Cutler.

Social media provides a new type of network for a new type of business world. Being part of the conversation doesn’t mean that you necessarily have to be posting daily. Sometimes being part of the conversation means just being present. Do you want to be part of the conversation or do you want to be left behind?

If you haven’t ventured into “social space” yet, then let OSCPA be your friend out in “social media space.” Find OSCPA on:

• LinkedIn
• Facebook 
• Twitter

The Politicization of Accounting Standard Setting

At one time I would have smacked myself for saying “Amen, Arthur Levitt!” In a Washington Post OpEd, “Weakening A Market Watchdog: An Accounting Rule Change’s Real Costs,” Levitt observes that FASB’s action on fair value measurement in inactive markets and other-than-temporary-impairment is a first erosion of the independence of the accounting standard setting process.

With the passage of Proposed FASB Staff Positions FSP FAS 157-e, “Determining Whether a Market is Not Active and a Transaction is Not Distressed,” and FSP FAS 115-a, FAS 124-a and EITF 99-20-b, “Recognition and Presentation of Other-Than-Temporary Impairments,” the question many are asking is “has the FASB bowed to political pressure on fair value measurement, compromising investor transparency?”

Many have called for further guidance on mark-to-market accounting in illiquid markets (see discussion of “investor views”), and FASB members had asserted that these staff positions clarify much of the intent of the original standards. However, as Levitt observes, while the theory of the latest FASB staff positions may be arguable (not by him,) that doesn’t resolve his fundamental concerns about (1) responding to Congressional pressure to act quickly, and (2) a rush to action without the typical due process of an independent standards setting process.

In a press conference following the FASB decision, Board members responded to criticism that they had succumbed to political pressure, insisting that due process had been achieved, judging from the number of comment letters received during the two-week comment period. A Board member also defended the FASB’s continued role as an independent standard setter, noting however, that it was not immune to observing the current turmoil in the markets.

The CPA profession has long defended the necessity for independence in the standard setting process. In December 2008, outgoing SEC Chair Christopher Cox appealed to the new administration to understand that:“

Accounting standards should not be viewed as a fiscal policy tool to stimulate or moderate economic growth, but rather as a means of producing neutral and objective measurements of the financial performance of public companies.”

Responding to those who advocate setting aside independence in abnormal periods for quick fixes, Cox stated:

“The truth is that the value of independent standard setting is greatest when the going gets tough. The more serious the stresses on the market, the more important it is to maintain investor confidence.”

FASB Chair Robert Herz made the same argument in 2003, citing the lasting truth of a 1978 Journal of Accountancy quote from Professor David Solomons:

“if it ever became accepted that accounting might be used to achieve other than purely measurement ends, faith in it would be destroyed just as faith in speedometers would be destroyed once it were realized that they were subject to falsification for the purpose of influencing driving habits.”

This plea is being lost, as the U.S. House of Representatives considers a non-independent governmental accounting oversight board under HR 1349 — the Federal Accounting Oversight Board Act. This “regulatory reform” would truly be an expansion of government authority over what has historically been an independent process.

Will the SEC bow to political pressure as FASB may have done? Observers state that application of the new rules will be dependent on whether they are supported by auditors and those who regulate the auditors. As a new administration calls for increased scrutiny of large institutions, particularly the financial sector, and also for relaxing of accounting rules, who will be blamed when balance sheets are overly optimistic? The auditors, perhaps?

Rarely will there be an accounting standard that is perfect for all users, but adequate due process provides the opportunity for all voices to be part of the debate. Opening the standard setting process to political interference does not protect the public interest, but instead provides protection for those best able to exert political influence.

There’s reason to come out of the bunker

Two recent presentations I attended made me think how a simple change in attitude can make a big difference during these trying times.

There’s a pervasive bunker mentality sweeping America. Hunkering down is all too easy when the news seems mostly bad. We want to hold tightly to our money, our jobs and our families until the storm passes.

Hardly anyone scoffed at Punxsutawney Phil on Groundhog Day. We’ve come to expect more of the same.

But James Glassman, a senior economist from JPMorgan Chase, helped me see the light. During OSCPA’s Corporate CPAs Conference, Glassman told members that yes, we are experiencing unprecedented times in our country’s economy. But the system is not totally broken. Problems are being solved one day at a time and he predicts the beginning of a recovery later this year. OSCPA members can logon and listen to Glassman’s presentation here.

A bigger problem is the American psyche.

Glassman notes it’s common for people to retreat into a psychological funk when a downturn follows a period of rapid growth. This makes us our own worst enemy.

When in a funk, we don’t think as clearly, have as much energy and we’re not as proactive about capitalizing on our own strengths and those of the organizations we lead.

Glassman’s advice? Businesses and leaders who act and think like winners will come out of this as winners.

So what does acting like a winner look like?

Be the solution. Things are nowhere near as bad as they were in the 1930s.Look for creative solutions to build your business and reduce risk. There are great resources everywhere to help you. Just last week, President Obama announced a new federal program to aid small businesses affected by the credit crunch. There are some key takeaways from this Wharton School post on Disruptive Innovation. Put resources like these to work along with a positive vision of what you want your company or your career to look like a year from now.

Make it easy for your clients and customers to do business with you. Sometimes we’re so caught up in the big problems, we forget the basics. Don’t. Mike Campbell, CPA, reminds you why that’s never been more important with this recent experience. Be available for clients but also show your human side, Rick Telberg advises CPAs in A Crisis is a Terrible Thing to Waste.

Invest in yourself. Everyone is trying to cut costs. But don’t cut yourself short. Keep your skills and your network intact. Go to seminars, meet new people and get a fresh perspective. Try Bob Littell’s NetWeaving approach which is simply sharing your knowledge and your resources without expecting anything in return. OSCPA members can logon to hear Bob’s presentation here.

Pay it forward. Use your time and talent to help others who are struggling. CPAs are just as busy this year as every other tax season, but we’ve had more volunteers taking part in OSCPA consumer tax call-ins than in the past. Why? It feels good to make a difference in someone else’s life. Identify a real need you can fill and give back. Volunteer in your community or in your professional organization.

The ultimate answer to what ails our country may be far down the road. But let’s take the first steps to move ourselves in the right direction.

BWC Rating – an Ohio Economic Development Issue

As I tweeted updates from an Ohio Workers’ Compensation briefing earlier this month, I could almost hear the collective yawns from those reading. Yes, the latest controversies of the Ohio Bureau of Workers’ Compensation (BWC) are best debated by actuaries, but the consequences of recent Bureau action will be far-reaching for Ohio business.

In response to the San Allen case in Cuyahoga County alleging inequities in the Ohio BWC group rating program, the Ohio General Assembly passed HB 79 allowing Ohio’s group rating program to continue, but with modifications. Group rating allows businesses with records of workplace safety to form groups that qualify for premium discounts. Group participants have an incentive to keep claims lower to stay in the group, and the BWC’s own data demonstrates that groups have resulted in reduced claims. To illustrate, participants in OSCPA’s group rating pool have received an annual premium discount of $542,000.

Responding to the case, the Ohio BWC was more than eager to be reactionary, approving sweeping changes introduced in the name of “rate reform” at its March meeting. The most significant changes include:

• Overall base rate reductions for non-group employers, resulting in 25% overall savings.
• A “penalty” for group employers of 31%, accompanied with a previously approved reduction in the maximum group rating discount from 85% to 77%. (A subsequent move to 65% has been proposed.)
• Elimination of the “stacking” of discounts such as the Drug-Free Workplace discount on top of a group rating discount.

These rates were established to correct a $295 million “off-balance” calculation of the Bureau between current group and non-group employers.

Opponents of the rapid action by BWC claim that little transparency was provided in the calculations to allow Ohio employers and their representatives to question the calculation assumptions. Concerns have also been expressed that unintended consequences are not accurately modeled, including:

• Are the discontinuation of groups with lower discounts, and employers leaving groups due to the impact of the penalty, adequately anticipated in projected revenue?
• Does the introduction of regulatory complication and uncertainty further decrease the attractiveness of Ohio as a destination for employers?
• What will be the Ohio business consequences of introducing increased costs of doing business during current economic challenges?

If projected revenue targets are not met due to unintended consequences, does this force increases in the group penalty in future years to correct the new “off-balance,” resulting in a downward spiral of additional unintended consequences that ultimately end the group rating program?

The cumulative result of the Ohio BWC changes is that the selection of the best approach for an employer will be a very individual determination. The best success strategy we can recommend is to stay in close touch with your group sponsor as we progress through current and forthcoming changes. OSCPA will keep the 450 CPA firms in its group rating program informed as this continues to unfold.

Changes approved for 2009 will not likely be noticed by many employers until checks are written in January of 2010. It has been difficult to get the Governor or legislators excited until employers begin realizing the effects. BWC continues to study additional changes for the July 1, 2010 premium year. Legislators and the Strickland administration need to hear from constituents about the true financial impact these changes make for businesses struggling to thrive and grow in these tough economic times.

The Ohio Society of CPAs has been actively involved in working toward minimizing unintended consequences and enacting rate changes over an appropriate timeframe to allow for public transparency and feedback. If you have a relationship with an Ohio legislator or someone on the Ohio BWC Board, now is the time to have an impact. Contact Amy Mignogna, OSCPA Senior Manager of Governmental Affairs, to learn how you can get involved.

Two cents from the “sandwiched” generation

Like it or not, I’m in the “sandwiched” generation. I’m not talking about those who are caring for aging parents and young children. No, I’m talking specifically about the members of Generation X who feel sandwiched between the Baby Boomers and Generation Y.

I think many Gen Xers, including myself, are insulted nearly every time the subject of generations comes up, whether it’s in the news, on TV, by a public speaker or even in casual conversation. Gen X seems to be the butt of continual jokes. Some of the infuriating descriptions include saying we’re disloyal and always looking for “what’s in it for me.” Gen X is sometimes depicted to be lazy. They are the first generation predicted to not be as financially stable as their parents.

In the book Generation X, written in 1991 by Douglas Coupland, the Gen X stereotype was created.  A stereotype that painted us as “hopeless, frustrated and unmotivated slackers.” Ouch! What’s worse is the tag stuck and the stereotype still exists today.

And here we sit sandwiched between the “me” generation and the next “great” generation. We’re paying the price for the very way that we were raised by Baby Boomers and, at the same time, feeling like we’re just filling space until the next great generation is ready to take over. Seriously?

I don’t think anyone would argue that generations are very much a product of their environment. The adults (a.k.a., the parents, the teachers, the coaches, the executives, the role models) set the stage for the next generation.

The Baby Boomers clearly had a strong work ethic. They deserved the term “workaholics” – a term that was coined in the 60s. As women entered the workforce, more and more households had two working parents. Sadly, this led to some of the traditions and customs that had been the centerpiece of the American home slowly fading into the past. The family dinner is one that first comes to mind. How many people grew up sitting down to a family dinner every night of the week? How about once a week? You see it on Leave it to Beaver, and other TV shows, but for Generation X and the generations that follow, that’s just not reality.

For Gen Xers, the loss of quality family time seemed to be most noticeable and something we wanted to change. What you have now is the pendulum swinging the other way as Gen Xers become the parents and create the life they actually want. Gen Xers put an emphasis on the family first, and career second. Gen X exhibits great loyalty – but that loyalty is to their family. This generation is trying to achieve a work/life balance. Many are willing to forego the corner office and six-figure salary and instead spend time coaching their son’s little league team and taking their kids to the zoo. It doesn’t mean that this generation is any less intelligent or capable. This generation simply has a different set of priorities.

Ultimately, this may be to the detriment of their career and their financial futures. It hasn’t really helped that Gen X is also trying to survive a dot-com bust and the current recession that has produced a jobless rate for Gen Xers at 8.7%.

We all do the best we can with the knowledge and the resources we have at the time. History may well be unkind to the less-than-spectacular financial successes of Gen X. It may be that Generation Y is the next “great” generation. But for my two cents, I’m a proud, card-carrying member of Generation X who is logging off for the day so I can take my kids to the zoo.

The silver lining in the Stimulus Act

Over the last few weeks, there’s been a great deal of media focus on the $787 billion American Recovery and Reinvestment Act (ARRA) – a.k.a., the most recent Stimulus Act. The Act will soon be followed by the “Making Home Affordable” Program. While government spending isn’t always the answer, the Stimulus Act presents a number of opportunities for individuals to save some serious money and get help when they need it the most – a silver lining if you will.

One of the “winners” in the legislation is those who have lost their job.  David M. Reape, CPA, a senior manager with Ciuni & Panichi in Cleveland and chair of the OSCPA Tax Committee, told OSCPA’s editors: “Individuals, particularly those who have recently lost their jobs, stand to gain the most from this package. For the individual who has been laid off, the government is subsidizing much of their COBRA payment. There is also a provision that allows individuals to exclude from income up to $2,400 of unemployment benefits received in 2009. Those are huge benefits for the recently unemployed.”

Former employees must have been enrolled in their employer’s health plan at the time they lost their jobs. The former employees will now only have to pay 35% of the cost of the COBRA coverage – not the full 100%.

More silver lining: the legislation extended the qualifying period for the homebuyer credit to 12/1/2009. For purchases made after 12/31/2008, the credit is $8000 and repayment is not required.

According to Michael Mares – one of OSCPA’s most popular tax instructors and a federal tax expert, “Homebuyers can treat a purchase made in 2009, as if it was made in 2008. Homebuyers can even file a modified return for 2008 and get the credit in 2009, rather than having to wait until filing your 2009 return.”

Mares joined Lynn Nichols in an OSCPA hot topic webinar on March 6 and reviewed the many credits, extensions and incentives contained in the Stimulus Act with over 150 participants. “This is a very complex set of rules,” Mares told the virtual audience. “But one that is filled with significant benefits for those that really need them right now.”

An even larger silver lining: The Stimulus Act provided AMT relief – extending the individual and MFJ exemption.

“The problem with this is they haven’t increased the phaseout number since 1986, which means there are people that shouldn’t be burdened with the AMT but they still are,” Nichols said.

Mares added, “The basic problem is that since Congress has waited so long to reform the AMT, it will be cheaper to repeal the Internal Revenue Code than it would be to repeal the AMT.”

Now here’s a silver lining for you: this webinar is now in the OSCPA Online Library. That means that any OSCPA member can listen to this webinar – and any of the other 100+ titles – any time at no charge. Get up to speed on the most significant business and individual credits, extensions and incentives without reading through 3,000 pages – unless you have a lot of time on your hands!

What does the future hold for IFRS?

Reading the subtle – and not so subtle – communications from the SEC make it nearly impossible to anticipate the direction the “new” SEC is going to travel with IFRS.

Under former SEC Chair Christopher Cox, the SEC moved toward a new frontier. The commission implemented IDEA – the replacement to the EDGAR database, passed XBRL for financial statements and mutual funds and proposed a landmark roadmap to transition the U.S. to the International Financial Reporting Standards (more commonly referred to as IFRS).

While most decision-makers believed the move to IFRS was inevitable, a loud majority still voiced their opposition saying the roadmap timeline was too aggressive. As Cox finished his term as SEC chairman, the SEC rushed to get the roadmap out for comment.

Then the recession took center stage. The Stimulus Act was passed in October 2008 to help the unstable economy. Job losses were mounting. Fingers began pointing to fair value and financial institutions were demanding the SEC suspend fair value. Congress mandated that the SEC undertake a study of fair value accounting. Understandably, the roadmap was delayed.

Things then went from bad to worse. The alleged Bernie Madoff $50 billion Ponzi scheme broke. And fingers again pointed to the SEC. Investigators failed to investigate many repeated allegations against Madoff over 15+ years. 

Nonetheless, even though mired in the recession and the Madoff scandal, the SEC released its proposed roadmap for IFRS. While the roadmap was significantly delayed, there was only one major change made in the timeline.

Then newly elected President Barack Obama nominated Mary Schapiro as the new chair of the SEC. A former SEC commissioner, Schapiro said from the very beginning, “I will not be bound by the existing roadmap that’s out for public comment.” And she has not. Schapiro has come in and is reinvigorating the SEC as the securities watchdog for the nation – and promises not to take it easy on corporate fraudsters.

Already Schapiro has:

• Said non-accelerated filers need to become fully compliant with Sarbanes-Oxley (particularly with Section 404 (b))
• Ended the penalty pilot program, which required SEC staff to obtain special approval for involving civil monetary penalties for public companies as punishment for securities fraud 
• Implemented a more rapid approval process for formal orders of investigation

Her actions and her words have made many wonder about the roadmap and the outlook for IFRS. Will the nation actually transition to IFRS or is it just being delayed? How long will the delay be? Six months? Six years? Given the current economy and the many calls from lawmakers to reform the nation’s financial regulatory system, including the SEC, this may not be the ideal time to be completing a transition such as this – one that will dramatically change financial reporting, the accounting profession and possibly litigation.

Right when many were ready to put on the brakes completely, Schapiro met with Sir David Tweedie, chair of the International Accounting Standards Board, in mid-February. Tweedie made his case for keeping the transition on its current – or close to – the current timeline. It’s also been reported that Schapiro has advised staff to review the current proposal to identify elements that can be used.

Actions do speak louder than words and the only real action to date is extending the deadline to comment on the proposed roadmap to April 20.

Next steps from the SEC . . . your guess is as good as mine. What are your expectations? Do you think the U.S. will transition to IFRS in the near future or has been this delayed extensively?

Take a look at some of these IFRS resources and recent news stories:

OSCPA IFRS Issue Monitoring home page

• Investment executives favor IFRS
• Big four firms push IFRS education efforts PwC unveils $700K grant, Deloitte readies materials

In May, The Ohio Society is also starting an International Special Interest Section. Watch for more details to come soon.

Managing through the generation gap

Millennials bring fresh perspectives and work habits to the office.  Just like all other generations, they  are a product of their environment.

Consider the use of technology. Most generations learned to use a computer in high school, in college or even on the job. Millennials, however, grew up playing computer games, using e-mail and talking on a cell phone at a much earlier age than prior generations. While new technologies can still make a baby boomer’s head spin, to a millennial, they’re second nature. Technology doesn’t present the “fear factor” to millennials that it does to Baby Boomers and even to some Gen Xers.

Here’s a few more characteristics of millennials:

·         Developed work characteristics and tendencies from doting parents and structured lives.

·         Like to work in teams and want to make friends with people at work.

·         Look for feedback about their performance frequently – even daily.

·         Seek leadership and structure, from their older and managerial co-workers, but expect that you will draw out and respect their ideas.

HR Daily Advisor offers the following ten tips to on managing millennials and helping them thrive in your organization.

1.       Provide structure. For example, reports with monthly due dates, jobs with fairly regular hours, certain activities scheduled every day, meetings with agendas and minutes, goals that are clearly stated, and assessments of progress.

2.       Provide leadership and guidance. Millennials want to look up to you, learn from you, and receive daily feedback from you. They want “in” on the whole picture and to know the scoop.

3.       Encourage the millennials’ self-assuredness, can-do attitude, and positive personal self-image. Millennials are ready to take on the world. Encourage — don’t squash them or contain them.

4.       Take advantage of the millennials’ comfort level with teams. Encourage them to join. Millennials gather in groups and play on teams; you can also mentor, coach, and train your millennials as a team.

5.       Listen to the millennial employees. They are used to loving parents who have scheduled their lives around their children. These young adults have ideas and opinions, and don’t take kindly to having their thoughts ignored.

6.       Provide challenge and change. Boring is bad. Millennials seek ever-changing tasks within their work. What’s happening next is their mantra. Don’t bore them, ignore them, or trivialize their contribution.

7.       Expect multitasking. Millennials are multitaskers on a scale you’ve never seen before. Talk on the phone while doing e-mail and answering multiple instant messages? Yes; it’s a way of life.

8.       Take advantage of your millennials’ electronic literacy. The computer, mobile device, and other media capabilities of these employees are amazing. You have a salesman in China? How’s the trip going? Old-timers call and leave a message in his hotel room. Millennials text him in his meeting for an immediate response. (How about reverse mentoring—youngest workers train oldest workers?)

9.       Capitalize on the millennials’ affinity for networking. Not just comfortable with teams and group activities, millennial employees like to network around the world electronically.

10.   Provide work-life balance. Millennial employees are used to cramming their lives with multiple activities. Although they work hard, they are not into the 60-hour workweeks defined by the baby boomers. Balance and multiple activities are important. Ignore this at your peril.

Do you have any millennials in your office? Share your thoughts on how you have or haven’t had to change your management style to keep your office running as efficiently as possible.  Also, take a look at “A millennials view on working with millennials.”