In Pursuit of Profit
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Time and time again we have clients come to us expressing regret over their accounting hiring decisions. They say things like: “…We hired what we could afford and the person we brought in is totally underqualified…” “…We’ve had so much turnover in the role – we just can’t keep anyone, and we don’t have the budget to get someone who will stick around…” “…We simply can’t find what we’re looking for these days at the price we’re willing to pay…” “…We put off hiring because we didn’t want to spend the money before, but now we’ve waited far too long and we need to find someone immediately!..” The lesson here is clear – trying to cut costs with accounting hiring is always going to cost more in the long run! Let’s look at why hiring a “cheap” accountant is actually more expensive than hiring a good accountant and how you can improve your hiring strategy. A resource offered in partnership between The ASP Team and CFO Selections One commonality among our businesses at The ASP Team and CFO Selections is that we often talk to business leaders that aren’t sure which kind of accounting role they need. They typically understand the duties they would like the person to perform and the deliverables they expect to receive, but they aren’t sure what to call the role exactly. Without the proper title it makes it difficult to hire into the role or find an accounting services company to provide exactly what they need. Sometimes clients will come to us at The ASP Team saying that they need a “bookkeeper” as a catch-all phrase for someone doing any kind of accounting work but what they are really looking for is something more – an Accountant, Senior Accountant, or even Controller. Similarly, sometimes clients will come to us at CFO Selections saying that they need a “CFO” as a catch-all phrase for someone doing more advanced accounting work or leading an accounting team but what they actually need is something less – a Controller, Accounting Manager, or Senior Accountant. How do you know which you need? For those familiar with college athletics, March is known for the Division I college basketball championships. You may not, however, know how a few years ago the NCAA allowed student-athletes to change schools with no loss of eligibility by creating the “Transfer Portal.” When an athlete declares that they want to leave for another school, their name gets put in the Transfer Portal database. Voila, other coaches see this and say, “I want that center” or “I want that point guard” and reach out to them. What does this have to do with hiring accounting professionals? Well, the transfer portal concept is not just for college athletes. There’s also a career transfer portal – it’s what happens out there in the world of recruiting. Using an external recruiter is the best way to ensure you are accessing accounting employees that are in the transfer portal.
So, what can you do to prepare yourself for the wave of turnover that may be coming?
When they hear about this trend most employers will go into “fix it” mode and ask what they can do to keep their accountants from bolting soon. Unfortunately, at this point there’s probably very little that can be done to keep them long-term. If the year-end bonus they just got wasn’t enough persuasion, any sort of incentive you throw at them is likely just going to delay the inevitable. (Plus, the quality of work they do and passion they bring to the role is only going to suffer further if they already have one foot out the door.) Instead, your best bet is to get ready for what’s coming next. Take the steps now to be prepared in case your accountant leaves so that you’re not scrambling during tax season to find and onboard someone new. 1/16/2024 What Do Salary Ranges Actually Mean?Companies that post salary ranges may choose to do so voluntarily, in the name of equity and transparency, or be required to do so by law. The idea is that by sharing salary bands job applicants are given a range of earnings to expect, eliminating the disparity that can occur when some groups of candidates are less likely to negotiate for a higher salary. Salary ranges should promote fairness and ensure employees are compensated appropriately for the value they bring to their employer.
So, why are employers and job seekers alike in an uproar about salary ranges? Let’s look at what has gone wrong and how both employers and job seekers can respond to position themselves well in today’s job market. Of course, you need to find the right technical skills, industry relevancy and appropriate experience level or education. But there are soft skills to consider too, such as communication, creativity, emotional intelligence, maturity in their experience, and career goals. These soft skills are every bit as important because they can play a critical role in a potential employee’s ability to succeed.
Research increasingly shows that hiring people for “cultural fit” (seeking out individuals who align with your company’s unique culture and values) is an essential part of effective strategic hiring. My own recruiting experience backs this premise. Over my 45 years in the recruiting industry, I’ve found that the most important factor in hiring isn’t technical skills.
There is skepticism around whether special skills are required to recruit well, how much experience plays a part in the process, and if the benefit justifies the cost.
I’ve seen many clients struggle to find accounting help over the last two years across all employment levels – from bookkeeper all the way through CFO. I’ve seen new hires simply not show up for their first day without any notice. I’ve seen new employees resign less than a month after starting for other opportunities or just to leave a work culture they don’t like. Workforce expectations have shifted dramatically over the past five years and employers are struggling to fill open positions amid these changes. In fact, Manpower surveys indicate that 75% of employers report difficulty in finding skilled accounting talent.
I wager many of you have gone through this scenario: You find a job that sounds great and start the interview process. Before you know it, you’re multiple interview rounds in (possibly even to the offer stage) and then you find out that the compensation isn’t a fit. You’ve wasted your time, and the company has wasted theirs.
Scenarios like this are why it is imperative to get clear on compensation expectations and details early and often in a job seeking process to avoid wasting time. So, how should you think about money in your job search? 7/10/2023 Do Accounting Job Titles Matter?
I discovered many parts of the HR world matched my interests, so I wanted to be a finance leader who had some real HR knowledge. I pursued an SPHR (Senior Professional in Human Resources) designation, which required studying materials and taking an exam. As time passed, I realized recruiting was the part of HR I really liked because I am a lifetime connector. Fast forward to today and I have spent most of the past 20 years as a recruiter.
One topic that is a continual area of consternation within the recruiting world is job titles. Job seekers and hiring companies alike struggle with accounting and finance job titles. I’ll tell you why and what you can do about it when looking for or posting an accounting job: |
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4/29/2024