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The Firm’s Human Capital Principles


By Norazlina Mohd Nor

KHR adopts the 4 main principles of human capital in its practice.

  1. Recruitment and selections

In essence, the policy here involves hiring the best talent for the position. The process of recruiting starts with the candidates writing in applying for a post within the Firm. A phone interview will be carried out as the first screening process of the candidates mainly in the area of qualifications, interest, and communication skills. He/she will then be assessed by an internal team including representatives from the IBS and audit or other departments who are recruiting. From thereon, if and only if the baseline requirement is met, the candidates will be notified, and an interview will be arranged. Amongst the assessment done includes a simple written assessment, interview and a question-and-answer session. The candidate’s attitude will also be taken into account before he is brought into the Firm and recruited.

  1. Learning and Development

This is where the Firm looks to improve the staff’s technical know-how and development of its other skill sets. The process includes:

a. On-the-job training

Based on the Firm’s internal structure, each staff will have his work supervised and monitored by a superior with the relevant experience and qualifications. This will expose him to the real work of an auditor and professional accountant which will enable him to grow both as a professional and a person.

b. Professional courses

The firm recognizes almost all professional accountancy qualifications and is duly authorized to train the staff for them to qualify and become members of these prestigious organizations.

The Firm encourages its people to qualify by inter-alia sponsoring their tuition fees and granting them study leave and exam leave amongst others.

It also endeavors the creation of a working environment where knowledge and technical know-how are appreciated and where improvement is always encouraged.

The following are accountancy bodies and professional institutes that recognise the firm and authorize it to train their students: –

  1. The Institute of Chartered Accountants in England & Wales
  2. The Malaysian Institute of Certified Public Accountants
  3. Chartered Accountants Australia and New Zealand
  4. The Association of Chartered Certified Accountants
  5. CPA Australia

c. In-house training

The Firm develops its Annual Training Plan before the start of every new year to address the training needs of its staff accordingly. Each staff is required to comply with the training schedules designed for him according to the level he is at. This training is conducted by the Firm’s technical committee with the assistance of whoever is needed including the partners where all the trainers are professionally qualified. Typical topics covered include practical auditing, accounting expertise and taxation, and other relevant issues including current technical updates and pronouncements.  

d. External short trainings

For new pronouncements of Accounting Standards or Auditing Standards, the Firm also sends its staff for external training provided by Accounting Institutes and other recognized professional bodies.   

e. K world

KHR also developed a resource center that houses various technical materials for its staff as reference and research called K world. K World houses amongst others: –

  1. Accounting Standards
  2. Auditing Standards
  3. Exam banks for various professional exams
  4. Precedent auditing and accounting cases
  5. Model file for audit working papers
  6. Other accounting and auditing literatures
  7. Information technology (IT) policy
  8. Human Resource (HR) Policy
  9. Staff handbook

The above will hopefully help the Firm to produce qualified and well-rounded professional accountants that meet the needs and are well accepted by the marketplace.

Opportunities are also granted to senior staff who have qualified to professionally be involved in the tutelage of the newcomers and in a way to help shape the futures of these newcomers and hopefully contribute to nation-building in the process too.

  1. Retention and performance management

The clear objective for this is to retain the best people having developed their skillsets and professional qualifications besides helping them to continue to perform their best.

This includes having a clear and fair assessment process at all levels. From thereon, remunerations that are commensurate must be provided to all staff. It is important to note that remunerations considered must include both: –

a. Primary

mainly consist of monetary benefits and statutory compensations and insurance coverage usually involves promotions and pay packages. Additional EPF contributions can also be considered.

b. Secondary compensations

include compassionate leaves and other factors including a reasonably supportive working environment, additional leave, and flexible working hours. This also includes individual exposures to the Profession’s way forward and activities via direct involvement with the various levels of Institutes’ activities of which the staff members.

Both, if thoughtfully crafted, can and should be used to improve the ‘staying factor’ amongst the staff by providing them with better reasons for them to stay and causing them to think of the Firm as their long-term career provider.

  1. Succession planning

The Firm employs the philosophy of “not stopping people from leaving but providing reasons for them to stay’. Accordingly, any resignations must be managed to avoid disruptions to the operations. Herein comes the need for a succession planning process within the Firm.

A clear and well-planned structure helps manage this as the successors can readily come forward as the development and assessment process would have enabled them to be identified and prepared before the need arises.