RSM Canada - Developing a “coming out of COVID”

work design for Generation Z employees*

It is a priority for us to cultivate and maintain a culture where our

employees are free to be themselves and embrace the power of being you
as much as our brand promise of the power of being understood. To be
recognized among a list of top organizations who share our commitment
to progressive and forward-thinking programs, particularly those focused
on inclusion and diversity, along with other key criteria that make RSM
Canada a great place to build a career, is both a personal and
professional highlight.
- Rhonda Klosler, 2020*

Introduction
Rhonda Klosler, Chief Operating Officer of RSM Canada (“RSM”), clicked “Join” when
the dialogue box for the WebEx call appeared. As her computer connected, she
thought, “Thank goodness we have this technology that allows us to still see each other
and connect virtually. I can’t imagine how we would have managed through COVID
lockdowns without it.”

She was looking forward to this conversation with Lindsay Helmers, an Assurance
Manager with RSM, Daniel Booth, National Campus Recruitment Lead, and the recent
hires and co-op students that would be joining the call. After everyone joined and spent
some time catching up, checking in and getting to know one another, Rhonda focused
the group on the topic at hand.

I’m glad to hear that everyone is doing well. I can’t believe there are
people on this call that I have only seen through a computer screen.
Hopefully we will be able to meet in person soon, which is why I wanted to
connect with you today. COVID has posed some challenges for managing
human resources, in particular, ensuring everyone is engaged, bonding
with each other and fully experiencing our awesome company culture. At
the same time, it has highlighted some opportunities - everyone is saying
they love the flexibility RSM offers and the fact that they don’t have to
waste time commuting to the office every day. We’ve also been able to

* This case was written by Sofy Carayannopoulos for academic training. It is not intended to indicate effective or
ineffective management practices. The author gratefully acknowledges the support of Daniel Booth and RSM in
creating this case.
 hire some great employees who are in locations we otherwise wouldn’t
reach.

My question to you today is, coming out of COVID, what would the ideal
work design of in-person versus remote activities be for a Generation Z
employee? How (and what) technology can be harnessed to make work
at RSM a great experience for our staff, in particular, our Generation Z
new hires and co-op students? How should it be used to make work lives
better, easier and productive?

Before opening the floor to discussion, Klosler took a moment to remind everyone of a
few key points:
The objective is to help employees feel valued and happy working for the
company. RSM’s aspiration is to ultimately be the most desirable employer in
Canada.
The ideal solution will balance the flexibility to work remotely with the need for
interaction and bonding between employees. It will align with and build the RSM
culture. This connectivity is how RSM wants to differentiate itself in our industry.

RSM

RSM provides audit, tax and consulting services to middle market companies, and the
firm’s competitors are the big accounting and advisory firms (see Exhibit 1 - RSM
competitors for details).

Prior to the launch of RSM in the Canadian market and re-brand as RSM Canada, its
predecessor firm operated as the tenth largest firm in its industry in Canada with a rich
60 year history. In 2018, the predecessor firm joined RSM International, a global
network of independent audit, tax and consulting firms, and became RSM Canada LLP.

By 2021, RSM International had more than 12,000 employees in North America and
over 43,000 world-wide. It operates in 120 countries and is considered a leader in
advising middle market leaders2 globally.

RSM Canada currently has offices in Red Deer, Calgary, Edmonton, and Toronto. In
2020, the firm achieved $100 million in revenue with 727 employees 3. Unlike its
competitors, RSM’s intention is to have integrated offices in the major markets in
Canada – Toronto, Calgary/Edmonton, Ottawa, Montreal and Vancouver - with a
national alliance of independent firms that help serve the rest of Canada. Located in
Alberta and Toronto, the firm is focusing on building its presence in Vancouver, the next
major English-speaking market in Canada.

RSM culture and employee focus

The company’s brand promise is to deliver “The Power of Being Understood.” This
guides how the company wants clients and employees to feel and be treated. RSM had
identified key behaviours (“5 Cs) that were central to delivering the Power of Being
Understood and these were now a large and deeply rooted part of the company culture
(see Exhibit 2 for a visual depiction of the 5Cs and a link to an explainer video).
Caring (deep focus on customer)
Collaborative (work with and support each other and the client)
Curious (innovative)
Critical thinking (truly understanding the client needs)
Courageous (think beyond boundaries; challenge)

The 5Cs applies to all stakeholders throughout their relationship with RSM, including
recruiting new employees because these were the desired characteristics of RSM
advisors. As Klosler pointed out,
“We’re a people business - we are only as good as the people that work
with our clients. Our priority is [therefore] always our people first. But
delivering on the “Power of Being Understood” and applying the 5Cs
approach extends to our clients and is our differentiator – asking
questions, bringing in other experts/perspectives as needed.”

Work environment and culture

The values that they embrace as an organization are respect, integrity, teamwork,
excellence and stewardship4.

RSM acts on its core value of stewardship by committing to operate in an

environmentally responsible way but also by giving back to the community. Its various
corporate social responsibility activities are outlined here. The organization has
supported various charitable causes and events throughout the year and encouraged its
employees to do the same. For example, in 2020 RSM Canada had raised $220,000
through its annual stewardship campaign - Birdies for Love. These funds help support
various organizations whose mandate is to enhance education or quality of life for
children and families (see https://rsmcanada.com/newsroom/news-releases/2020/rsm-
canada-donates-more-than-220000-through-2020-birdies-fore-lo.html for further
information).

RSM describes its work environment as one where everyone feels comfortable being
who they are, in other words, to be their authentic selves (see Exhibit 3 - RSM
Recruiting brochure for details on how this is communicated to new recruits). The focus
is on authenticity combined with the “Power of Being Understood,” and to address the
unique needs and aspirations of each employee (see the information provided at this
link for additional details https://rsmus.com/who-we-are/our-values/rsm-talent-
experience.html). The pillars of the firm’s human resource practices were: flexibility,
career development, inclusiveness and understanding.

RSM’s approach to human resource management focuses on an ideology that each

employee needs to “own your own future”. When new employees join the organization,
they are connected with career advisors and partners to identify areas of interest,
ambitions and how to achieve their career objectives. They are asked to share what
path they want to take so that they could be supported in building the expertise for that
path. Within their first year, they are asked to identify two industries they are interested
in and want to focus on so they could become subject matter experts. They can attend
local, national and US-based conferences that are focused on the employee’s identified
interests. Pre-COVID, everyone would go to Chicago for training with the purpose of not
only learning more about their industry of choice but also to build networks and a
community across North America. There is a strong focus on getting designations as
well and the firms provides paid time off to study and write exams, pay for education,
and work with an external vendor to prepare for exams, resulting in a 98% pass rate.

Promoting inclusion and diversity begins with the leadership team and is driven by
Employee Networking Groups (ENGs) that centre on different themes. The ENGs are
driven by employees and their purpose is to create community and a forum for
understanding by bringing employees that have similar interests or backgrounds
together. ENGs are encouraged to create events in which all employees can participate.
The events promote networking, professional development, mentorship, and education
that fosters understanding and respect for members. For example, to foster learning
and growth, ENGs might facilitate “courageous conversations” around their themes,
during which employees can ask any questions that they were struggling with, without
being judged. Courageous conversations focuses on timely topics, including mental
health and systemic racism, and have included external speakers as well as internal
speakers from across North America to aid understanding. Approximately 60% of staff
and partners have chosen to become part of an ENG.
Leaders are always present and involved in ENG events. The enthusiasm, engagement
and participation rates of top leaders in organized social activities are comparable to
those of newer employees.

There are also no barriers between the various levels of the organization, so an
employee anywhere within RSM can reach out to anyone else in the organization for
help, advice and information, regardless of the individual’s position. The camaraderie
and casualness of interactions between employees is not hindered by differences in
where they are on the organizational hierarchy.

RSM’s approach to its employees has been recognized with various awards. In 2021 it
was named one of “Greater Toronto’s Top Employers”1 and in 2020 was recognized
among Canada’s “Most Admired Cultures5”

The job
RSM’s growth is fueled by its partners who build relationships while leveraging teams to
execute on the deliverables with clients.

Managers and their teams work with clients. Consequently, employees collaborate and
coordinate with each other, even as they complete their individual responsibilities. In
addition, sub-groups within lines of business are set up so that they can become subject
matter experts and connect with fellow colleagues in the same area who work on the
same tasks.

Rather than have employees focus on specific tasks for a variety of projects, they are
given line of sight from cradle to grave on projects so they understand the entire
deliverable and their role in it. Letting employees be involved in all client activities
ensures employees see the value and impact of their work.

To acknowledge and reward performance, employees are provided fast feedback and
internal points and recognition, “accolades6”, can be awarded to anyone by anyone.

COVID hits

Prior to COVID, it was easy for staff and partners to organically connect and experience
the culture of the organization. It was easier to share stories and ask questions as
people worked side-by-side, passed each other in hallways, or while taking coffee
breaks. You could read quotes on the office walls and participate in various in-person
events throughout the day.

Quite suddenly in March 2020, COVID was confirmed a global pandemic. Governmental
responses across the world varied widely, but in Canada the Prime Minister announced
the first in a series of stay-at-home orders, forcing businesses to move employees to
work from home wherever possible. RSM’s top priority was to keep its employees safe
while figuring out how to service clients right in the middle of the busiest time of year.
Canadian leadership had to jump into action and within 24 hours had 727 employees
and partners set up to work remotely. Employees were “tooled up and trained up” on
Webex and other online platforms to support clients and their needs. This was not an
easy task and required trust, solid leadership and lots of online training on how to use
WebEx more efficiently, access the tools online and connect to teams and clients in a
new space.

Rhonda Klosler shared that leadership, “over-communicated so our people understood

where we were going and what decisions were being made at all times”.

RSM’s IT and HR team quickly identified how to virtually onboard new hires and set
them up with the equipment they needed (ex. laptops) so that were ready to go from
their first day on the job. All new hires went through extensive virtual training with
collaboration with colleagues across Canada and the U.S.

Externally, RSM had to pivot to address clients’ needs and opportunities in a new way.
Audit and tax functions had to be moved completely online and the consulting line of
business, which was now outpacing the other two lines of business on growth, had to
focus on technology, digital capabilities, and infrastructure for technology because
clients now needed this support to build new skill sets.

Initially, technology was the biggest challenge. Employees were given as much support
as needed but they were also asked to give themselves grace. They were used to being
the best in what they do and struggled to give themselves time to adjust in this new
environment. They were encouraged to reach out for help and told that it was okay if
everything wasn’t perfect. There were regular touchpoint meetings to check-in with
employees/teams and make sure they had what they needed for their jobs and
themselves.

Once the organization found its rhythm with remote working, it pivoted to creating
community. There were quarterly calls to bring different ENG communities together.
Social activities such as virtual escape rooms and an online Second City comedy night
were organized.

RSM was also cognizant of Zoom/WebEx fatigue so they started putting boundaries on
expectations, i.e. don’t answer emails after a certain time in the evening, block a lunch
break to step away from work and your computer, take meetings as calls rather than
videos, and try “walking meetings” outside. They began using breakout rooms and
surveys to capture thoughts and opinions to ensure all voices were being heard and
many are hesitant to speak up in large, remote groups. The firm moved their summer
leadership program online and held it virtually across Canada. In 2020, the focus was
on what technology could be used so the experience didn’t look clunky - they used more
cameras, integrated surveys and used breakout rooms to create a more comfortable
experience.

Recruiting new talent was done completely online and there was an important silver
lining: RSM was able to attract excellent talent from remote markets because
employees were not constrained by the need to travel or live near RSM’s physical
offices.

In January 2021, it was clear that RSM had been able to successfully pivot to remote
work. It was having its best year ever, growing revenue 12 to 13% year-over-year – with
tax and consulting services leading the growth particularly in areas like digital
transformation and automation.

GENERATION Z CHARACTERISTICS7,8
Generation Z is referred to as individuals born between 1997 and 2012. Professional
and academic achievement is generally highly valued by this generation, and they are
focused on personal growth and development. At the same time, this generation values
purpose and social responsibility. They are digital natives and have never known a time
when the internet did not exist, but they also crave in-person interaction. They want
human connections and to feel like they are part of a team. Studies suggest that when
dealing with a remote Generation Z worker, recurring meetings are good for bonding
and ensuring this person is heard. Connectivity via video calls are better than telephone
calls.

What sets this group apart is that COVID disrupted their education and disconnected
them from their regular learning in a communal setting. The way this groups learns has
therefore been impacted which means that employers may have to reconsider their
orientation and skill development programs in future years. In addition, the substantial
disruption to their social and educational experiences has increased their baseline
stress levels far above those of prior generations.

Remote versus in-person tradeoffs and issues

There was a range of options between entirely remote and entirely in-office work design
(see Exhibit 4 - The In-office to Fully remote continuum). After organizations recovered
from the imposed requirement to work remotely, they began to reconsider the potential
for doing so more systematically and permanently. Large companies such as Facebook
and Twitter announced they would take a large-scale approach and that working
remotely would be permanently adopted.9

However, it was clear that the issue was not simply a matter of offering employees
laptops and enabling video calls. Organizations must address the issue of technology –
what and how it would be used to allow for effective collaboration, coordination, and
productivity. They would need to consider the physical resources of their organization -
would offices be temporary and small, and widely scattered to enable employees to
reach them or would they be large and centralized? What would travel expectations and
support entail? And what structures and approaches could be used to maintain culture
and values? Klosler had asked at the start of the meeting, “How could RSM overcome
the challenge of lost training and development opportunities as well as the
brainstorming of new ideas and building a close culture that happens naturally when
you are sitting side by side with your colleagues?”

There were many tools that were already available but had become invaluable in a
remote work setting10. For example, online whiteboards that mimicked the ability to
create and move around post-it notes on a physical whiteboard, platforms that mimicked
a physical office that allowed employees to create cartoon images of themselves and
physically walk to each other, or even virtual reality office experiences. New methods
such as “Working Out Loud” surfaced as well. The options and tools were endless, and
the most successful companies would harness them not just effectively, but innovatively
to differentiate themselves as employers.

CONCLUSION

Being forced to work from home due to COVID created many challenges, but it also
revealed opportunities. It highlighted what could be accomplished remotely such as
accessing talent from distant locations. It unearthed flexibility and autonomy for
employees and eliminated long daily commutes. The question that Rhonda Klosler now
wants to focus her leadership team on is how should RSM harness technology to create
a better work experience and environment for Generation Z new hires and co-op
students? What was the right combination of remote and in-person in terms of time and
activities? What specific technologies might be adopted and how might they be used?
She hoped that the team would have some innovative and effective recommendations
for technologies and work design.

The objective of the solution was to make generation Z employees in particular feel
valued and happy working for the company. RSM’s aspiration was to ultimately be the
most desirable employer for top talent across the country.

The best solution would differentiate RSM from other industry employers, balance
autonomy and flexibility with interaction and bonding and align with and build the RSM
culture.
References
1. RSM Canada. (2020). RSM Canada named as one of Greater Toronto's Top Employers
(2021). Accessed at https://www.newswire.ca/news-releases/rsm-canada-named-as-one-of-
greater-toronto-s-top-employers-2021--820338637.html
2. RSM Canada. (2021). Company-provided data
3. Klosler, R. (January 23, 2021). Personal communication
4. RSM Canada. (2021). Our values. Accessed at: https://rsmcanada.com/who-we-are/our-
values.html
5. RSM Canada. (2020). RSM Canada recognized among Canada’s ‘Most Admired
Corporate Cultures’. Accessed at https://rsmcanada.com/newsroom/news-releases/2020/rsm-
canada-recognized-among-canadas-most-admired-corporate-cultu.html
6. Accolades. RSM describes this as follows: “At RSM, we’re celebrating excellence –
we’re celebrating our team. We define excellence through our core values. But it’s
more than just understanding these values. It’s about taking them to the next level;
going “above and beyond” to successfully deliver on our client and people promises.
The Accolades rewards program is available to help our team give and receive
recognition for achievements that demonstrate a commitment to our core values.”
7. Rikleen, L.S. (2020). What your youngest employees need most right now. Harvard
Business Review. Accessed at: https://hbr.org/2020/06/what-your-youngest-employees-
need-most-right-now
8. Stahl, A. (2019). How to manage generation Z employees. Forbes. Accessed at:
https://www.forbes.com/sites/ashleystahl/2019/09/26/how-to-manage-generation-z-
employees/?sh=32a4a1ba681e
9. Johnson, M.W., Susekicz, J. (2020). Does your company have a long-term plan for
remote work? Harvard Business Review. Accessed at: https://hbr.org/2020/07/does-
your-company-have-a-long-term-plan-for-remote-work
10. Hinchcliffe, D. (2020). Working in a coronavirus world: Strategies and tools for staying
productive. ZDNet. Accessed at: https://www.zdnet.com/article/effective-strategies-and-
tools-for-remote-work-during-coronavirus/
 Exhibit 1 - RSM Competitors

RSM identified its business competitors as follows:

MNP: 5,571 employees, headquartered in Calgary, 80+ offices in 2020?

- In 2019 named a Best employer for 11 years in a row by AON

Grant Thornton: 2425 employees, 115 offices, $213 million US revenues

- Awarded workplace awards ie Best Places to Work for three years in a row
including 2020

Deloitte: 11,908 employees; $2.8 billion

- Received Top Rated Workplace and Great Workplaces awards in 2018 and 2019
respectively

PWC
- 7300 employees, https://www.pwc.com/ca/en/about-us.html
- $18.3 billion US in 2020 in the Americas

KPMG
- $1.8 billion in 2020 (CDN)
https://home.kpmg/ca/en/home/about/performance.html
- Named Canada’s Top 100 Employers by MediaCorp for 15 years including 2020;
7,000 + employees

BDO
- In 2019 - Revenue $683 million, 4,344 employees, 125 offices
- Received Canada’s Future Workforce award in 2020 and 2021
 Exhibit 2 – The 5 Cs

See also video on “What are

the 5Cs”:
https://vimeo.com/344166916

Caring: deep focus on others including customers and employees. Being

genuinely concerned about the success and well-being of colleagues and clients;
taking actions that demonstrate care, i.e. offering opportunities and support the
goals and needs of clients and employees, developing friendships
Collaborative (work with and support each other and the client); work with others
across the organization regardless of location or level; build community at all
levels; collaborate across the organization to deliver the best experience and
fulfill unique client needs
Curious (innovative – exploring new opportunities and initiatives personally and
for clients; figuring out ever-changing and better client solutions by being curious)
Critical thinking (truly understanding the client needs; constantly thinking about
how improvements can be made; challenging paradigms and exploring new
perspectives)
Courageous (think beyond boundaries; challenge yourself with new experiences
and opportunities; be open and transparent; ask for help; trust others; voice
alternative viewpoints)

Source: RSM. Used with permission

 Exhibit 3 - RSM Recruiting Brochure

Source: RSM. Used with permission

 Exhibit 4 - The In-office to Fully Remote Continuum

Source: Alexander, A., De Smet, A., & Mysore, M. (2020). Reimaging the postpandemic
workforce. McKinsey Quarterly. Accessed at: https://www.mckinsey.com/business-
functions/organization/our-insights/reimagining-the-postpandemic-workforce#