1. GREAT Ways to Motivate Your Staff:
Shaping an Audit Team that Adds Value and Inspires Business Improvement
Bruce Turner
AM, CRMA, CGAP, CISA, CFE
Available free of charge:

2. CBOK 2015 Practitioner Study
CBOK is the Global Internal Audit Common Body of Knowledge:
The global practitioner survey is the largest ongoing study of internal audit professionals in the world.
More than 25 free reports about practitioners and the profession will be released on a monthly basis through 2016.
Download free reports from the CBOK Resource Exchange at The IIA website at any time (

3. CBOK 2015 Practitioner Survey
Practitioner Survey Results
Survey completed April 1, 2015
14,518 usable survey responses
Participation Levels
100% representation from IIA institutes
Responses from 166 countries
23 languages

4. CBOK 2015 Practitioner Study
Global Regions are based on World Bank Categories. Percentages are the percentage of total survey responses from that region compared to all survey responses.
North America: 19%
Latin America & Caribbean: 14%
Middle East & North Africa: 8%
Sub-Saharan Africa: 6%
Europe & Central Asia: 23%
South Asia: 5%
East Asia & Pacific: 25%

5. CBOK 2015 Practitioner Study
The speaker does not necessarily need to say this, but it’s important to remember that each pie chart is based only on those who answered that particular question (in other words, not all 14,518 survey respondents provided an answer to every question.) Below are the specific number of responses for each question shown on the slide.
Age was obtained from 12,780 respondents; Organization Type was obtained from 13,032 respondents; Gender was obtained from 14,357 respondents; Staff Level was obtained from 12,716 respondents.
Age was obtained from 12,780 respondents; Organization Type was obtained from 13,032 respondents; Gender was obtained from 14,357 respondents; Staff Level was obtained from 12,716 respondents.

6. Introduction
Effective CAEs position their teams to add value and inspire business improvement.
They maximize the productivity and contribution of their internal audit cohort.
This report provides GREAT insights on how CAEs and other audit leaders can improve their practices for evaluating and motivating internal auditors.
The motivation of internal auditors can be influenced by a wide range of factors, including life satisfaction across the course of one’s life, generational differences, and unique gender needs.

7. Internal Audit Leadership Drivers
Stakeholder expectations for internal audit will continue to evolve.
CAEs need to leverage a structured performance management system to shape a motivated, highly productive workforce that delivers value to the business.

8. Introduction (cont’d)
Five critical success factors for shaping an effective audit team:
Goal-Setting
Align personal goals of internal auditors to internal audit department goals and the organization’s strategies.
Retaining Talent
Retain talent amidst changing needs of internal audit and the business
Equipping Employees
Build capability and capacity for internal audit overall and individually.
Assessing Performance
Evaluate internal auditors against overall internal audit department performance.
Treating Success
Provide incentives and recognition to motivate internal auditors.

9. 1. Goal Setting
Align personal goals of internal auditors to internal audit department goals and the organization’s strategies to help the organization achieve its objectives.

10. Key Insights
Alignment between internal audit goals and your organization’s strategic objectives will not happen by accident.
Develop your stakeholder relationships so that you know where your company is heading.
Use this knowledge to develop your departmental strategy and then individual auditor goals.

11. Achieving Alignment with Stakeholders

12. CBOK Research: Planning Sources

13. Tips for Setting Personal Goals
Provide sufficient time for audit leaders and auditors to develop and agree upon goals.
Establish meaningful goals that are clear, measurable, and achievable.
Set goals that are commensurate with an auditor’s capability.
Align individual goals to audit department and organizational strategy.
Equip auditors with necessary skills to meet goals.
Provide auditors with motivation to meet goals.

15. Action Items Undertake formal analysis of the organization's strategy.
Establish a stakeholder relationship management program to understand business drivers, pressures, and strategies of the organization in the establishment of the audit plan.
Align internal auditors' personal goals with the organization's strategy.
Align the personal performance goals and objectives of internal auditors and the mission, objectives, and audit plan of the internal audit department.
Analyze external research of industry trends, emerging risk issues, and other hot topics, which lead to incorporating suitable topics in the audit plan.

16. 2. Retaining Talent
Retain the right talent amidst changing needs of internal audit and the business to help to build an effective internal audit team.

17. Key Insights
You cannot ignore generational differences in your talent management strategy.
Adapt your approach to the different priorities for Baby Boomers, Generation X, Millennials, and the upcoming Generation Z.
Remember more women are joining the profession, and their priorities will also need to be considered.

18. CBOK Research: Generational Mix
Generational differences affect all elements of workforce management, including recruitment, team-building, management, motivation, change management, and optimization of productivity.

19. CBOK Research: Experience

20. CBOK Research: Future Intentions

21. The Changing Landscape
Different motivational drivers exist among the generations.
Boomers often held “a job for life” providing a pool of career auditors.
Generation X and Millennials are likely to change jobs or careers more frequently.
Generation X has taken on more leadership roles as Baby Boomers shift into other roles or retire.
About 57% of CAEs are now from Generation X.
Millennials currently hold nearly half of all the internal audit staff roles.

22. Growing Ratio of Women
Talent management should include a consideration of growing ratio of women in the profession.
Gender gap has been closing in all but two regions.
Specific motivators of women will need to be recognized as they’re being developed to undertake more senior roles, for example:
Work/life balance
Workplace stability
Flexible working arrangements
Working from home

23. CBOK Research: Females

24. Action Items
Establish a talent management strategy that promotes innovation and aligns with stakeholder needs, diversity ideals, audit plans, a competency gap analysis, and succession plans.
Adapt motivation strategies for different generations (Baby Boomers, Generation X, Millennials, and the upcoming Generation Z).

25. 3. Equipping Employees
Build capability and capacity for internal audit overall and individually to help deliver value.

26. Key Insights
If you are not building new competencies within your staff, you are probably falling behind.
As you find competency gaps, fill them through the “buy, build, retain” approach.
Professional development will not only help the internal audit function as a whole, but also leads to greater job satisfaction and motivation for individual auditors.

27. CBOK Research: Training Programs
Include core features:
Internal audit skills - 68%
Orientation - 54%
Business knowledge - 53%
Critical thinking - 30%
Leadership skills - 27%
Level of formalization:
74% of larger internal audit departments have structured and documented training programs (those with more than 50 employees)
45% of smaller departments have them (4 to 9 employees)
Training programs with existing core features will remain, but are likely to become a subset of professional development plans which have a broader strategic focus and encompass non-training initiatives.

28. Workforce Plan
A comprehensive workforce plan for the internal audit department should incorporate:
An internal audit strategic competency plan and associated competency process
A three-pillar approach for filling competency gaps through buy, build, and retain
An internal audit capability model, tailored specifically for your organization

29. Competency Plan

30. Professional Development Plan

31. Tailoring the Learning Approach
CAEs need to be flexible in tailoring formal and on-the-job learning delivery approaches for respective generational audiences:
Traditionalists and Baby Boomers prefer traditional classroom style.
Generation X is more likely to embrace a self-directed self-paced approach.
Millennials prefer integration of technology and media into learning such as webinars.

32. Action Items
Establish a comprehensive workforce plan for the internal audit department.
Develop and implement a professional development plan that includes key development opportunities for the department and individual auditors.

33. 4. Assessing Performance
Evaluate internal auditors against overall internal audit department performance to drive optimal contribution by the internal audit department.

34. Key Insights
Younger generations want more immediate performance feedback.
Many CAEs have embraced a constant feedback and learning loop.
Organizations are moving toward outcomes-based work (rather than hours spent at the desk) for measuring performance.
Align the contribution of individual internal auditors with departmental key performance indicators and balanced scorecard elements.

35. Assessing Individual Performance
Internal audit’s performance evaluation techniques will need to embrace more outward-focused measures that reflect how well the audit effort has added value and helped to improve the organization’s operations.
A performance culture is driven by having absolute clarity of purpose of what your organization is trying to achieve.

36. CBOK Research: Common Measures
Outward Facing measures

37. Examples of More Timely Feedback and Learning Loops
Engagement Feedback
Career Mapping
360-Degree Profiling
Fireside Chats
Skip-Level Interviews
Professional Training Targets
Coaches and Mentors
Personality Type Evaluation
Formal performance assessment processes typically cover competencies, delivery against performance goals, and continued professional development needs.

38. Action Items
Adopt balanced scorecard reporting (or similar) linked to the performance assessment of individual internal auditors.
Complement existing organizationwide formal performance assessment process with a suitable constant feedback and learning loop process for internal auditors.

39. 5. Treating Success
Provide incentives and recognition to motivate internal auditors and help boost productivity.

40. Key Insights
Suitable rewards system embraces extrinsic rewards (such as bonuses) and intrinsic rewards (such as recognition, more challenging work, and mentoring).
There are many creative (and fun!) activities to increase employee engagement―communication, leadership development, organizational culture, team-building, and rewards.
Use a variety of approaches to appeal to different generations.

41. Compensation alone provides limited motivation.
Types of Rewards
Extrinsic
Includes money, bonuses, special gifts, and other benefits.
Intrinsic
Reflects the value derived from one’s work.
Compensation alone provides limited motivation.

42. CBOK Research: Bonuses
Who Receives
Global average (67%)
Ranges regionally (between 60% and (82%)
Prevalent in large entities, (at 78% for those with more than 10,000 employees)
Less prevalent with public sector (40%) and not-for-profit organizations (54%)
Common Criteria
Personal performance (78%)
Company performance (74%)
Completing the audit plan (36%)
Achieving the budget (20%)

43. Reflecting on Intrinsic Rewards

44. Employee Engagement Elements
Communication Activities
Reward Schemes
Team Building Activities
Building Organisational Culture
Leadership Development
A good employee engagement model will recognize the different needs and expectations of team-members and give appropriate intrinsic rewards

45. Action Items
Establish a suitable rewards system that extends beyond compensation to encompass intrinsic rewards.
Implement employee engagement model to motivate different auditors across the team.

46. Closing Comments
Contemporary audit teams often have multidisciplinary skillsets and varied work experience.
There are increasing differences in workforce characteristics like gender, multiculturalism, and generational factors.
Demands and expectations of the internal audit profession will continue to evolve.

47. Closing Comments (cont’d)
Bringing teams together and motivating them takes a willingness to learn, adapt, and try new things.
The five strategies from GREAT Ways to Motivate Your Staff will help you along the way.
The full report includes ideas that you can use to motivate your staff and a list of resources to help you implement the action items.

48. The Five Strategies
Goal setting – to help the organization meet its objectives.
Retaining talent – to build an effective audit team.
Equipping employees – to deliver value.
Assessing performance – to drive optimal contribution.
Treating success – to boost internal audit productivity.

49. CBOK 2015 Releases Jul. 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015
IIA International Conference
Governance, Risk, and Control Conference
South Africa Conference
IIA Financial Services Exchange
ECIIA Conference
All Star Conference
Southern Regional Conference
ACIIA Conference
IIA Midyear Committee Meetings
Jul. 2015
Aug. 2015
Sept. 2015
Oct. 2015
Nov. 2015
Dec. 2015
Driving Success in a Changing World: 10 Imperatives for Internal Audit
Navigating Technology’s Top 10 Risks: Internal Audit’s Role
Staying a Step Ahead: Internal Audit’s Use of Technology
A Global View of Financial Services Audits:
Challenges, Opportunities, and the Future
Who Owns Risk?
A Look at Internal Audit’s Changing Role
Combined Assurance: One Language, One
Voice, One View
Responding to Fraud: Exploring Where Internal Auditing Stands
Auditing the Public Sector: Managing Expectations, Delivering Results
Delivering the Promise: Measuring Internal Audit Value and Performance
Mapping Your Career: Competencies Necessary for Internal Audit Excellence
Please share information about the publication of upcoming CBOK reports and where to go for the free download.

50. CBOK 2016 Releases GAM Conference SoPac Conference
Leadership Conference
IIA International Conference
Jan. 2016
Feb. 2016
Mar. 2016
Apr. 2016
May 2016
Jun. 2016
Engaging Third Parties for Internal Audit Activities: Strategies for Successful
Relationships
Interacting with Audit Committees: The Way Forward for Internal Audit
CAE Career Path: Characteristics and Competencies of Today’s Internal Audit Leaders
GREAT Ways to Motivate Your Staff
Maturity Levels for Internal Audit Departments Around the World
The Skills Most Desired by IA Managers for Their Staffs
Certifications Held by Internal Auditors
Ethical Pressures Faced by Internal Auditors
IIA Standards: Conformance and Trends
Quality Assurance and Improvement Program Trends
Regional Reflections: Africa
Integrated Reporting
Organizational Governance: Internal Audit's Role
Women in IA: Representation and Trends
Additional reports that will be available for a free download..

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52. About The IIA Research Foundation
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