Effective internal auditor management: Attracting the right talent

The fact that you are reading this article is an indication that these outcomes are something you are interested in delivering, and that you are already convinced that great people management in internal audit really does matter. 

Let’s start with the first area in the framework – Attract.

Attract

First in our internal audit people management framework is ‘attract’, where we explore three key activities of this introductory stage of our employee lifecycle. 

Selection ‘plus’

Going beyond traditional selection methods, selection ‘plus’ is more robust and offers the prospective hire a genuine and deeper insight into what it is like to work in your function. Remember, selection is a two-way process. Yes, you are looking to hire someone, but they also need to understand who you are and how you will work with them. Functions that do not have this mindset are likely to miss out on the best talent and have problems with offer rejection rates (i.e. people not accepting offers at the end of the recruitment process). The recruitment process needs to be a true window of opportunity for the available talent. It’s important to look your best!

Selection ‘plus’ is all about what you do to select people that are interested in working with you. Traditional selection has revolved around an application with a resume / CV often provided and then an interview to select from those that have applied. My experience is that this can be very hit or miss, both for your organization as well as the individual who is applying. So, develop your selection toolkit to fully examine the skills, knowledge, and behaviors you are looking for, and allow the individuals who you are meeting to have some form of a job preview so they can develop a view on the kind of work they will be doing and the people they will be working with.

In practical terms, what does this mean? First, I would expect to see a library of case studies for use during an interview, built from real work scenarios and challenges that you face that can be used in your selection process. These may be used as a written task. For example, presenting some working paper issues and asking the individual to articulate them as final issues, or a scenario where the individual is asked to identify the risk and controls that they might look to test. This could also be done for presentations where the individual is asked to present to you the findings of a review that has been provided to them ahead of the interview. If you are feeling bold, this can be role played where, for example, you assume the role of a reluctant auditee and the candidate must persuade you of the merits of their work. The opportunities are widespread and give you the chance to see the candidate in action, their working style, and giving them the chance to see typical examples of the function’s audit work.

I’m also a proponent of presenting the candidate with some form of process data and asking them to identify patterns or potential areas of concern. For me, data analytic skills are no longer specialized, but instead something that I would expect from everyone on an audit team. Testing these skills during an interview is important to ensure the candidate has this mindset. Clearly, the complexity-of-data task you present will depend on the role you are looking to fill. But, at the heart of this suggestion is everyone at all levels having the mindset and aptitude for data analytics.

One final example to consider. An organization I worked with introduced an element of virtual reality into their recruitment as part of a series of exercises on a selection day where they faced a range of tasks. Why?  Well, if I’m honest, this was more about showcasing the innovative nature of the organization which was exploring VR in its customer offering rather than using it for selection. It was also a convenient way of filling a 30 minute slot for the candidate while results of previous exercises were being reviewed and the next selection exercise was being set up. Does it work? The feedback from the candidates was superb. They appreciated that the day was a mix of elements, and the virtual reality was a fun part of the overall process.

Explore AI

My next suggestion is around exploring AI to radically improve your recruitment process, particularly if your organization is large and is working through ongoing recruitment needs. We are still learning, but I am seeing that AI can be utilized at various stages throughout the recruitment process. Here are four areas (there will be others, to be sure) that I have seen increasingly being adopted in internal staffing audit recruitment:

• Resume / CV Screening. AI can scan resumes and application questions to match candidates with job description requirements. This is very useful when dealing with large numbers of candidates.
• Virtual assistants. Managing booking interviews and the diary challenges this presents can be simplified using a virtual assistant who can schedule interviews, send reminders, and keep candidates informed about the status of their applications. Again, this sends a signal as to the innovative nature of your organization.
• Interviewing. AI can conduct initial screening interviews, asking standardized questions, and providing a consistent experience for all candidates.
• Assessment. AI can administer and review the results of skill and personality assessments that I am sure many of you have seen or may already use in your recruitment processes. I have also now begun to see organizations experimenting with adaptive testing, which is where the test being administered adjusts the difficulty of questions based on a candidate's responses, providing a more accurate assessment of their skills and real help in differentiating candidates

By incorporating AI in these ways — and there are many consultancies who can help you quickly establish the use of AI — the recruitment process can be streamlined and assist with making objective decisions, as well as creating a more positive experience for both you and the candidates.

But of course, I would not be true to my audit roots if I did not also flag the risks that using AI may present if not used carefully. These risks are shown in the box below and were in fact suggested by Chat GPT.

There is a risk that the AI amplifies any unconscious biases those involved with training the algorithm have. This can lead to discriminatory outcomes in candidate selection and may result in AI algorithms that favor candidates with conventional career paths or qualifications, excluding those with non-traditional backgrounds who could still be valuable assets to the company. Diversity is key to organizational success. It is important to not let the algorithm disrupt this. So, approach AI in recruitment with suitable caution. If you are going to use it regularly, be sure to test AI systems for bias, and involve the proper human oversight.

Onboarding

My final suggestion in the attract area of our people management framework is around the onboarding of successful candidates. Onboarding is often seen largely as a scheduling exercise to prepare a new hire administratively for the job. This is often a missed opportunity. Effective onboarding, in my experience, can lead to faster integration of the new colleague into the audit team, higher retention rates – increasing the likelihood that the candidate will stay with you into the medium term — enhanced performance, and greater job satisfaction during what can otherwise be a stressful time.

Effective onboarding goes beyond administrative tasks and plays a critical role in helping new employees become successful, engaged, and integrated members of an organization. By investing in a thoughtful and well-designed onboarding process, organizations can set the stage for long-term employee satisfaction, retention, and productivity. What can you do to achieve this? Here are a few thoughts:

• Ensure they are as well prepared as possible before arrival. At a minimum, send a welcome package or email with information about their first day and a request for any documents or forms they need to bring. Some organizations are now utilizing technology to do this, including streamlining paperwork, training, and communication. Online platforms and tools can support the provision of a consistent and efficient onboarding experience.
• Set up their workspace, equipment, and tools ahead of time to make them feel valued and prepared. Avoid having them face days of IT frustrations. Make sure everything is working straight away and test it to ensure that it does. For new colleagues who are working remotely, make sure their IT is ready to go and they are guided through connecting to and using the system(s).
• Create a structured onboarding plan. This should outline what new hires will be doing, who they will be meeting with, and what training they will receive during their first days, weeks, and months, including organized team-building activities, lunches, or social events to help new employees connect with their colleagues and build relationships outside of work tasks.
• Assign a buddy or mentor. Remember what it was like to join a new organization? It can be quite stressful. Help with this by pairing new hires with experienced employees who can serve as mentors or buddies. This provides a go-to person for questions and helps new employees integrate into the team. Key here is helping them build their network.
• Expectations and check ins. In the early months, ensure that regular one-on-one meetings between new employees and their managers are conducted to discuss responsibilities and performance expectations. This will set the right tone from the beginning, assess progress, address concerns, and offer support.

This concludes our exploration of attracting the talent your internal audit function needs to be successful. In the next article we will move though our people management framework to discuss the importance of ‘Reward’, which explores how your reward systems should promote the behaviors you have identified as being key to your success, including those areas of internal audit objectivity and independence.