Managerial Accounting is an essential tool in assisting managers to effectively plan and control their organizations. The main focus of Managerial Accounting is to provide information to internal decision makers, allowing them to make informed decisions on the operational and strategic development of their company.
The millennial generation’s arrival to the workforce marks a change in the managerial accounting techniques needed to engage, motivate and retain staff. With a rapidly ageing population and many baby boomers reaching retiring age, organizations need to take into consideration generational differences.
Millennial’s were born into an age of technology. Their expectation for having instant information at their fingertips is a contributing factor in driving the integration of technology into the workplace. It also aids the collaborative style they prefer to work in, and has a positive impact on the flexibility of a work place. The millennial generations prefer to work in teams, and place a greater value on work place culture. Work-life balance weighs far heavily on them than previous generations. Many Millennial’s define productivity by the amount of work performed, rather than the number of hours spent working. Moving forward, businesses need to take advantage of the technology that will make this possible.
Millenials are now the largest generation in the American work force. However many companies still struggle to attract and retain this group of employees. This has a direct negative impact on both the quality of work produced, and the organizations ability to establish and maintain effective client relationships. This is important when looking at long term sustainability, and determining profitability. Companies need to ensure they understand their people; essentially their greatest asset. Effective Managerial Accounting will ultimately give an organization the best opportunity to grow and develop their staff.
Looking ahead as Generation Z prepares to enter the workforce, an even greater emphasis will need to be placed on both flexibility and technology. As the first generation born into the age of the internet, a collaborative work environment which embraces the concepts of managerial accounting will become essential in ensuring a companies success.
- Andrews, Travis M (The Washington Post 2016) It’s official: Millennials have surpassed baby boomers to become America’s largest living generation
- Copkins, Gary (CPIM 2015) Trends in Management Accounting.
- Heathfield, Susan M (The Balance 2016) 11 Tips for Managing Millennials
- Pricewaterhouse Coopers (PWC – 2013) PWC’s NextGen: A Global Generation Study (conducted in conjunction with The University of Southern Carolina and the London Business School)
- Thomson, Jeff (Forbes 2016) Millenials in the Workplace